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    Decision Making: Consumer Behavior, 9E

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    Lya Gayi
    The document outlines the stages of consumer decision making, including problem recognition, information search, evaluation of alternatives, and product choice. It discusses factors that influence each stage, such as the level of consumer involvement, biases that impact decision making, and criteria used to evaluate options. The stages of decision making involve assessing the difference between a consumer's current and ideal state, searching for information internally and externally, and ultimately selecting a product based on prior experience and brand beliefs.

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    Decision Making: Consumer Behavior, 9E

    Uploaded by

    Lya Gayi
    20 views21 pages
    The document outlines the stages of consumer decision making, including problem recognition, information search, evaluation of alternatives, and product choice. It discusses factors that influence each stage, such as the level of consumer involvement, biases that impact decision making, and criteria used to evaluate options. The stages of decision making involve assessing the difference between a consumer's current and ideal state, searching for information internally and externally, and ultimately selecting a product based on prior experience and brand beliefs.

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    Decision Making Total

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    Decision Making Total

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    The document outlines the stages of consumer decision making, including problem recognition, information search, evaluation of alternatives, and product choice. It discusses factors that influence each stage, such as the level of consumer involvement, biases that impact decision making, and criteria used to evaluate options. The stages of decision making involve assessing the difference between a consumer's current and ideal state, searching for information internally and externally, and ultimately selecting a product based on prior experience and brand beliefs.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    20 views21 pages

    Decision Making: Consumer Behavior, 9E

    Uploaded by

    Lya Gayi
    The document outlines the stages of consumer decision making, including problem recognition, information search, evaluation of alternatives, and product choice. It discusses factors that influence each stage, such as the level of consumer involvement, biases that impact decision making, and criteria used to evaluate options. The stages of decision making involve assessing the difference between a consumer's current and ideal state, searching for information internally and externally, and ultimately selecting a product based on prior experience and brand beliefs.

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    Decision Making

    CONSUMER
    BEHAVIOR, 9e
    Michael R. Solomon
    Figure 8.1 Stages in
    Consumer Decision Making
    Decision-Making Perspectives

    • Are consumers rational when they make


    purchase decisions?
    • What is purchase momentum?
    • What cognitive processing styles affect
    consumer decision making?
    Figure 8.2 Continuum of
    Buying Decision Behavior
    Steps in the Decision-Making Process

    Problem recognition

    Information search

    Evaluation of alternatives

    Product choice
    Stage 1: Problem Recognition
    • Occurs when consumer sees difference
    between current state and ideal state
    • Need recognition: actual state declines
    • Opportunity recognition: ideal state moves
    upward
    Figure 8.3 Problem Recognition
    Stage 2: Information Search
    • The process by which we survey the
    environment for appropriate data to make a
    reasonable decision
    • Prepurchase or ongoing search
    • Internal or external search
    • Online search
    Table 8.2 A Framework for
    Consumer Information Search

    Prepurchase versus Ongoing Search

    Prepurchase Search Ongoing Search

    Determinants Involvement with Involvement with product


    purchase

    Motives Making better purchase Building a bank of


    decisions information for future use
    Outcomes Better purchase Increased impulse buying
    decisions
    Deliberate versus “Accidental” Search
    • Directed learning: existing product
    knowledge obtained from previous
    information search or experience of
    alternatives
    • Incidental learning: mere exposure over time
    to conditioned stimuli and observations of
    others
    Do Consumers Always Search Rationally?
    • Some consumers avoid external search,
    especially with minimal time to do so and
    with durable goods (e.g. autos)
    • Symbolic items require more external search
    • Brand switching: we select familiar brands
    when decision situation is ambiguous
    • Variety seeking: desire to choose new
    alternatives over more familiar ones
    Biases in Decision-Making Process
    • Mental accounting: framing a problem in
    terms of gains/losses influences our
    decisions
    • Sunk-cost fallacy: We are reluctant to waste
    something we have paid for
    • Loss aversion: We emphasize losses more
    than gains
    • Prospect theory: risk differs when we face
    gains versus losses
    Figure 8.5 Amount of Information Search
    and Product Knowledge
    Minolta Understands Perceived Risk
    Figure 8.6 Five Types of Perceived Risk

    Monetary risk

    Functional risk

    Physical risk

    Social risk

    Psychological risk
    An Appeal to Social Risk
    Alternatives

    Evoked Set

    Consideration Set
    Strategic Implications
    of Product Categorization

    • Position a product
    • Identify competitors
    • Create an exemplar product
    • Locate products in a store
    Product Choice: How Do We Decide?
    • Once we assemble and evaluate relevant
    options from a category, we must choose
    among them
    • Decision rules for product choice can be
    very simple or very complicated
    • Prior experience with (similar) product
    • Present information at time of purchase
    • Beliefs about brands (from advertising)
    Evaluative Criteria
    • Evaluative criteria: dimensions used to judge
    merits of competing options
    • Determinant attributes: features we use to
    differentiate among our choices
    • Criteria on which products differ carry
    more weight
    • Marketers educate consumers about (or
    even invent) determinant attributes
    • Pepsi’s freshness date stamps on cans
    Information Necessary for
    Recommending a New Decision Criterion

    • It should point out that there are significant


    differences among brands on the attribute
    • It should supply the consumer with a
    decision-making rule, such as if, then
    • It should convey a rule that is consistent with
    how the person made the decision on prior
    occasions

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