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