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Consumer Decision Making Process: BY: Amit Tyagi

The document outlines the consumer decision making process, from problem recognition through post-purchase evaluation. It describes the various external and internal influences on consumers and the steps they go through in gathering information, evaluating alternatives, making a purchase decision, and assessing the purchase afterwards. Models are presented showing the factors, stages, and potential outcomes at each phase of the consumer buying behavior process.

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anandraj161
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© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
83 views

Consumer Decision Making Process: BY: Amit Tyagi

The document outlines the consumer decision making process, from problem recognition through post-purchase evaluation. It describes the various external and internal influences on consumers and the steps they go through in gathering information, evaluating alternatives, making a purchase decision, and assessing the purchase afterwards. Models are presented showing the factors, stages, and potential outcomes at each phase of the consumer buying behavior process.

Uploaded by

anandraj161
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CONSUMER DECISION

MAKING PROCESS

BY:
AMIT TYAGI.
Initiator

User Buying
Influencer
Decision

Buyer Decider
Model of Buyer Behavior
Environmental Marketing Stimuli
Stimuli Environmental
Environmental && Product
Marketing
Marketing Stimuli
Stimuli
Economic Price
Technological Place
Political Promotion
Cultural
Buying Decision
Buyer Process
Characteristics Problem Recognition
Cultural
Buyer’s
Buyer’s Black
Black Box
Box Information Search
Social Evaluation
Personal Decision
Psychological Post purchase
behavior

Product Choice Purchase


Buyer’s
Buyer’s Response
Response Timing
Brand Choice
Purchase
Dealer Choice Amount
SIMPLE MODEL OF CONSUMER
DECISION MAKING
External Influences
Firm’s marketing efforts Socio cultural environment
Input • Product • Family
• Price • Social Class
• Promotion • Culture and Sub Culture
• Channels of distribution • Informal Sources

Consumer Decision Making

• Need Recognition Psychological field


Process • Pre Purchase Search
• Evaluation of
alternatives
Experience
Post Purchase
Behavior
Purchase
Output • Trial
• Repeat Purchase

Post purchase evaluation


The Process of Problem Recognition

Desired consumer
Current Situation
life style

Desired State Actual State

Nature of Discrepancy

Desired State Actual state


No Difference Exceed actual Exceed desired
State State

Satisfaction
Problem recognized
Types of Problem

Immediacy of
Immediate Immediate
Solution
Solution Required Solution not
Required
Expectancy
Of Problem

Occurrence expected Routine problem Planning Problem

Occurrence Unexpected Emergency Evolving


Problem Problem
Situations leading to Problem Recognition

 Depleted or Inadequate Stock of goods

 Dissatisfied with existing Stock of Goods

 Changing Financial Circumstances

 Marketing Efforts
Model of Information Search

Problem Recognition
Non sponsored
sources

Drive to Act (Motivation) (AND)

Sponsored sources
External
Information Search
Search

Internal search (memory)


Processing of
information
(Retention for
future Use)
Information and Attitude

Cognitive:
Knowledge &
Belief
STIMULI

• Environmental factors Attitude Affective: feelings


Formation And preferences
• Internal factors

• Marketing mix
elements

Behavioral: action
Evaluation and Selection

Evaluate Criteria

Evaluation
Application
Of Selection
Importance of Of
Alternatives Of
Criteria Decision
On Alternatives
Rules
Each
Criterion
Alternatives
Considered
Marketing Application of alternatives evaluation

 Identify whether consumers are making product category


or brand comparison and communicate with them
accordingly
 Discover determinant attribute to set the brand image of
their product from competitor.
 Identify decision rules and then develop appropriate
strategies.
 Be aware of implication of price decision and set prices
within acceptable ranges.
Decisions relating to actual purchase

 What to buy?

 How much of it to buy?

 How to buy(cash or credit; straight or hire purchase


etc.)?

 Where to buy from?


Motives behind Purchase

 Personal Motives
 Role Playing
 Learning about new trends
 Diversion(hobby ,entertainment)
 Social Motives
 Social Experience
 Status and Authority
 Pleasure of Bargaining
Risk Involved in various types
of products

Economic Risk

LOW HIGH
Social Risk

• Socks • Personal Computers


LOW • Kitchen Items • Washing Machines
• Stationary Items • Air Conditioners

• Fashion accessories • Cars


HIGH • Hair Styles • Drawing Room
• Liquor Furniture
Dimensions of outlet selection

 Merchandise
 Service
 Physical facilities
 Convenience
 Store Atmosphere
 Promotion
Post Purchase Behavior :
• Consumption
• No Consumption
• Disposition(distribution)

Post Purchase Evaluation:

Three possible outcomes:

• Actual Performance matches expectation leading


to neutral feeling.

• Performance exceeds expectations ie positive


disconfirmation of expectation.

• Performance below expectation ie negative


disconfirmation of expectation.
Post Consumption Outcomes

Evaluation of
Alternatives

Purchase

Product Expectation Contentment or


Discontentment

Product
Performance

Satisfaction Dissatisfaction
Customer Dissatisfaction Consequences

Dissatisfaction of Customer

Take Action Take No Action

Less Favorable
Attitude

Stop Buying
Complain to Warn Friends
That Brand
Legal Authority
Or Store
Organizational Buying Behavior

 Problem recognition
 Need Description
 Product Specification
 Vendor Search
 Proposal Request
 Vendor Selection
 Purchase Routine Selection
 Post Purchase Evaluation

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