Chapter 7

CONSUMER DECISION MAKING

AUTHORS' OVERVIEW OF THE CHAPTER
In this chapter we discuss consumers' decision-making processes. The chapter begins with a vignette description of
an actual, complex decision process that took place over several days. This example illustrates several important
points, including: consumers' decisions are choices among alternative actions or behaviors, not all of the choices
consumers make are purchase decisions, and many types of behavior besides purchasing a product involve
consumer decision making.
!roblem-"olving pproach. Then, we describe how consumer decision-making can be seen as problem solving.
problem-solving approach focuses on #a$ the goal#s$ that consumers are seeking to satisfy and #b$ the cognitive
processes #and behaviors$ consumers use to identify and select a solution to their problem #and achieve their
goal#s$.
%irst, we discuss a &generic& model of problem solving consisting of five stages: problem recognition, search for
alternatives, evaluation of alternatives, purchase, and post-purchase use and re-evaluation #see 'xhibit (.)$.
lthough useful as a simple representation of consumers' problem-solving processes, this model cannot easily
account for the often complex, natural decisions that consumers make in the real-world environment #such as the
opening example$.
*ur cognitive processing model #see 'xhibit (.+$ is more flexible. It easily accounts for the interactions between
consumers' stored knowledge and cognitive processes, as well as the influences of their own behaviors and the
environmental factors to which they are exposed. ll of these factors interact continuously, and reciprocally, across
the multiple &subdecisions& that often are re,uired in a single problem-solving episode #see the opening example$.
'lements of !roblem "olving. -ext, we identify the key elements of a cognitive approach to problem solving. .e
discuss problem representation--the meanings consumers use to symbolically represent and structure the problem.
The problem representation includes the end goals and goal hierarchies--the interrelated set of abstract and
concrete conse,uences and outcomes consumers are trying to achieve. The problem representation also includes
relevant knowledge activated from memory, including knowledge and beliefs about choice alternatives and choice
criteria. .e discuss how consumers construct a consideration set of choice alternatives #see 'xhibit (./$. .e also
discuss choice criteria--salient beliefs about product attributes and conse,uences that are used to evaluate the
choice alternatives.
Then we discuss the integration processes by which this knowledge is combined to form a choice. .e identify
several &formal models& of the integration process, including a compensatory model #the multiattribute attitude
model$ and several noncompensatory models #see 'xhibit (.0$. In addition, we identify a variety of simple
decision &rules& called heuristics #see 'xhibit (.1$. %inally, we describe the output of problem solving--decision
plans--the se,uence of behavioral intentions by which a series of subgoals are satisfied and the end goal is finally
reached.
Influences on !roblem "olving ctivities. -ext, we discuss several factors that can influence how consumers go
about solving their problems--the end goals, goal hierarchies, product involvement and knowledge, and the
environment. .e identify five broad categories of end goals #optimi2ing versus maintenance3satisficing versus
prevention--see 'xhibit (.4$ and we discuss how these goals influence the decision process. .e also discuss how
goals are organi2ed into hierarchies that can influence the flow of decision processes. .e describe how consumers5
product knowledge and involvement influence all aspects of consumer decision making #see the comprehensive
'xhibit (.($. %inally, we describe how environmental factors such as affective states, goal conflicts and interrupts
can affect consumer decision making.
Types of 6onsumer 7ecision 8aking. In the next section, we apply these ideas about problem solving to decision
making. .e describe three levels of consumer decision making effort--routini2ed, limited and extensive #see
'xhibit (.($. Extensive problem solving, like that in the opening case, re,uires a great deal of cognitive and
behavioral effort, a longer time, and substantial cognitive capacity. Routinized choice behavior often does not
involve problem-solving activity at all. The consumer merely activates a previously constructed decision plan and
carries it out. Limited problem-solving falls somewhere in between--from low to moderate effort. Throughout the
section, we review the implications of extensive and limited problem-solving, and routini2ed choice behavior, for
developing effective marketing strategies.
KEY CONCEPTS AND IDEAS
7ecisions are always between alternative behaviors, not ob9ects. Thus, beliefs about consequences,
A
act
and ! are the key cognitive factors in understanding decision making
6onsumer decision making is a problem-solving process in that the goal is to solve a problem
The key features of problem solving are the problem representation, integration processes, and
decision plans
The problem representation includes the end goal, goal hierarchies, relevant knowledge, and a set of
simple rules or heuristics used to make a choice
'ffects of the dominant end goal and the goal hierarchy on problem solving
:nowledge includes choice alternatives and evaluative or choice criteria
6onsideration set of choice alternatives
Integration processes are the cognitive processes by which information is combined to make a choice,
including choice rules and heuristics
7ifferences between extensive and limited problem solving and routini2ed choice behavior
'ffects of relevant knowledge and involvement on problem solving processes
OUTLINE OF CHAPTER TOPICS
6hapter (. 6*-";8'< 7'6I"I*- 8:I-=
. >uying a ;sed 6ar
>. 7ecision 8aking as !roblem "olving
6. 'lements of !roblem "olving
+. !roblem representation
a. 6hoice alternatives
b. 6hoice criteria
). Integration processes
/. 7ecision plans
7. !roblem-"olving !rocesses in !urchase 7ecisions
'. Influences on 6onsumers' !roblem-"olving ctivities
+. 'ffects of end goals
). 'ffects of goal hierarchies
/. 'ffects of involvement and knowledge
0. 'nvironmental effects
1. Implications for 8arketing "trategy
a. <outini2ed choice behavior
b. ?imited decision making
c. 'xtensive decision making
%. >ack to@ >uying a ;sed 6ar
=. 8arketing "trategy in ction: Aallmark 6ards
TEACHING OBECTIVES
fter finishing this chapter, students should be able to:
discuss how stored knowledge interacts with environmental factors to influence consumers' decision-
making processes.
describe the key features of problem solving.
describe the various aspects of problem representation, including goal hierarchies, choice alternatives
and choice criteria.
discuss the types of end goals and their effects on problem solving.
describe the difference between compensatory and noncompensatory integration processes.
define decision heuristics and give examples of different types of heuristics.
describe the differences between extensive and limited problem solving and routini2ed choice behavior.
identify several factors that influence the type of decision making consumers perform.
TEACHING IDEAS AND SUGGESTIONS
O!er!"e#. This chapter probably will re,uire two class periods to cover ade,uately. In the first class, you could
cover the generic model of decision making and the elements of the problem-solving approach. In the second
class, you can discuss levels of decision making effort and describe how consumers' knowledge and involvement
and other factors influence these processes. .e recommend that you use examples and in-class exercises to help
students understand this material.
Ge$era% C&$'ept( C&$'er$"$) C&$(*+er De'"("&$ Ma,"$). The chapter begins with some general points about
consumer decision making. "ome of these ideas are not well understood or appreciated by all managers or
consumer researchers. It may be useful to briefly review these in class to be sure that students understand these
important concepts.
>asic ssumptions. "everal general assumptions about consumer behavior and decision making have influenced
this chapter.
%irst, we assume that much of consumer behavior is purposive and goal oriented. That is, we believe
most consumer behaviors #those of interest to marketers$ are voluntary and are intentionally performed
in order to achieve certain goals or ob9ectives.
"econd, most consumer purchase decisions are recurring in that consumers may make the same basic
purchase many times in their lives.
Third, many consumer purchases involve some amount of conflict. 6ognitive conflict can occur when
consumers are uncertain about which alternative is best suited for their goals, or which goal is most
relevant, or which choice criterion is most important. 6onflict also occurs when a generally desirable
alternative also has some negative conse,uences #perceived risk$. "ocial conflict occurs when there is
disagreement between family members about which alternative is most appropriate.
%ourth, we assume that consumers make decisions and purchase products more or less continuously as
a seamless part of their daily lives. ;nfortunately, many consumer and marketing researchers tend to
study consumer purchase decisions in isolation from the aspects of daily life in which they are
embedded. Thus, a trip to the store to buy toothpaste is not an isolated event but often is related to
other plans and daily activities. "trictly speaking, brand purchases should be understood within the
context of consumers' lives. This perspective re,uires a careful analysis of the consumer3product
relationship, a point often emphasi2ed throughout the text.
7ecisions bout .hatB 8ost of the research on consumer decision making has focused on brand choice, which is
understandable given the preoccupation of most marketers with brands #brand sales pay the bills, after all$. .e
emphasi2e that ever" decision involves a choice among alternative behaviors. This perspective helps us recogni2e
that consumers actually make many decisions about which behaviors to perform, in addition to which brand to buy.
If the brand choice was made in the past, the ! to purchase a particular brand is a decision plan stored in memory.
Aowever, consumers may have to make other decisions in order to carry out that brand choice plan.
8ultiple 7ecisions #=oal Aierarchies$. 8ost consumer purchases re,uire multiple behaviors #go to store, find
product, pay, etc.$. Therefore, most consumer purchases, even those commonly thought of as simple, actually
involve multiple decisions. .hen should I go shoppingB Aow long should I take off from workB Aow should I
pay for thisB 8any of these decisions are not directly related to the actual purchase choice #.hat brand should I
buyB$. Aowever, many of these &other& decisions have implications for marketers.
.hat happens early in the decision or problem-solving process can have a strong influence on what
happens later. %or instance, some &early& decisions #deciding to go shopping, deciding to check out a
particular store, deciding to turn down one aisle rather than another$ may bring the consumer into contact
with a product that otherwise would not be considered.
