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A choice made from two or more alternatives”
Four Views of Consumer Decision Making
- Economic (rational) Model
- Consumer makes economically rational decisions → aware of all
- alternatives → can evaluate pros and cons → make best decision.
- Passive Model
- Consumer is depicted as being easily persuaded by marketing
- techniques → simply follow what marketers say.
- Cognitive (problem-solving) Model
- Consumer depicted as problem solver → follow a decision making
- process → use “bounded rationality” → make best use of the information that they have.
- Emotional Model
- Focus is on the emotional issues that influence purchase decisions
- (e.g. fear, hope, fantasy, joy etc.).
Emphasis is on current mood and feelings
Three Levels of Consumer Decision Making
- Extensive Problem Solving
- No established criteria for evaluating a brand category or their evoked set is still large
- Limited Problem Solving
- Have evaluation criteria but do not have fully established preferences
Routinised Response Behaviour (experienced with product)
- A continuum of Buying Decision Behaviour
- Routine response behavior - Limited problem solving - Extensive problem solving
Input Process Output
- Marketing Inputs: The firm’s activities that attempt to reach, inform and persuade customers to buy and use their products.
- Socio-cultural Inputs: These comprise a wide range of noncommercial
- influences such as friends, family, society and culture.
- Need recognition (actual vs desired state) - Pre-purchase (Information) Search
Major Types of Perceived Risks PPFFTS
- Factors Influencing Pre-purchase Searches:
- Product Factors
- Situational Factors
- Personal Factors
Evaluation of Alternatives
Evoked sets: (consideration sets): The specific brands a consumer considers in making a purchase choice in a particular product category.
Inept sets: Brands that a consumer excludes from purchase consideration.
- Inert sets: Brands that a consumer is indifferent towards because they are perceived as having no particular
Includes trustworthiness and expertise. It improves the chances that the brand will be included in the consideration set.
- Three factors impacting brand credibility are:
- 1. Perceived quality of the brand.
- 2. Perceived risk associated with the brand.
- 3. The information costs saved with the brand
Consumer Decision Rules
Compensatory: Each brand is evaluated in terms of each relevant attribute. Consumer selects the brand with the highest weighted score.
- Non compensatory: Positive evaluation is not balanced against a negative evaluation of the same brand on some other attribute.
Affect referral rule: Decision based on previous overall ratings of the brands considered – not on attributes
Non Compensatory Decision Rules
- Conjunctive: The consumer sets a cut off point for each attribute. Any product not reaching each point is eliminated from consideration.
Disjunctive: The consumer sets a cut off point for each attribute. Any product reaching point is considered.
Lexicographic: The consumer chooses the brand that is best in regard to the most important attribute.
Three Types of Purchases
1. Trial purchases: A first-time purchase of a product, usually designed to evaluate the brand.
2. Repeat purchases: Follows the trial purchase, and the consumer has now found the product satisfactory enough to repurchase it.
3. Long-term commitment purchases: The purchase of some form of durable product where a trial purchase is not possible.
Consumer Strategies to Decrease Post Purchase Cognitive Dissonance
- Post-purchase cognitive dissonance: The discomfort or dissonance that consumers experience as a result of
- conflicting information
- Rationalise the decision as being wise.
- Seek out advertisements that support the original reason for choosing the product.
- Try to ‘sell’ friends on the positive features of the brand as a
- means of convincing self.
Look to known satisfied owners for reassurance.