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Consumer Decision Making II. MKT 750 Dr. West. Agenda. Back to Stages of Decision Making Evaluation of Alternative, Decision Rules, Choice and Post-purchase Evaluation A Model of Customer Satisfaction. Need Recognition. Search. Alternative Evaluation. Choice. Post-Purchase

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Presentation Transcript
agenda
Agenda
  • Back to Stages of Decision Making
    • Evaluation of Alternative, Decision Rules, Choice and Post-purchase Evaluation
  • A Model of Customer Satisfaction
slide3

Need

Recognition

Search

Alternative

Evaluation

Choice

Post-Purchase

Evaluation

Rational Decision Making:

slide4

Evaluating Alternatives

  • Determine criteria to be used for
  • evaluation of products
  • Assess the relative importance of the
  • each criteria
  • Evaluate each product based on the
  • identified criteria
slide5

Evaluating Alternatives

  • Criteria for the purchase of a car:
    • Space
    • Reliability
    • Safety
    • Longevity
    • Handling
    • Styling
slide6

Evaluating Alternatives

  • Assessing Importance: ei
    • Space 5
    • Reliability 4
    • Safety 4
    • Longevity 3
    • Handling 3
    • Styling 2

* Importance: 5=Most Important, 1=Least Important

slide7

Evaluating Alternatives

  • Beliefs Regarding Product Performance:

Product Evaluation: 4=Excellent, 3=Very Good, 2=Good, 1=Fair

slide8

Decision Rules

  • Cutoffs/Thresholds: restriction or requirements for acceptable performance
  • Signals are product attributes used to infer other product attributes (e.g. high price often infers higher quality)
decision rules
Decision Rules
  • Compensatory Rule: a perceived weakness of one attribute may be offset or compensated for by the perceived strength of another attribute
  • Noncompensatory Rule: a product’s weakness on one attribute cannot be offset by strong performance on another attribute
slide10

Compensatory Decision Rules

  • Simple additive (Equal Weight):bi

The consumer adds the product evaluations across the set of salient evaluative criteria. The product with the largest score is chosen.

  • Weighted additive:biei

Judgments of product evaluations are weighted according to importance

slide13

Noncompensatory Decision Rules:

  • Lexicographic strategy:
    • Brands are compared on their most important attribute, and the winner is chosen.
    • If there is a tie the second most-important is considered, and so on, until a choice is identified
slide17

Noncompensatory Decision Rules:

  • Elimination by aspects (EBA):
    • Brands are compared on an attribute by attribute basis.
    • Alternatives are eliminated that fall below the consumer imposed cutoffs.
    • Process continues until a single alternative remains.
slide19

Noncompensatory Decision Rules:

  • Conjunctive strategy (Satisficing):
    • Brand are evaluated, one at a time, against a set of thresholds established for each attribute.
    • The first brand that meets or exceeds the threshold for each attribute is chosen.
determinants of satisfaction
Determinants of Satisfaction:
  • What happens when product performance doesn’t meet expectations?
    • Assimilation – a reluctance to acknowledge discrepancies via rationalization and attribution
    • Contrast – the tendency to exaggerate differences, a phenomenon known as reactance
assimilation contrast
Assimilation & Contrast

Assimilation Contrast

10

Favorable 9

Performance 8

7

6 Expectation

Unfavorable 5

Performance 4

3

2

1

Zone of Tolerance

expectancy disconfirmation

Negative Disconfirmation

“Disappointment”

Expectancy Disconfirmation

10High Expectations

Favorable 9

Performance 8

7

6

Unfavorable 5

Performance 4

3

2

1

Dissatisfaction Satisfaction

Zone Zone

expectancy disconfirmation24

Negative Disconfirmation

“Betrayal”

Expectancy Disconfirmation

10High Expectations

Favorable 9

Performance 8

7

6

Unfavorable 5

Performance 4

3

2

1

Dissatisfaction Satisfaction

Zone Zone

expectancy disconfirmation25

Positive Disconfirmation

“Ambivalence”

Expectancy Disconfirmation

10

Favorable 9

Performance 8

7

6

Unfavorable 5

Performance 4

3

2

1Low Expectations

Dissatisfaction Satisfaction

Zone Zone

expectancy disconfirmation26
Expectancy Disconfirmation

10

Favorable 9

Performance 8

7

6

Unfavorable 5

Performance 4

3

2

1Low Expectations

Dissatisfaction Satisfaction

Zone Zone

Positive Disconfirmation

“Elation”

slide27

Customer Satisfaction

  • Satisfaction influences repeat buying
  • Positive post-consumption evaluations
  • are essential for retaining customers
  • The likelihood that customers will
  • remain loyal depends on their level of
  • satisfaction
slide28

Customer Satisfaction

  • It Shapes Word-of-Mouth
  • Consumers often talk about their
  • consumption experiences
  • A firm’s ability to satisfy customers will
  • affect its success in retaining current
  • customers as well as recruiting new ones
slide29

Customer Satisfaction

  • Implications for Competitive Strategy
  • Monitor satisfaction levels
  • Encourage dissatisfied customers to
  • voice their concerns
  • Have a recovery system in place to
  • address customer concerns
slide30

Influencing Expectations

  • Advertising claims
  • Brand names
  • Packaging
  • Price