literature review
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Plenary 2 Learning Outcomes
LO1: Understand the consumer decision making process
LO2 Understand how the CDMP is important to market reseachers
LO3: Understand the components of CDMP
LO4: Understand the role of involvement in CDMP and its elements
LO5: Understand how marketers can influence each stage of the CDMP
LO6: Understand the nature of loyalty, post-purchase dissonance, voluntary disposal, and how dissatisfied consumers react
LO7: Learn the basics of questioning techniques for qualitative research
Qualitative
Quantitative
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Readings
Required:
Stankevich, A. (2017). Explaining the Consumer Decision-Making Process: Critical Literature Review. Journal of International Business Research and Marketing, 2(6), 7–14. https://doi.org/10.18775/jibrm.1849-8558.2015.26.3001
Zaichkowsky, Judith L. (1986). Conceptualizing involvement. Journal of Advertising, 15(2), 4–34. https://doi.org/10.1080/00913367.1986.10672999
Extra:
Beatty, S. E., Homer, P., & Kahle, L. R. (1988). The involvement-commitment model: Theory and implications. Journal of Business Research, 16(2), 149–167. https://doi.org/10.1016/0148-2963(88)90039-2
Zaichkowsky, Judith Lynne. (1985). Measuring the Involvement Construct. Journal of Consumer Research, 12(3), 341. https://doi.org/10.1086/208520
Qualitative
Quantitative
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Consumer Decision Making Process (CDMP)
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Consumer Decision Making Process (CDMP)
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Desired State
What the consumer would like (e.g., be attractive, happy, safe, not hungry)
Actual State
What the consumer perceives as already existing (e.g., unattractive, hungry)
A problem exists when there is a disparity between the actual/current state and the desired state
Any time the desired state is equal to the actual state, no problem exists
Need (Problem) Recognition
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Need (Problem) Recognition
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Factors influencing the desired vs. actual states
(Quester et al., 2014)
Actual state
Past decisions
Normal depletion
Product or brand performance
Individual development
Emotions
Consumer groups or government
Availability of products
Current situation
Desired state
Culture and social class
Reference groups
Household characteristics
Financial status or expectations
Previous decisions
Individual development
Motives Emotions
The situation
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Influenced by:
Culture (informed by media, peers etc.)
Reference groups
Emotions
Motives
Financial status
Household characteristics
Need (Problem) Recognition
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Types of consumer problems
Active problem
A problem that the consumer is aware of or will become aware of under normal circumstances.
(Quester et al., 2014)
Inactive problem
A problem that the consumer is not aware of and will not become aware of naturally.
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Internal Search
From memory
In EXTENDED DECISION MAKING, the internal search is used to produce guidelines that limit or direct the external search
External Search
‘Outside’ sources, when own knowledge is insufficient
Includes:
Marketing sources: ads, sales people
Personal sources: recommendations, attitudes and behaviours of/from friends and family
Public sources: consumer reports, online reviews, reports, shows such as Fair Go
Information Search
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(1) criteria for purchasing product (2) brands available (3) value perceptions
Evaluative criteria = what attributes a good/great product or service should have
Varies by consumer and situation
Usually more involved = more criteria
Can be objective (e.g. screen size) or subjective (e.g. prestige)
Might conduct an internal search to determine the features or attributes you want in a product or service (e.g., new phone)
If you don't know what attributes a good/great product or service should have you might carry out an external search
Alternative Evaluation
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Marketers will influence what evaluative criteria you should have and thus, match their brand with this criteria
Focus promotional material on criteria important to the target market
Advertising can be used to increase the perceptions of attribute importance
Criteria could include (& can lead to your consideration set):
Price
Quality
Country of origin
Availability
Service
Alternative Evaluation
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Evaluative criteria leads to your consideration set
Two choices
From whom to buy (seller characteristics, i.e., warranty, trust)
When to buy (sale, time pressure, assistance)
Factors:
One could be on sale
Refund policy
Store atmosphere
Sales person
Time pressure
Ease of shopping experience
And many more!
Purchase
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After purchasing, we compare with our expectations
If we are dissatisfied….
The product was deficient or were our expectations to high?
Post purchase psychological tension or anxiety = “post-purchase dissonance” (comes from original psy. theory ‘cognitive dissonance’)
Marketing tries to minimise PPD through:
effective communication
follow up
guarantees
warranties
Post -Purchase
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Types of problem solving: Involvement
Involvement is the consumer’s degree of interest in the product or service.
We can have high, medium and low involvement
Degree of involvement will dictate how consumers solve problems
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We recognise a problem, make a decision
We spend little effort seeking external information and evaluating alternatives.
The purchase process for such items is virtually a habit
Low-involvement decision making.
Typically the case for low-priced, frequently purchased grocery products e.g. milk
Examples?
Routine Problem Solving
We seek some information or rely on a friend
Several brands might be evaluated using a moderate number of attributes.
Appropriate for purchase situations that do not require a great deal of time or effort, such as choosing a restaurant for lunch
Examples?
