Consumer Decision Making

James R. Bettman, Eric J. Johnson, John W. Payne
Duke University, Wharton School University of Pennsylvania, Duke University

This chapter reviews theories and research on consumer decision making. We characterize the properties of the consumer decision-making task and the consumer information environment. The limited information processing capabilities of consumers are addressed, and the choice heuristics used by consumers to cope with difficult decisions are described. Conceptual frameworks for understanding contingent consumer decision making and a review of relevant research on contingent processing are presented. Finally, methods for studying consumer decision making are discussed, and future research opportunities are outlined.

INTRODUCTION


THE CONSUMER DECISION MAKING TASK

The Consumer Information Environment

Other Factors Characterizing Consumer Decision Tasks

How Consumers Cope with Difficult Decision Tasks


THE CONSUMER AS A LIMITED INFORMATION PROCESSOR

Human Memory
 Working memory
 Long-term memory

Implications of Consumer Processing Limitations

CHOICE HEURISTICS
 The weighted additive (WADD) rule
 The satisficing (SAT) heuristic
 The lexicographic (LEX) heuristic
 The elimination-by-aspects (EBA) heuristic
 The majority of confirming dimensions (MCD) heuristic
 The frequency of good and bad features (FRQ) heuristic
 The equal weight (EQW) heuristic
 Combined heuristics
 Other heuristics

General Properties of Choice Heuristics
 Compensatory versus noncompensatory
 Consistent versus selective processing
 Amount of processing
 Alternative-based versus attribute-based processing
 Quantitative versus qualitative reasoning
 Formation of evaluations

Implementation of Heuristics

CONTINGENT CONSUMER DECISION MAKING

The Concept of Contingent Decision Making
 Characteristics of the decision problem
 Characteristics of the person
 Characteristics of the social context

Conceptual Frameworks for Contingent Decision Making
 The cost/benefit framework
 A perceptual framework

RESEARCH ON CONTINGENT CONSUMER DECISION MAKING

Problem Factors: Task Variables
 Problem size
 Time pressure
 Response mode
 Types of decision task
 Information format

Problem Factors: Context Variables
 Similarity
 Correlated attributes
 Comparable versus noncomparable choices
 The quality of the alternatives available

Person Factors
 Prior knowledge
 Information processing abilities

Implications of Contingent Decision Making

METHODS FOR STUDYING CONSUMER DECISION MAKING

Input-Output Approaches

Process-Tracing Approaches
 Verbal protocols
 Information acquisition approaches
 Chronometric analysis

FUTURE RESEARCH OPPORTUNITIES