Illustrate this important point in class by having students brainstorm about the many separate
decisions that are involved in a specific purchase decision.
6ompare an obviously complex purchase decision #buying a stereo system$ with an apparently simple
decision #buying an ink pen$.
"tudents will recogni2e that the complex decision involves multiple decisions. They should also
recogni2e that even the simple ink pen decision involves multiple decisions.
lternatively, students can be asked to describe an actual decision they made which involved multiple
&sub-decisions.&
7o ll >ehaviors Involve 7ecision 8aking !rocessesB The text points out that not every behavior is necessarily
based on a problem-solving process. -ot every behavior re,uires a conscious, considered decision involving
information integration processes. It is worth having a brief discussion of this point, to make sure that all students
understand it.
>egin by asking students to think of behaviors that do not involve decision making.
"tudents should understand that certain behaviors are not voluntary #snee2ing, getting sick,
slipping on the ice$. lso, certain micro-level, highly automated behaviors like those involved in
walking are essentially involuntary as they are no longer under direct conscious control #in most
circumstances$. These simple behaviors, however, are seldom of interest to marketers.
"tudents should also recogni2e that some purchase behaviors are habitual--&I always buy "kippy
!eanut >utter.& !robably these behaviors were once based on a conscious decision making
process, but now the decision plan #the se,uence of behavioral intentions$ is stored in memory.
.hen this script-like knowledge is activated, it automatically generates the behavior #&>uy
6heerios when you run low on breakfast cereal&$. Thus, at the time of the purchase behavior, a
brand choice decision is not made, and no problem-solving processes are involved.
s your students identify purchase-related behaviors that do not seem to re,uire a decision-making
process, point out that most of the behaviors in which marketers are interested do involve decision
making or problem-solving processes--or at least they once did.
%or instance, most behaviors related to store choices #entering a store$ and many brand choice
behaviors #picking up a brand from the shelf$ are voluntary behaviors, or they once were.
.e would argue that every voluntary behavior, such as buying a box of Tide detergent in the
grocery store, re,uires #or did re,uire in the past$ some amount of conscious decision making.
Aow 'xtensive is 6onsumer 7ecision 8akingB 8any researchers have emphasi2ed the low levels of decision
making involved in much of consumer choice behavior. "ome researchers have claimed that consumers seldom
exert much cognitive effort in evaluating choice alternatives. .e agree, in general, that the level of problem-
solving effort in many ordinary consumer decision-making situations is rather low. Aowever, we also emphasi2e
that any voluntary behavior is #or was at some point in the past$ based on some degree of conscious consideration
of alternative behaviors, even though this cognitive activity might be rather minimal. This point is covered on
pages +CD in the text.
!oint out that even though many consumer decisions involve low, even minimal, levels of information
integration, some consideration of alternative behaviors often does occur.
I$-C%a(( E.a+p%e/ De'"("&$-Ma,"$) R&%e(. "tudents should recogni2e that consumers might take on different
roles with regard to decision making #this point is not discussed in this chapter$. That is, different consumers may
be involved in different aspects of the purchase decision and product use. 8arketers should understand the various
roles that a consumer might adopt. This point is covered in 6hapter +0 E <eference =roups and %amilies.
%or instance, it is important to identify the decision maker, the buyer, and the consumer3user of the
product. These are not always the same person. %or breakfast cereal, a mother may decide what brands of
cereal will be purchased, the father goes to the store to purchase the groceries, while the children eat the
cereal.
In recent years, teenagers in families where both parents work often are involved in making decisions
about purchases for the family. In +FF1, 0+G of kids ages +1-+C did the grocery shopping for their family,
while 0/G prepared the family meals. nother study revealed that 40G of teens choose the type of soda
the family drinks, 4F G pick decide on the shampoo, 14 G select the ice cream, and 11G make the final
decision on breakfast cereal. 6learly, marketers need to understand the roles of various family members,
including teens. H"ource: nonymous, ITeenage "hoppers,J The %uturist, Kanuary-%ebruary +FF/, p. 04L
.hen the ultimate consumer is not the buyer, marketing becomes tricky. 6onsider the problem of
marketing goods and services for pets. The buyer is the pet owner, but the user3consumer #and ultimate
decision maker$ is the pet. "uppliers in this M)( billion industry have to consider the needs and goals of
both. They have to hook the human, please the pet, and keep them both loyal to the brand.
Ta,"$) A Pr&0%e+ S&%!"$) Per(pe't"!e t& C&$(*+er De'"("&$ Ma,"$). In the text, we take a problem-solving
approach to consumer decision making. .e begin by presenting the familiar, five-stage, generic model of the
problem-solving process #see 'xhibit (.)$.
!roblem <ecognition
"earch for lternatives
'valuation of lternatives
!urchase
!ostpurchase ;se and <eevaluation
"how a transparency of 'xhibit (.) and ask students to contrast it with the problem-solving processes
they have experienced.
They should recogni2e some of the problems of this model as an accurate representation of actual
problem-solving episodes. -atural problem-solving tends to be &messier,& and more dis9ointed
than this nicely linear model.
8ost natural problem-solving episodes involve making several decisions about which alternative
actions to perform. The generic problem-solving model implies that only the brand purchase
decision is important.
This generic model does not emphasi2e the reciprocal interactions between environmental
factors, consumers' overt behaviors, and consumers' affective and cognitive responses.
!oint out that despite its problems, this model provides a useful specification of the se,uence of
general actions that often are performed in making purchase decisions.
E$1 G&a%( a$1 Pr&0%e+ Repre(e$tat"&$. .e suggest that the key factor in understanding consumers' purchase
choices is understanding their goals. consumers' overall ob9ective or end goal is an important feature of problem
representation and has a ma9or influence on the problem-solving process.
6onsumers may have many different types of goals, of course. -ot all goals must be satisfied by buying a product,
although in a highly consumer-oriented society like the ;.". many people do satisfy many of their goals through
consumption. The following exercise illustrates how the overall, abstract end goal influences the problem
representation.
"elect a product category #such as breakfast cereal$ and ask students to consider how each of the five
broad types of purchase end goals listed in 'xhibit (.4 #page +C+ in the text$ might affect the problem-
solving process.
"how a transparency of 'xhibit (.4 to guide the discussion.
"tudents should recogni2e that the overall decision goal provides a general frame within which
the problem-solving process proceeds. The end goal influences the initial problem
representation, the goal hierarchy of subgoals, the relevant knowledge activated from memory,
the choice criteria used, and the choice alternatives considered.
%or instance, if a consumer frames the cereal purchase problem as one intended to maximi2e
satisfaction, the problem-solving process would tend to focus on positive choice criteria, and a
compensatory integration process is likely. *n the other hand, if the problem is framed as
preventing a possible problem, consumers are likely to consider negative conse,uences. If the
basic goal is to resolve interpersonal conflict, the problem-solving process will focus on the
different brand or taste preferences of household members.
Pr&0%e+ Repre(e$tat"&$/ G&a% H"erar'h2. Aow consumers cognitively represent a problem has a very large
effect on their problem-solving processes. "ome cognitive researchers call this problem framing. !roblem-solving
researchers refer to this as problem representation. problem representation has four main components--the
overall end goal, a set of subgoals interrelated in a goal hierarchy, relevant product knowledge, and a set of
integration &rules& for combining the information to make a choice.
goal hierarchy is necessary to explain any complex decision situation with multiple goals as in the opening case
of the chapter. goal hierarchy &breaks down& a general end goal #buy the best camera$ into a series of related
subgoals that are more easily accomplished #find some likely alternatives$. These goals may, in turn, be further
divided into sub-subgoals #check 6onsumer <eports, go to local camera store, talk to knowledgeable friends$.
Together the entire set of goals form a structure called a goal hierarchy. n example is represented in the
transparency masters. "olving the problem involves solving the subgoals, in order.
Nou might want to illustrate the formation of a goal hierarchy in class by comparing the extensive decision-making
process for a completely unfamiliar situation with the simpler decision-making process that usually occurs in more
familiar choice situations.
!resent the following situation for an unfamiliar decision to the class:
&"uppose that you have 9ust finished interviewing for a 9ob in -ew Nork 6ity #or "an %rancisco,
or some other unfamiliar city$. Nou have the afternoon free before your plane leaves that
evening. Nou need a new raincoat #camera, briefcase, or whatever$. "o you decide to use the
next three hours to shop for one.&
sk students to discuss how they would go about solving this problem.
It will be obvious that they must first form a representation of the problem. This involves
identifying their end goal, constructing a goal hierarchy, and activating the relevant knowledge
they have stored in memory #knowledge may be minimal in this situation$.
>ecause the end goal is likely to be rather general and abstract #buy a new raincoat$ and because
students are unlikely to have had much prior experience making such a purchase, it is not likely
that a decision plan exists in memory. Therefore, students will have to identify a useful set of
subgoals. That is, they will have to construct a goal hierarchy to help guide them to achieve the
end goal #buy a satisfactory raincoat$.
8ost students will have little relevant knowledge regarding this purchase problem. <elevant
knowledge concerns not only the product category, but also knowledge of the general physical
and social environment #appropriate stores and their locations$, and knowledge of appropriate
shopping behaviors. >ecause of the unfamiliar environment, this knowledge is probably
minimal.
"tudents are likely to flounder a bit in getting started. !oint out that this is common in natural
purchase situations that are ,uite unfamiliar.
s students identify aspects of the problem representation #relevant knowledge and subgoals$, point
them out and write them in categories on the chalkboard.
