chp 8 - Cal State LA

Report
Chapter 8
Decision Making
CONSUMER
BEHAVIOR, 9e
Michael R. Solomon
2/14/2015
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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Chapter Objectives
When you finish this chapter, you should
understand why:
• Consumer decision making is a central part
of consumer behavior, but the way we
evaluate and choose products varies widely.
• A decision is actually composed of a series
of stages that results in the selection of one
product over competing options.
• Decision making is not always rational.
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Chapter Objectives (continued)
When you finish this chapter, you should
understand why:
• Our access to online sources is changing the
way we decide what to buy.
• We often fall back on well-learned “rules-ofthumb” to make decisions.
• Consumers rely upon different decision rules
when evaluating competing options.
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Figure 8.1 Stages in
Consumer Decision Making
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Decision-Making Perspectives
• Are consumers rational when they make
purchase decisions?
• What is purchase momentum?
• What cognitive processing styles affect
consumer decision making?
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Figure 8.2 Continuum of
Buying Decision Behavior
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Steps in the Decision-Making Process
Problem recognition
Information search
Evaluation of alternatives
Product choice
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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
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Figure 8.3 Problem Recognition
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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
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Table 8.2 A Framework for
Consumer Information Search
Prepurchase versus Ongoing Search
Prepurchase Search
Ongoing Search
Determinants
Involvement with
purchase
Involvement with product
Motives
Making better purchase
decisions
Building a bank of
information for future use
Outcomes
Better purchase
decisions
Increased impulse buying
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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
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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
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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
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Figure 8.5 Amount of Information Search
and Product Knowledge
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Minolta Understands Perceived Risk
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Figure 8.6 Five Types of Perceived Risk
Monetary risk
Functional risk
Physical risk
Social risk
Psychological risk
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An Appeal to Social Risk
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Discussion
• What risky products have you considered
recently?
• Which forms of risk were involved?
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Alternatives
Evoked Set
Consideration Set
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Figure 8.7 Levels of Abstraction
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Discussion
• Using the levels of categorization tool,
design three levels of categorization for fast
food restaurants:
• What is the superordinate level?
• What choices are there for the basic level?
• What choices are there for the subordinate
level?
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Strategic Implications
of Product Categorization
•
•
•
•
Position a product
Identify competitors
Create an exemplar product
Locate products in a store
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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)
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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
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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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Neuromarketing
• Uses functional magnetic resonance
imaging, a brain-scanning device that tracks
blood flow as we perform mental tasks
• Marketers measure consumers’ reactions to
movie trailers, choices about automobiles,
the appeal of a pretty face, and loyalty to
specific brands
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Cybermediaries
• The Web delivers enormous amounts of
product information in seconds
• Cybermediary: helps filter and organize
online market information
• Examples: Shopping.com, BizRate.com
• MySimon.com
• NextTag.com, PriceGrabber.com
• PriceSCAN.com
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Heuristics: Mental Shortcuts
• Heuristics: mental rules-of-thumb for
efficient decisions
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Heuristics
Product Signals
Market Beliefs
Country of Origin
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Choosing Familiar Brand Names
• Zipf’s Law: our tendency to prefer a number
one brand to the competition
• Consumer inertia: the tendency to buy a
brand out of habit merely because it requires
less effort
• Brand loyalty: repeat purchasing behavior
that reflects a conscious decision to
continue buying the same brand
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Noncompensatory Decision Rules
• Lexicographic rule: consumers select the
brand that is the best on the most important
attribute
• Elimination-by-aspects rule: the buyer also
evaluates brands on the most important
attribute
• Conjunctive rule: entails processing by
brand
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Table 8.4
Hypothetical Alternatives for a TV Set
Brand Ratings
Attribute
Importance
Ranking
Prime Wave
Precision
Kamashita
Size of screen
1
Excellent
Excellent
Excellent
Stereo broadcast capability
2
Poor
Excellent
Good
Brand reputation
3
Excellent
Excellent
Poor
Onscreen programming
4
Excellent
Poor
Poor
Cable-ready capability
5
Good
Good
Good
Sleep timer
6
Excellent
Poor
good
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Compensatory Decision Rules
• Simple additive rule: the consumer merely
chooses the alternative that has the largest
number of positive attributes
• Weighted additive rule: the consumer also
takes into account the relative importance of
positively rated attributes, essentially
multiplying brand ratings by importance
weights
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Chapter Summary
• Decision making is a central part of
consumer behavior and decisions are made
in stages
• Decision making is not always rational
• We use rules of thumb and decision rules to
make decisions more efficiently
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