MKT 342 Chap 8 Key Concepts

8/3/2019 MKT 342 Chap 8 Key Concepts

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Chapter 8

Decision Making

CONSUMERBEHAVIOR, 9eMichael R. Solomon


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Figure 8.1

Stages in Consumer Decision Making


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Figure 8.2

Continuum of Buying Decision Behavior


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Steps in the Decision-Making Process

Problem recognition

Information search

Evaluation of alternatives

Product choice


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Figure 8.3

Problem Recognition


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Stage 2: Information Search

We survey the environment for appropriatedata to make a reasonable decision

Prepurchase or ongoing search

Internal or external search

Online search


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Table 8.2

A Framework for Consumer Information Search

Prepurchase versus Ongoing Search

Prepurchase Search Ongoing Search

Determinants Involvement with purchase Involvement with product

Motives Making better purchasedecisions

Building a bank ofinformation for future use

Outcomes Better purchase decisions Increased impulse buying


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Do Consumers Always Search Rationally?

Time factor

Symbolic items

Brand switching

Variety seeking


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Figure 8.6

Five Types of Perceived Risk

Monetary risk

Functional risk

Physical risk

Social risk

Psychological risk


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Alternatives

Evoked Set

Consideration Set


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Figure 8.7

Levels of Abstraction


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Strategic Implicationsof Product Categorization

Position a product

Identify competitors

Create an exemplar product

Locate products in a store


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Stage 3: Product Choice

Once we assemble and evaluate relevantoptions from a category, we must chooseamong them

Decision rules can be very simple or verycomplicated

Prior experience with (similar)product

Present information at time of purchase

Beliefs about brands (from advertising)


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Evaluative Criteria (for Choosing Products)

Evaluative criteria

dimensions used to judge merits ofcompeting options

Determinant attributes

features we use to differentiate among ourchoices


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Information Necessary forRecommending a New Decision Criterion

It should point out that there are significantdifferences among brands on the attribute

It should supply the consumer with a decision-making rule, such as if, then

It should convey a rule that is consistent withhow the person made the decision on prioroccasions


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Neuromarketing

Uses functional magnetic resonance imaging,a brain-scanning device that tracks blood flowas we perform mental tasks

Marketers measure consumers reactions tomovie trailers, choices about automobiles, theappeal of a pretty face, and loyalty to specificbrands


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Cybermediaries

The Web delivers enormous amounts ofproduct information in seconds

Cybermediaries helps filter and organizeonline market information


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Heuristics

Heuristics

mental rules-of-thumb for efficientdecisions

mental shortcuts


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Heuristics

Product Signals

Market Beliefs

Country of Origin


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Brand Names as Heuristics

Choosing a well-known brand is apowerful heuristic

Zipfs Law

Consumer inertia

Brand loyalty


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Choosing a Product That RequiresExtensive Problem Solving

With complex decision making

We use noncompensatory decision rules

Elimination-by-aspects rule Lexicographic rule

Conjunctive rule


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Compensatory Decision Rules

Simple additive rule

Weighted additive rule


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Chapter 8: Decision MaketingKey Concepts

Stages in the consumer decision making process

Continuum of consumer buying decision behavior

Five types of perceived risk

Evoked set

Consideration set

Levels of abstraction

Strategic implications of product categorization Evaluative criteria Determinant attributes

Neuromarketing

Cybermediaries

Heuristics Zipfs law Consumer inertia

Brand loyalty

Noncompensatory decision rules

Compensatory decision rules

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MKT 342 Chap 8 Key Concepts