%or instance, subgoals such as &search for viable alternatives& are relatively general and abstract.
They will have to be broken down into less abstract subgoals in order for our consumer to know
what to do.
s students eventually generate a complex goal hierarchy, organi2e it on the board into a general goal
hierarchy using a pyramid format.
%or instance, suppose that one of the subgoals in the raincoat problem is to search for appropriate
retail stores. This might be further broken down into the sub-subgoal of looking through the
yellow pages of the phone book. This in turn would activate an even more specific subgoal of
finding a phone book. nother subgoal could be to find the current local newspaper and look for
store ads in the &style& section. nother subgoal that might accomplish finding suitable stores is
9ust to walk around downtown and hope to see some acceptable stores. !oint out that each
subgoal can be further divided into more specific subgoals, and so on.
'ncourage students to elaborate one part of the goal hierarchy in more detail.
fter they try for awhile, show an example such as the goal hierarchy figure in the transparency
masters.
Nou can use this exercise to make several important points about goal hierarchies and consumer decision making.
%or decisions that are unfamiliar or complex, as in the exercise above, the goal hierarchy usually must be
constructed, often by a trial and error process. This goal hierarchy construction often occurs during the
decision process, and is integral with it. #This happened in the opening example in the 6hapter.$ The
goal hierarchy process may involve many &false starts& and &blind alleys& #going to a store that &doesn't
have anything,& or spending time talking to a knowledgeable friend who wasn't much help$.
The subgoals simplify the decision process and make it possible to achieve the end goal, one step at a
time. goal hierarchy breaks down a complex decision into a series of simpler subproblems that can be
handled by consumers' cognitive systems. 'ssentially, the lowest levels of the goal hierarchy are specific
actions or behaviors.
%or some subgoals, consumers may already have formed decision plans that are stored in memory. If
activated, these decision plans can drive behavior &automatically,& without much conscious decision-
making effort.
%or instance, when making a small appliance purchase decision, a consumer may construct or
activate the subgoal of &look it up in 6onsumer <eports.& If this goal has been encountered many
times before, the consumer may already have a decision plan #corresponding to a part of the goal
hierarchy$ to accomplish the goal that can be activated from memory #go to library, find
6onsumer <eports index, find most recent product test, read results$.
*ne outcome of complex decision making is that consumers may refine #and sometimes re-define$ their
goals and ma9or subgoals during the decision process #this happened in the opening example in the text$.
"ometimes consumers cannot find what they want, so they modify their goals. %or instance, our consumer
might get tired of looking for a raincoat, and decide to spend the rest of the afternoon at a movie or art
museum. t other times, consumers find information during the decision making process #they learn
about new products or new attributes$ that lead them to change their goals.
Re%e!a$t K$&#%e1)e/ Ch&"'e Cr"ter"a. 6hoice criteria are the factors that consumers consider in evaluating
choice alternatives and making the decision of which one to choose. *ften choice criteria are product attributes
#price, si2e, color, taste$, but they also can be functional or psychosocial conse,uences #it fits wellO it saves me timeO
I will feel good about myself$.
Palue level distinctions are less fre,uently used as direct choice criteria. Instead, the means-end linkages to values
determine how the consumer evaluates the attributes and conse,uences that are used as choice criteria.
"elect a product or two #anything will do$ and ask students to discuss factors that consumers might use
as choice criteria.
6hoice criteria tend to be salient, desirable attributes or the relatively immediate conse,uences of
product use. "tudents should be able to generate many types of factors, from concrete attributes
to abstract attributes to functional or psychosocial conse,uences.
"ymbolic meanings #looks expensiveO not a kid's product$ can become choice criteria and have a
substantial effect on consumers' decisions. 'ven emotions, feelings and moods, as affective
conse,uences linked to the product, may be used as choice criteria #I want to feel excited or
relaxedO I don't want to feel guilty$.
sk students to consider how these choice criteria might differ for different segments of consumers.
Aere, students should recogni2e that each consumer segment might use different salient choice
criteria in making purchase choices in a product category.
!romotions of choice criteria are ubi,uitous in the marketing strategies of companies. 6onsider
how &decaffeinated& has become a choice criteria for millions of consumers when they buy coffee
or soft drinks. *ther millions of consumers want caffeine in their coffee and soft drinks. 6ollege
students studying for exams are prime customers in this segment.
sk students to explain why certain attributes and conse,uences become choice criteria.
6hoice criteria are salient, desirable attributes or conse,uences of products or services. The
reason they are salient and desirable, and therefore become choice criteria, is that they are
connected to important, self-relevant conse,uences or values.
"tudents should be able to describe the means-ends logic concerning how end conse,uences such
as values influence the evaluations of product attributes. %or this reason, marketers need to
understand the perceived linkages between choice criteria #attributes$ and desired end states
#values$.
sk students to consider how marketing strategies can influence consumers' use of product attributes
as choice criteria.
!romotions of choice criteria are ubi,uitous in the marketing strategies of companies. "tudents
might like to analy2e a current promotion of attributes, such as in a print ad. sk students to
discuss what marketers are trying to do.
*ften times, marketers have an incorrect impression of what consumers think are important choice criteria. %or
instance, in the +FCDs, many merican marketers felt that consumers were highly concerned about price, when
product ,uality was actually more important to many consumers. This is another reason why marketers should
carefully study consumers' choice criteria.
I$-C%a(( E.er'"(e/ Ch&"'e A%ter$at"!e(--C&$("1erat"&$ a$1 E!&,e1 Set(. The formation of a consideration set
involves behaviors #search behaviors in the environment$ and cognitions #activation of an evoked set of choice
alternatives from memory$. 'xhibit (./ shows how a consideration set can be formed. The evoked set--the group
of possible choice alternatives that are activated from memory #literally, evoked from memory$--is an important
source of choice alternatives in the final consideration set. >ut, choice alternatives can come from other sources,
including accidentally &finding& them in the environment.
"how 'xhibit (./ and briefly review the several categories.
sk students to describe purchases for which they have an evoked set of choice alternatives.
%or example, students might have a clear evoked set for toothpaste and soft drinks #perhaps only
one brand, if they are brand loyal$.
sk students to describe a purchase situation in which they have to construct a consideration set of
choice alternatives. sk them to discuss why this is so.
They probably would have to construct a consideration set for products like stereo receivers,
sports e,uipment #tennis rac,uets, in-line skates, skis$ or interview suits. This is due to lower
amounts of past use experience with the product and relatively infre,uent decisions #no decision
plan stored in memory$. %or such decisions, consumers must intentionall" search the
environment to find choice alternatives. 6onstructing a consideration set of alternative
universities is a task most students can recall vividly.
>e sure to emphasi2e that choice alternatives are fre,uently found &accidentally& while consumers are
engaged in other behaviors. Kust wandering about in stores and malls can bring consumers into
contact with previously unknown products and brands.
sk why products or brands that are not in the consideration set have a low probability of being
purchased.
"tudents should be able to answer this applications ,uestion fairly easily.
"tudents should recogni2e that marketers are concerned with conscious decisions about voluntary
behaviors. %or such choice decisions, only the alternatives in the consideration set are evaluated
and 9udged against the purchase goals. lternatives that do not enter into the set of considered
alternatives can not be evaluated and therefore can not be chosen. Thus, unknown, unfound, and
unrecalled brands are very unlikely to be purchased. The only way that such products can enter
the consumer's consideration set is if they are accidentally encountered in the environment
#perhaps seen while walking through a store$.
sk students to generate some marketing strategies to increase the probability that a brand enters
consumers' consideration sets.
F&r+a% M&1e%( &3 I$te)rat"&$ Pr&'e((e(. %ormal choice rules--con9unctive, lexicographic, etc--have been used
by researchers to describe the processes by which consumers combine information about the various choice
alternatives in evaluating the alternatives and forming a choice.
;nlike some other texts, we discuss, but do not emphasi2e, these formal models of the information integration
process. !artly this is because we think that consumers seldom follow such models in their natural decision
making. long with many other researchers, we believe that most decisions involve less structured integration
processes such as simple decision rules or heuristics.
*pportunism in 7ecision 8aking. nother reason for not emphasi2ing the formal integration rules is that
integration processes in decision making are greatly affected by exposures to information in the environment. This
means that aspects of the environment, often encountered &by accident,& have a big influence on decision making
process. 7ecision-making processes, therefore, need to be highly flexible in order to adapt to this information.
>arbara Aayes-<oth #see opening example in text$ calls this &opportunism in consumer behavior.&
*pportunism, in this sense, means that &as things come up,& consumers may incorporate them into the
problem representation. 6onsumers may take advantage of the opportunity afforded by these exposures to
relevant information. There the new information may influence the end goals, the goal hierarchy, and the
eventual decision plan. *f course, consumers might ignore the information in which case it would have
little or no effects on problem-solving.
In sum, we think the choice &rules& that people tend to follow are likely to be very flexible, highly contingent on
aspects of the environment and immediate situation, and highly influenced by the person's goals and values. *ften,
the integration processes probably don't look much like &rules& at all, but highly opportunistic uses of information.
These factors make heuristics seem more appropriate as information involvement process, rather than the formal,
mathematical integration rules.
%ormal 8odels of Integration !rocesses. "ome instructors may wish to give more emphasis to formal models of
information integration.
If so, show 'xhibit (.0 and lecture on the differences between formal models of the integration
processes and heuristics. Nou should compare the compensatory and non-compensatory models and
describe the various types of non-compensatory models #con9unctive, lexicographic, elimination by
aspects, etc.$.
