MKTG 303 - Consumer Behaviour: Semester 2 2022

MKTG 303 |
Consumer Behaviour
Semester 2 2022
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MKTG303 WEEK 9
DECISION-MAKING PROCESS
OBJECTIVES FOR
TODAY:
Get in, we’re going
shopping
• We are going to go through some selection processes with a live

experiment/task to understand the stages of the decision-making process
• We are going to do this to understand what happens during these stages of this
process from the consumer and shopper’s perspective
• Understand how marketers influence consumers/shoppers during these stages

THE TASK! LET’S MAKE
THIS FUN:
1. Think of one item 2. Now we are going to

you bought in the last put our consumer and
year – this can be shopper hats on! We
anything! Just pick are going to go through
something you bought the decision-making
yourself in the last year process with our
and note it down! selected product.
NINA’S EXAMPLE
Think Like a Consumer AND a
Shopper
All Shoppers are Consumers.

But not all Consumers are Shoppers.
DECISION-MAKING
PROCESS
7
DECISION-MAKING
PROCESS
3
PROBLEM
RECOGNITION
CH. 3: CONSUMERS ARE PROBLEM
SOLVERS
• Problem solving involves resolving a difference
between the situation consumers are in (e.g.
hungry) and the one they would like to be in (e.g.
full)
• Actual versus desired state
• Think of consumers as buying satisfaction to problems as
opposed to particular products
 Remember actual vs ideal self???

THE NATURE OF PROBLEM
RECOGNITION
The recognition of a problem is the result of a discrepancy between a DESIRED state and
an ACTUAL state:
•Actual state?
• The way an individual perceives his/her feelings and situation to be at the present time (affected by temporary
factors)
•Desired state?
• The way an individual wants to feel or be at the present time (affected by both internal and external influences)
•Problem recognition?
• The result of a discrepancy between a desired state and an actual state THAT IS SUFFICIENT to arouse and
activate the decision process
• Desired states can be deficits or opportunities.
THE
PROCESS OF
PROBLEM
RECOGNITI
ON
CONSUMERS ARE PROBLEM
SOLVERS
To illustrate:
• Go through this scenario with your own product you picked:
• What ‘problem’ did you solve?
• Did you get from your actual state to a desired state?
• Was your product the right solution or were there others?
TYPES OF CONSUMER DECISIONS
Purchase involvement:
 Influenced by the interaction of individual, product and situational characteristics
 What is involved for me might be habitual to you!
Forms of involvement and outcomes:

 Habitual (repeat or brand loyalty)
When involvement is low, such as when habitual decision making is being used, there is very little actual decision making. Brand-loyal
consumers are habitual decision makers. There is a single preferred decision to the problem.
 Limited decision making

Covers the middle ground between habitual and extended decision making. Sometimes one aspect only is considered; for example, a
search for the lowest-priced brand.
 Extended decision making

Involves both an internal and external search for information and the decision making can become very complex. Products such as
holidays, cars, homes and personal computers usually involve high involvement decision making
PURCHASE
INVOLVEMENT
AND TYPES OF
DECISION
MAKING
TYPES OF CONSUMER DECISIONS
Did you buy your selected

product out of habit, or did
you have more involvement
when making the decision
(ex. doing research online?)
NINA’S EXAMPLE
DESIRE TO RESOLVE RECOGNISED
PROBLEMS
Depends on two factors:
1. The magnitude of the discrepancy between the desired state and the actual state
2. The relative importance of the problem.
What was the magnitude of

discrepancy with your product?
NINA’S EXAMPLE
MARKETERS ARE INTERESTED IN...
1. Identifying what ‘problems’ consumers are facing and what triggered them (factors influencing the
desired and actual state)
 Active problem: A problem consumers are, or will be become, aware of in the normal course of the events
 Inactive problem: A problem of which consumers are not yet aware
2. Developing the marketing program to solve consumer ‘problems’
https://www.youtube.com/watch?v=QJ2JiwEARFo&t=60s
1. Identifying what ‘problems’ consumers are facing and what triggered them (factors influencing the
desired and actual state)
 Active problem: A problem consumers are, or will be become, aware of in the normal course of the events
 Inactive problem: A problem of which consumers are not yet aware
2. Developing the marketing program to solve consumer ‘problems’

