Consumer Decision Making Process

Presented By:BIPLAB DEY(34) PRIYA BARMAN(35) AYAN KANCHAN DATTA ROY(36)

Slide: 1

Consumer Decisions
Whether to Buy a Product at all? What Feature (versus price) trade-offs to Accept? Which Brand to Buy? Where to Buy it from?

And in Deciding on all this, How Much Effort to Put In?

What are the Consumer needs?

Selfactualization need

Esteem Need

Social need

Safety Need
Psychological Need

Five Factors influencing Decisions

1. Level of consumer involvement. 2. Length of time to make decision. 3. Cost of goods or services.

4. Degree of information search.

5. Number of alternatives considered.

Types of Consumer Buying Decisions

Routine Response Behavior Limited Decision Making Extensive Decision Making

Less Involvement

More Involvement

Routine Response Behavior

Little involvement in selection process. Frequently purchased low cost goods. May stick with one brand. Buy first/evaluate later. Quick decision.

Limited Decision Making

Low levels of involvement. Low to moderate cost goods. Evaluation of a few alternative brands.

Short to moderate time to decide.

Extensive Decision Making

High levels of involvement.
High cost goods.

Evaluation of many brands.

Long time to decide. May experience cognitive dissonance.
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Factors Influencing Buying Decisions

Social Factors
Cultural Factors

Individual Factors

Psychological Factors

CONSUMER DECISIONMAKING PROCESS

BUY / DONT BUY

Five Stage Purchase Decision Process

PROBLEM RECOGNITION INFORMATION SEARCH
(consideration set or evoked set)

ALTERNATIVE EVALUATION

PURCHASE DECISION

POST PURCHASE BEHAVIOR

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The 5 Step Decision Process

1. Problem recognition perceiving need
2. Information search: Seeking Value

Two substages:

Heightened Attention Active Information Search.

Types of Decision:
Low involvement: Internal search: previous experience? High

involvement: External search: Sources: personal (friends, relatives), public, marketer-dominated Suggests criteria to use for the purchase Identify brand names that meet the criteria Develop value perceptions
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A. B. C.

Contd.
3. Alternative

Evaluation: Assessing Value

Examining the alternatives in the evoked set. Evaluative Criteria objective and subjective attributes of a brand Evoked set the set of acceptable brands

4. Purchase

Decision: Buying Value

from whom to buy product and retailer characteristics when to buy sale, rebate, salesperson persuasiveness, time pressure, financial situation

5. Post-purchase

Behavior

Repeat-purchase behavior (esp. nondurable, service, and subscription) Word of mouth Cognitive dissonance follow up calls, post-purchase mail

Slide: 12

Reference
Consumer Behavour by SCHIFFMAN and KANUK.
Henderson, John C., and Paul C. Nutt. Influence of

decision making behaviour MANAGEMENT SCIENCE. 26.4 (1980): 371-386. NICOSIA, F. (1966) CONSUMER DECISION PROCESSES, PRENTICE HALL, ENGLEWOOD CLIFFS, 1966.

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THANK YOU.

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