The Cognitive perspective

An alternative and popular approach to decision making is what Egan (2014) refers to as the cognitive paradigm, with the focus on thought processes and decision making stages of activities. Both Ivy (2010) and Bettman et al. (1998) refer to information processing models that fit within the cognitive perspective, where individuals are viewed as an information processor. Lemon and Verhoef (2016), refer to customer buying behaviour process models, and state that they consider the entire process that the customer goes through. The roots of the cognitive perspective are partly derived from cognitive psychology (Bray 2013). Moreover, traditionally decision making within this paradigm has been viewed from a rational perspective, where consumers go through a series of stages (Solomon 2009): problem recognition, information search, evaluation of alternatives, product choice and outcomes. This is a widely accepted view of consumer decision making, as evidenced in recent marketing communications, consumer behaviour and marketing text books (Darley et al., 2010) (and see Table 3.2). Modern day literature therefore still appears to demonstrate elements of economic man: rational behaviour through a logical and linear set of steps and there continues to be

39 | P a g e discussion regarding how relevant and appropriate this is in today’s communications environment.

These specific models consider the entire customer decision journey and allow the foundation for thinking holistically (Lemon and Verhoef 2016). Egan (2015) states the cognitive paradigm has a focus on thought processes and decision making stages of activities. There are some limitations to this paradigm (1) consumers do not have full knowledge of all alternative products (known as the total set); (2) consumers are not aware of all the product line (known as the awareness set); (3) consumers reduce to a more manageable group (known as the evoked set).

Table 3.2: Cognitive perspective & views of consumer decision making stages Solomon et al. (2016: 330) Fill & Turnbull (2016: 91)

Smith & Zook (2011) Egan (2015: 52) Armstrong et al. (2015: 164) Jobber (2004: 69) Problem recognition Problem recognition Problem recognition Problem recognition Need Recognition Need recognition/ problem awareness Information search Information search Information search Information search Information search Information search Evaluation of alternatives Evaluation of alternative solutions

Evaluation Evaluation Evaluation of alternatives Evaluation of alternatives Product choice Purchase decision

Decision Decision Purchase decision

Purchase Outcomes Post

purchase evaluation

Buy Purchase Post

purchase behaviour Post purchase evaluation of decision Post-purchase dissonance (dissatisfaction or satisfaction Post- purchase evaluation

Foskett and Hemsley-Brown (2001) state that flawed assumptions are made regarding the processes involved in the choice decision: (1) it assumes that individuals will maximise the benefit they will receive from their choice, however this may not be possible to establish in decisions that are more complex. (2) Choices are always made based on self-interest, i.e. selecting goods/services that meet their needs and wants at the lowest cost; however, consumers are not motivated by consistent and predictable patterns of motivations. (3) Choices are always made after an intensive period known

40 | P a g e as vigilant information collection12_{, however the reality is to assume this is an}

impracticable or undesirable approach to take. (4) The whole process, including consideration of alternatives and choice will be rational, however most research does not support this view and it may not be possible to identify what the most rational choice is anyway. Indeed, Hindess (1988: 10) states “human behaviour frequently departs from the canons of rationality, so that rational choice models are not realistic”.

Based upon the original five problem solving stages suggested over 100 years ago by John Dewey (Olshavsky and Granbois, 1979; Darley et al., 2010), more complex models, such as that by Blackwell et al., (2001), have applied these five stages to consumer behaviour. The model considers a variety of environmental and individual factors that impact upon the decision making process (see Figure 3.3 below). This model was originally developed in 1968 by Engel, Kollat and Blackwell, and has undergone a number of revisions (Darley et al., 2010). Moreover, the Blackwell et al. (2001) model also considers the vast array of information and messages to which consumers are exposed, with only a few messages retained, and therefore offers a link to marketing communications. At the heart of the Blackwell et al. (2001) model are seven decision stages (based upon the original five stages), and entry to the model is via recognition of a need. This is followed by a search for information (internally and externally), leading to an evaluation of alternatives, and purchase. Post purchase consumption and divestment are the final two stages. A number of environmental influences and individual differences are said to influence the process. The left hand side of the Blackwell et al. (2001) model links with what is commonly known as the hierarchy-of- effects models, which state that audiences respond to messages in a cognitive, affective, and conative sequence (Barry and Howard, 1990). Five stages are linked to the three components of attitude: cognition, affect and behaviour13_{, and all three are considered}

important; however, their relative importance depends upon consumer’s motivation

12 _{Janice and Mann (1977) state vigilant information search consists of seven stages. This includes}

searching for a wide range of alternatives, weighing up costs/risks, searching extensively for new information/expert judgement, and re-examining decision as a result of this (cited by Foskett & Hemsley-Brown 2001).

13 _{Cognition: relates to a thinking stage (memory, perception, judgement and reasoning); affective:}

relates to a feeling stage (moods, feelings, attitudes and emotions); conative: relates to a doing stage (behaviour involving positive action) (Egan 2015).

41 | P a g e levels (Solomon, 2009). This particular model is therefore quite a detailed linear representation of consumer decision making that draws on a number of much researched areas. However, Darley et al. (2010: 95) state there is a need to develop a framework that provides “an understanding of online consumer behaviour and the decision making process”.

Figure 3.3: The Consumer Decision Process Model

Source: Blackwell et al., (2001)

Darley et al. (2010) proposed a modified model of consumer behaviour and decision making to take into account the online environment. This model is adapted from the Engel, Kollat and Blackwell (1978) model and the Engel, Blackwell and Miniard (1986) model and incorporates the online environment on the right hand side (see Figure 3.4 below). This is a useful consideration; however, only four factors are considered (web site quality, web site interface, web site satisfaction and web site experience). This is only one aspect of the online environment, and this does not consider social media and areas such as ratings and review sites that are known to influence during the decision journey (Moe and Trusov, 2011). Moreover, a linear and rational approach is still adopted, and this may not be an accurate representation of how consumers now shop. This is discussed further under the multi-phase perspective.

42 | P a g e Figure 3.4 A Modified model of online consumer behaviour and decision making (Darley et al. 2010)

The consumer decision making process has also been viewed as a purchase funnel, proposed by Lewis in 1903, and changed/adapted by a number of people (Vazquez et al., 2014). Most models of the purchase funnel involve three stages, with an awareness and purchase stage being constant, but the intermediate stages varying. For example, De Bryun & Lilien (2008) discuss awareness, interest and final decision; Vazquez et al. (2014) discuss awareness, evaluation, purchase and postpurchase experience, and Hudson & Hudson (2013) illustrate this as initial consideration set, consider, evaluate, purchase – as seen in Figure 3.5 below.

43 | P a g e Figure 3.5: The traditional purchase funnel (Hudson & Hudson 2013).

The purchase funnel is a useful illustration within the development of models, as it assumes that consumers have an initial wide choice set which is then narrowed down. This may have been appropriate during its early conception in an era of modest availability of traditional marketing, with limited brand choice and limited availability of information. However, there is some research (for example Ley et al 2005; Lipshitz 1993; Court et al 2009; Hauser and Wernerfelt 1989; 1990; Roberts 1989; Roberts and Lattin 1991; Hudson and Hudson 2013) to suggest that modern day communications and the vast array of available information have changed the initial choice set. Consumers may not narrow down, but later increase their choice set from a very narrow initial choice set, or may make multiple decisions at the same time. These viewpoints are explored further in the next section.