A decision is actually composed of a series of stages that
results in the selection of one product over another. These
some action.
Information search stages are:
Problem recognition – when we realize we must take – consumers survey their environment for appropriate data to make a reasonable decision.
Evaluation of alternatives – where the product alternatives are considered.
Product choice – against non-compensatory or compensatory decision rules.
Outcomes – does product satisfy consumers needs and wants?
Stages in consumer decision-making
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Figure 9.2 Stages in consumer decision-making
Stages in consumer decision-making (Continued)
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The rational perspective – people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weighing the pluses and minuses of each alternative, and arriving at a satisfactory decision.
Behavioural influence perspective – (in conditions of low involvement) where decisions are made as a result of a learned response to environmental cues, e.g. buying on impulse as a result of a ‘special offer’ in a shop.
Experiential perspective – in conditions of high involvement but where the selection made cannot be explained in an entirely rational manner.
Perspectives on decision-making
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Figure 9.3 A continuum of buying decision behaviour
Types of consumer decisions
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Table 9.1 Characteristics of limited vs extended problem-solving
Types of consumer decisions (Continued)
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Extended problem-solving – usually initiated by a motive that is fairly central to self-concept and the final decision is perceived to carry a fair degree of risk.
Limited problem-solving – usually straightforward and simple. There is no real motivation to search for information and evaluate each alternative rigorously.
Habitual problem-solving – those that are made routinely and with little or no conscious effort.
Types of consumer decisions (Continued)
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Problem recognition occurs whenever we see a significant difference between our current state of affairs and some desired or ideal state. It is when a consumer recognizes that there is a need to take action.
Problems can arise in two ways:
Need recognition – when a current possession malfunctions.
Opportunity recognition – the desire for something new.
Marketers’ role in problem creation:
Primary demand, encouraging consumers to use products regardless of the brand they choose.
Secondary demand, encouraging consumers to prefer one brand over another.
Problem recognition
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Internal vs external information search – internal searches of our memory banks helps consumers assemble information about different product alternatives. External information searches (advertisements, etc.) helps consumers to supplement current knowledge.
Deliberate vs accidental search – directed learning where consumers actively seek information or more incidental learning where consumers passively absorb information in their day-to-day routines.
Information search
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Table 9.2 A framework for consumer information search
Source: Peter H. Bloch, Daniel L. Sherrell and Nancy M. Ridgway, ‘Consumer search: An extended framework’, Journal of Consumer Research 13 (June 1986): 120. Reprinted with permission by The University of Chicago Press.
Types of information search
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Figure 9.5 Advertising Age poll: importance of brand attitudes
Do consumers search rationally?
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Figure 9.7 Five types of perceived risk
Perceived risk
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In the evaluation of alternatives stage, the product alternatives a person considers compromise their evoked set. Members of the evoked set usually share some characteristics; we categorize them similarly. The way a person mentally groups products influences which alternatives he or she will consider, and usually we associate some brands more strongly with these categories.
Evaluation of alternatives
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Identifying alternatives
Figure 9.10 Identifying alternatives: getting in the game
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Very often, we use heuristics, or mental rules-of-thumb, to simplify decision-making and lead to speedy decisions.
In particular, we develop many market beliefs over time. One of the most common beliefs is that we can determine quality by looking at the price.
Other heuristics rely on well-known brand names or a product’s country of origin as a signal of product quality.
When we consistently purchase a brand over time, this pattern may be due to true brand loyalty or simply due to inertia because it is the easiest thing to do.
Heuristics
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- Recommended Reading
Yoon et al. (2012) “Decision neuroscience and consumer decision making”, Mark Lett (2012) 23:473
485.