3. Causing consumers to recognize ‘problems’ (i.e., activating a problem)
 generic problem recognition: recognition of a problem that a variety of brands within a product category
could resolve
 selective problem recognition: recognition of a discrepancy that only one brand in the product category
could resolve
GENERIC PROBLEM
RECOGNITION
Milk Mustache Campaign Super Bowl XLVII TV Commercial

with Dwayne "The Rock" Johnson - YouTube
GENERIC PROBLEM
RECOGNITION
https://www.youtube.com/watch?v=MWfVEVzijUY&t=21s
SELECTIVE PROBLEM
RECOGNITION
https://www.youtube.com/watch?v=5b7x4vGXwPs
4. Suppressing problem recognition
 to counteract the efforts of other agencies.
 to keep people who buy habitually or with a limited decision-making process, happy.
5. Influence the size of the problem discrepancy

4
INFORMATION
& EVALUATION 5
CH. 4: INFORMATION
SEARCH
Internal search
 First step in information gathering
 Memory and personal experiences
External search
 Pre-purchase research (if internal search fails to solve the problem)
 Example: other people, advertisements, reviews, brochures, retailers, internet
 Focus is on external stimuli relevant to solving the problem
Did you have both an internal and external search for

your product?
NINA’S EXAMPLE
TYPES OF INFORMATION SOURCES
• Internal sources are used most often (habitual

decision making).
– Information from past searches or personal experience
are stored in memory.
• External sources include:
– personal e.g. friends, family
– independent e.g. consumer groups,
– marketing e.g. advertising, websites, staff
– experiential e.g. trial and inspection.
CH. 4, 5: INFORMATION SEARCH +
EVALUATION OF ALTERNATIVES:
Three most important things that happen - Information Search +
Evaluation of alternatives:
1.Developing criteria for evaluation of alternatives.
2. Finding suitable alternatives.
3. Characteristics of alternatives.
1. EVALUATIVE CRITERIA
What characteristics are important enough to drive the
choice? How do they rank in terms of importance?
What evaluation criteria did you have with

your product?
NINA’S EXAMPLE
1. Functions (health tracking, steps, etc.)
2. Hybrid watch face
3. Aesthetics
4. Ease of use
5. Phone compatibility
6. Prize
2. APPROPRIATE
ALTERNATIVES
The brands you are aware of form the awareness set.
Evoked (consideration)
 Brands you seriously consider
 External search may add brands to this set
Inept (negative = avoided alternatives) and inert (indifferent = back-up

alternatives)
Was your product one of these?

NINA’S EXAMPLE
Evoked: Fossil, Garmin, Fitbit
Inept: none, really
Inert: Apple
3. CHARACTERISTICS OF
ALTERNATIVES
External search is directed towards the consideration brands and the evaluative
criteria.
Did you put your brand against other options and

evaluate them?
Evoked: Fossil, Garmin,
NINA’S EXAMPLE Fitbit
Inept: none, really
Inert: Apple
3. Aesthetics
4. Ease of use
6. Prize
PURCHASE &
POST-
PURCHASE 6
7
OUTLET CHOICE VS BRAND (OR
PRODUCT) CHOICE
Brand first, retail outlet second
 Example: marketing around product features, image, etc.
Retail outlet first, brand second

 Example: store sale catalogue, sales-staff incentives, point-of-purchase promotions
Brand and retail outlet simultaneously
What was yours?

NINA’S EXAMPLE
MARKETING STRATEGY BASED ON THE
CONSUMER DECISION SEQUENCE
CH. 6, 7: CONSUMER OUTLET
SELECTION AND PRODUCT PURCHASE
Where will shoppers shop? Online? Bricks vs. clicks
How do they choose a retail outlet?

 Consumer characteristics: Shopping orientation, perceived risk
 Store/product characteristics: Perceived image, perception of store, outlet
location/size/access, ins-tore influences
Where did you shop for your product?

What influenced this?
NINA’S EXAMPLE
GEN Z AND ONLINE VS OFFLINE
https://www.pwc.de/de/handel-und-konsumguter/gen-z-is-talking-are-you-listening.pdf
THE RETAIL SCENE
In retail stores or online (bricks versus clicks)
 Also other outlets, non-store outlets markets, direct sales, etc.
Major issue in bricks versus clicks

 Showrooming!
What products don't translate as well into online retailing?

