16-1 Chapter 16 Consumer Behavior, Eighth Edition Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK Consumer Decision Making and Beyond.

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Chapter 16

Consumer Behavior,Consumer Behavior,Eighth EditionEighth Edition

SCHIFFMAN & KANUK

Consumer Decision Making and Beyond

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Levels of Consumer Decision Making

Extensive Problem Solving

Limited Problem Solving

Routine Response Behavior

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Extensive Extensive Problem Problem SolvingSolving

A search by the consumer to establish the necessary

product criteria to evaluate knowledgeably the most

suitable product to fulfill a need.

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Limited Limited Problem Problem SolvingSolving

A limited search by a consumer for a product that will satisfy his or her basic

criteria from among a selected group of brands.

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Routinized Routinized Response Response BehaviorBehavior

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Models of Consumers: Four Views of Consumer Decision Making

• An Economic View• A Passive View• A Cognitive View• An Emotional View

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The Economic viewRational Customers Have To

…• Be aware of all available product alternatives

• Be capable of correctly ranking each alternative in terms of its benefits and disadvantages

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Why is the Classical Economic Model Considered Unrealistic?

• People are limited by their existing skills, habits, and reflexes

• People are limited by their existing values and goals

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Models of Consumers: Four Views of Consumer Decision

Making• A Passive View

• A Cognitive View

• An Emotional View - mood

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A Model of Consumer Decision Making

INPUT

PROCESS

OUTPUT

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Figure 16.2 A Simple Model of Consumer Decision Making

Firm’s Marketing Efforts1. Product2. Promotion3. Price4. Channels of distribution

Sociocultural Environment1. Family2. Informal sources3. Other noncommercial sources4. Social class5. Subculture and culture

Need Recognition

Prepurchase Search

Evaluation of Alternatives

Psychological Field1. Motivation2. Perception3. Learning4. Personality5. Attitudes

Experience

Purchase1. Trial2. Repeat purchase

Postpurchase EvaluationOutput

Process

Input

External Influences

Consumer Decision Making

Postdecision Behavior

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Three Stages of Consumer Decision Making

• Need Recognition

• Prepurchase Search

• Evaluation of Alternatives

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Need Need RecognitionRecognition

The realization by the consumer that there is a

difference between “what is” and “what should be.”

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Prepurchase Prepurchase SearchSearch

A stage in the consumer decision-making process in

which the consumer perceives a need and

actively seeks out information concerning products that will help

satisfy that need.

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A stage in the consumer decision-making process in

which the consumer appraises the benefits to be

derived from each of the product alternatives being

considered.

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Table 16.2 Factors that are Likely to Increase Prepurchase Search

Product FactorsLong interpurchase time (a long-lasting or infrequently used product)Frequent changes in product stylingVolume purchasing

Many alternative brands

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Table 16.2 continued

Product FactorsDemographic Characteristics of Consumer

Well-educatedHigh-incomeWhite-collar occupationUnder 35 years of age

PersonalityLow dogmaticLow-risk perceiver (broad categorizer)Other personal factors, such as high product involvement and enjoyment of shopping and search

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Issues in Alternative Evaluation• Evoked Set• Criteria Used for Evaluating Brands• Consumer Decision Rules• Lifestyles as a Consumer Decision Strategy• Incomplete Information and Noncomparable

Alternatives• Series of Decisions• Decision Rules and Marketing Strategy• Consumption Vision

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Figure 16.3 The Evoked Set as a Subset of All Brands in a Product Class

All Brands

Known Brands

Unknown Brands

Overlooked Brands

Indifferent Brands

Unacceptable Brands

Acceptable Brands

Not Purchased Brands

Purchased Brands

Evoked Set Inept Set Inert Set

(1)

(2) (3) (4)

(5)

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Brands that a consumer excludes from purchase

consideration.

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Brands that a consumer is indifferent toward

because they are perceived as having no particular advantage.

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Issues in Alternative Evaluation• Evoked Set• Criteria Used for Evaluating Brands• Consumer Decision Rules• Lifestyles as a Consumer Decision Strategy• Incomplete Information and Noncomparable

Alternatives• Series of Decisions• Decision Rules and Marketing Strategy• Consumption Vision

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Consumer Decision Rules

• Compensatory• Noncompensatory

– Conjunctive Decision Rule– Disjunctive Decision Rule– Lexicographic Rule

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Compensatory Compensatory Decision RulesDecision Rules

A type of decision rule in which a

consumer evaluates each brand in terms of each

relevant attribute and then selects the

brand with the highest weighted

score.

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Non-Non-compensatory compensatory

Decision Decision RulesRules

A type of consumer decision rule by which positive evaluation of a

brand attribute does not compensate for

a negative evaluation of the same brand on some other attribute.

