Consumer Behavior,

Eighth Edition

SCHIFFMAN & KANUK

Chapter 15

The Consumer’s Decision-

Making Process

15-1
 The process by which
one person (the
opinion leader)
informally influences
Opinion
the consumption
Leadership
actions or attitudes of
others who may be
opinion seekers or
opinion recipients.

15-2
 What is Opinion Leadership?

Opinion Opinion
Leader Receiver

Opinion
Seeker

15-3
 Examples of Opinion Leadership

• During a coffee break, a co-worker talks

about the movie he saw last night and
recommends seeing it.
• A person shows a friend photographs of his
recent Australian Outback vacation and the
friend suggests that using a polarizing filter
might produce better pictures.

15-4
 Special Issues
• Opinion leaders are four times more likely to be
asked about political issues, three times more
likely to be asked about computers or
investments, and twice as likely to be asked about
restaurants
• Information seekers seek a “strong-tie” source
when they know little about a topic, and “weak-
tie” sources when they have some knowledge

15-5
 Chat Rooms and Opinion Leadership

15-6
 Reasons for the Effectiveness of
Opinion Leadership
• Credibility
• Positive and Negative Product Information
• Information and Advice
• Opinion Leadership Is Category-Specific
• Opinion Leadership Is a Two-way Street

15-7
 Viral
• Buzz Marketing
Marketing
• Wildfire Marketing
• Avalanche Marketing
These terms describe any strategy that
encourages individuals to pass on a
marketing message to others;
The marriage of email and word-of-mouth
communication

15-8
 Yahoo’s Buzz Index

15-9
 Figure 15.1 Factors Leading to
Negative Word-of-Mouth Behavior
+
Individual Factors
+
Attitudinal Factors
+ Likelihood
Product Involvement Negative
of
WOM -
Repurchase

Situational Factors
+

15-10
 Figure 15.2 Word-of-Mouth in Action

Financial Services
% of
respondents Automotive
that used
a referral Travel
to make one
of these Consumer Electronics
purchases
over the Computer
past year
Restaurants

0% 20% 40% 60% 80%

15-11
 Motivations Behind Opinion
Leadership
• The Needs of Opinion Leaders
• The Needs of Opinion Receivers
• Purchase Pals
• Surrogate Buyers versus Opinion Leaders

15-12
 The Needs of Opinion Leaders

• Self involvement
• Social involvement
• Product involvement
• Message involvement

15-13
 The Needs of Opinion Receivers
• New-product or new usage information
• Reduction of perceived risk
• Reduction of search time
• Receiving the approval of the opinion
leader

15-14
 Table 15.3 A Comparison of Motivations
(Excerpts)
OPINION LEADERS OPINION RECEIVERS
SELF-IMPROVEMENT
MOTIVATIONS • Reduce the risk of making a purchase
• Reduce post-purchase uncertainty or commitment
dissonance • Reduce search time
• Gain attention or status
• Assert superiority and expertise
• Feel like an adventurer

PRODUCT-INVOLVEMENT
MOTIVATIONS • Learn how to use or consume a product
• Express satisfaction or dissatisfaction
with a product or service
• Learn what products are new in the
marketplace

15-15
 Table 15.4 Key Differences Between
Opinion Leaders and Surrogate Buyers
OPINION LEADER
1. Informal relationship with end-users
2. Information exchange occurs in the context of a casual interaction
3. Homophilous (to a certain extent) to end-users
4. Does not get paid for advice
5. Usually socially more active than end-users
6. Accountability limited regarding the outcome of advice
7. As accountability limited, rigor in search and screening of alternatives
low
8. Likely to have used the product personally
9. More than one can be consulted before making a final decision
10. Same person can be an opinion leader for a variety of related product
categories

15-16
 Table 15.4 Key Differences
SURROGATE BUYER
1. Formal relationship; occupation-related status
2. Information exchange in the form of formal instructions/advice
3. Heterophilus to end users (that is, is the source of power)
4. Usually hired, therefore gets paid
5. Not necessarily socially more active than end-users
6. High level of accountability
7. Search and screening of alternatives more rigorous
8. May not have used the product for personal consumption
9. Second opinion taken on rare occasions
10. Usually specializes for a specific product/service category

15-17
 Measurement of Opinion
Leadership
• Self-Designating
Method
• Sociometric Method
• Key Informant Method
• Objective Method

15-18
 Table 15.5 Measuring Opinion Leadership
OPINION LEADERSHIP
SAMPLE
MEASUREMENT DESCRIPTION OF METHOD
QUESTIONS ASKED
METHOD

SELF-DESIGNATING Each respondent is asked a “Do you influence

METHOD series of questions to determine other people in their
the degree to which he or she selection of
perceives himself or herself to products?”
be an opinion leader.

