CONSUMER DECISION MAKING PROCESS

PRESENTED BY – ANKIT SHARMA

 CONTENT
Ø Decision-making
Ø
Ø Consumer Decisions

Ø Classes of buying decisions

Ø Consumer Decision making process

 DECISION MAKING
The process by which a person is required to make a
choice from various alternatives options is referred to
as decision-making.
 CONSUMER DECISION
v What to buy
v
v How much to buy
v
v Where to buy
v
v When to buy

v How to buy
 CLASSES OF BUYING DECISIONS
o Routine decision-making
o
o Limited decision-making

o Extensive decision-making
 ROUTINE DECISION -MAKING
Consumers have experience with the product
category and a well established set of criteria with
which to evaluate the brands they are considering.
Ex-Often purchased lower priced items
ü Little thought, search or time
ü May stick with one brand
ü Buy first, evaluate later
 LIMITED DECISION MAKING
Consumers already have established the basis criteria for evaluating the
product category and the various brands in the category. They must gather
additional brand Information to discriminate among the various brands.
Ex-
q Low to moderate cost goods
q Buyers may reduce risk through some information gathering
q New brands may be considered for each purchase
q Short to moderate time to decide
 EXTENSIVE DECISION-MAKING
The consumers need a great deal of information to
establish a set of criteria on which to judge specific
brands and a correspondingly large amount of
information concerning each of the brands to be
considered.
Ex- Product maybe-
New
Expensive
Complex
important to consumer
 EXTENSIVE DECISION MAKING
may be many choices
may not know criteria to use
high level of involvement
longer time frame to make decision
Example: computers, houses, cars
CONSUMER DECISION PROCESS
 Ne e d re c o g n it io n

In fo rm a t io n s e a rc h

In fo rm a t io n e va lu a t io n

Pu rc h a s e d e c is io n

Po s t p u rc h a s e b e h a vio r
 NEED RECOGNITION
An imbalance between actual and desired states
Causes of need recognition
social cues
new life situation
physical drive
marketing cues
stock-out/ worn product
emergency
 INFORMATION SEARCH
Two types-
Internal Search: Past experiences/ knowledge

External Search: several sources

like-marketing
-consumers: word of mouth the internet
(CGM – “consumer generated media”)
-neutral sources: Consumer Reports, news
reports
 INFORMATION EVALUATION
§ Important attributes
§ Relative importance of attributes
§ Acceptable tradeoffs
§ Attributes won’t tradeoff
§ Knowing how consumers evaluate info helps
product development/ positioning
 PURCHASE DECISION
Ø To buy or not to buy?
Ø Best alternative is chosen
Ø Choose place/method of purchase
Ø Out-of-stock prompts more evaluation
 POST PURCHASE BEHAVIOR
ü Evaluation of satisfaction
ü Cognitive dissonance -- the feeling that some
other choice would have been better, including not
buying at all
Ø Complaint behavior, grudge-holding
Ø Positive/negative word of mouth
Ø More purchases if satisfied
5 STEP FUNNEL IN THE CONSUMER
DECISION JOURNEY
Awareness

Familiarity

Consideration

Purchase

Loyalty
THANK
YOU