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Conjunctive Conjunctive Decision Decision

RuleRule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each attribute evaluated.

Brands that fall below the cutoff point on any

one attribute are eliminated from further

consideration.

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Disjunctive Disjunctive RuleRule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each

relevant product attribute.

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Lexicographic Lexicographic RuleRule

A noncompensatory decision rule -

consumers first rank product attributes in

terms of importance, then compare brands

in terms of the attribute considered

most important.

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Affect Affect Referral Referral Decision Decision

RuleRule

A simplified decision rule by which consumers

make a product choice on the basis of their

previously established overall ratings of the

brands considered, rather than on specific

attributes.

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Table 16.7 Hypothetical Use of Popular Decision Rules in Making a Decision to

Purchase an Ultralight LaptopDECISION RULEDECISION RULE MENTAL STATEMENTMENTAL STATEMENT

Compensatory rule “I selected the computer that came out best when I balanced the good ratings against the bad ratings.”

Conjunctive rule “I selected the computer that had no bad features.”

Disjunctive rule “I picked the computer that excelled in at least one attribute.”

Lexicographic rule “I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute.”

Affect referral rule “I bought the brand with the highest overall rating.”

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Coping with Missing Information

• Change the decision strategy to one that better accommodates for the missing information

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Types of Purchases

TrialPurchases

Repeat Purchases

Long-TermCommitment

Purchases

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Outcomes of Postpurchase Evaluation

• Actual Performance Matches Expectations

• Actual Performance Exceeds Expectations– Positive Disconfirmation of Expectations

• Performance is Below Expectations– Negative Disconfirmation of Expectations

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Figure 16.5 A Simple Model of Consumption

Choice or Purchase DecisionChoice or Purchase Decision

Consumption SetAdded to one’s assortment or portfolio

Consuming StyleHow the individual fulfills his or her

consumption requirements

Using, Possessing, Collecting, Disposing

Consuming and Possessing Things and ExperiencesConsuming and Possessing Things and Experiences

Altered consumer satisfaction, change in lifestyle and/or quality of life, learning and knowledge, expressing and

entertaining oneself

Feelings, Moods, Attitudes, BehaviorFeelings, Moods, Attitudes, Behavior

Input

Process ofConsuming

andPossessing

Output

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Relationship Relationship MarketingMarketing

Marketing aimed at creating strong,

lasting relationships with a core group of customers by making them _______ about the company and by giving them some

kind of ___________ with the business.

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Figure 16.7 A Portrayal of the Characteristics of Relationship

Marketing

•Products/Services•Individualized attention•Continuous information•Price offers•Customer services•Extras and perks, etc.

•Repeat Purchase•Increased Loyalty•Goodwill•Positive word-of-mouth•Lower costs for the firm

Trust and promises

The Firm provides The Customer provides

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Consumers Are Less Loyal - Why?

• Availability of information

• Entitlement -

• Commoditization –

• Insecurity

• Time scarcity -

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Gifting Behavior

Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance.

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Table 16.9 Five Giver-Receiver Gifting Subdivisions

GROUPIntercategory

giftingIntergroup

giftingIntragroup

gifting

INDIVIDUALInterpersonal

giftingIntercategory

giftingIntrapersonal

gifting

GIVERS INDIVIDUAL

RECEIVES “OTHER”

GROUP SELF*

*This “SELF” is either singular self (“me”) or plural (“us”).

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Table 16.12 Reported Circumstances and Motivations for Self-Gift Behavior

CIRCUMSTANCES

Personal accomplishmentFeeling downHolidayFeeling stressedHave some extra moneyNeedHad not bought for self in a whileAttainment of a desired goalOthers

MOTIVATIONS

To reward oneselfTo be nice to oneselfTo cheer up oneselfTo fulfill a needTo celebrateTo relieve stressTo maintain a good feelingTo provide an incentive toward a goalOthers

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Gifting Subdivisions

Intergroup Gifting

Intrapersonal Gifting

Intragroup Gifting

InterpersonalGifting

IntercategoryGifting

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Table 16.13 Gifting Relationships

GIFTING GIFTING RELATIONSHIPRELATIONSHIP

Intergroup

Intercategory

EXAMPLEEXAMPLEDEFINITIONDEFINITION

A Christmas gift from one family to another family

A group giving a gift to another group

A group of friends chips in to buy a new mother a baby gift

An individual giving a gift to a group or a group giving a gift to an individual

Intragroup

Interpersonal

A family buys a VCR for itself as a Christmas gift

A group giving a gift to itself or its members

Valentine’s Day chocolates presented from a boyfriend to a girlfriend

An individual giving a gift to another individual

Intrapersonal A woman buys herself jewelry to cheer herself up

Self-gift