Consumer Behaviour class paper
Furkano
Chapter12.pptxDecision Making I: Need Recognition and Search
12
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Outcomes
Understand the activities involved in the consumer decision-making process.
Describe the three major decision-making research perspectives.
Explain the three major types of decision-making approaches.
Understand the importance of the consideration set in the decision-making process.
Understand the factors that influence the type and amount of search performed by consumers.
LO12-1
LO12-2
LO12-3
LO12-4
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Understand the activities involved in the consumer decision-making process.
LO12-1
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
LO12-1
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
LO12-1
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Decision Making and Choice
LO12-1
Value
Motivation
Emotion
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Describe the three major decision-making research perspectives.
LO12-2
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
LO12-2
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Rational Perspective
What is rational to some may be irrational to others
Would you pay over $1,000 for a single season ticket to a basketball game?
LO12-2
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Explain the three major types of decision-making approaches.
LO12-3
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Involvement and Risk
Involvement
The degree of personal relevance that a consumer finds in pursuing value from a given act
Types of risk
Financial
Social
Performance
Physical
Time
LO12-3
LO12-3
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Habitual Decision Making
Brand loyalty - Deeply-held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior
Loyalty programs provide benefits for consumers and marketers
LO12-3
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Understand the importance of the consideration set in the decision- making process.
LO12-4
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Need Recognition
Consumer perceives a difference between an actual state and a desired state
States of need recognition include:
Actual state
Desired state
LO12-4
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Search Behavior
LO12-4
Ongoing
Prepurchase
Internal
External
Information Overload
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
LO12-4
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Understand the factors that influence the amount of search performed by consumers.
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
External Search
Gathering of information from external sources
Factors considered:
Ease of obtaining information from the source
Objectivity of the source
Trustworthiness of the source
The speed with which the information can be obtained
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Evaluative Criteria
Product attributes that consumers consider when reviewing possible solutions to a problem
Two that are used across almost all consumer decisions:
Price
Quality
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
External Search and Emerging Technologies
LO12-5
Lowers search costs
Provides hedonic value
Information control
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Internet at Your Fingertips
Consumers can buy directly from sponsored links on other sites, which produces an easy online shopping experience
As mobile technologies continue to evolve, consumers will be able to do everything on the go
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Factors Influencing Amount of Search
Involvement
Perceived risk
Value of search effort
Time availability
Attitude toward shopping
Personal factors
Situational influencers
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
LO12-5
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Search Regret
Negative emotions that come from a failed search process
When consumers are unable to find a solution to their problems, the decision-making process stops
Consumers may feel the process was a wasted effort
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Search Regret - Example
Reuben browsed through 3 online retailers’ websites looking for the game, Assassin's Creed Brotherhood
Every website said that the product is out of stock
He was frustrated by the amount of time he spent looking for the game
LO12-5
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
‹#›
‹#›
Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
