Chapter 8

Decision Making

CONSUMER BEHAVIOR, 9e
Michael R. Solomon
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Figure 8.1

Stages in 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

Consumer sees the difference between his or

her current state and ideal state Need recognition Opportunity recognition

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Figure 8.3

Problem Recognition

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Stage 2: Information Search

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 Determinants Ongoing Search

Involvement with purchase Involvement with product

Motives

Making better purchase decisions Better purchase decisions

Building a bank of information for future use Increased impulse buying

Outcomes

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Do Consumers Always Search Rationally?

Time factor Symbolic items Brand switching Variety seeking

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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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Alternatives

Evoked Set

Consideration Set

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Figure 8.7

Levels of Abstraction

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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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Stage 3: Product Choice

Once we assemble and evaluate relevant

options from a category, we must choose among them

Decision rules 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 (for Choosing Products)

Evaluative criteria dimensions used to judge merits of

competing options

Determinant attributes features we use to differentiate among our

choices

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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 decisionmaking 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

Cybermediaries helps filter and organize

online market information

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Heuristics

Heuristics

mental rules-of-thumb for efficient

decisions mental shortcuts

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Heuristics

Product Signals

Market Beliefs

Country of Origin

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Brand Names as Heuristics

Choosing a well-known brand is a

powerful heuristic

Zipfs Law Consumer inertia Brand loyalty

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Choosing a Product That Requires Extensive Problem Solving

With complex decision making We use noncompensatory decision rules

Elimination-by-aspects rule Lexicographic rule Conjunctive rule

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Compensatory Decision Rules

Simple additive rule Weighted additive rule

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Chapter 8: Decision Maketing Key Concepts

Stages in the consumer decision making process Continuum of consumer buying decision behavior Five types of perceived risk Evoked set Consideration set Levels of abstraction Strategic implications of product categorization Evaluative criteria Determinant attributes Neuromarketing Cybermediaries Heuristics Zipfs law Consumer inertia Brand loyalty Noncompensatory decision rules Compensatory decision rules
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