CHAPTER 3

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.

or

The Consumer Decision Process

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

OR

A Model of Consumer Behaviour

Cultural Characteristics Personal Psychological

Buyer Decision Process Problem Recognition Information Search Evaluation Decision Post-purchase Behaviour

BUYER EXPERIENCE

MARKETING 4Ps Product Price Place Promotion

ENVIRONMENTAL

Economic Technological Product Choice Brand Choice Political Dealer Choice SocioCultural Purchase Timing
Purchase Amount

Post-purchase Evaluation

PURCHASE

Trial

The Consumer Decision Process

How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs?

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Why

do I need it?---- Problem Recognition What exactly is this product?-- Information Search What options are available? --Analysis of Alternatives How exactly does purchase happen? -Purchase Decision Did I make the right choice?-Postpurchase Behaviour

PROBLEM RECOGNITION
Ideal State Simple Expectations Future goals/Aspirations Motivations/Self Image Culture Change in Personal Circumstances

Differences

Actual State Physical factors Need External Stimuli

Problem recognition

Perceived difference between an ideal state and actual state motivates the consumer to take actions.

Marketing Implications

The Consumer Decision Process

P&G used consumer information regarding various decision process stages to create and market Dryel
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Influencer plays an important role in consumer decision making. Influencer may not be an expert but he/she assumes a key role in consumer decision and his/her family dynamics.

Theories/models of consumer decision making 1.Economic view 2.Passive view 3.Cognitive view 4.Emotional view

Post purchase Behaviour Consumer evaluates the product during consumption to see if it satisfies the need/expectation

Influenced by type of preceding decisionmaking processes.

Depends on the level of purchase involvement or the level of interest in a purchase Cognitive dissonance and Experiential marketing play an important role in shaping up these behaviours.

Consumer Decision Process Stages

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model

Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

Purchase
Consumption Post-consumption Evaluation Divestment

Consumer Decision Process Model

Need Recognition

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Need Recognition
Need: the difference between what a person perceives to be the ideal versus the actual state of affairs

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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)
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Need Recognition

Communicating a need and raising consumer awareness of need or problem Special needs of baby teeth
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model

Need Recognition Search for Information

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

CDP Model
Internal Search Exposure Attention Comprehension Acceptance Retention

Need Recognition Search Environmental Influences

M E M O R Y

Individual Differences

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Search For Information

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Search For Information

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Search For Information

Need Recognition Environmental Influences

Internal Search M E M O R Y

Search

Individual Differences

External Search

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Search: Sources of Information

Marketer Dominated Non-Marketer Dominated Stimuli

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Information Processing
Exposure Stimuli:
-Marketer Dominated -Nonmarketer Dominated

Attention Comprehension Acceptance Retention

M E M O R Y

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Search: Information Processing

Exposure Attention

Comprehension
Acceptance Retention
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model

Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

CDP Model
Internal Search Exposure Attention CompreStimuli: hension Friends and relatives Acceptance Retention

Need Recognition Search Pre-purchase Evaluation of Alternatives Environmental Influences

M E M O R Y

Individual Differences

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives

Aunt Jemima maple syrup focuses on the evaluative criteria of thickness in this advertisement

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model

Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

Purchase

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

CDP Model
Internal Search Exposure Attention Stimuli Comprehension Acceptance Retention

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

M E M O R Y

Individual Differences

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Purchase
Purchase decisions involve choosing a form of retailing, a specific retailer, and a particular product and brand

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model

Need Recognition Search for Information Prepurchase Evaluation of Alternatives

Purchase
Consumption

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

CDP Model
Internal Search Exposure Attention Stimuli Comprehension Acceptance Retention

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

M E M O R Y

Individual Differences

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumption
The process of using the product or service purchased Consumption can either occur immediately or be delayed

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumption
Appealing to consumers with easy-touse positioning Consumptionoriented product design and benefit

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model

Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

Purchase
Consumption Post-consumption Evaluation

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

CDP Model
Exposure: Awareness about the mutual fund products Attention: healthy returns of reliance mutual funds

Internal Search:(experi enced to invest in mutual fund)

Need Recognition: choosing the mode of investment in which less risk and moderate return is involved Search: website, through broker newspaper Environ- mental Influences: broker, agent

M E M O R Y

Prepurchase Evaluation of Alternatives: lic, Idfc, hdfc, reliance to check the returns of past five years Purchase: finally made a purchase of reliance small cap fund Consumption: successful usage of the product

Stimuli: By Broker

jjbyby

Comprehension :analysed the benefits and features of mutual funds Acceptance: liked the product and accepted

Individual Differences: boom in the market , expected more returns(experience d to invenst in reliance other scheme)

Post-consumption Evaluation: successful usage of mutual fund and it NAV is growing

Retention: risk diversification Divestment : External Search: Financial magazine

dissatisfied

Satisfaction:we cannot judge

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model

Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

Purchase
Consumption Post-consumption Evaluation Divestment
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Divestment
Mentadent sells toothpaste in a dualchambered pump, which can be filled with refills and reused rather than thrown away each time

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

CDP Model
Internal Search Exposure Attention Stimuli Comprehension Acceptance Retention

Need Recognition Search Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Dissatisfaction Satisfaction Environmental Influences

M E M O R Y

Individual Differences

External Search

Divestment
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Variables Shaping the Decision Process

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Variables Shaping the Decision Process

Individual Differences: Demographics, psychographics, values, and personality

Consumer resources
Motivation Knowledge Attitudes

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Variables Shaping the Decision Process

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Variables Shaping the Decision Process

Psychological Processes Influencing Consumer Behavior Information processing

Learning
Attitude and behavior change

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Continuum

Extended Problem Solving (EPS) Midrange Problem Solving Limited Problem Solving (LPS)

High
Degree of Complexity

Low

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Continuum: Repeat Purchases

Extended Problem Solving Midrange Problem Solving Limited Problem Solving Habitual Problem Solving

High
Degree of Complexity

Low

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes

Repeat Purchase
Repeated Problem Solving Habitual Decision Making

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes

Repeat Purchase
Repeated Problem Solving Habitual Decision Making

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes

Repeat Purchase
Repeated Problem Solving Habitual Decision Making

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Nestle appeals to consumers variety seeking behavior by promoting a variety of desserts for each day of the week (variety without brand switch)
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent

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?)

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent

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

Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent

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
Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.

Consumer Behavior