MKTG 407 Consumer Decision-Making Processes Chapter 7

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MKTG 407 Consumer Decision-Making
ProcessesChapter 7
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Steps in Consumer Decision-Making
1. Problem Recognition
2. Information Search
All steps affected by Cultural Social Individual
Psychological Factors
3. Evaluate Alternatives
4. Product Choice
5. Post Purchase Behavior
An Illustration with Ideas for Nuggets/Underhill
PPTs
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Exercise

• Think of a recent consumer decision
• Walk through five steps of consumer
  decision-making process
• Identify at least one factor that affected your
  response at each stage
• Discuss with person sitting next to you

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Steps in Consumer Decision-Making
1. Problem Recognition

• A difference between current and desired or ideal
  state
• Can be driven by internal (hunger) or external
  (friends) factors
• Can be driven by future goals/aspirations, which
  rest on our values
• Can be influenced by recent events/life
  transitions (from college to the real world)
• Ideal states can become distorted and
  detrimental (Ad1, Ad2)

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Steps in Consumer Decision-Making
2. Information Search

• Searching for appropriate information to make a
  decision
• Internal sources
• Memory for
• Brands
• Attributes
• Evaluations
• Experiences

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Steps in Consumer Decision-Making
2. Information Search

• Brand recall enhanced when
• Brand is prototypical
• Brand is familiar
• Brand is linked with goals/usage situations
• Brand attitude is favorable
• Linked with retrieval cues
• Application to Starbucks Via?

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Steps in Consumer Decision-Making
2. Information Search

• Attribute recall enhanced when attribute is
• Accessible (strongest associative links)
• Diagnostic (allows consumer to distinguish one
  product from another) negative more diagnostic
  than positive, so marketers try hard to avoid
• Salient (e.g., shape of an iPod)
• Has attribute determinance (attribute is both
  diagnostic and salient)
• Vivid
• Linked with goals

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Steps in Consumer Decision-Making
2. Information Search

• Evaluation recall
• While attributes can be recalled, often we forget
  details, but retain a general evaluation (e.g.,
  of brand)
• This is why creating favorable brand image is
  important beyond specific attributes
• Experience recall
• When product linked with an experience, easier to
  recall

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Steps in Consumer Decision-Making
2. Information Search

• External sources
• Common sources for external search
• Retailer
• Media
• Friends
• Independent (neutral) sources CNET
• Experiential (trials, test drives)
• Search enlarges when perceived risk interest
  are high, and confidence, knowledge, experience
  low

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Forming a Consideration Set of Brand Choice
Alternatives
Golden Corral Baby Back Ribs
Golden Corral Comfort Food
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Steps in Consumer Decision-Making
3. Evaluate Alternatives
4. Product Choice

• Info search ? evoked (consideration) set
• Once consideration set established, a variety of
  factors can influence how consumers evaluate and
  choose among alternatives

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Formal Models of Information Integration Processes
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Role of Heuristics in Consumer Decision-Making

• Heuristics
• Simple if . . ., then . . . propositions (rules
  of thumb) that connect an event with an
  appropriate action
• Heuristics particularly important in
• Search
• Evaluation
• Choice

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Steps in Consumer Decision-Making
5. Post Purchase Behavior

• Post-purchase evaluation
• Satisfaction based on expectations
• Larger gap, less satisfaction
• Reduce post-decisional regret (cog. dissonance)
• Other post-purchase behaviors
• Repeat purchase
• Good vs. bad word of mouth