He*r"(t"'(. Aeuristics are simple information integration &rules& for using information in particular situations #see
pages +((-+(F in the text$. Aeuristics can be thought of as &if..., then...& productions that guide behaviors. s
simple information integration productions, heuristics are applied to only a few bits of information at a time. In
addition, heuristics save the consumer time and cognitive effort over the more formal integration rules that use
several pieces of information.
'xamples of heuristics include, &choose the most prestigious brand if prices are similar,& or &buy the biggest si2e
that will fit into my pantry.& Aow about this choice heuristic attributed to the legendary actress, 8ae .estB &.hen
choosing between two evils, I always like the one I've never tried before.&
"how a transparency of 'xhibit (.1, and ask students to describe heuristics that they use when
searching for, evaluating, or choosing products and brands.
short discussion of these idiosyncratic, simple &rules of thumb& can be ,uite interesting. !oint
out how each heuristic simplifies the information integration process by focusing on a limited
amount of information and having a simple contingent &rule& for handling it.
ssuming that many consumers use a selected heuristic, encourage students to speculate about the
implications for marketing strategies. Aow should marketers react to this heuristicB
I$-C%a(( E.er'"(e/ C&$(tr*'te1 !er(*( Retr"e!e1 De'"("&$ P%a$(. .hen faced with the problem of meeting
goals for which they have little relevant knowledge, consumers must construct a decision plan. %or more familiar
decision situations, consumers can activate previously formed decision plans to achieve their goals. These decision
plans may be simple behavioral intentions #!$ such as &buy another box of <ice :rispies on the next shopping
trip,& or more complex decision plans such as &go to "ears, see what is on special sale, and then buy the cheapest.&
'ssentially, these decision plans are purchase scripts.
sk students to think about decision-making situations in which decision plans are activated from
memory versus constructed.
*ne possibility is the difference between impulse purchases and &reminder purchases.& 6onsider
a consumer who goes into a grocery store and notices a display for 8axwell Aouse coffee. This
feature of the environment reminds the consumer that she is nearly out of 8axwell Aouse coffee
at home, so she places a can into her grocery cart. The same consumer continues through the
store and sees a display for a new type of fro2en dinner entree. "he thinks a minute about how
convenient it would be to have this product on hand for last-minute meal preparation. "he
decides to buy some and places three packages into her grocery cart.
The first &decision& is a reminder purchase in that the consumer already had a decision plan in
memory that was activated by exposure to the in-store display. The second decision was an
impulse purchase. Aere, the in-store display activated knowledge of goals, a problem was
recogni2ed, information was processed and integrated to evaluate the product and a decision plan
was constructed. ll this occurred ,uickly, on the spot #perhaps in +1 seconds$.
I$-C%a(( E.er'"(e/ The Phe$&+e$&%&)2 &3 I+p*%(e P*r'ha(e(. The topic of impulse purchases is fascinating,
but perhaps is not well understood by consumer researchers. *ne interesting approach is to look at impulse
purchases from a phenomenological perspective, to try to describe how they are experienced by the consumers
involved.
sk students to describe an episode of impulse purchasing that they experienced. .hat happenedB
Aow did you feelB Try to get one or two students to describe the experience of making an impulse
purchase in rich detail.
8ost people know the feeling of buying something impulsively, on the spur of the moment and
with a sense of urgency. This type of response is like an insistent urge. &I want it, and I'm going
to get it.&
In a research study that examined the descriptions of +/D impulsive purchases, consumers
described their feelings and actions in many different ways. "ome buying urges welled up &like a
hunger& and demanded attention and satisfaction. &*nce I see it in my mind, it won't go away
until I buy it,& said one woman of some 9ewelry. "ometimes it is love at first sight, &I was in the
!ottery barn browsing, and I saw this crystal candle holder. It #the buying urge$ came over me
instantly.&
few consumers felt that the buying impulse buying was &exciting, thrilling, and even wild.&
"ometimes the products are given &powers,& as in &a candy bar was staring there at me,& or &a
pair of pants shrieked 'buy me'.& man felt that a certain sweater was &following him and
pulling him back to the men's department.&
Then, ask, &7oes impulse purchasing involve problem-solving processesB&
.e think so, but obviously impulse purchases involve affective processes as well. lso, the entire
process usually occurs ,uite rapidly, perhaps within a few minutes. 8ost impulse purchases
occur in a store. *f course, the shopping environment can have a big effect on facilitating and
stimulating impulse purchases #or in restricting them$.
sk students to identify and discuss possible negative effects of impulse purchasing.
The research study found that impulse purchasing created some problems for most consumers
including financial difficulties, disappointment with what was bought, and disapproval from
someone else. !erhaps a few consumers who are unable to control their impulses could get into
serious financial trouble. H"ource: 7ennis .. <ook, &The >uying Impulse,& #ournal of
$onsumer Research, +0, +FC(, pp. +CF-+FF.L
E33e't( &3 Sh&pp"$) E$!"r&$+e$t &$ De'"("&$ Pr&'e((e(. The problem-solving process is sensitive to changes in
the environment. Thus, it is reasonable to assume that the processes of decision making will vary in different
decision environments.
It has been estimated that about )3/ of all retail purchases occur in the retail environment, not elsewhere #at home$.
This fact has big implications for retail location, store design #layout, displays, lighting, etc.$, and merchandise
strategy #narrow and deep versus broad and shallow$. It also is relevant for other aspects of marketing strategies.
%or instance, if the decision is made in the store, often in front of the product display, then marketers can modify
the stimuli in this environment #e.g., shelf position$ to influence consumers' affective and cognitive responses and
their overt behaviors. %or instance, a lot of cues in the store help activate previous knowledge from memory. This
is one reason shelf position is such an important marketing strategy for products sold in grocery stores. It is useful
to discuss how retailers use displays and signage to help customers recogni2e problems and form a consideration
set.
7ifferent stores have dramatically different shopping environments--consider .al-8art or :mart stores versus an
upscale department store or clothing bouti,ue. Aome shopping #from catalogs or the .eb$ occurs in ,uite a
different environment than traditional purchases in retail stores.
sk students to contrast the problem-solving process when buying from the home computer versus
buying the same product in a store.
This is a chance to use the .heel of 6onsumer nalysis to guide students' thinking and
discussion. "tudents should consider the environmental and behavioral differences in these two
situations. They should be able to describe how the environmental and behavioral factors might
influence consumers' affect and cognitive reactions during the problem-solving process.
P&(("0%e M"$"-Le't*re/ Per'e"!e1 R"(,. The concept of perceived risk is important in consumer behavior.
;nfortunately, perceived risk has not been a popular research topic in consumer behavior in recent years. Net the
concept can be critical to understanding consumers' decision making, especially in some product categories. The
pro9ect for this chapter concerns perceived risk and could be integrated with this discussion.
>egin by briefly describing the concept of perceived risk.
!erceived risk is based on the negative or unfavorable conse,uences that consumers perceive to
be associated with particular product attributes. !erceived risk is experienced as negative beliefs
and affective responses #unfavorable evaluations and avoidance feelings$.
6onsumers can think about unfavorable conse,uences of a product in two ways. *ne is that
buying and3or using a product might have direct negative consequences #I might pay too muchO
!eople might laugh at meO the product might break easily$. The other is that buying and3or using
a product might block the attainment of a positive consequence or benefit #I might not get there
on timeO I won't be able to buy that new car I've wantedO I will lose the chance to upgrade my
e,uipment$. In either case, the negative response to the conse,uence is due to its further links
with more abstract outcomes such as instrumental and terminal values.
sk students to describe personal examples of perceived risk when purchasing certain products
#buying an ink pen, a used car, a 67, or an interview suit$. Aow about the risks of selecting a ma9or in
collegeB
"tudents should be able to identify perceived negative conse,uences that might occur as a result
of these behaviors. The more negative the conse,uences, and the more likely they are to occur,
the greater the perceived risk.
sk students to discuss how their perceptions of the negative conse,uences of a purchase could affect
their decision making. #Nou could bring in the 6hapter pro9ect here.$
*f course, if perceived risks are too high, the person will not make the purchase or will choose
another alternative with lower and acceptable levels of risk. "tudents should discuss the conflicts
between the positive conse,uences of a purchase #perceived benefits$ and the negative
conse,uences #perceived risks$. They should discuss how such conflicts affect the problem-
solving process, and how consumers might resolve the conflicts.
sk students to discuss marketing strategies that marketers could develop to deal with consumers'
perceived risk.
mong the many possibilities are warranties #/ years or /4,DDD miles$, guarantees #your money
back if not satisfied$, free trials #in the store or at home$, advertising claims and assurances that
the product is a good one, personal sales strategies to reassure the customer #you look great in
thisO I have sold a lot of these to people like you$.
P&(("0%e M"$"-Le't*re/ Sear'h Beha!"&r. key behavior in extensive and limited problem solving is consumers'
search for information relevant to the problem. 6onsumers may seek information about choice alternatives #brands
or stores$ and3or choice criteria #often attributes or functional conse,uences$. The amount of search activity is one
of the distinguishing differences between habitual, limited and extensive problem solving.
