CONSUMER DECISION

MAKING PROCESS
Learning Objectives

 Understand the three problem solving

variations and when consumers use
them.
 Thoroughly understand each stage of the
consumer decision making process.
 Be familiar with low effort decision
making tactics.
 Understand how situational influences
affect the decision making process.
Problem Solving Variations

 Extended Problem Solving

 High perceived risk
 Typically expensive, infrequently purchased products

 Routine Problem Solving

 Low perceived risk
 Purchases made out of habit or brand loyalty
 Typically inexpensive, frequently purchased product

 Limited Problem Solving

 Moderate perceived risk
 Consumer has limited time or energy
Stages in the Consumer Decision
Making Process
 Problem recognition
 Information search
 Alternative evaluation
 Decision
 Post decision evaluation
Problem Recognition
 Occurs when the consumer sees a significant
difference between his or her actual and ideal
state.
 Where do we get our notion of what is ideal?
personal expectations
personal aspirations
culture
reference group
marketing
Internal Search
 Recalling information, experiences, and feelings
concerning products and brands.
 How much do we engage in internal search?
 What kind of information is recalled?
1. Brands
*evoked set
*brand familiarity and retrieval cues increase
chances of being in the evoked set
2. Attributes
3. Evaluations
4. Experiences
 Is internal search always accurate?
Confirmation bias
External Search
 Consumers acquire information from outside
sources.
 Engage in pre-purchase and ongoing search
 External Sources
1. Retailer search
2. Media search
3. Interpersonal search
4. Independent search
5. Internet source
effects of information overload
 Is external search always accurate?
How Much do We Engage in
External Search?
 Motivation to Process Information
 Ability to Process Information
 Opportunity to Process Information
Evaluation of Alternatives

 Identifying Alternatives
 evoked set and consideration set
 Identifying Evaluative Criteria
 information search suggests criteria and identifies
brands
 Evaluative criteria includes those criteria that are
important to the consumer when rating product
alternatives
 Firms try to identify evaluative criteria through
market research.
Decision

 Consumers select and purchase the

product alternative that best meets his or
her evaluative criteria.
 Noncompensatory decision rules
 Compensatory decision rules
Post Decision Evaluation

 Process where consumer reevaluates

the product as he uses it.
 Product performance is compared with
consumer expectations.
 Satisfied customers
 Dissatisfied customers
 Cognitive dissonance
Low Effort Decision Making

 Heuristics
 Market Beliefs
 Brand Loyalty
 Habit
 Impulse Purchases
 Variety Seeking
Situational Influences

 Consumer behavior is influenced by the

circumstances surrounding the purchase
of a product.
 Social surroundings
 Physical surroundings
 Temporal effects
 Purchase task