TOPIC IV: THE CONSUMER DECISION PROCESS

Consumers undertake a step-by-step process while purchase a decision. The amount of time and effort they devote
to a particular purchasing decision depends on the necessity of the desired good or service to the consumer.
Purchases where high levels of social or economic issues are said to be associated are the high-involvement
purchase decisions.
Routine purchases that have little risk to the consumer are low-involvement decisions.
People might not invest huge effort in choosing between two brands of chocolates. They will also go through the
steps of the consumer decision process but on a smaller scale.
Consumers generally spend more time and effort to make purchase decisions for high-involvement products
than to those for low-involvement products. Fox example, a person purchasing air conditioner/refrigerator will
probably compare prices, visit dealer showrooms, read online reviews and ask for advice from friends before
making the final decision.
Purchase decisions can be thought-based (cognitive) or feeling based (emotive). It is observed that both cognition
and emotion affect every purchase decision with either one of them dominating the decision at a given point of
time.

For example, we can analyze different consumer purchase decision as follows:

Classification of Consumer Purchase Decisions

Thought-based (based on profit, utility, health) Feeling-based (purchases based on emotion like love, pride
Example: Buying a car Jewellery
Buying a home Snacks

For your understanding, Read

Buyer behavior is always determined by how involved a client is in their decision to buy a product or service and
how risky it is. The higher the product price, the higher the risk, the higher the customer’s involvement in purchase
decisions. Based on these determinants, four types of consumer buyer behavior are distinguished:

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a) Complex buying behavior
Complex buying behavior occurs when an individual buys an expensive and infrequently purchased product, such as
a car, new home, or treadmill. Consumers are often highly involved with this type of purchase, and they take time to
research the significant differences between various brands.
b) Dissonance-reducing buying behavior

What is dissonance?
Dissonance in marketing causes a conflict or tension within a consumer considering a product purchase. This is
usually an uncomfortable feeling for the consumer and usually leads to the buyer taking her money elsewhere or
experiencing remorse over the purchase.
Dissonance-reducing buying behavior occurs when a consumer is highly involved in the purchase of an item, but
they have a hard time pinpointing the difference between various brands. For example, if someone wants to
purchase a flat-screen TV, and each model they are looking at has the same screen resolution, they may feel a
strong sense of conflict or tension. The “dissonance” occurs when a consumer is worried they will make the wrong
choice and will regret their decision later.
c) Habitual buying behavior

Habitual buying behavior happens when consumers purchase something on a regular basis, but they are not
emotionally attached to a brand. The purchase of items such as bread, milk, eggs, and gasoline are possible
examples of habitual buying behavior.
d) Variety Seeking Buying Behavior
Variety seeking buying behavior happens when individuals decide to buy a different product in the same product
line, such as a new brand of toothpaste, not because they were dissatisfied with their initial purchase, but because
they want to try something new. Other examples may include buyers opting for a new brand of cologne or a new
type of hair styling product.

Steps in Buying Decision Process

There are five steps in the buying decision process. It starts with the pre-purchase stage and ends at the post-
purchase stage. The buyer decision process consists of the following steps:
1) Need recognition
2) Information search
3) Evaluation of alternatives
4) Purchase decision
5) Post-purchase behavior
6) Problem Recognition

1) Problem Recognition
Need recognition is the first step in the buyer decision process. the consumer becomes aware of the difference
between the actual state (where we are now) and the ideal state (‘where we want to be’). This stage motivates the
individual to achieve the desired state of affairs by identifying the product or type of product which is required to
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satisfy his need. This need can be triggered by internal stimuli (e.g. hunger, thirst) or external stimuli
(e.g. advertising). The need, in turn, motivates a want, which leads to a curiosity about how to fulfill it.
Example: Sneha wants to work out with her friends and achieve a healthier lifestyle. Her closest friends all have
the same fitness-tracking watch that allows them to challenge each other to accomplish a certain number of
steps each day. Sneha decides to purchase a fitness-tracking wristband.

2) Information Search

In the second stage, the consumer gathers information related to his/her fulfillment of a need. This search
identifies alternative means of solving the problem. High-involvement purchases may require large information
searches, while low- involvement purchases require little search activity. The search may include internal or
external sources of information.

During the internal search existing information feelings and experiences similar to the need or want are recalled
from the consumer’s memory. An external search collects information from outside sources, which may include
family members, friends, store displays, sales personal, advertisements and product reviews. The external search
may be a general ongoing search or a specific pre-purchase search. The search identifies the other existing brands
for consideration and possible purchase. The number of brands that a consumer actually considers in making a
purchase decision is known as the evoked set. Marketers seek to influence consumer decisions during the process
of search by providing persuasive information about their goods or services in a format useful to consumers.

example: Sneha speaks with her friends who have fitness-tracking watches, asking them for their opinion about
the product. Specifically, she asks what they like and dislike about the watch and enquires about its features. She
then visits the retailer's website to understand the different options available to her, and she reads various reviews
about the product online.