Nou could expand on the text's coverage of search behavior by discussing #+$ the extent of consumer search
#usually surprisingly low$, #)$ how consumers decide the amount of search behavior to perform #influenced by the
perceived value of search--a cost3benefit analysis--or involvement which affects consumers' motivation to search for
additional information$, and #/$ factors that influence the perceived value of search--including existing relevant
knowledge, ,uality of that knowledge, amount of perceived risk, time pressures, various personality &traits,& and so
on.
"everal studies have shown that many consumers engage in relatively little search behavior prior to making a
purchase decision. "ome of the statistics from these studies seem a bit surprising at first. %or instance, many
people visit only one appliance store prior to buying a new ma9or appliance. 'ven for apparently important
decisions, consumers do not seem to search for very much information.
sk the class, &.hy do you think measured search is so lowB& !robe for multiple reasonsO here are
several possibilities.
"tudents should point out that consumers may already have a great deal of product knowledge
stored in memoryO thus they don't perceive much payoff from additional search. 'xtensive search
has little perceived value.
8oreover, many decisions do not have high self-relevance for most consumers. That is,
involvement is low to moderate, which does not produce high motivation to search.
nother possibility is that consumers do not perceive significant differences between the choice
alternatives. Thus, search does not have much value in that it is not expected to identify a
superior alternative.
*ther consumers may be using the store as a kind of decision consultant. That is, these
consumers are willing to trust the store to have sorted through the hundreds of choice alternatives
and selected good ones for sale. Thus, one needs to go to only one store to search for a suitable
choice alternative.
*ther consumers rely on a trusted salesperson to give good advice, and search very little. %or
instance, the ma9ority of purchasers of life insurance hear only one salesperson.
"ome consumers may be loyal to a particular brand #based on their past experiences$, and
therefore, do not need to search for other alternatives.
!erhaps consumers get much of their information from non-marketing sources, such as
newspapers, friends, and product test reports. If so, searching in stores may not be necessary.
!oint out that, like every other aspect of human behavior, we should expect to find big individual
differences in search behavior. "ome consumers search fairly extensively for information about many
of their purchases, while others are comfortable in hardly searching at all.
sk students to speculate about the motivations for why some consumers engage in high levels of
search.
"tudents should recogni2e that the motivation for search is partly a function of consumers' level
of involvement with the purchase. If involvement is low to moderate, the motivation to search
may be low. The amount of relevant knowledge in memory is an important influence. 8any
consumers may feel that they already have sufficient information to make a good purchase
decision.
%inally, there are probably some personality traits that explain some search behavior. %or
instance, consumers probably differ in how certain they need to feel about a purchase before they
can go ahead with it. "elf-confidence may be another difference. ssertiveness might enter into
the picture if consumers have to go out to stores and get salespeople to talk to them about the
product.
I$terr*pt(. The text describes the concept of an interrupt to ongoing cognitive and3or affective processes.
>asically, interrupts are environmental events or ob9ects that catch consumers' attention and interrupt or disrupt the
ongoing cognitive process.
sk students to describe what an interrupt is and give some examples of interrupts from their own
experience.
sk students to discuss the marketing implications of interrupts. 6an marketers create interruptsB
;nder what conditions should they do soB
!oint-of-purchase displays are classic examples of interrupts in the store. "o is the familiar
announcements used in some stores, &ttention, :mart shoppers. In aisle )/ today we have ...&.
'ye-catching &"ale& signs in windows are another interrupt. "tudents should be able to identify
lots of these, once they get going.
This exercise allows you to refer to the .heel of 6onsumer nalysis again, in showing how the
environment #and especially marketing strategies which are part of the consumers' environment$
can influence affect and cognition and overt behaviors.
P&(("0%e M"$"-Le't*re/ Le!e%( &3 De'"("&$ Ma,"$) E33&rt. In the text we discuss three types or levels of problem
solving that vary in the amount of conscious cognitive and behavioral effort involved in the information integration
process.
limited decision making
extensive decision making
habitual choice behavior
lthough this distinction is clearly presented in the text, you could review the three levels and give additional
emphasis to the marketing strategies that are appropriate for each level of decision making.
"how a transparency of 'xhibit (.( to help guide the discussion.
!oint out that these three &levels& of decision making effort are really &regions& along a continuum, as
illustrated in 'xhibit (.(.
'xtensive 7ecision 8aking. t the &high end,& consumers engage in extensive decision making characteri2ed by
deep and elaborate comprehension processes and intensive integration processes. >uying a car, house, bedroom
suite, or stereo system probably involves extensive decision making for most consumers. 7ue to lack of experience,
most consumers have little relevant knowledge in memory. Aowever, they are highly motivated to make a good
choice. Therefore, they tend to exert considerable effort in the problem-solving process. 6ognitive processing here
is conscious and controlled.
<outini2ed 6hoice >ehavior. t the &low end,& consumers don't really make a choice decision at all when
purchasing a product. Instead, they activate from memory a previously formed decision plan #a set of behavior
intentions$ that leads them to purchase the preferred brand. In fact, they may never consciously consider
purchasing an alternative brand. The cognitive processing in information integration is minimalO much of the
information processing is automatic.
?imited 7ecision 8aking. The &middle range& of decision making effort is wide between the two extremes #see
9ust above$. In limited decision making, consumers exert low to moderate levels of effort in comprehension and
information integration tasks as well as overt search behaviors. In general, most decisions that consumers make
involve limited decision making effort. These decisions are characteri2ed by moderate past experience, a medium
amount of relevant knowledge in memory, and a moderate level of involvement. Aere, we would expect a mix of
conscious and automatic cognitive processing.
8arketers may find it useful to consider levels of decision making effort for their product as a basis for
segmentation. 6onsumers at each level have very different problem-solving process, and very different needs for
information. 7ifferent marketing strategies are probably necessary to appeal to these groups.
Aere you can show 'xhibit (.( to guide the discussion.
"elect several product categories such as 9eans, automobiles, athletic shoes, etc.
sk students to describe how problem-solving process varies for these different products for the
&typicalJ consumer.
%or instance, buying a personal computer will involve extensive decision making #for most
people$. >uying a music 67 might involve limited decision making, while buying toothpaste,
mouthwash, or soft drinks might be habitual choice behavior for most consumers. ppropriate
marketing strategies will differ widely for such product types. *f course, there are exceptions, in
that not all consumers will respond in this way. >ut, in mass marketing, if the exceptions are
relatively few, they can probably be ignored.
Then, ask the class to consider what types of marketing strategies might be effective for influencing
the decision making process for each group.
sk students to consider what types of consumers may have extensive, limited, and routini2ed choice
behavior for a particular product #athletic shoes or 9eans$.
"tudents should mention several factors such as past experience, established goal hierarchies,
relevant knowledge in memory about choice alternatives and choice criteria, and unclear notions
of the self-relevance of the product. *f all the factors, relevant knowledge and involvement are
the most important. Aow knowledge and involvement influence the problem-solving process is
summari2ed in 'xhibit (.( #page +C/ of the text$.

P&(("0%e M"$"-Le't*re/ Sh&pp"$) a$1 the Pr&0%e+-S&%!"$) Pr&'e((. 6onsumers' shopping behaviors are very
important to marketers.
"hopping can serve a number of consumer needs, including entertainment, relaxation, stimulation #getting rid of
boredom$, a social activity, or as an integral component of the problem-solving process. The latter is well
illustrated by the opening example in this chapter. .e believe the .heel of 6onsumer nalysis offers a useful way
to think about shopping #or any other complex behavior$.
"how a transparency of the .heel of 6onsumer nalysis, and ask students to think about the relevant
factors in shopping, say for a special item of clothing such as an &interview suit.&
"tart by brainstorming relevant factors in each category of the .heel 8odel.
"tudents should be able to identify behaviors involved in shopping #travel to stores, walking
around in stores, talking to salespersons, reading newspaper ads$.
The environments in which shopping occurs are also important #store locations, mall design,
store layout, product displays, other shoppers$.
%inally, consumers' affective and cognitive responses during shopping need to be considered
#boredom, thrill of finding the &right one,& product knowledge learned$.
"tudents should recogni2e that not all &shopping behaviors& occur within store environments.
%or instance, consumers can search for information #a key aspect of shopping$ by looking in their
newspapers for advertisements, reading $onsumer Reports, or talking to a knowledgeable friend.
"ome consumer &shop& by perusing catalogs. !roduct evaluations can occur outside the store,
while talking to friends about a product or 9ust thinking about it yourself.
!oint out that the .heel of 6onsumer nalysis can also describe a given shopping occasion. s
consumers shop, they are continually moving into new environments through their own behaviors,
where they are exposed to new information, which creates affective and cognitive responses, which
may in turn lead to new behaviors, and so on.
"hopping in a mall, with its various environments, can easily be analy2ed in this way, using the
.heel of 6onsumer nalysis.
sk students to discuss their own characteristic shopping behaviors as part of their problem-solving
process.
"ome consumers often follow a general, vague shopping strategy--9ust wander around in stores
hoping to run into a product that meets their goals. "ome people find this &browsing& behavior to
be ,uite en9oyable, while others dislike this type of &shopping.&
*ther consumers carefully plan their shopping strategy as part of a purposeful search process.
%irst, look it up in $onsumer Reports, and then go the "ears and K6!enney's. They may even
have an itinerary planned before leaving home.
PROECT/ Per'e"!e1 R"(, "$ C&$(*+er De'"("&$ Ma,"$)
The following pro9ect deals with perceived risk--the perception of significant negative conse,uences associated
with a behavior such as buying a product or brand. In this pro9ect re,uires students to deal with perceived risk in
terms of the ma9or concepts used in the text--negative choice criteria, links to higher conse,uences via means-end
chains, strategies for dealing with consumers' perceived risk.
