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BABSONCOLLEGE
NoteonConsumerDecisionMakingProcesses
ByKenMatsuno
ConsumersAsProblemSolvers
Traditionally,consumerresearchershaveapproacheddecisionmakingprocessfromarationalperspective.Thisdominantschoolofthoughtviewsconsumersasbeingcognitive(i.e.,problem-solving)and,tosomebutalesserdegree,emotional」Suchaviewisreflectedinthestagemodelofatypicalbuyingprocess(oftencalledtheconsumerinformationprocessingmodel)depictedinFigure1.
Figure1TheConsumerInformationProcessingModel
Source:AdoptedfromKotler(1997),SchiffmanandKanuk(1997),andSolomon(1996)
Inthismodel,theconsumerpassesthroughfivestages:problemrecognition,informationsearch,evaluationandselectionofalternatives,decisionimplementation,andpostpurchaseevaluation.
ProblemRecognition
Inthisinformationprocessingmodel,theconsumerbuyingprocessbeginswhenthebuyerrecognizesaproblemorneed.Forexample,Dougmayrealizethathisbestsuitdoesn’tlookcontemporaryanymore.Or,Kathleenmayrecognizethatherpersonalcomputerisnotperformingaswellasshethoughtitshould.Thesearethekindsof
ThisnoteispreparedbyKenMatsuno,AssistantProfessorofMarketingasabasisforclassdiscussion.
Copyright©byKenMatsunoandBabsonCollege,1997
problemthatweasconsumersencounterallthetime.Whenwefoundoutadifferencebetweentheactualstateandadesiredstate,aproblemisrecognized.Whenwefindaproblem,weusuallytrytosolvetheproblem.We,inotherwords,recognizetheneedtosolvetheproblem.Buthow?
InformationSearch
Whenaconsumerdiscoversaproblem,he/sheislikelytosearchformoreinformation.Kathleenmaysimplypaymoreattentiontoproductinformationofapersonalcomputer.Shebecomesmoreattentivetocomputerads,computerspurchasedbyherfriends,andpeerconversationsaboutcomputers.Or,shemaymoreactivelyseekinformationbyvisitingstores,talkingtofriends,orreadingcomputermagazines,amongothers.Throughgatheringinformation,theconsumerlearnsmoreaboutsomebrandsthatcompeteinthemarketandtheirfeaturesandcharacteristics.Theoretically,thereisatotalsetofbrandsavailabletoKathleen,butshewillbecomeawareofonlyasubsetofthebrands(awarenessset)inthemarket.Someofthesebrandsmaysatisfyherinitialbuyingcriteria,suchaspriceandprocessingspeed(considerationset).AsKathleenproceedstomoreinformationsearch,onlyafewwillremainasstrongcandidates(choiceset).
EvaluationandSelectionofA^lte^na^ives
Howdoestheconsumerprocesscompetitivebrandinformationandevaluatethevalueofthebrands?Unfortunatelythereisnosingle,simpleevaluationprocessappliedbyallconsumersorbyoneconsumerinallbuyingsituations.
Onedominantview,however,istoseetheevaluationprocessasbeingcognitivelydrivenandrational.Underthisview,aconsumeristryingtosolvetheproblemandultimatelysatisfyinghis/herneed.Inotherwords,he/shewilllookforproblem-solvingbenefitsfromtheproduct.Theconsumer,then,looksforproductswithacertainsetofattributesthatdeliverthebenefits.Thus,theconsumerseeseachproductasabundleofattributeswithdifferentlevelsofabilityofdeliveringtheproblemsolvingbenefitstosatisfyhis/herneed.Thedistinctionsamongtheneed,benefits,andattributesareveryimportant.Oneusefulwaytoorganizetherelationshipsamongthethreeisahierarchicalone(Figure2).Althoughsimplified,Figure2isanexampleofhowabundleofattributes(i.e.,aproductor,morespecifically,personalcomputer)relatestothebenefitsandunderlyingneedsofKathleen.
Figure2HierarchicalViewofNeeds,Benefits,andAttributes
Fromthisfigureandtheprecedingdiscussion,youmightrecognizethattheproductattributesarerelevantandimportantonlytotheextentthattheyleadtoacertainsetofbenefits.Likewise,benefitsaremeaningfulonlyiftheycanaddresstheproblemandbeinstrumentaltosatisfytheunderlyingneed.Astheunderlyingneedisoftenpersonal,consumersdifferastotheirbeliefsaboutwhatproductbenefitsandattributesaremore(orless)importantandrelevantinsatisfyingtheirneeds.Basedontheirpersonaljudgmentonimportanceofbenefitsandattributes,consumersdevelopasetofattitudes(orpreferences)towardthevariousbrands.Onemayexpresshis/herpreferencesofthebrandsintermsofranking,probabilityofchoice,andsoforth.
