Decision waves: consumer decisions in today's complex world

Abstract

PurposeThe purpose of this paper is to examine the dominant consumer decision theory models and understand why that theory has received little empirical validation. A “decision waves” theory is proposed – an alternative, multi‐phase approach to decision making using image theory. An approach to validating empirically the multi‐phase theory is outlined.Design/methodology/approachThis conceptual paper examines the foundations of modern consumer decision theory and argues for a more representative model of actual consumer decisions.FindingsDecision waves provide a theoretical approach to represent more accurately consumer decision making and improve understanding in this foundational component of marketing. Decision waves do not change detailed empirical findings: however, they do change the macro perspective of how those findings are assembled for marketing.Research limitations/implicationsAn empirical test of decision waves theory is ongoing.Practical implicationsThe concepts outlined in this paper will change segmentation, positioning and how tactical plans are developed within the marketing mix, particularly for promotional strategies.Originality/valueA theoretical approach that represents decision making more accurately will bring us closer to understanding this foundational component of marketing. It provides a basis for differentiation in congested markets.

Under Pressure: An Integrative Perspective of Time Pressure Impact on Consumer Decision-Making

“…In line with the hypothesis that decision difficulty is dependent of the processing model used, evidence reveals that participants defer choice more when they are asked to use a compensatory model (Lye et al, 2005). Therefore, if decision-making is an adaptive process, when facing a significant amount of information, consumers' deferral behavior may suggest that individuals fail to adapt their decision model to the context (Scheibehenne, Greifeneder, & Todd, 2010).…”

“…In order to decide whether the product under evaluation meets the desired standard, consumers simplifying the task may focus on a restricted set of attributes, or even on a single attribute (Lye, Shao, Rundle-Thiele, & Fausnaugh, 2005). Evidence suggests that the urgency to decide limits the amount of information analyzed (Iyer, 1989), increases the tendency to decide based on habits (Wood & Neal, 2009) and to use non-compensatory strategies to process information (Lallement, 2010).…”

An Analysis of Consumers' Responses to Cause Related Marketing

“…Brands featuring CRM promotions are purchased in supermarkets that stock up to 40,000 stock-keeping units, from which an average family uses 150 to satisfy 85% of its requirements (Lye et al, 2005). Since supermarket shopping trips often last no longer than 30 minutes, consumers' ability and willingness to engage in detailed processing of brand information is limited.…”

Designing IS service strategy: an information acceleration approach

“…A particular strategy, or combination of strategies, can be characterised across several dimensions (e.g., Stevenson et al, 1990;Bettman et al, 1998;Lye et al, 2005). In Table 1, we categorise the main decision-making strategies in terms of: (1) a decision-maker's desire for accuracy (Payne et al, 1993), and (2) their need to reduce cognitive effort (Bettman et al, 1998).…”