The Consumer Decision Process: Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition

The Consumer Decision Process
Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition Copyright 2001 by Harcourt, Inc. All rights reserved.
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs?
What is a decision? Selection of an option from two or more alternative choices .
OR
The Continuum of Decision Making Complexity
Extensive
Limited
Routine
Extensive
Limited
Routine
High consumer involvement
Low consumer involvement
High perceived risk

Less experience with product category Infrequently purchased More time and cognitive resources
Low perceived risk

More experience with product category Frequently purchased Less time and cognitive resources
How does marketing impact involvement
Low involvement Use in-store promotion Link to high involvement product High involvement Must offer extensive and informative promotion
MODELS OF CONSUMERS AN ECONOMIC VIEW: a world of perfect competition,

Consumer is a rational decision maker to be a rational decision maker consumers need to have 1.aware of all available product alternatives. 2.Be capable of correctly ranking each alternative in terms of benefits and disadvantages. 3.Be capable of identifying the best alternative. Limitation: 1. People are limited by their existing skills, habits,and reflexes 2. People are limited by their existing values and goals 3. People are limited by the extent of their knowledge. PASSIVE VIEW: consumers are basically submissive to the self serving and promotional efforts of the marketers Consumers are impulsive and irrational purchasers ready to yield to the aims and into the arms of marketers. Limitation: it fails to recognise that the consumer plays an equal ,if not dominant role in many situations sometimes by seeking information about product alternatives and selecting the pdt that appears to offer greatest satisfaction and at other times impulsively selecting a product that satisfies the mood or emotion of the moment.
Cognitive view:
consumer as thinking problem solver, within this framework the consumers are pictures as receptive to or actively searching for products and services that fulfill their needs and enrich their lives.It focuses on the processes by which consumers seek and evaluate information about selected products ,brands and retail outlets.
They are information processors ,information processing leads to a formation of preferences and ultimately to purchase intentions. Heuristics Information overload Emotional view:
Consumer Decision Process Stages
Consumer Decision Process Model

Need Recognition Search for Information Pre-purchase Evaluation of Alternatives
Purchase
Consumption Post-consumption Evaluation Divestment

Need Recognition
Need Recognition
Need: the difference between what a person perceives to be the ideal versus the actual state of affairs
Need Recognition
Need: the difference between what a person perceives to be the ideal versus the actual state of affairs Consumers recognize needs and seek to fulfill them, or sometimes seek to solve their problems Knowing consumers needs, helps firms develop products and marketing programs to reach them more effectively (itch and scratch)
Need Recognition
Communicating a need and raising consumer awareness of need or problem Special needs of baby teeth
Need Recognition
Environmental Influences -Culture -Social Class -Personal Influence -Family -Situation Individual Differences -Consumer Resources -Motivation -Knowledge -Attitudes -Personality, Values, and Lifestyle
M E M O R Y
Need Recognition

Need Recognition Search for Information
CDP Model
Internal Search Exposure Attention Comprehension Acceptance Retention
Need Recognition Search Environmental Influences
M E M O R Y
Individual Differences
Search For Information

Internal search: retrieving knowledge from memory External search: collecting information from peers, family, and the marketplace

Internal search: retrieving knowledge from memory External search: collecting information from peers, family, and the marketplace Search may be passive as consumers become more receptive to information around them, or consumers can engage in active search behavior
Types of Information Retrieved from Internal Search

Brands
Brand attributes Evaluations
Experiences
Recall of Brand Experiences

Recall of specific images and affect associated with a Product or Service
-Feelings -Attachment -Image
Factors Impacting the Recall of Brand Information

Goals and usage situations Prototypicality Brand familiarity Brand preference Retrieval cues
Pre-purchase Search
Determinants
Market environment Situational factors
Ongoing Search
Market environment
Involvement in the purchase Involvement with product Situational factors Build a bank of
To make better purchase decisions information for future use Experience fun and pleasure Increased product and market knowledge leading to future buying efficiencies personal influence Increased impulse buying Increased satisfaction from search, and other outcomes
Motives
Increased product and
Outcomes
market knowledge Better purchase decisions Increased satisfaction with purchase outcome

Need Recognition Environmental Influences
Internal Search M E M O R Y
Search
External Search
Believability of Sources
Sources Vary by Product
Search: Sources of Information

