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MKTG 407 Consumer Decision-Making Processes Chapter 7. Steps in Consumer Decision-Making. 1. Problem Recognition. 2. Information Search. All steps affected by: Cultural Social Individual & Psychological Factors. 3. Evaluate Alternatives. 4. Product Choice. 5. Post Purchase Behavior.

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steps in consumer decision making
Steps in Consumer Decision-Making

1. Problem Recognition

2. Information Search

All steps affected by:

Cultural

Social

Individual &

Psychological Factors

3. Evaluate Alternatives

4. Product Choice

5. Post Purchase Behavior

An Illustration with Ideas

for Nuggets/Underhill PPTs

exercise

Exercise

Think of a recent consumer decision

Walk through five steps of consumer decision-making process

Identify at least one factor that affected your response at each stage

Discuss with person sitting next to you

steps in consumer decision making1
Steps in Consumer Decision-Making

1. Problem Recognition

  • A difference between current and desired or ideal state
  • Can be driven by internal (hunger) or external (friends) factors
  • Can be driven by future goals/aspirations, which rest on our values
  • Can be influenced by recent events/life transitions (from college to the “real world”)
  • “Ideal states” can become distorted and detrimental (Ad1, Ad2)
steps in consumer decision making2
Steps in Consumer Decision-Making

2. Information Search

  • Searching for appropriate information to make a decision
  • Internal sources
    • Memory for…
      • Brands
      • Attributes
      • Evaluations
      • Experiences
steps in consumer decision making3
Steps in Consumer Decision-Making

2. Information Search

  • Brand recall enhanced when…
    • Brand is prototypical
    • Brand is familiar
    • Brand is linked with goals/usage situations
    • Brand attitude is favorable
    • Linked with retrieval cues
    • Application to Starbucks Via?
steps in consumer decision making4
Steps in Consumer Decision-Making

2. Information Search

  • Attribute recall enhanced when attribute is…
    • Accessible (strongest associative links)
    • Diagnostic (allows consumer to distinguish one product from another); negative more diagnostic than positive, so marketers try hard to avoid
    • Salient (e.g., shape of an iPod)
    • Has “attribute determinance” (attribute is both diagnostic and salient)
    • Vivid
    • Linked with goals
steps in consumer decision making5
Steps in Consumer Decision-Making

2. Information Search

  • Evaluation recall
    • While attributes can be recalled, often we forget details, but retain a general evaluation (e.g., of brand)
    • This is why creating favorable brand image is important beyond specific attributes
  • Experience recall
    • When product linked with an experience, easier to recall
steps in consumer decision making6
Steps in Consumer Decision-Making

2. Information Search

  • External sources
    • Common sources for external search
      • Retailer
      • Media
      • Friends
      • Independent (neutral) sources: CNET
      • Experiential (trials, test drives)
    • Search enlarges when perceived risk & interest are high, and confidence, knowledge, experience low
slide10

Forming a Consideration Set

of Brand Choice Alternatives

Golden Corral – Baby Back Ribs

Golden Corral – Comfort Food

steps in consumer decision making7
Steps in Consumer Decision-Making

3. Evaluate Alternatives

4. Product Choice

  • Info search  “evoked (consideration) set”
  • Once consideration set established, a variety of factors can influence how consumers evaluate and choose among alternatives
slide13

Role of Heuristics in Consumer Decision-Making

  • Heuristics
    • Simple “if . . ., then . . .” propositions (rules of thumb) that connect an event with an appropriate action
  • Heuristics particularly important in
    • Search
    • Evaluation
    • Choice
steps in consumer decision making8
Steps in Consumer Decision-Making

5. Post Purchase Behavior

  • Post-purchase evaluation
    • Satisfaction based on expectations
      • Larger gap, less satisfaction
    • Reduce post-decisional regret (cog. dissonance)
  • Other post-purchase behaviors
    • Repeat purchase
    • Good vs. bad word of mouth