CONSUMER DECISION MAKING PROCESS

• Consumer buying process studies the consumer behavior i.e.,

How people buy?What they buy?When they buy?Why they buy?

Buying Behavior is the decision processes and acts of people involved in buying and using products. We need to understand here:• why consumers make the purchases that they

make? • what factors influence consumer purchases? • the changing factors in our society.

• The buying process:

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Individual and Psychological

Factors affect

all steps

Cultural, Social, Individual and Psychological

Factors affect

all steps

• Stage 1: Need/Problem Recognition:

The buying process starts with need arousal.

It occurs :• When a current product isn’t performing properly

• When the consumer is running out of an product

• When another product seems superior to the one currently used

Stage 2: Information Search:

1.Internal Sources

Personal Sources(Friends & Family)

2.External Sources Public Sources

Marketer Dominated sources(Adv. Or sales people)

An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low.

Stage 3: Evaluation of Alternatives:

• Having collected the information, the consumer clarify and evaluate the alternatives. There is, unfortunately no simple and single evaluation process used by all consumers or even by one consumer in all buying situations. The most current process of evaluation is to judge the product largely on a conscious and rational basis. Various considerations form the part of judgment such as product attributes, importance, weights, brand image, utility function for each attribute, and attitude etc. After evaluation of various alternatives, he takes the decision to buy

• Stage 4: Purchase:

Finally! After all this time, the customers are ready to buy!Consumers select and purchase the product alternative that best meets his or her evaluative criteria.

• Stage 5: Post Purchase Behavior:

Wondering if the purchaser has made the right decision.

After buying and trying the product, the consumer will feel some level of satisfaction or dissatisfaction and level of satisfaction depends very much on the expectation and the product’s perceived performance. If the product matches up to his expectations, the consumer is satisfied; if it exceeds, he is highly satisfied; and if it falls short of expectations, he is dissatisfied.

PARTICIPANTS IN THE BUYING BEHAVIOR:

Initiator Influencer Decider Buyer User

Initiator: The initiator is a person who first suggests or think of the idea of buying the particular product. For example, publisher of a book initiates the professor to ask the students of his class to purchase the book. Here publisher is the initiator, the first person to initiate the buying process.

Influencer: Influencer is a person who explicitly or implicitly has some influence on the final buying decision of others. Students are influenced by the advice of the professor while taking a decision to purchase a book. Here professor is the influencer.

Decider: The decider is a person who ultimately determines any part or whole of the buying decision, i.e., whether to buy, what to buy, how to buy, when to buy or where to buy. Children are the deciders for buying the toys, house lady for kitchen provisions, and head of the family for durable or luxury items.

Buyer: The buyer is the person who actually purchase. Buyer may be the decider or he may be some other person. Children (deciders) are the deciders for purchasing the toys, but purchases are made by the parents.

User: User is the person who actually uses or consumes the services or products.

THE END