13.2 Types of Consumer Decisions and Involvement Levels

Consumer decisions vary in complexity, from routine purchases to extensive problem-solving. This topic explores how involvement levels and perceived risk impact decision-making. Understanding these factors helps marketers tailor strategies to different types of consumer decisions.

Marketers can adapt their approach based on the level of consumer involvement. For low-involvement decisions, they focus on brand awareness and simple messaging. For high-involvement choices, they provide detailed information and emphasize unique selling points to address perceived risks.

Types of Consumer Decisions

Differentiate between routine, limited, and extensive problem solving in consumer decision making

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• Routine problem solving involves low involvement decisions that are habitual purchases requiring little information search and minimal evaluation of alternatives (toothpaste, milk, bread)
• Limited problem solving entails moderate involvement decisions that require some information search and limited evaluation of alternatives using simplified decision rules (clothing, restaurants, gifts)
• Extensive problem solving encompasses high involvement decisions that demand extensive information search, thorough evaluation of alternatives, and complex decision rules (cars, homes, expensive electronics)

Assess how involvement levels impact the consumer decision making process

• Low involvement leads to passive information processing with minimal cognitive effort, limited attention to advertising, and reliance on heuristics and simple decision rules
• Moderate involvement results in active information processing with some cognitive effort, attention to relevant advertising, and use of decision rules and comparison of alternatives
• High involvement requires extensive information processing with significant cognitive effort, high attention to advertising and information sources, and thorough evaluation of alternatives and complex decision rules

Consumer Involvement and Perceived Risk

Examine the relationship between perceived risk and consumer involvement in decision making

• Types of perceived risk include financial risk (potential monetary loss), performance risk (product may not meet expectations), physical risk (potential harm to self or others), social risk (potential damage to social status or reputation), and psychological risk (potential negative impact on self-image)
• Higher perceived risk leads to higher involvement where consumers engage in more extensive problem solving, increased information search and evaluation of alternatives, and use risk reduction strategies like seeking advice, reading reviews, or choosing well-known brands
• Lower perceived risk leads to lower involvement where consumers engage in routine or limited problem solving with minimal information search and evaluation of alternatives and reliance on heuristics and simple decision rules

Analyze how marketers can adapt strategies based on the type of consumer decision and involvement level

• For routine problem solving (low involvement), marketers should focus on brand awareness and recognition, use simple, repetitive advertising messages, emphasize convenience and accessibility, and encourage habit formation through consistent product experience
• For limited problem solving (moderate involvement), marketers should provide relevant information to facilitate decision making, highlight key product attributes and benefits, use comparative advertising to differentiate from competitors, and offer promotions or incentives to encourage trial
• For extensive problem solving (high involvement), marketers should provide detailed product information and specifications, emphasize unique selling propositions and competitive advantages, use testimonials and expert endorsements to build trust, and offer extensive customer support and after-sales service
• Strategies for managing perceived risk include offering guarantees, warranties, or return policies, providing clear and transparent product information, encouraging customer reviews and ratings, and partnering with trusted influencers or organizations