%ind a friend that you can talk to for about +1-)D minutes about their purchase of 9eans #or pants in general$.
Aere's a general outline of the interview that you can follow and3or modify to suit yourself. Nour goal is to
understand the negative meanings of perceived risk this person feels when buying 9eans.
'licit 7ecision 6riteria:
&I'd like you to think about the times when you buy 9eans #or pants, if not a 9eans user$. .hat are the key factors
that you consider when choosing a pair of 9eansB&
HTry to get a list of several 0-+D decision criteria. !robe for more detail if necessary.L
&"ometimes people think about the positive aspects of products they are considering buying...the &good& things the
product will give them. In other cases, people think about the negative aspects of products...the unpleasant
conse,uences the product might have.&
Identify !erceived <isk 6riteria:
re there any of these considerations Hshow person his3her listL that you think of in terms of avoiding
potentially negative conse,uencesB .hat aspect #or level$ of QQQQQQQQQQQ are you trying to avoidB&
?addering--!robing for <isk 8eanings:
H%or the negative3risk decision criteria, ask:L
&.hy is it important that you avoid QQQQQQQQQQQQQQQ B& H*r:L &.hat things does QQQQQQQQQQQQQQ lead toB&
H*r:L &.hat are the conse,uences of QQQQQQQQQQQQQQQ B&
HThen, continue &laddering& #keep on asking these ,uestions$ to probe the chain of negative connections.
7raw out the means-end chains in your written report.L
'xploring <isk Aandling "trategies:
&8ost consumers develop ways to handling the possibly negative conse,uences of their purchases. .hat things do
you do to handle the potentially negative conse,uences of buying 9eansB&
H!robe for deeper understanding.L
7iscussion:
In a page or two, describe what you have learned about the risk perceptions of this consumer and how they handle
perceived risk in making this purchase. lso, discuss the implications of your research for developing marketing
strategies #assuming that more than one consumer was involved$.
NOTES AND ANSWERS TO REVIEW AND DISCUSSION 4UESTIONS
+. %ive two examples to illustrate the idea that decision choices are alwa"s between alternative behaviors&
"tudents need to understand this simple, but fundamental point. ll decisions are about which behavior to
perform. 'ven brand choice, which seems on the surface to be a choice between ob9ects, is really a choice
between two actions #bu"ing brand versus bu"ing brand >$.
To stimulate a discussion in class, ask students to discuss alternatives for lunch on campus #or
some other behavior with numerous alternatives$.
!oint out that no matter what the language, fundamentally each involves a choice between
performing alternative behaviors.
-ote also that although each alternative may not be acceptable to everyone, they are potential
choices.
lthough marketers are mostly interested in purchase choices, other types of behaviors are relevant to
marketing strategy. 6onsumers make many choices between alternative behaviors.
sk students to brainstorm various types of behaviors of interest to marketers. %or instance,
students should be able to come up with examples like these:
"hould I buy "nickers or 8ilky .ay candy barB
"hould I go to the grocery store now or this afternoonB
"hould I check out the fall sale at "impson's or notB
"hould I take the chance that this suit will be gone when I get back, or buy it now but
miss the chance for a better one at some other storeB
"hould I go to the movies or the ball gameB
"tudents should also recogni2e that marketers tend to be most interested in voluntary behaviors. lthough
not every behavior re,uires a conscious decision making process, ordinary daily life does involve many
conscious decisions about alternative behaviors #.hich way should I walk to school this morningB$. 8ost
of these decisions are made ,uickly with relatively little cognitive deliberation. <elatively few decisions
re,uire great amounts of cognitive effort.
In sum, choice decisions always involve selecting from among alternative behaviors. This focus on
choosing behaviors to perform makes A
act
and ! most relevant for understanding consumer decision
making. This makes the perceived conse,uences of the buying action or use behavior most relevant for
understanding purchase. The physical attributes of the brand, or general A
o
, are less relevant to
understanding behavior choices.
). 'escribe the problem-solving approach to consumer decision-making, and discuss wh" it is a useful
perspective&
This is an easy review ,uestion that students should have no trouble with. >asically, the problem-solving
approach treats decision-making as problem-solving. 6onsumers perceive &problems& in terms of goals
#desired conse,uences$ and evaluating alternative actions and choosing one that will &solve& their
problems and achieve their goals. <esearchers tend to divide the entire problem-solving process into
stages, which can be studied #see 'xhibit (.)$. *ne advantage of the problem-solving approach is that it
focuses more specifically on consumers' goals and the conse,uences that are desired. The problem-solving
approach is more focused on the consumers' perspective.
/. !dentif" three wa"s that choice alternatives can enter the consideration set& 'escribe a marketing strateg" that
could be used to get "our brand into consumers( consideration sets for each situation& )h" do products or
brands not in the consideration sets have a low probabilit" of being purchased*
This application ,uestion is related to the previous ,uestion. It forces students to understand the very
important concept of a consideration set and how consumers form a consideration set. 8any of the points
students should make are presented on pages +(+-+(/ of the text.
"how a transparency of 'xhibit (./ as a guide to the discussion.
There are three ways that a brand can enter consumers' consideration sets. It can be found
accidentally in the environment. It can be found during intentional search. nd, it can be
recalled #activated$ from memory as part of the evoked set.
8arketers can try various strategies to increase the likelihood that their brand will enter the consideration
set. "tudents should be able to develop some good examples.
%or instance, marketers can use extensive advertising to continually remind consumers of the
brand name. <epeated exposure to advertising can increase top-of-mind awareness for the brand.
This increases the likelihood that the brand will be activated from memory #enter the evoked set$
during the decision process. ds for soft drinks and camera film seem to have this purpose.
nother approach to increase top-of-mind awareness is through publicity in the mass media
#news releases, media events, trade shows$. >eing a sponsor of sporting events #Polvo for tennis,
Pisa for the *lympic =ames$ or music concerts #!epsi for rock concerts$ helps keep the brand
name at high levels of top-of-mind awareness.
>y making the brand more visually prominent in the retail environment, marketers can increase
the chances that a brand will be accidentally discovered by consumers. %or instance, colorful
shelf signs and end-of-aisle product displays increase the probability that consumers will notice
the brand in the store, and thereby increase its chances of entering consumers' consideration sets.
The package design is important for this purpose.
The chances of a brand being considered in a purchase decision would be enhanced by
encouraging positive word-of-mouth communications between consumers. 8arketers could give
a reward to customers who recommend the product to another consumer.
Aaving marketing information available at the appropriate locations #brochures for building
products in lumber stores$ increases the chances that the product3brand will be discovered in
intentional search activities.
%inally, a broad distribution strategy #the brand is on the shelves of many stores$ will increase the
chances the brand will be noticed and make it more likely that the brand will be in the
consideration set of many people.
"tudents should recogni2e that marketers mostly are concerned with conscious decisions about
voluntary behaviors #&.hat product form or brand should I buyB&$. %or such choice decisions,
only the choice alternatives in the consideration set are evaluated and 9udged in terms of the
purchase goals. lternatives that do not enter into the set of considered alternatives can not be
evaluated and therefore can not be chosen. Thus, unknown, unfound, and unrecalled brands are
very unlikely to be purchased. The only way that such products can enter the consumer's
consideration set is if they are accidentally encountered in the environment #perhaps they are
seen while walking through a store$.
0. 'escribe the components of a problem representation& %ive an example of how marketers can influence the
consumers+ problem representation&
This easy review ,uestion concerns material in the text. The problem representation refers to each
consumer's uni,ue cognitive representation of the problem. The problem representation includes #+$ the
end goal, #)$ subgoals in the goal hierarchy, and #/$ relevant product knowledge, including choice
alternatives and choice criteria.
The text notes that each of these aspects of a problem representation can be influenced through marketing
efforts. %or instance, some marketing strategies might attempt to influence the goals that consumer have
in a purchase, while other strategies try to give consumers information about relevant choice criteria or
choice alternatives. 8arketers have some control over the elements in a problem representation by
activating different elements #goals, knowledge$ from memory. 8arketers try to create means-end chains
that link their product form and brand to important goals and values that consumers seek to achieve.
1. %ive an example of how two different ,frames, for the same purchase decision could lead to different problem-
solving processes& -ow do these differences relate to consumer-product relationships discussed earlier*
This is a difficult review ,uestion that will challenge students' understanding of the important concept of
problem representation. The text suggests that consumers will come to the decision choice problem with
very different end goals, product knowledge, and choice heuristics.
"tudents should recogni2e that the most influential aspect of a problem representation is the consumer's
end goal. In a sense, the end goal &determines& the rest of the problem representation, including the
content of the goal hierarchy, what knowledge is relevant, and what information integration processes are
most appropriate.
'xhibit (.4 presents five very broad, abstract end goals. 'ach of these diverse end goals is likely to create
a uni,ue problem representation. ny two of them could be the basis for an answer to this ,uestion.
%or instance, consumers who have an optimi2ing goal are likely to have a relatively extensive
goal hierarchy. They are more likely to be motivated to search for relevant information in order
to find the best choice alternative.
In contrast, consider consumers who have a maintenance end goal #depletion of one's product
supply such as cereal, bread, or shampoo$. They are likely to have a much simpler problem
representation, perhaps including a decision plan that is already developed #buy 7annon yogurt
whenever I run out$.
