Constructive Consumer Choice Processes

1. Constructive Consumer Choice Processes James R. Bettman Mary Frances Luce John W. Payne

2. How Consumers construct choices? People often do not have well-defined preferences; instead, they may construct then on the spot when needed.

3. Why Are Preferences Constructive? Individuals may construct preferences because they lack the cognitive resources to well-defined preferences. Consumers often bring multiple goals to a given decision problem.

4. What Influence Consumers to Make Decisions? Choice among options depends on the goals of the decision maker. Choice among options depends on the complexity of the decision tasks. Choice among options is context dependent.

5. What Influence Consumers to Make Decisions? 4. Choice among options depends on how one is asked. 5.Choice among options depends on how the choice set is represented (framed) or displayed

6. Primary Aspects Characterizing Choice Strategies The total amount of information processes Ex: problem size 2. The selectivity in information processing

7. Primary Aspects Characterizing Choice Strategies 3. The pattern of processing ( whether by alternative[brand] or by attribute) 4.Whether the strategy is compensatory or noncompensatory

8. Compensatory

9. Noncompensatory

10. Four Goals Maximizing the accuracy of the choice Minimizing the cognitive effort required to make the choice Minimizing the experience of negative emotion when making the choice Maximizing the ease of justifying the decision

12. What is Daniel’s choice process?

13. Accuracy and Effort Predominate 1. Consumer choice research on problem difficulty

14. Accuracy and Effort Predominate Problem size Ex: WADD & LEX/EBA

15. Characteristics of Decision Strategies

16. Accuracy and Effort Predominate 2. Information load

17. Accuracy and Effort Predominate If consumers become selective in ways that reflect their values, then overload may not be too harmful.

18. Accuracy and Effort Predominate 3. Time pressure Ex: more research?

20. Accuracy and Effort Predominate 2. Response mode Providing incentives and feedback over repeated choices does appear to reduce preference reversals. Ex: choose “Honda” again

21. Accuracy and Effort Predominate 3. Consumer research on the interactions between consumer knowledge and decision making

22. Accuracy and Effort Predominate Memory Ex: experience/brand 2. Categorical & piecemeal Ex: novices & experts

23. Accuracy and Effort Predominate Categorical processing is more likely to be used when expectations are met, with more detailed (piecemeal) processing more likely when expectations are not met and the consumer has expertise in the category.

24. Minimizing Negative Emotion is Relevant Emotion-laden Extensive/selective/attribute-based processing

25. Minimizing Negative Emotion is Relevant 2. Encourage avoidant behaviors Ex: not VSA: not safe

26. Maximizing Ease of Justification is Relevant Asymmetrically dominate alternative Ex: internet-only/print-only subscription

27. Asymmetrically Dominance task

28. Maximizing Ease of Justification is Relevant 2. Context effect

29. The Framework Could not Fully Explain Framing effects Preferences over time

30. Framing Effect

31. Framing Effect

32. Framing Effect 40% off 60%

33. Preference Over Time Consumers compress future time intervals when making combined choices and hence overestimate the effect of satiation

34. Preference Over Time Every Monday Once a Month

35. Thanks!!!