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 3) Evaluation of Alternatives-
The third step in the consumer decision making process is to evaluate the options identified during the search
step. The result of the evaluation stage helps in choosing a brand or product from the options (evoked set). If the
consumer is not satisfied with the options (evoked set) he might start to search for additional alternatives. To
complete this analysis, the consumers develop a set of evaluation criteria to guide the selection. These criteria can
either be objective facts or subjective impressions. (Objective means making an unbiased, balanced observation
based on facts which can be verified. Subjective means making assumptions, making interpretations based on
personal opinions without any verifiable facts.) As the consumer search through the alternatives on the market,
they might evaluate the products based on Price, Quality, Features, Customizability ,Brand awareness, Industry
trends, Availability, past experiences etc.

Marketers can attempt to influence the outcome from this stage in numerous ways.

✓ Initially, they can try and educate consumers about attributes that they view as important in evaluating a
particular class of goods.

✓ They can also identify which criteria which are important to an individual and attempt to show why a
specific brand meets their needs.

✓ They can try to help a customer in expanding his/her evoked set to include the product they are offering.

Example: To make sure that she's making the best decision for her needs, Sneha goes online to look up alternatives
to the fitness-tracking watch that her friends have. She finds three well-reviewed alternatives and measures their
qualities against those of the initial product. One of the products is cheaper but doesn't provide the features she
wants. The other two are similar to the initial product but aren't available in the style or color she wants.
4) Purchase Decision and Action

In this stage, the customer has evaluated all the options available based on certain set criteria. After proper
assessment of all the facts, the consumer makes a logical decision on what to buy, where to buy a product based
upon his needs and wants. Marketers can smooth the purchase decision and action by helping consumers through
providing finance, delivery, and installation and so on.
Example: Based on her criteria, Sneha decides that the initial fitness-tracking watch—the same type that her
friends have—best suits her needs. She returns to the retailer's website and chooses her preferred color and style
options. At checkout, she inputs her shipping information and credit card number.
5) Post-Purchase Evaluation-
In the final stage of the consumer decision-making process the consumer evaluates or analysis the purchased
product, the usefulness of the product, satisfaction delivered from the product, Value of the product with respect
to the need fulfillment of the consumer.
The purchase act might result in one of two:
a) Satisfaction
The buyer feels satisfied at the reduction of the gap between the actual and the ideal states .Consumers
are generally satisfied if purchases meet with their expectations.
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Example: Three months later, Sneha still uses her fitness-tracking wristband. She likes how it keeps her
accountable for her health and motivates her to engage in healthy activities with her friends. She decides that
she wants to purchase from the same retailer in the future
b) Dissatisfaction
Sometimes consumers experience some post purchase anxieties, called cognitive dissonance. Post-purchase
dissonance refers to the customer's level of dissatisfaction after buying a product or service. It is a thought that
one has not made the right decision. The consumer attempts to reduce this anxiety by searching for additional
information that supports his/her choice.
For eg : If the customer feels the quality of the product fails to meet expectations, they may become regretful and
take steps to eliminate it like getting a returning a product and asking for a refund.
The marketer may take specific steps to reduce post-purchase dissonance The marketer can help by providing
supportive information to the buyer and also by positive marketing communications. Advertisements that stress
on the positive attributes of the product or Salespeople can make personal calls in order to reassure customers
about their purchase.
The consumer buying process enables the consumers take informed decisions. Higher the extent of satisfaction,
higher the possibility of repurchase. Marketers usually look to reduce dissatisfaction as a dissatisfied consumer
not only shies away from a purchase but also affects others.

KNOWLEDGE ASSESSMENT
1.Purchases where high levels of social or economic issues are said to be associated are the ----------purchase
decisions
2. -------------purchases that have little risk to the consumer are low-involvement decisions
3. Consumers generally spend ------------to make purchase decisions for highinvolvement products than to those
for low-involvement products.
4. Purchase decisions can be-----------------.
5. In the stage of ----------the consumer becomes aware of the difference between the actual state and the ideal
state.
6. An ---------search collects information from outside sources.
7. The number of brands that a consumer actually considers in making a purchase decision is known as the------
8. The search and alternative evaluation stages of the decision process result in the--------------.
9. Consumers experience some post purchase anxieties, called -------------
10. Consumers are generally satisfied if purchases meet with their-------------.
ANSWERS: 1. High-involvement 2. Routine 3. More time and effort 4. Cognitive or emotive 5. Problem
recognition 6. External 7. Evoked set 8. Final purchase decision 9. Cognitive dissonance 10. Expectations

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