Aow consumers relate to the product #their means-end chains linking the product to their important values
and goals$ will have a big influence on their problem representations.
%or instance, consumers who are highly involved with the product are likely to have more
important goals that motivate greater effort in searching for information. 6onsumers with low
levels of intrinsic self-relevance are not likely to have optimi2ation end goals and, therefore, their
problem representations are likely to be simpler.
4. .hink of a purchase decision from "our own experience in which "ou had a well-developed goal hierarch"&
'escribe how it affected "our problem-solving processes& .hen select a decision in which "ou did not have a
well-developed goal hierarch" and describe how it affected "our problem-solving processes&
nswers to this review ,uestion will be idiosyncratic, of course.
"tudents should be able to review the discussion of end goals and goal hierarchies in the text. In general,
students should describe well-developed goal hierarchies for familiar, recurring decision choices, and less
clear goal hierarchies for new, unfamiliar choice situations.
The goal hierarchy provides the basic structure which &guides& the affective and cognitive responses and
overt behaviors during the decision making process. well-developed goal hierarchy #such as for a
familiar decision$ structures and orders the various subgoals. .orking to achieve each subgoal directs the
flow of cognitive and affective responses and overt behaviors during problem-solving.
n ill-defined goal hierarchy forces the consumer to create a better goal hierarchy so that the problem can
be solved efficiently. Thus, some portion of the consumer's affective, cognitive, and behavioral activity is
directed at figuring out what order of goals will lead to a satisfactory solution to the overall problem
#achieve the end goal$. %alse starts, wasted time, and frustration can result. The opening example
illustrates a problem-solving process in which the consumer did not have a well-structured goal hierarchy
at the beginning.
(. Assume the role of a product manager /product management team0 for a product which "ou /and others in the
discussion0 have a fairl" high level of product knowledge& $onsider how each of the formal integration
processes would result in different responses to "our product and how "ou could ad1ust marketing strateg" to
deal with these differences&
This difficult applications ,uestion forces students to understand the information integration processes
inherent in the formal integration rules. The integration models are shown in 'xhibit (.0 #page +(4 of the
text$.
%irst, the student-managers must select a specific product area for consideration--products like athletic
shoes, sports clothes, or music products are relevant for most college students. utomobiles, fro2en
pi22as, brownie mixes, or toothpaste are also viable product categories.
Then, they must identify the key attributes that might be salient as choice criteria for a brand purchase
decision.
-ext, the student-managers must show how the beliefs about each choice criterion are combined for each
information integration model.
%or instance, in the lexicographic model, consumers must identify the most important choice
criterion and compare the choice alternatives on that dimension. If there is a clear &winner,& the
consumer chooses that brand. If there is a tie, then the consumer compares the remaining
alternatives on the second most important attribute.
%inally, the student-managers must recommend marketing strategies for each type of integration process.
"trategy recommendations could focus on product design #build a brand with better performance
on the most important choice criterion$. *ther marketing strategies could concern promotions to
change consumers' beliefs about key choice criteria. %or example, if chocolate taste was the most
important choice criterion, marketers might modify the chocolate content, the descriptions of
&chocolate-ness& in the advertising, and the cost3price trade-offs in positioning a brownie mix.
2& %ive at least two examples of how a marketing manager could use the various t"pes of interrupts discussed in
this chapter to increase the likelihood of purchase of his3her product&
This application ,uestion concerns the important concept of decision-making interrupts. Interrupts are so
named because they disrupt consumers' problem-solving process. They distract the consumer from
pursuing the goals that are activated at the moment.
The text describes four types of interrupts. These include exposure to unexpected information, exposure to
prominent environmental stimuli, consumers' affective states, and conflicts between incompatible goals.
The effects of each of these interrupts depend on how consumers interpret or comprehend the interrupting
event. The text presents several examples of each interrupt.
"tudents should be able to give examples of interrupting marketing strategies from their own personal
experience.
s one example, consider the use of point-of-purchase signs and displays in a grocery store. *ne
purpose of prominent environmental stimulus like a large end-aisle display is to catch consumers'
attention and possibly interrupt the habitual behaviors that many consumers have when grocery
shopping. If the interrupt is successful, consumers might consider buying the displayed product.
nother possibility is to activate and emphasi2e a goal conflict, perhaps in advertisements or in
salesperson's &pitch& to the customer. %or instance, &7o you want the best ,uality, but can't afford
to pay top dollarB Then, look at our brand...it has excellent ,uality, but is not expensive.&
4& 'iscuss how consumers( involvement and their activated product knowledge affect the problem-solving
processes during purchase decisions for products like a new automobile, an oil change, a cold remed", and
health insurance&
This review and applications ,uestion forces students to work through the factors that influence
consumers' problem-solving processes.
The two ma9or characteristics of consumers that influence the problem-solving process are #+$ activated
relevant knowledge about the decision, and #)$ consumers' involvement with the purchase decision.
Involvement is based on the self-relevant goals that are activated and determines the level of motivation
that consumers feel. ctivated knowledge concerns the choice alternatives and choice criteria that
consumers think about during problem-solving. Together, involvement and relevant knowledge have a big
influence on consumers' problem-solving processes.
The text describes three levels of problem-solving--extensive and limited decision making, and habitual
choice behavior. These influences of relevant knowledge and involvement are summari2ed in 'xhibit (.(.
lthough the text discusses this material only briefly, 'xhibit (.( is a rich source of information and
should be self-explanatory. If students will study it carefully, they should be able to describe these effects.
+D. Relate the examples of decision heuristics shown in Exhibit 5&6 to the concept of involvement& )hen are these
heuristics likel" to be useful to the consumer* 7nder what circumstances might the" be d"sfunctional*
Aeuristics are simple rules for using #integrating$ information to respond to some aspect of the
environment. 'xhibit (.1 lists several choice heuristics--simple rules for integrating information to make
a choice. ;sing simple heuristics rather than the more complex information integration processes
simplifies the information integration process in decision making.
Thus, choice heuristics are especially useful in complex purchase situations #many alternatives to
consider$, or where consumers have low levels of involvement, or where the information available is
overwhelmingly complex #choice criteria are difficult to interpret$, or where high levels of familiarity has
allowed consumers to &boil down& the decision to one or two key considerations.
sk students to describe simplification and risk reduction heuristics that they use in both high and low
involvement decisions.
"ometimes using choice heuristics can produce a purchase choice that does not meet consumers' basic end
goals. .hen choice heuristics are applied in an automatic, unthinking way, they can lead to dysfunctional
conse,uences. "tudents should be able to describe examples in which this happened to them.
%or instance, consumers who tend to use a price choice heuristic such as &>uy the lowest price,& may find
that they sometimes end up with inexpensive products that do not function well. %ollowing the advice of
$onsumer Reports might not be appropriate if you have uni,ue criteria not considered by the product
9udges.
NOTES TO DISCUSSION 4UESTIONS FOR MARKETING STRATEGY IN ACTION5
Ha%%+ar, Greet"$) Car1(
O!er!"e#. The greeting card industry is an interesting one, especially from a consumer behavior perspective.
=reeting cards are highly symbolic products in that the physical product itself may be less important than what it
represents #its symbolic meanings$. The choice process for greeting cards is also a bit different from other
consumer goods products.
!robably for most consumers, the choice of a card is less a choice between alternative brands #Aallmark, merican
=reetings, etc.$, and more a choice between many different &models& of a brand. 6hoosing which greeting card to
buy is somewhat analogous to choosing from hundreds of flavors of a particular brand of ice cream. 8ost people
select a card that reflects the particular affective tone and sentiment they desire, and are not very concerned about
the &brand& of the card.
Aallmark, the market leader, has competitive pressures from several fronts. >esides its two main competitors,
merican =reetings and =ibson, a variety of smaller &alternative& card companies have made successful inroads
into the business. In response to that threat, Aallmark introduced its own line of &alternative cards& as a separate
division of Aallmark. 6alled "hoebox =reetings, it produced an extensive line of mostly humorous cards. In the
late +FFDs, Aallmark had to contend with an online competitor, >lue 8ountain rts, whose .eb site allowed
consumers to design and send greeting cards electronically. In response, Aallmark revamped its own .eb site,
which offered a wide selection of e-cards not available in stores.
lthough this case focuses on Aallmark, any other greeting card company could be considered. %or instance,
students might consider appropriate marketing strategies for a small manufacturer of alternative cards that must
compete with giant companies such as Aallmark and merican =reetings.
S*))e(t"&$( 3&r D"('*(("&$ 4*e(t"&$(
8& )h" do so man" consumers continue to bu" and send greeting cards instead of writing a letter, sending an e-
mail, or making a phone call* 'iscuss "our answer in terms of the means-end framework&
This ,uestion re,uires students to speculate about how heavy and light users of greeting cards might
differ. They should recogni2e probable differences in these consumers in terms of the initial problem
representations #activated knowledge structures$ and levels of intrinsic self-relevance. "tudents will have
to use their imaginations about these differences.
sk students to identify themselves as heavy or light users of greeting cards.
!robably, several students in your class will be heavy users of cards and several will be light
users. In a class discussion, differences between these two segments will be brought out as
students relate their own feelings of involvement and their own knowledge about greeting cards.
There may even be students who are nonusers--who never #or very seldom$ send greeting cards.
"tudents should be able to identify many reasons why some consumers are heavy users of greeting cards
and other consumers are light users.
