Consumer Decision Making Process

Consumer Decision Making Process:
1. Problem Recognition: Recognizing the gap between what is currently experienced and the desired
situation.
2. Information Search: Gathering information either internally (from memory) or externally (from
various sources like friends, advertisements) to find solutions to the identified problem.
3. Evaluation of Alternatives: Assessing different options based on set criteria to make a decision.
4. Purchase Decision and Action: Choosing a product or service from the alternatives and completing
the purchase.
5. Post-Purchase Evaluation: Reflecting on the purchase, which can lead to satisfaction or
dissatisfaction, with efforts made by marketers to alleviate any dissatisfaction through supportive
information and positive communication.
Consumers follow a structured process when making purchasing decisions. The level of
involvement in this process depends on how important the product or service is to
them. High-involvement purchases involve significant social or economic considerations,
while low-involvement purchases are routine and carry little risk.
For instance, buying an air conditioner or refrigerator typically involves extensive

research, comparing prices, visiting showrooms, reading reviews, and seeking advice
from friends. On the other hand, choosing between two brands of chocolates might not
require as much effort or time.
Purchase decisions can be influenced by both rational thinking (cognition) and

emotions. In many cases, either cognition or emotion may dominate the decision-
making process.
Different Buying Roles:
1. Initiator: The person who first suggests or gets the idea of buying a product. For
example, a child might initiate the purchase of a chocolate.
2. Influencer: Individuals who directly or indirectly influence the final buying decision of
others. For instance, parents influence the purchase of chocolate for their children.
3. Gatekeeper: Those who control the flow of information, permitting certain information
while restricting others. Parents act as gatekeepers in selecting appropriate movies for
children.
4. Decider: The person who ultimately makes the buying decision, determining what, how,
when, and where to buy. In the case of baby products, the mother often plays the role of
the decider.
5. Buyer: The individual who makes the actual purchase and pays for it. In a typical family
decision-making process, the father may act as the buyer, handling the economic
transaction.
6. User: The person who consumes or uses the product or service. For example, in grocery
purchases, the entire family typically uses the products, while in the purchase of a
washing machine, the housewife may be the primary user.
7. Preparer: Those who prepare the product for use or consumption. For instance, in a
family setting, the mother often takes on the role of preparer for food items.
8. Maintainer: Individuals responsible for servicing or repairing the product to ensure
continued satisfaction.
9. Disposer: The person who manages the disposal of the product or its packaging after
use. For example, the mother may handle the disposal of packaging after the family
consumes the product.
1.
Determining Marketing Mix: Understanding consumer behavior helps in figuring out

what products consumers generally purchase, what influences their buying decisions,
and how they react to new products. This insight guides producers in arranging their
marketing mix to better serve consumers.
2. Assessing Consumer Actions: Consumers seek value for their money, preferring quality
products at affordable prices. Marketers respond by offering quality products at
competitive prices.
3. Meeting Diversified Preferences: With globalization, consumers have more choices.
Knowledge of consumer behavior helps in catering to diverse preferences by offering a
variety of options, such as different brands of cars.
4. Planning and Implementing Marketing Strategies: Understanding consumer
behavior aids in formulating and executing effective marketing strategies to achieve
business objectives.
5. Addressing Special Needs and Lifestyles: Consumers prefer products that reflect their
unique needs, personalities, and lifestyles. Studying consumer behavior helps in
satisfying these preferences through differentiated products, like products targeted
towards elite classes.
6. Identifying Market Segmentation: Consumer behavior analysis helps in classifying
market segments for targeted marketing. For instance, insurance companies offer
various policies tailored to different customer needs.
7. Staying Updated with Technological Advancements: Studying consumer behavior is
crucial for understanding consumer expectations and quickly addressing them with new
products. Identifying the target market before production helps in delivering desired
consumer satisfaction and bringing products to the market faster.
1.
Cultural Factors:
 Culture: Values, beliefs, customs, and traditions directly influence consumer
behavior. For example, dietary preferences and religious practices impact product
choices.
 Subculture: Subgroups within a culture, based on factors like geography or
social status, exhibit unique consumption patterns.
 Social Class: Individuals with similar values and lifestyles tend to have similar
purchasing behaviors.
2. Social Factors:
 Family: Economic status, roles, and purchasing power within the family influence
buying decisions. Different income groups have distinct consumption habits.
 Reference Groups: People seek approval and guidance from reference groups,
which influence their product choices and preferences.
 Roles and Status: Individuals play various roles in society, and their status
influences their purchasing behavior.
 Age and Life-cycle Stage: Consumer demands change with age and life stage.
Younger consumers prefer trendy products, while older consumers prioritize
health-related goods.
 Education and Occupation: Level of education and occupation affect
consumers' preferences and purchasing power.
 Economic Conditions: Income levels and economic stability impact purchasing
decisions.
 Lifestyle: Activities, interests, opinions, and demographics shape consumer
lifestyles, influencing their product choices and consumption patterns.
 Psychological Factors:
Thoughts and Feelings: Knowing how consumers think, feel, and react in
various situations helps in understanding their preferences and decision-
making processes.
 Shopping Behavior: Studying consumer behavior while shopping or making
marketing decisions provides insights into their purchasing patterns and
preferences.
 Information Processing Abilities: Understanding the level of consumer
knowledge and their ability to process information helps in shaping marketing
strategies and outcomes.
 Motivation and Decision Making: Identifying consumer motivations and
decision-making strategies for different products aids in tailoring marketing
efforts to meet consumer needs effectively.
 Adapting Marketing Strategies: Utilizing insights from consumer
psychology, marketers can adapt and improve marketing campaigns and
strategies to better resonate with consumers and drive desired outcomes.
(a) Motivation: Motivation is the driving force that pushes consumers to act, stemming from
needs that are intense enough to prompt action. It operates subconsciously and can be difficult
to measure. For instance, a person may buy pizza when feeling hungry. Additionally, recognition
and self-esteem influence purchasing decisions, with individuals often opting for premium
brands to enhance their status.
 (b) Perception: Perception refers to an individual's interpretation of a product or

service. Different people may perceive the same product differently based on
their beliefs and attitudes. Thus, even individuals with similar needs may choose
different products due to varying perceptions.
 (c) Learning: Learning occurs through experience, as individuals gain knowledge
about products and services through usage. Satisfactory experiences lead to a
preference for the same product in the future.
 (d) Beliefs and Attitudes: Beliefs and attitudes shape consumer behavior by
influencing perceptions of products and services. Consumers form opinions
about brands based on their beliefs, which can impact their purchasing decisions.
Even if a product is objectively good, if a consumer perceives it negatively, they
may not buy it.
 (e) Personality: Personality traits such as dominance, self-confidence, and
sociability influence consumer decision-making. While personality may evolve
over time, it significantly impacts buying behavior.

Consumer Decision Making Process

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Consumer Decision Making Process:

For instance, buying an air conditioner or refrigerator typically involves extensive

Purchase decisions can be influenced by both rational thinking (cognition) and

Different Buying Roles:

Determining Marketing Mix: Understanding consumer behavior helps in figuring out

 (b) Perception: Perception refers to an individual's interpretation of a product or

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