Marketer Dominated Non-Marketer Dominated Stimuli
Information Processing
Exposure Stimuli:
-Marketer Dominated -Nonmarketer Dominated
Attention Comprehension Acceptance Retention
M E M O R Y
Search: Sources of Information

Marketer Dominated Non-Marketer Dominated Stimuli
-Family and peers -Publications
-Television ads
-Internet or website
-In-store displays or salespersons

-Shopping
Search: Information Processing

Exposure Attention
Comprehension
Acceptance Retention

CDP Model
Internal Search Exposure Attention Stimuli Comprehension Acceptance Retention
Need Recognition Search Pre-purchase Evaluation of Alternatives Environmental Influences
M E M O R Y
Pre-purchase Evaluation of Alternatives

The process of evaluating alternatives identified from search, which leads to product or brand most likely to satisfy the consumer
Pre-purchase Evaluation of Alternatives

The process of evaluating alternatives identified from search, which leads to product or brand most likely to satisfy the consumer Can use new or preexisting evaluations stored in memory
Evaluative criteria: standards and specifications used to compare different products and brands
When evaluating the potential alternatives ,consumers tend to use two types of information:-
1.A list of brands (or models)from which they plan to make their selection(evoked set,consideration set) A consumers evoked set is distinguished from his or her inept set ,which considers of brands that are excluded from purchase consideration ,because they are unacceptable or inferior) and from the inert set(brands which are perceived as not having any particular advantages. 2.The criteria they will use to evaluate each brand .Making a selection from a sample of all possible brands (or models)that helps simplify the decision making process.

Purchase
CDP Model
Need Recognition Search Pre-purchase Evaluation of Alternatives Purchase Environmental Influences
M E M O R Y
Purchase
Purchase decisions involve choosing a form of retailing, a specific retailer, and a particular product and brand
Purchase
Purchase decisions involve choosing a form of retailing, a specific retailer, and a particular product and brand Purchase intention can change during the purchase stage--it can be influenced by factors such as instore promotions, discounts, or stock-outs

Need Recognition Search for Information Prepurchase Evaluation of Alternatives
Purchase
Consumption
CDP Model
Need Recognition Search Pre-purchase Evaluation of Alternatives Purchase Consumption Environmental Influences
M E M O R Y
Consumption
The process of using the product or service purchased Consumption can either occur immediately or be delayed
Consumption
The process of using the product or service purchased Consumption can either occur immediately or be delayed
Consumers may use products as intended or as they choose, especially when instructions are not included or not read
How consumers use a product affects satisfaction with product
Consumption
Appealing to consumers with easy-touse positioning Consumptionoriented product design and benefit

Purchase
Consumption Post-consumption Evaluation
CDP Model
Need Recognition Search Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Dissatisfaction Satisfaction Environmental Influences
M E M O R Y
External Search
Post-consumption Evaluation
Satisfaction: when expectations are met or exceeded by perceived performance Dissatisfaction: when performance falls short of expectations Consumption is an important determinant of satisfaction
Post-consumption Evaluation
Satisfaction: when expectations are met or exceeded by perceived performance Dissatisfaction: when performance falls short of expectations Consumption is an important determinant of satisfaction
Cognitive dissonance: questioning decision (post-purchase regret)

Emotion affects evaluation

Purchase
Consumption Post-consumption Evaluation Divestment
Divestment
How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling Consumers environmental concerns about divestment may affect product choice
Divestment
Mentadent sells toothpaste in a dualchambered pump, which can be filled with refills and reused rather than thrown away each time
Divestment
How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling Consumers environmental concerns about divestment may affect product choice
CDP Model
Need Recognition Search Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Dissatisfaction Satisfaction Environmental Influences
M E M O R Y
External Search
Divestment
Variables Shaping the Decision Process

Individual Differences: Demographics, psychographics, values, and personality
Consumer resources
Motivation Knowledge Attitudes

Environmental Differences: Culture: values, ideas, artifacts, and
symbols that help individuals interpret, communicate, and evaluate as members of society
Social Class Family Personal Influence Situation


Psychological Processes Influencing Consumer Behavior Information processing
Learning
Attitude and behavior change
Types of Decision Processes
Consumer Decision Process Continuum

Extended Problem Solving (EPS) Midrange Problem Solving Limited Problem Solving (LPS)
High
Degree of Complexity
Low
Consumer Decision Process Continuum: Repeat Purchases

Extended Problem Solving Midrange Problem Solving Limited Problem Solving Habitual Problem Solving
High
Degree of Complexity
Low

