Decision making in

consumer Behavior
BY : SANOBAR
What is decision making in consumer
Behavior?
 Consumer decision making process involves the
consumers to identify their needs, gather information,
evaluate alternatives and then make their buying decision.
The consumer behavior may be determined by economic
and psychological factors and are influenced by
environmental factors like social and cultural values.
Factors that affect consumer Decision
What are the 5 stages of decision making?
1) Need recognition (awareness)
 The need recognition stage of the consumer decision making process starts when a consumer
realizes a need. Needs come about because of two reasons:
 Internal stimuli, normally a physiological or emotional needs, such as hunger, thirst,
sickness, sleepiness, sadness, jealousy, etc.
 External stimuli, like an advertisement, the smell of yummy food, etc.

 We buy groceries because without food in the house, we’ll be hungry. We buy new clothes
because we’ll be cold, or we feel like everyone else has the latest handbag of the season, and
we don’t want to be left out.
 Example: Looking for a new camera

 Think about it: Why does someone start looking for a new camera? Likely, their old camera isn’t
working well anymore, or they simply want a nicer camera. Maybe they have a vacation coming
up. Or maybe they want to give the camera as a present to their sister, who just had her first child.
 How in the world is this related to a physiological need? Simple. Without a camera, they won’t be
able to document special moments; therefore, they have an emotional desire to save these
moments so that they are happy and not sad.
 This emotional desire is the internal stimuli in this situation. Sure, a camera isn’t a life necessity
keeping them from surviving, but it does solve a core emotional need.
 What happens after someone identifies a need? They begin looking for a solution! Which brings
us to the next step in the customer journey: searching for information. 
2) Search for information (research)
 As soon as a consumer recognizes a need and begins to search for an answer, you must be there to help! And where do
consumers generally go to look for answers today? Google!
 Example: Researching cameras
 Now that the customer has realized a need to get a new camera, it’s time to find solutions to his problem. In this stage, it’s
imperative that you are visible to the consumer searching for an answer.
 Here are some things a consumer may be searching for:
 Best cameras 2020
 What is the best affordable camera?
 Which cameras are top-rated?
 The amount of information a customer needs to search for depends on how much he already knows about the solutions
available, as well as the complexity of choices.
For example, let’s say there’s someone looking for a camera as a gift, and he has no idea which type of camera he wants, or
what features he needs.
 He will need more information than someone who already knows exactly the type of camera he wants to buy, but just needs to
find the right product and the right way to purchase it.
 The amount of searching necessary is entirely dependent on the situation, and it can vary widely.
 So how do customers search for information? By using internal information (their previous knowledge of a product or brand)
as well as external information (information about a product or brand from friends or family, reviews, endorsements, press
reviews, etc.).
 The biggest way you can optimize your online business during the need recognition and awareness stage is by making sure
you show up in search results — and that what the consumer sees makes an impression. (SEO
 3. Evaluation of alternatives (consideration)
 Now that the consumer has done research, it’s time to evaluate their choices and see if there are any promising alternatives.
During this phase, shoppers are aware of your brand and have been brought to your site to consider whether to purchase
from you or a competitor.
 Consumers make purchase decisions based on which available options best match their needs, and to minimize the risk of
investing poorly, they will make sure there are no better options for them.
 Their evaluation is influenced by two major characteristics:
 Objective: Features, functionality, price, ease of use
 Subjective: Feelings about a brand (based on previous experience or input from past customers)
 Example: Comparison shopping for a camera
 If you’re a camera seller or brand, your goal in the consideration stage is to convince customers your camera is the best
choice. And the most effective way to do that is to keep them on your site longer and find ways to earn their trust.
 Consumers will first weigh the objective characteristics of your camera. Does it have all the features I want? Is it easy to
use? Is it in my budget? Then, the subjective consideration will kick in: Do other people think it has all the features it
should? Has anyone else who bought it expressed any difficulty with learning how to use it? Is it generally considered a
good value for the money?
 You only have one shot – so you need to make the most of it. Of course, it’s important that your site is informative, your
prices are competitive, your value is clear, etc. But if you’re identical to a competitor in every single way, the word of
previous customers is what will set you apart.
 4. Purchasing decision (conversion)
 Alright, now it’s money time. This is the stage when customers are ready to buy, have decided where
and what they want to buy, and are ready to pull out their credit cards. 
 But wait! Not so fast. You can still lose a customer at this stage. This is the stage when the purchasing
experience is key it’s imperative to make it as easy as possible.
 Example: Abandoning checkout for a camera
 Let’s say your potential customer has gotten to the checkout stage of his purchase, and has second
thoughts: What if the recipient wants a different camera? What if this camera is missing a key feature
that the recipient would want? How difficult will it be for the recipient to return the camera if it doesn’t
meet their needs?
 This shopper will likely abandon his cart, and go back to the research stage. Maybe he’ll end up back on
your site, but maybe he won’t. Your goal at this stage is to get him to complete the purchase now, so you
don’t lose him forever.
 5. Post-purchase evaluation (re-purchase)
 In this stage of the consumer purchase decision process, consumers reflect on their recent purchase. They
think about how they feel about it, if it was a good investment, and most importantly, if they will return
to the brand for future purchases and recommend the brand to friends and family.
 In this stage, you need to have a post-purchase strategy to increase the likelihood that customers will
engage with your brand again in the future. Return customers account for 1/3 of a store’s total income on
average, so make sure you’re not missing out on this super valuable opportunity to increase your
ecommerce conversion rate by turning shoppers into repeat buyers.
 Example: Getting feedback and encouraging repeat purchases
 In the camera example, the customer has already bought from your brand and they’re evaluating their
purchase. This is usually when they will leave a review about their experience. This is also when they are
at their most engaged with your brand, and they can be susceptible to strategies that encourage long term
engagement. 
 At this stage, you want to ensure that customers buy again, and you want to encourage them to leave
UGC (User-generated content) that helps other buyers in the future. 
Types of Buying Behavior
Habitual Buying Behavior

 Habitual Buying Behavior is depicted when a consumer has low involvement in