Was your purchase a brick or a click?
NINA’S EXAMPLE
3. Aesthetics
4. Ease of use
6.Prize
HOW DO WE GET TO THE
STORE?
PATH TO PURCHASE IS NOT
LINEAR
Did your path to purchase follow a linear path? Or did

you go back and forth? And all over the map!?
MULTI-CHANNEL
STRATEGIES
Consumers blur boundaries between bricks and
clicks
 Example: search online then buy in store (or vice versa)
 Buy some things in stores, others online
 Increasingly including mobile sources as well
 Example: find a PS4 game on sale at EB, check review on your
phone, check prices at nearby stores, purchase by downloading
from PSN (because by the time you finished all that, it is midnight,
and you want to play a game straight away).
GEN Z AND MULTI-
CHANNEL
https://www.pwc.de/de/handel-und-konsumguter/gen-z-is-talking-are-you-listening.pdf
IN-STORE INFLUENCES THAT AFFECT
EVALUATION OF ALTERNATIVES AND PURCHASE
SUPERMARKET LAYOUT
SUPERMARKET LAYOUT
“We are revolutionizing the way customers

shop in our stores by bringing engaging,
experiential and convenient services to our
customers,” said Hy-Vee CEO Randy Edeker.”
SUPERMARKET LAYOUT
ATMOSPHERICS
= Controllable characteristics of retail space which entice customers to enter the store, shop,
and purchase
= Aspects such as lighting, ambient sound, merchandise layout, and other features
ATMOSPHERICS
ATMOSPHERICS
POST-PURCHASE DISSONANCE
Post-purchase dissonance is doubt or regret about a purchase (buyers'

remorse).
Probability and magnitude of dissonance is a function of the:
 degree of commitment and/or whether the decision can be revoked
 importance of the decision to the consumer
 difficulty of choosing among the alternatives
 individual's tendency to experience anxiety.
Did you have any post-purchase dissonance with your item?

NINA’S EXAMPLE
REDUCING
DISSONANCE
Internal re-evaluation
Post-purchase information search

 To confirm decision
 Salesperson follow-ups help
 Warranties and guarantees
 Advertising
WHY SHOULD MARKETERS CARE ABOUT ALL OF
THIS??
Understanding the consumer decision making
process is key to identifying marketing challenges
and opportunities.
It’s important to align marketing efforts with the
steps customers undertake to decide what to buy.
 You can have the most compelling ad or point-of-sales
collateral, but it will go to waste if the information isn’t
available where and when the customer is ready to process it.
 Consumers are complicated!

KEY QUESTIONS
What are the five stages of consumer decision making process?

What happens during the problem recognition stage?
What key decisions are made during the information search and evaluation of
alternatives stages?
What happens during the purchase and post-purchase?
 How can marketers influence consumers/shippers during each stage?
How can the stages begin to blur given that the path-to-purchase is not linear?
ANY
QUESTION
S?
See you all
next week!
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MKTG 303 |

• We are going to go through some selection processes with a live

• Understand how marketers influence consumers/shoppers during these stages

1. Think of one item 2. Now we are going to

All Shoppers are Consumers.

 Remember actual vs ideal self???

Forms of involvement and outcomes:

 Limited decision making

 Extended decision making

Did you buy your selected

What was the magnitude of

2. Developing the marketing program to solve consumer ‘problems’

2. Developing the marketing program to solve consumer ‘problems’

Milk Mustache Campaign Super Bowl XLVII TV Commercial

5. Influence the size of the problem discrepancy

Did you have both an internal and external search for

• Internal sources are used most often (habitual

2. Finding suitable alternatives.

What evaluation criteria did you have with

2. Hybrid watch face

Inept (negative = avoided alternatives) and inert (indifferent = back-up

Was your product one of these?

Evoked: Fossil, Garmin, Fitbit

Inept: none, really

Did you put your brand against other options and

Retail outlet first, brand second

Brand and retail outlet simultaneously

What was yours?

How do they choose a retail outlet?

Where did you shop for your product?

Major issue in bricks versus clicks

What products don't translate as well into online retailing?

Did your path to purchase follow a linear path? Or did

“We are revolutionizing the way customers

Post-purchase dissonance is doubt or regret about a purchase (buyers'

Did you have any post-purchase dissonance with your item?

Post-purchase information search

 Consumers are complicated!

What are the five stages of consumer decision making process?

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