Limited Problem Solving
Each of the five stages of the consumer purchase decision process is used
Considerable time and effort
Many brands considered, with many attributes
High involvement
Examples?
Extended Problem Solving
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After purchasing, we compare with our expectations
If we are dissatisfied….
The product was deficient or were our expectations to high?
Post purchase psychological tension or anxiety = “post-purchase dissonance” (comes from original psy. theory ‘cognitive dissonance’)
Marketing tries to minimise PPD through:
effective communication
follow up
guarantees
warranties
Involvement
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The number of “connections” - conscious bridging experiences or personal references per minute - that the subject makes between the content of the persuasive stimulus and the contents of his/her life. (Krugman, Public Opinion Quarterly, 1965, p66)
Involvement Definition
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Involvement = personal relevance. i.e. how relevant & interesting something is to you personally.
Keep in mind, that there are 2 main types:
1. Situational Involvement
2. Intrinsic Involvement
Involvement Definition
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Involvement
Involvement
Extended Problem Solving occurs during a purchase decision that calls for a lot of effort and time. It occurs with HIGH involvement
Routine Problem Solving occurs during a purchase decision that calls for a low amount of effort and time. It occurs with LOW involvement
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Four broad situations in the consumption process
(Quester et al., 2014)
The communication situation
The situation in which consumers receive product or service information.
Key is to get the consumer into a receptive communication situation.
Examples:
Alone vs. in a group
Good vs. bad mood
Life events such as an important exam or break-up
In a hurry or not
(Think about loud and funny
advertisements.)
The purchase situation
The situation in which product selection and purchase occurs.
Affects the outlet chosen, number of brands considered, and price willing to pay.
Examples:
Shopping with kids
Shopping with mum vs. dad
In a hurry or not
The weather
(When do you think hot chocolate sells better: Dark or bright cold day?)
The usage (or consumption) situation
The situation in which the purchased product will be used or consumed.
Determines the appropriateness of the product.
Examples:
Family vs. romantic holiday
Dinner alone or with guests
Gift or personal use
The disposal situation
The situation in which the product and/or packaging is discarded before or after use.
Increasingly influencing purchase decisions.
Examples:
New bed or fridge requires disposal immediately
A new phone requires engagement with the packaging before use
A bottled drink requires disposal after consumption
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Example: Influence of social situation on dessert choice
(Quester et al., 2014)
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For your literature review
Think about what influences the CDMP
Involvement
Situations (social, cultural, internal, external)
Surroundings
Environment
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Brand Loyalty Random Selection
Cognitive Spurious Loyalty
Dissonance
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Involvement and Strategy
Involvement Level
High
Low
Significant
Differences
between
Brands
Few
Differences
Between
Brands
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Qualitative Questioning Techniques
Note – these are techniques to be used within qualitative research methods, not typically methods in themselves.
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Direct and Indirect Questioning Techniques
Direct vs Indirect Techniques
When eliciting information in qualitative research, questions may be direct or indirect
Direct questions question a participant on a topic in a straightforward manner
Indirect questioning techniques somewhat disguise the question being asked, this often includes projective techniques
Let’s look first at direct questioning
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Direct Questioning Techniques
Direct Questioning
Asking respondents for information is not a simple process. Collecting accurate and reliable data requires that the moderator is careful about asking questions fairly
There are a number of things to consider when asking questions, including:
Naïve outsider role
Natural language
Composing questions (see next slide)
Reactions, acknowledgements and reinforcements
Active listening
Data validation
The specific questions stage
Moderator movement
Probing (see slide after next)
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Direct Questioning Techniques
Direct Questioning: Probing
There's always more to learn after a question has been answered. That's where probing comes in - the moderator may ask for elaboration, a definition, a comparison or a context. Some techniques for probing include:
Appropriate language
Information requests
Non-verbal probes
Reflective probes
Confrontational probes
Creative probes
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Indirect Questioning Techniques
Projective Techniques
Can you explain what they are?
Why do you think we use projective techniques?
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Indirect Questioning Techniques
Projective Techniques: Personification
Participants imagine that the brand is a person and then describe demographic or status-driven attributes associated with his or her personality
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Indirect Questioning Techniques
Projective Techniques: Picture Sorts and Collages
Visual stimuli sometimes help respondents frame their ideas or get over inhibitions experienced when thoughts have to be put into words
E.g., Products or brands pictured may represent a range of upscale vs. downscale, young vs. old or traditional vs. novel
As the appropriate images are selected to represent the brand, they may be arranged in a collage. Then, respondents may discuss why specific images were chosen
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The Dimensions of Involvement
Antecedents of
involvement
Possible results of
involvement
Person Factors
- needs
- importance
- interest
- values
Object/Stimulus
Factors
- differentiation of
alternatives
- source of
communication
- content of
communication
Situational Factors
- purchase/use
- occasion
Involvement
with ads
with products
with purchase
decisions
counter arguments
effectiveness of ad
importance of product
class
perceived differences in
attributes
preference of brand
influence of price
amount of info. search
time spent deliberating
type of decision rule