Initial Purchase Extended Problem Solving (EPS):
Often occurs with expensive items or can be fueled by doubts and fears
Importance in making the right decision

All seven consumer decision making stages are often activated Dissatisfaction is often vocal

Initial Purchase Limited Problem Solving (LPS):
Consumers dont have motivation, time, or resources to engage in EPS
Little search and evaluation before purchase

More common among low involvement or lower price items Often accompanied by a feeling of indifference toward choice

Repeat Purchase
Repeated Problem Solving Habitual Decision Making

Repeat Purchase
Impulse Buying
Unplanned, spur-of-the-moment action triggered by in-store display or promotion (least complex form of LPS)

Repeat Purchase
Impulse Buying
Unplanned, spur-of-the-moment action triggered by in-store display or promotion (least complex form of LPS)
Variety Seeking
Brand shifts Can be triggered because bored with current brand or because of special offer
Nestle appeals to consumers variety seeking behavior by promoting a variety of desserts for each day of the week (variety without brand switch)
Factors Influencing Problem Solving Extent

Degree of Involvement (High-Low)
Personal Factors (self-image, health, beauty or physical condition)
Product Factors (is there perceived risk in purchasing a particular brand or product?) Situational Factors (is the product purchased for personal use or as a gift?)

Degree of Involvement (High-Low) Perceptions of differences among alternatives

Time Availability
How much time is available to devote to solving the problem?
How quickly does the decision need to be made?

Time Availability
How much time is available to devote to solving the problem?
How quickly does the decision need to be made?
Consumers Mood State

How people feel at a particular moment of time Mood can reduce or increase length and complexity of decision process
Laundry (washer)
Decision Stage
Husband
Television set
Husband
Joint H/W
Wife
Joint H/W
Wife
1 Brought up idea
Decided on type and size
70% 55%
50% 45% 45% 2 40% 40% 45% 45% 3Decided on brand Decided how much 45% 45% 45% 4 to pay 65% 60% 5Visited stores Actually made 40% 40% 50% 6 purchase
Consumer Behavior
Copyright 2001 by Harcourt, Inc. All rights reserved.

The Consumer Decision Process: Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition

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The Consumer Decision Process: Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition

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The Consumer Decision Process

The Consumer Decision Process

The Consumer Decision Process

What is a decision? Selection of an option from two or more alternative choices .

The Continuum of Decision Making Complexity

High consumer involvement

Low consumer involvement

High perceived risk

Low perceived risk

How does marketing impact involvement

MODELS OF CONSUMERS AN ECONOMIC VIEW: a world of perfect competition,

Consumer Decision Process Stages

Consumer Decision Process Model

Consumer Decision Process Model

Consumer Decision Process Model

Need Recognition Search Environmental Influences

Search For Information

Search For Information

Types of Information Retrieved from Internal Search

Recall of Brand Experiences

-Feelings -Attachment -Image

Factors Impacting the Recall of Brand Information

Increased product and

Search For Information

Sources Vary by Product

Search: Sources of Information

Attention Comprehension Acceptance Retention

Search: Sources of Information

-In-store displays or salespersons

Search: Information Processing

Consumer Decision Process Model

Need Recognition Search Pre-purchase Evaluation of Alternatives Environmental Influences

Pre-purchase Evaluation of Alternatives

Pre-purchase Evaluation of Alternatives

Consumer Decision Process Model

Need Recognition Search Pre-purchase Evaluation of Alternatives Purchase Environmental Influences

Consumer Decision Process Model

Consumer Decision Process Model

Cognitive dissonance: questioning decision (post-purchase regret)

Consumer Decision Process Model

Variables Shaping the Decision Process

Variables Shaping the Decision Process

Variables Shaping the Decision Process

Social Class Family Personal Influence Situation

Variables Shaping the Decision Process

Types of Decision Processes

Consumer Decision Process Continuum

Consumer Decision Process Continuum: Repeat Purchases

Types of Decision Processes

Importance in making the right decision

Types of Decision Processes

Little search and evaluation before purchase

Types of Decision Processes

Types of Decision Processes

Types of Decision Processes

Factors Influencing Problem Solving Extent

Factors Influencing Problem Solving Extent

Factors Influencing Problem Solving Extent

Factors Influencing Problem Solving Extent

Factors Influencing Problem Solving Extent

Consumers Mood State

Copyright 2001 by Harcourt, Inc. All rights reserved.

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