| SYLLABUS | TSOC Home | About | Fair Use | Privacy | Contact | SEARCH |

| SyKronix Marketing Portal | Marketing Forum | Sykronix White Papers |

CONSUMER DECISION MAKING

THE GENERIC MODEL REVISITED
problem recognition
=====>search
=====>alternative evaluation
=====>choice
=====>postacquisition processes

Recall: we noted that our interest is in various influencers or moderators on this generic
model. These influencers can be loosely classified as:
intrinsic
extrinsic
environmental/situational
PROBLEM RECOGNITION
occurs when there is a difference between a desired state and an actual state.
The desire to resolve a particular problem depends on two factors:
the magnitude of the discrepancy between the desired and actual states
the relative importance of the problem
SEARCH
internal search
external search
Internal Search
awareness set
brands about which the person is aware
evoked set
brands which come to mind in a particular situation
"top of mind awareness"
consideration set
brands which are considered acceptable for further consideration
inert set
brands about which the person is indifferent
inept set
brands considered unacceptable

SEARCH
Sources of Information:
Memory of past searches, personal experiences, and low-involvement learning
Personal sources such as friends and family
Independent sources such as consumer groups and government agencies
Marketing sources such as sales personnel and advertising
Experiential sources such as inspection or product trial
ALTERNATIVE EVALUATION
associated with the formation of beliefs and evaluations
Perceived risk can be an important influence in how people evaluate potential outcomes.
Measurement of Evaluative Criteria:
direct methods:
ask consumers what information they use in a particular purchase
observe what consumers say about products and their attributes;
e.g., focus groups
indirect methods:
projective techniques:
allow a person to indicate what criteria someone else might use
perceptual mapping:
consumers judge the similarity of alternative brands (often by ranking), which is
processed by a computer to derive a spatial configuration
PRODUCT POSITIONING
refers to the place an offering occupies in consumers' minds on important attributes relative to
competitive offerings
E.g., which is more sporty, Porsche, Mercedes, or Cadillac? More prestigious? Expensive?
Escort, Miata, Neon, Viper?
What are some dimensions, or characteristics, that you might use to assess business
schools?
On each of these dimensions, where would you position several schools relative to each
other? E.G., Harvard University, Michigan State, Podunk College, Branfield Community Tech.
PERCEPTUAL MAP:
a means of displaying or graphing on two dimensions the location of products or brands in the
minds of consumers
REPOSITIONING:
changing the place an offering occupies in consumers' minds relative to competitive offerings.
QUALITATIVE RESEARCH
Uses nonstatistical, unstructured research methods in which consumers are enticed to reveal
what they can about their innermost thoughts, feelings, and motivations.

focus group
in-depth personal interviews
projective tests
PROJECTIVE TESTS
sentence completion
"People buy a Porsche _________________."
story completion
Respondents complete a story.
cartoon techniques
Respondents fill in the words or thoughts of a character in a cartoon drawing
picture
Respondents tell a story about a person shown in some situation.
ALTERNATIVE EVALUATION
Surrogate indicator:
readily observable attribute of a product used to represent the performance level of a less
observable attribute
e.g., price and brand name are often used by consumers as surrogate indicators of
quality
Framing:
how a person perceives the value of something in relation to something else
e.g., "mfgr's. suggested retail price"
CHOICE
Note that some people are satisficers and some people are optimizers in specific situational
contexts.
Heuristics are the "rules of thumb" that people use to make judgments and decisions.
- e.g.,
choice heuristic: never buy a car in the first model year
search heuristic: if buying a computer, go to Wong's for the best deal
POSTACQUISITION
the consumption, disposition, and postchoice evaluation of goods, services, and ideas
consumption
use and depletion of the product
Consumer satisfaction is the overall attitude associated with a good or service after its
acquisition and use.
Satisfaction or dissatisfaction is the difference between what was what is

experienced and what was expected.

Also, recall equity theory:
outcomes of A outcomes of B
------------- ~ ------------inputs of A
inputs of B

When would satisfaction be the result?

Also, recall attribution theory, which is concerned with how people identify the
causes for action.
Also, recall the notion of cognitive dissonance, where a person experiences
doubts about the wisdom of a decision.
POSTACQUISITION
A consumer has low-performance expectations for a product, and after use, performance is
perceived as worse than expected. This consumer will be dissatisfied.
A consumer has low-performance expectations for a product, and after use, performance is
perceived as better than expected. This consumer will be satisfied.
PURCHASE BEHAVIOR
impulse purchases
occur when a consumer experiences a sudden urge to buy something immediately without a
buying intention formed prior to entering a store
compulsive consumption
a response to an uncontrollable drive to use or experience something that leads to a repetitive
behavior that will ultimately cause harm to the person or others
variety-seeking purchases
associated with the tendency of consumers to buy a new brand of product even though
satisfied with the previously purchased brand
PURCHASE INVOLVEMENT
level of concern for, or interest in, the purchase process relevant to a particular purchase
Habitual decision making:
a problem is recognized
long term memory provides a single preferred brand
that brand is purchased
only limited postpurchase evaluation occurs
associated with low involvement
associated with repeat purchases and brand loyalty
Limited decision making
Extended decision making:
increased information search
more extensive and complex alternative evaluation
more thorough postpurchase evaluation

associated with high involvement