SOCIOMETRIC Members of a social system are “Whom do you

METHOD asked to identify to whom they ask?”“Who asks you
give advice and to whom they for info about that
go for advice. product category?”

15-19
 Table 15.5 continued
OPINION
SAMPLE
LEADERSHIP
DESCRIPTION OF METHOD QUESTIONS
MEASUREMENT
ASKED
METHOD

KEY INFORMANT Carefully selected key informants in “Who are the most
METHOD a social system are asked to influential people in
designate opinion leaders. the group?”

OBJECTIVE Artificially places individuals in a “Have you tried the

METHOD position to act as opinion leaders product?
and measures results of their efforts.

15-20
 Table 15.6 Profile of Opinion Leaders

GENERALIZED
CATEGORY-SPECIFIC
ATTRIBUTES ACROSS
ATTRIBUTES
PRODUCT CATEGORIES
Innovativeness Interest
Willingness to talk Knowledge
Self-confidence Special-interest media exposure
Gregariousness Same age
Cognitive differentiation Same social status
Social exposure outside group

15-21
 Individuals whose
influence stems from a
general knowledge or
Market
market expertise that
Maven
leads to an early
awareness of new
products and services.

15-22
 The Interpersonal Flow of
Communication
• Two-Step Flow
– A communication model that portrays opinion
leaders as direct receivers of information from
mass media sources who, in turn, interpret and
transmit this information.
• Multistep Flow
– A revision of the traditional two-step theory
that shows multiple communication flows

15-23
 Figure 15.4 Two-Step Flow of
Communication Theory

Step 1 Step 2
Opinion
Opinion
Opinion
Opinion
Mass
MassMedia
Media Receivers
Receivers
Leaders
Leaders (the
(themasses)
masses)

15-24
 Figure 15.5 Multistep Flow of
Communication Theory

Step 2
Step 1a
Opinion
Opinion Step 3
Mass Media Receivers/
Leaders
Seekers

Step 1b
Information
Receivers

15-25
 Issues In Opinion Leadership and
Marketing Strategy
• Programs Designed to Stimulate Opinion
Leadership
• Advertisements Stimulating Opinion
Leadership
• Word of Mouth May Be Uncontrollable
• Creation of Opinion Leaders

15-26
15-27
 The process by which
the acceptance of an
innovation is spread by
Diffusion
communication to
Process
members of social
system over a period of
time.

15-28
 The stages through
which an individual
consumer passes in
Adoption arriving at a decision to
Process try (or not to try), to
continue using (or
discontinue using) a new
product.

15-29
 Elements of the Diffusion Process

• The Innovation
• The Channels of Communication
• The Social System
• Time

15-30
 Defining Innovations
• Firm-oriented definitions
• Product-oriented definitions
• Market-oriented definitions
• Consumer-oriented definitions

15-31
 Product-Oriented Definitions

Continuous
Innovation

Dynamically
Continuous
Innovation

Discontinuous
Innovation

15-32
 Figure 15.6
Continuous
Innovation

15-33
 Figure 15.7 Telephone Innovations

Discontinuous Dynamically Continuous Continuous

Innovations Innovations Innovations
Telephone answering machines Hold button
Call forwarding Line-in-use indicator
Call waiting Redial button
Telephone Caller ID Auto dialing feature
Banking by telephone Touch-tone service
Call-prompting systems 800 Numbers
900 Numbers

Ability to send/receive email Switch from analog to

Incorporate PDA functions digital
Cell Phone Calendar/Phonebook Include camera
Voice-activated dialing Ringer styles
Play games
Fax modem Plain paper fax
Mobile fax machines Speed dial buttons
Fax Machine Home office systems Delayed send
(combined fax, copier, Copy function
15-34
computer printer) Paper cutter
 Product Characteristics That
Influence Diffusion
• Relative Advantage
• Compatibility
• Complexity
• Trialability
• Observability

