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Consumer Decision-Making Process, Culural, social, individual, and…

- - - - “Digital native”- younger and less likely than other two groups to ever shop at supercenters or traditional channels, unless the latter is a specialty store
      - “One-stop” – tends to be older and purchases once a week from discounters and mass retailers
      - “I’ll go everywhere to get what I want” = tends to be younger, shops across multiple digital and traditional channels for specific items they are looking for, and will pay a premium for them
    - - Perceived value: Net worth (benefits – costs) a consumer expects to obtain from a particular behavior
      - Derived Value: value is all about meeting—or exceeding—customer expectations, Consumers evaluations of net worth that results from a particular behavior
        
        Utilitarian value: Product/Service is Valuable because it helps the consumer solve problems and accomplish tasks
      - Hedonic value: Value that acts as an end in itself rather than as a means to an end
- - - - 1. stimulating a gap between actual and desired self-concepts
      - addressing a previously identified gap between the two
      - 3. reinforcing brand’s role in maintaining self-alignment (avoiding the development of a gap)
  - - - Automatic first step
      - E.g., previous experiences, memories of marketing efforts, current knowledge base
      - Top-of-mind awareness: the first alternative that comes to mind when a consumer engages in internal information search
    - - 1. Non-marketing-controlled information source (Yelp, social media reviews)
      - Need LESS INFO when there is:
        
        Less Risk
        
        More knowledge
        
        More product experience
        
        Low level of interest
        
        Confidence in decision
      - Need MORE INFO when there is a
        
        More Risk
        
        Less knowledge
        
        Less product experience
        
        High level of interest
        
        Lack of confidence
      - 2. Marketing-controlled (created or influenced) information source
  - - - The 3 SETS
        
        1. Evoked/Consideration - set of products selected during search
        
        Marketing Strategy to use:
        
        Provide continued satisfaction through excellent customer experiences
        
        Encourage loyalty through rewards programs or other manner of communicating how valuable customers are
        
        2. Inept - unacceptable alternatives
        
        Marketing Strategy to use:
        
        Highlight competitors’ negative attributes
        
        Change opinions of product's perceived unacceptable attributes
        
        3. Inert - : alternatives that may be acceptable but the consumer doesn’t know/think about
        
        Raise awareness of alternative as an acceptable solution
        
        Marketing Strategy to use:
    - - 1. Compensatory: Consumer will compromise on some attributes to find the alternative with the best net benefit (present desired attributes –[minus] lacking desired attributes)
      - 2. Non-compensatory: Consumer will not select an alternative unless all attribute criteria are met
  - - - Avoiding information that contradicts the purchase decision (don’t answer the phone when haters calls)
      - Revoking the original decision by returning the product (dump bad SO)
      - Seeking information that reinforces (supports) the purchase decision (hang out friends that also bought the product, e.g. bad SO)
    - - Proposes that consumers evaluate experiences (products, brands, services) based on ratio of outcomes to investments, through assessments of three forms of justice (Schneider and Bowen 1999):
        
        1. Distributive
        
        Economic/utilitarian - good value, and product is useful
        
        a basic minimum. In short, we want our decisions to provide us with a solution to our needs.
        
        2. Procedural
        
        Example: some retailers tendency either charge a processing fee for credit card payments, or offer a cash discount
        
        Policies or Processes: these can influence consumer evaluations
        
        3. Interactional
        
        Interpersonal
        
        a lack of interactional justice is usually the reason for a customer's outrage
        
        The consumer’s perception of being treated in a humane manner
      - Equity theory breaks down consumers’ evaluations of their buying experiences into the 3 Justice Types