Understanding Consumer Decision Process

2. Consumer Behavior Roger D. Blackwell Paul W. Miniard James F. Engel Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3. CHAPTER 3 The Consumer Decision Process

4. The Consumer Decision Process

5. The Consumer Decision Process How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs?

6. The Consumer Decision Process The CDP represents a road map of consumers’ minds that marketers and managers can use to help guide product mix, communications, and sales strategies

7. By permission of Drexel. The Consumer Decision Process P&G used consumer information regarding various decision process stages to create and market Dryel

8. Consumer Decision Process Stages

9. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment

10. Consumer Decision Process Model Need Recognition

11. Need Recognition An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs

12. Need Recognition Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively

13. Need Recognition Environmental Influences - Culture - Social Class - Personal Influence - Family - Situation MEMORY Need Recognition Individual Differences - Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle

14. Consumer Decision Process Model Need Recognition Search for Information

15. CDP Model Need Recognition Internal Search Search Environ- mental Influences Exposure Attention MEMORY Stimuli Individual Differences Comprehension Acceptance Retention

16. Search for Information Internal search: retrieving know-ledge from memory or genetic tendencies External search: collecting informa- tion from peers, family, and the marketplace

17. Search for Information Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior Search refers to a receptivity of information that solves problems or needs rather than a search for specific products

18. Search for Information Need Recognition Environmental Influences Internal Search Search Individual Differences MEMORY External Search

19. Search: Sources of Information Marketer Dominated Non-Marketer Dominated Stimuli

20. Search: Sources of Information Marketer Dominated - Advertising - Salespeople - Infomercials - Websites - Point-of-sales materials

21. Search: Sources of Information Non-Marketer Dominated Stimuli - Friends - Family - Opinion leaders - Media

22. Information Processing As a consumer is exposed to information from external search, they begin to process the stimuli

23. Information Processing Exposure M EMORY Stimuli: - Marketer Dominated - Nonmarketer Dominated Attention Comprehension Acceptance Retention

24. Search: Information Processing Exposure Attention Comprehension Acceptance Retention

25. Ads That Create a Brand Image

26. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

27. CDP Model Need Recognition Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Individual Differences Comprehension Acceptance Retention

28. Pre-purchase Evaluation of Alternatives The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer

29. Pre-purchase Evaluation of Alternatives Can use new or preexisting evaluations stored in memory Evaluative criteria: standards and specifications used to compare different products and brands Alternative can be considered on attributes that are salientor determinant

30. Pre-purchase Evaluation of Alternatives Salient attributes such as price and reliability are important to the consumer Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose

31. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase

32. CDP Model Need Recognition Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Acceptance Retention

33. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices

34. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices Purchase intention can change during the purchase stage—it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

35. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption

36. CDP Model Need Recognition Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Consumption Acceptance Retention

37. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed

38. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed How consumers use a product affects satisfaction with product How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

39. An Emotional Appeal in Product Consumption

40. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation

41. CDP Model Need Recognition Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Consumption Acceptance Retention Post-consumption Evaluation External Search Dissatisfaction Satisfaction

42. Post-consumption Evaluation Consumption is an important determinant of satisfaction Satisfaction: when consumers’ expectations are matched by perceived performance Dissatisfaction: when experiences and performance fall short of expectations

43. Post-Consumption Evaluation Cognitive dissonance: questioning the purchase decision (post-purchase regret) Usually, the higher the price, the higher the level of cognitive dissonance Emotion strongly affects the evaluation of a product or transaction

44. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment

45. CDP Model Need Recognition Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Purchase Individual Differences Comprehension Consumption Acceptance Retention Post-consumption Evaluation External Search Dissatisfaction Satisfaction Divestment

46. Divestment How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling

47. How Organizations Use the CDP Model

48. Variables Shaping the Decision Process Identify relationships and variables that affect consumer decision making Identify topics for additional research Develop and implement marketing mix strategies

49. Variables Shaping the Decision Process Individual Differences: Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes

50. Variables Shaping the Decision Process Environmental Differences: Culture Social Class Family Personal Influence Situation behaviors