15-35
 Figure 15.8
Ad Stressing
Ease of Use
and
Convenience

15-36
 Table 15.7 Characteristics That
Influence Diffusion
CHARACTERISTICS EXAMPLES

Air travel over train travel, cordless

Relative
phones over corded telephones
Advantage

Gillette MACH3 over disposable

Compatibility razors, digital telephone answering
machines over machines using tape

Electric shavers, instant puddings

Complexity

15-37
 Table 15.7 continued
CHARACTERISTICS EXAMPLES

Trial size jars and bottles of new

Trialability products, free trials of software,
free samples, cents-off coupons

Clothing, such as a new Tommy

Observability Hilfiger jacket, a car, wristwatches,
eyeglasses

15-38
 Time and Diffusion
• Purchase Time
• Adopter Categories
• Rate of Adoption

See Table 15.8

Time Line for Selecting
a New
Automobile

15-39
 A sequence of
categories that
describes how early (or
Adopter
late) a consumer
Categories
adopts a new product
in relation to other
adopters.

15-40
 Figure 15.9 Adopter Categories

Early Laggards
Adopters
13.5% Early Late 16%
Majority Majority
Innovators 34%
34%
2.5%

Percentage of Adopters by Category Sequence

15-41
 Innovators: Description

• 2.5% of population
• Venturesome
• Very eager to try new ideas
• Acceptable if risk is daring
• More cosmopolite social relationships
• Communicates with other innovators

15-42
 Early Adopters: Description

• 13.5% of population
• Respected
• More integrated into the local social system
• The persons to check with before adopting a
new idea
• Category contains greatest number of
opinion leaders
• Are role models

15-43
 Early Majority: Description

• 34% of population
• Deliberate
• Adopt new ideas just prior to the average
time
• Seldom hold leadership positions
• Deliberate for some time before adopting

15-44
 Late Majority: Description
• 34% of population
• Skeptical
• Adopt new ideas just after the average
time
• Adopting may be both an economic
necessity and a reaction to peer pressures
• Innovations approached cautiously

15-45
 Laggards: Description

• 16% of population
• Traditional
• The last people to adopt an innovation
• Most “localite” in outlook
• Oriented to the past
• Suspicious of the new

15-46
 Table 15.11 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS EXAMPLE
STAGE STAGE
Consumer is first Janet sees an ad for a new MP3 player in
Awareness exposed to the product the magazine she is reading.
innovation.
Consumer is interested in Janet reads about the MP3 player on the
the product and searches manufacturer’s Web site and then goes to
Interest
for additional an electronics store near her apartment and
information. has a salesperson show her a unit.
Consumer decides After talking to a knowledgeable friend,
whether or not to believe Janet decides that this MP3 player will
that this product or allow her to easily download the MP3 files
Evaluation
service will satisfy the that she has on her computer. She also
need--a kind of “mental feels that the unit’s size is small enough to
trial.” easily fit into her beltpack.

15-47
 Table 15.11 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS EXAMPLE
STAGE STAGE
Consumer uses the Since an MP3 player cannot be “tried” like
product on a limited a small tube of toothpaste, Janet buys the
Trial basis MP3 player online from Amazon.com,
which offers a 30-day full refund policy.

If trial is favorable, Janet finds that the MP3 player is easy to

consumer decides to use use and that the sound quality is excellent.
the product on a full, She keeps the MP3 player.
Adoption rather than a limited
(Rejection) basis--if unfavorable, the
consumer decides to
reject it.

15-48
 Figure 15.11 An Enhanced Adoption
Process Model
Discontinuation or
Rejection
Rejection

Evaluation

Pre-existing Adoption
problem or Awareness Interest Evaluation Trial or
Need Rejection

Adoption or Rejection
Postadoption or
Postpurchase
Evaluation
Discontinuation
15-49
 Figure 15.12 The Relative Importance of
Different Types of Information Sources in the
Adoption Process
High
Personal and
interpersonal
sources
Importance
Impersonal
mass-media
sources

Low Evaluation
Interest
Awareness

Trial

Adoption
15-50
 Issues in Profiling Consumer
Innovators
• Defining the Consumer Innovator
• Interest in the Product Category
• The Innovator Is an Opinion Leader
• Personality Traits
• Media Habits
• Social Characteristics
• Demographic Characteristics
• Are There Generalized Consumer Innovators?

15-51
 Figure 15.13
Ad Appeals
to Fashion
Innovators

15-52