Consumer Decision-Making Processes and Search Strategies in Marketing

Nominal Decision Making

A low-involvement, habitual decision process with little to no information search or evaluation; also called routine, automatic, or habitual decision making; linked to internal search only and no alternative evaluation

Limited Decision Making

A moderate-involvement decision process with limited internal and some external search, few attributes, and simple decision rules; middle ground between nominal and extended

Extended Decision Making

A high-involvement decision process with extensive internal and external search, many attributes, and complex evaluation; associated with high purchase involvement

Purchase Involvement

The level of concern or interest in a specific purchase; triggered by the need to consider a purchase; determines type of decision making

Product Involvement

The level of ongoing interest in a product category; can differ from purchase involvement

Problem Recognition

The first stage of the decision process; occurs when a discrepancy exists between actual state and desired state; triggers the decision process

Actual State

The way a consumer perceives their current situation; drives problem recognition

Desired State

The way a consumer wants to feel or be; creates discrepancy leading to problem recognition

Active Problem

A problem the consumer is aware of or will become aware of; easier for marketers to address

Inactive Problem

A problem the consumer is unaware of; requires marketers to create awareness

Generic Problem Recognition

A discrepancy that multiple brands can solve; often used in early product life cycle or industry-wide marketing

Selective Problem Recognition

A discrepancy that only one brand can solve; used to gain or maintain market share

Activity Analysis

Problem identification method focusing on activities (e.g., lawn care)

Product Analysis

Method focusing on product use or category

Problem Analysis

Method starting with a problem and identifying solutions

Human Factors Research

Method examining physical/environmental limitations (lighting, fatigue, etc.)

Emotion Research

Method examining emotions tied to consumer problems

Intuition

Most common method used to discover consumer problems

Internal Search

Retrieving information from memory; dominates nominal decision making

External Search

Seeking information from outside sources; dominates extended decision making

Ongoing Search

Searching for information without a specific purchase need; done for enjoyment or future use

Voice Search

Using voice commands to search for information

Visual Search

Using images instead of text to search

Evaluative Criteria

The features, attributes, or benefits used to evaluate alternatives; central to decision making and alternative evaluation

Tangible Criteria

Objective, measurable features (price, performance)

Intangible Criteria

Subjective features (style, prestige, feelings, brand image)

Awareness Set

All brands a consumer is aware of

Evoked Set (Consideration Set)

Brands seriously considered for purchase; most important set in decision making

Inept Set

Brands the consumer views negatively

Inert Set

Brands toward which the consumer is indifferent

Unawareness Set

Brands the consumer does not know about

Memory Source

Information from past experiences, prior searches, and low-involvement learning

Personal Sources

Information from friends, family, and acquaintances

Independent Sources

Information from consumer groups, government agencies, and reviews

Marketing Sources

Information from advertising, websites, and salespeople

Experiential Sources

Information from product trial or usage

Shopping Bots

Software that searches and compares products for consumers

Spam

Unsolicited email messages that are often unwanted

Click-Through Rate

The percentage of people who click on an online advertisement

Behavioral Targeting

Tracking consumer online behavior to deliver targeted ads

Search Engine Optimization (SEO)

Techniques used to improve ranking in search results

Paid Search Marketing

Paying for placement in search engine results

Bounded Rationality

The idea that consumers have limited ability to process information; leads to use of heuristics

Metagoals

The general outcomes consumers seek (e.g., minimize effort, justify decision, optimize outcome)

Affective Choice

A decision based on emotions and feelings; holistic and not attribute-by-attribute

Attitude-Based Choice

A decision based on overall impressions, intuitions, or heuristics; no attribute comparison

Attribute-Based Choice

A decision based on comparing specific attributes across alternatives; logical and effortful

Consummatory Motives

Motives based on intrinsic enjoyment or satisfaction

Instrumental Motives

Motives aimed at achieving another goal

Direct Measurement

Asking consumers directly what criteria they use

Indirect Measurement

Assuming consumers cannot or will not state criteria directly

Projective Techniques

Indirect method where consumers describe what others would do

Perceptual Mapping

Method where consumers judge similarity between brands

Conjoint Analysis

Method where consumers rank combinations of attributes; most important indirect method

Perceptual Discrimination

The ability to distinguish between similar stimuli

Just Noticeable Difference (JND)

The minimum difference between stimuli that can be detected

Surrogate Indicator

Using one attribute to infer another (e.g., price as indicator of quality)

Common Surrogate Indicators

Price, brand name, country of origin, advertising, warranty

Usage Situation

The context in which a product is used; affects importance of evaluative criteria

Blind Test

A test in which consumers do not know the brand; removes brand bias