6onsumers in these two groups probably differ greatly in the level of intrinsic self-relevance they perceive
for greeting cards. "ome consumers see sending greeting cards as meeting self-relevant end goals, while
other consumers do not. These two groups are likely to be heavy and light users, respectively.
Interestingly, it appears that many women fall into the heavy user category #but not all women, of course$,
while relatively few men do.
'nd =oals. .e might expect the end goals for these two consumer groups to differ considerably.
8ost heavy users probably perceive greeting cards to have greater intrinsic self-relevance than do
light users. That is, their end goals are more abstract and more self-relevant. This suggests that
greeting cards are seen as more closely linked, through means-end chains, to self-relevant
conse,uences and values. Aeavy users might think that greeting cards reflect something of their
own personality, taste, and values. ?ight users are not so sensitive to this self-presentation idea.
lthough both heavy and light users may want to find a card that expresses a particular
sentiment, heavy users may have stricter re,uirements #more specific choice criteria$ for meeting
this goal. 8ore so than light users, heavy users might have the end goal of feeling proud of their
choice, or creating a particular feeling in the recipient.
?ight users, on the other hand, probably see sending greeting cards as having less intrinsic self-
relevance. Therefore, greeting cards themselves may not be seen as very important. The end
goals might be simply to satisfy an obligation #send brother a birthday card, send 8om a
8other's 7ay card$. !erhaps the dominant end goal of the problem-solving process is to find a
satisfactory card as ,uickly as possible #and get on to more important things$.
=oal Aierarchies. The goal hierarchies of heavy and light users are probably ,uite different.
Aeavy users, by definition, have much more experience in shopping for cards. Therefore, we
would expect their goal hierarchies to be much better developed. They may even have different
goal hierarchies for different choice situations #birthday cards versus anniversary or wedding
cards versus 8other's 7ay cards$. In contrast, light users, due to their low levels of experience,
may have to construct a goal hierarchy for each infre,uent purchase occasion, on a trial-and-error
process. %or instance, light users may have to consciously decide what their goals are for a card
occasionO whereas heavy users may know exactly their goals are for different types of cards.
!roduct :nowledge. >ased on the same reasoning, we would expect heavy and light users to have ,uite
different knowledge structures.
>ecause heavy users have much more experience in shopping for and sending cards #and
probably receiving cards$, their product knowledge will be greater than that of light users. Aeavy
users should know much more about potential choice alternatives #stores in which to buy cards,
brands of cards, types of cards$. In addition, heavy users probably have more salient choice
criteria than do light users. Therefore, they probably are better able to make finer discriminations
among cards using those criteria. Aowever, it is not necessarily the case that heavy users actually
consider more choice criteria than light users when integrating knowledge to make a purchase
choice, although they certainly might do so.
Involvement. nd, finally, we would expect that heavy and light users differ considerably in their levels of
involvement on most card-sending occasions.
In general, heavy users probably experience higher levels of involvement than do light users in
similar situations. In general, heavy users will be more motivated to spend the time and effort to
get &the right card&--the ends that &the right card& provides are seen as more important and more
self-relevant. Aeavy users might be more demanding.
?ight users, in general, do not see greeting cards in this way. They are less involved in the choice
and sending of the card. Their end goals are not so self-relevant. They are less demanding.
9& .he :t"pical; decision making process for bu"ing a -allmark card is likel" to var" in different situations&
.hink about three different occasions for bu"ing a card< a birthda", a graduation, and a wedding& -ow would
consumer knowledge and involvement var" across these situations* 'iscuss how problem recognition, search,
and evaluation might differ& )hat t"pes or level of decision-making would "ou expect in each situation*
.hile greeting cards are a fairly generic product, Aallmark has managed to create a distinction for itself
in this market. The three situations presented may have varying degrees of involvement depending on the
intended recipient of the card but, importantly given the fre,uency of purchase of cards, and fre,uency of
each type, consumer knowledge might vary. Thus, for example, a consumer may buy more birthday cards
than wedding or graduation cards, merely because birthdays occur more fre,uently and regularly than
does either of the other two situations.
This ,uestion asks students to think about the process of buying a greeting card. In each of the situations
presented, consumers usually have sufficient advance notice, the only exception being birthdays if the
consumer is not aware of an upcoming birthday. Thus, the problem recognition stage might involve some
amount of prior thought and result in evaluation of possible greeting options, for instance an email, versus
a letter, versus a gift versus a paper card or an electronic card. 6onsumers might use different decision
processes for different occasions. %or example, unt 8illie might always get a Aallmark card but friends
might receive an IalternativeJ card. 7ecision-making can range from routine heuristics, to somewhat
extended where thought and time go into choosing a card.
=& 7nderstanding how and wh" consumers make store choices /i&e& bu"ing a card in a )al->art rather than in a
-allmark %old $rown store0 is particularl" important to -allmark& 'iscuss how store choice interacts with
and influences choices of -allmark products and brands&
It is possible that Aallmark cards get into consumers' consideration sets because of their store choice
decision. .hen consumers need a greeting card, they must first choose where to look for a card. If the
consumer decides to go to a Aallmark card shop, she, of course, will be considering only Aallmark cards.
*bviously, this is advantageous for Aallmark.
Thus, the store choice decision is an important one for Aallmark marketing managers to understand. If
consumers instead decide to look for cards in a grocery or drug store, a retailer like .al-8art, or a general
card shop, there is a strong probability that the cards of other manufacturers will be considered.
This insight led Aallmark to the marketing strategy of emphasi2ing the Aallmark shop. Aallmark's
advertising encourages shoppers to think about Aallmark shops and to come into the shop when they need
greeting cards or other related products #party goods, small gift items$. 6onsumers who visit Aallmark
shops may be loyal to Aallmark cards or may be loyal to that particular store, and would therefore often be
willing to pay premium prices for Aallmark5s high-end brands.
?& 'o "ou think -allmark should modif" its in-store distribution strateg"* )hat about its )eb strateg"* )hat
assumptions do "ou make about consumer decision-making that leads "ou to this recommendation*
>oth ,uestions / and 0 deal with the issue of distribution and consumer behavior. 8arketers should be
very interested in how consumers arrive at a set of choice alternatives from which they will choose one to
buy. It is important for marketers to understand this process and try to develop strategies that will get
their brands into the consideration sets of many consumers.
*ne factor to be considered is consumers5 brand loyalty. >rand loyalty restricts the si2e of the
consideration set.
In IextremeJ brand loyalty, only one brand is Iconsidered.J ctually, no brands are considered in the
sense of an information integration process. <ather, the relevant decision plan to purchase the favored
brand is activated and automatically put into operation. This is good for the manufacturer who produces
that brand, and bad for competitors whose brands seldom enter the consideration sets of brand loyal
consumers.
In the case of multi-brand loyalty, the consideration set might consist of two or three favored brands, with
consumers switching back and forth among them from one purchase to the next. >y encouraging brand
loyalty, marketers partially control the composition of consumers5 consideration sets and reduce the
amount of competition for their brand.
6& >arketing research estimates men account for onl" 86 to 9@ percent of the greeting card purchases in the
7nited Atates& Burthermore, "oung consumers and those over 6@ don+t bu" as man" cards as those in middle
age& )h" do "ou think this is so* )hat can -allmark do to reach these two segments*
=reeting cards is a huge market and getting bigger all the time. .omen buy many more greeting cards
than men. t least some of that difference is probably due to women #wives, girlfriends$ acting as
purchasing agents who buy cards for their husbands3boyfriends to send. 'ven taking this into
consideration, the heaviest users of cards are women. ?ooking at the distribution of greeting card
purchases by age, we low levels of purchases among young people, a purchasing peak during middle age,
then a drop off again after age 1D. "tudents should be able to think of many reasons why women and
middle age consumers purchase so many greeting cards.
*ne reason women purchase more greeting cards may be that they are more interested in
cultivating and maintaining interpersonal relationships than are men. .omen may use greeting
cards as a convenient way of staying in touch and maintaining relationships. !erhaps more
women have more time to shop for and send greeting cards than men, although this is doubtful
given the large percentage of women who work outside the home.
possible reason for the age patterns of greeting card purchases is that when people are young,
most of their friends and family still live nearby. They may not find it necessary to send a card
because in some cases they may see their friends and family every day. "ome young people may
also find it IcornyJ to express their feelings in a card. Aowever, as people get older they are
often geographically separated from their friends and family. %urthermore, they may be so busy
with their 9obs and their own family responsibilities that they may not have time to call or write.
Therefore, greeting cards become a way of staying in touch. s consumers age, they may again
have more free time, as they retire and as children leave home. "o they may choose to call or
visit rather than send a card.
This ,uestion challenges students to develop some reasonable implications for marketing strategies that
might appeal to men, as well as younger and older consumers. This should prove a challenge to students5
imaginations.
'-cards might prove more appealing to young people than traditional paper cards. Aallmark
might want to develop a line of e-cards that are extremely cool or cutting edge to reach these
consumers. To reach men, perhaps Aallmark could create ads that show wives, girlfriends, and
children reacting favorable to receiving Aallmark cards from the men in their lives. *ne idea to
get people from extreme ends of the age spectrum is to emphasi2e certain IholidaysJ that don5t
currently get much attention. If young people would come to feel that I=randparent5s 7ay,J were
an important holiday, it might get them into the habit of buying cards, not only for that day but
for other events. nother strategy, albeit a possibly controversial one, would be for Aallmark to
get involved in sponsoring certain school activities, which would etch its name more deeply into
children5s awareness, possibly causing them to be more receptive to buying cards.