DecisionImplementation
Toactuallyimplementthepurchasedecision,however,aconsumerneedstoselectbothspecificitems(brands)andspecificoutlets(wheretobuy)toresolvetheproblems.Thereare,infact,threewaysthesedecisionscanbemade:1)simultaneously;2)itemfirst,outletsecond;or3)outletfirst,itemsecond.2Inmanysituations,consumersengageinasimultaneousselectionprocessofstores3andbrands.Forexample,inourKathleen’spersonalcomputercase,shemayselectasetofbrandsbasedonboththeproducfstechnicalfeatures(attributes)andavailabilityofbrandsinthecomputerstoresandmailordercatalogssheknowswell.Itisalsopossible,thatshedecideswheretobuy(e.g.,CompUSAinherneighborhood)andthenchoosesoneortwobrandsthestorecarries.Oncethebrandandoutlethavebeendecided,theconsumermovesontothetransaction(“buying”).
Post-purchaseEvaluation
Post-purchaseevaluationprocessesaredirectlyinfluencedbythetypeofprecedingdecision-makingprocess.Directlyrelevanthereisthelevelofpurchaseinvolvementoftheconsumer.Purchaseinvolvementisoftenreferredtoas“thelevelofconcernfororinterestinthepurchase"4situation,anditdetermineshowextensivelytheconsumersearchesinformationinmakingapurchasedecision.5Althoughpurchaseinvolvementisviewedasacontinuum(fromlowtohigh),itisusefultoconsidertwoextremecaseshere.Supposeonebuysacertainbrandofproduct(e.g.,DietPepsi)asamatterofhabit(habitualpurchase).Forhim/her,buyingacoladrinkisaverylowpurchaseinvolvementsituation,andhe/sheisnotlikelytosearchandevaluateproductinformationextensively.Insuchacase,theconsumerwouldsimplypurchase,consumeand/ordisposeoftheproductwithverylimitedpost-purchaseevaluation,andgenerallymaintainahighlevelofrepeatpurchasemotivation(Figure3).
Figure3 LowInvolvementPurchase
Source:Hawkins,Best,andConey(1983)
However,ifthepurchaseinvolvementishighandtheconsumerisinvolvedinextensivepurchasedecisionmaking(e.g.,personalcomputer),he/sheismorelikelytobeinvolvedinmoreelaboratepost-purchaseevaluation—oftenbyquestioningtherightnessofthedecision:“DidImaketherightchoice?ShouldIhavegonewithotherbrand?"Thisisacommonreactionaftermakingadifficult,complex,relativelypermanentdecision.Thistypeofdoubtandanxietyisreferredtoaspost-purchasecognitivedissonance(Figure4).
Figure4ElaboratePost-purchaseEvaluation
Source:AdoptedfromHawkins,Best,andConey(1983)
Accordingtotheresearch,thelikelihoodofexperiencingthiskindofdissonanceandthemagnitudeofitisafunctionof:6
Thedegreeofcommitmentorirrevocabilityofthedecision,
Theimportanceofthedecisiontotheconsumer,
Thedifficultyofchoosingamongthealternatives,and
Theindividual'stendencytoexperienceanxiety.
Becausedissonanceisuncomfortable,theconsumermayuseoneormoreofthefollowingapproachestoreduceit:7
Increasethedesirabilityofthebrandpurchased.
Decreasethedesirabilityofrejectedalternatives.
Decreasetheimportanceofthepurchasedecision.
Rejectthenegativedataonthebrandpurchased.
Ifthedissonanceaboutthepurchaseisnotreduced,theanxietymaytransformintoadissatisfaction(generalorspecific).Certainly,thisnegativeexperienceleadstoanewproblemrecognition(Figure1),andtheconsumerwillengageinanotherproblemsolvingprocess.Thedifference,however,isthatinthenextroundofprocess,memoryofthepreviousnegativeexperienceanddissatisfactionwillbeusedaspartofinformation.Therefore,theprobabilityfortheunsatisfactorybrandtobere-selectedandrepurchasedwillbesignificantlylowerthanbefore.
TheHierarchyofEffects
Anotherwidely-usedmodelinmarketingthatattemptstoexplainconsumerdecisionmakingprocessiscalledthehierarchyofeffectsmoAehoughdifferentresearchersdevelopedslightlydifferentmodels,thebasicideaisthesame:peopleexperienceasequenceofpsychologicalstagesbeforepurchasingaproduct.SuchamodelisprovidedinFigure5.8
Figure5AGeneralModeloftheHierarchyofEffects
Source:AdoptedfromDelozier(1976)
Originallyconceivedtoexplainhowadvertisingaffectsconsumer’spurchasedecisions,thehierarchyofeffects(HOE)modelfocusesonconsumerlearningthattakesplaceashe/sheprocessesinformationfromtheexternalworld.TheHOEmodelbeginswiththestatewhereaconsumerhasnoawarenessaboutthebrand(unaware)thendevelopsawarenesstriggeredbyexternalstimuli,suchasadvertisingmessageor“wordofmouth.”Ashe/sheobtainsandprocessesmoreinformation,theconsumerdevelopsmorespecificknowledgeaboutthebrand.Theknowledge,then,isusedasbasistoformaliking(ordisliking),leadingtoapreferenceofbrand(s)relativetotheothers.However,peopleneedtobepushedbeyondthepreferencestagetoactuallybuythebrandofpreference.Thepreferencestage,afterall,simplymeansthattheconsumerhasformedapreferencepsychologically.Nowittakesconvictionforhim/herbeforeactuallybuyingthebrand.
Bynow,youmighthaverealizedatleasttwopoints.One,itseemsreasonablethatnotalltheconsumersareatthesamestage.Forexample,SusanmaybeintheunawarenessstagerelativetoSamuelAdamsbeer,butMelissamaybeinthepreferencestage.Two,italsoseemsreasonablethatnotallpeopleatonestagemoveontothenextstage.Forexample,someconsumerswhohaveformedpreferencetoContadinapastamaynotformanyconvictiontobuytheproduct.Furthermore,somepeoplemayneedmoretimebeforemovingontothenextstagethanothers.
TheHOEmodelisquitesimilartotheconsumerinformationprocessingmodelbecauseitalsoassumesthatpeoplearecognitivelydriven,thinkinginformationprocessors.Controversyexists,9ofcourse,astowhetherthatisnecessarilytrue.Somemayclaimthattheyoftenformlikingandpreference(emotionalresponseorfeeling)towardbrandsbeforedevelopingcognitivejudgment(knowledgeorthinking)onthem.Othersarguethatpeopleformpreferenceandknowledgesimultaneously.Althougheachargumenthasitsownsupport,thegeneralmodel(cognitionfirst,preferencesecond)seemstobevalidespeciallyinrelativelycomplex—orhigh-involvement—decisionmakingsituations(e.g.,cars,computers),providingaconceptualframeworkforthinkingaboutthesequenceofeventswhichbeginsfromtheinitialawarenesstothefinalaction(i.e.,purchasing).
Now,sowhat?
Wehavereviewedtwoofthemostwidelyacceptedmodelsofconsumerdecisionmakingprocess.Thesearebasedontheoriesandresearchofsocialpsychology,consumerbehavior,andmarketing.Asmanagersratherthanacademics,however,wehaveseveralmoretoughquestionstoask.Herearesomeofthem:
Theideaoftheinformationprocessingmodelseemsreasonable.But,weknowthatweasindividualsarenotlivinginavacuum.Thatis,whenwearemakingapurchasedecision,weareconstantlyinfluencedbyotherfactorsthanjustinformation,suchasfamily,friends,culturalvalues,socialclass,orsubculture.Oh,whataboutphysiologicalneeds,suchassex,hunger,safety?Mightthesealsoaffectwhichbrandwechooseandbuy?Howandwheredothesefactorsplayrolesintheinformationprocessingmodel?
Whatwouldbesomeofthepracticalimplicationsoftheinformationprocessingmodelforamarketingmanagerwhoistryingtomarket,say,mountainbikes?Ifhe/sheknowsabouttheinformationprocessingmodel,whatcouldhe/shedodifferentlyin,forexample,thenewproductintroduction?
WhatwouldbetheimplicationsoftheHOEmodelformarketingmanagers?Forexample,whatshouldanadvertisingmanagermeasuretoknowthe"effectiveness”ofhis/heradvertisingcampaign?Shouldhe/shemeasure"sales”?
Underwhatcircumstancesconsumersaremorelikelytodevelop"liking(feeling)”first,“knowing(thinking)”second?Whatwouldbesomeoftheproducts/servicesinthosesituations?Why?
NOTES
SeealsoSchiffman,LeonG.andLeslieLazarKanuk(1997),ConsumerBehavior,UpperSaddleRiver,NewJersey:PrenticeHall.andSolomon,MichaelR,(1996),ConsumerBehavior:Buying,Having,andBeing,EnglewoodCliffs,NewJersey:PrenticeHall.Formoredetaileddiscussionsandpapercitations,refertoEngel,JamesF.,RogerD.Blackwell,andPaulW.Minard(1993),ConsumerBehavior,7thed.,FortWorth,Texas:DrydenPress.andWilkie,WilliamL,(1990),ConsumerBehavior,2nded.,NewYork,NewYork:JohnWiley&Sons.
Hawkins,DelI.,R.J.Best,andK.A.Coney(1983),ConsumerBehavior:ImplicationsforMarketingStrategy,Plano,Texas:BusinessPublicationsInc.
Consumersmayalsoconsidernon-storeshopping(internetwebpages,catalogues,CUCInternational,etc.).
Hawkins,DelI.,R.J.Best,andK.A.Coney(1983),ConsumerBehavior:ImplicationsforMarketingStrategy,Plano,Texas:BusinessPublicationsInc.
Anothertypeofinvolve
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