Consumer Decision Making Process

1. Consumer
Decision Making
Process

2. Contents
• Introduction
• Five Factors Influencing Decision
• Levels of Consumer Decision
Making
• Types of Consumer Buying
Decisions
• Consumer Decision-Making
Process

3. Introduction
• The purchase is only the visible part of a
more complex decision process created by
the consumer for each buying decision he
makes
• But what happens before and after this
purchase?
• What are the factors influencing the choice
of product purchased by the consumer?
• Let’s focus on the Consumer Buying
Decision Process and the stages that lead to
purchase a new product

4. Five factors influencing
decision
1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives
considered

5. Levels of Consumer Decision
Making
• Not all consumer decisions receive or
require the same amount of effort in
the information search
• Researchers have identified three
specific levels of consumer decision
making
• Extensive Problem Solving;
• Limited Problem Solving; and
• Routinized Response Behavior

6. Types of Consumer Buying
Decisions
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making
Less
Involvement
More
Involvement

7. Extensive Problem Solving
• When consumers have no established criteria for
evaluating a product, or have not narrowed their
choices, then they are in extensive problem solving.
• At this level, the consumer needs a great deal of
information to establish a set of criteria on which to
judge specific brands and a correspondingly large
amount of information concerning each of the
brands to be considered.
• Example: used while buying expensive, important,
or technically complicated product or services

8. Limited Problem Solving
• At this level, consumers have already established
the basic criteria for evaluating the product category
but haven’t established preferred categories.
• Their search for additional information is more like
*fine-tuning*; they must gather additional brand
information to discriminate among the various
brands.
• Example: Usually used when purchasing a new,
updated version of something. Replacing something
old with something new.

9. Routinized Response
Behavior
• At this level, consumers have some
experience with the product category and a
well-established set of criteria with which to
evaluate the brands they are considering.
• They may search for a small amount of
additional information.
• Routinized response behavior implies little
need for additional information.
• Example: Day to day decisions.

10. Consumer Decision-Making
Process
Need Recognition
Information Search
Evaluation of
Alternatives
Purchase
Post-purchase
Behavior
Cultural,
Social,
Individual,
and
Psychologica
l Factors
affect all
steps

11. Consumer Profile
• Middle aged man
• Lives in Delhi
• Expected monthly income 35000
• Been Driving Tata Indigo Diesel for 4
years
• Daily drives at least 25 km.
• Faces parking problem at workplace.

12. Need Recognition
• Recognition of a need occurs when a
consumer is faced with a problem.
• Among consumers there seem to be two
different problem recognition styles.
• Actual state types —consumers who
perceive that they have a problem when a
product fails to perform satisfactorily.
• Desired state types —the desire for
something new may trigger the decision
process.

13. Need Recognition
• Fuel Efficient
• Less maintenance
• Good After Sales Service
• More Space Internally
• Price range 4,00,000-5,00,000
• Convenience for servicing
• Safety
• Comfort

14. Pre-purchase Information
Search
•Internal Information Search
• Recall information in memory
•External Information search
• Seek information in outside
environment
• Non-marketing controlled
• Marketing controlled

15. Sources of Information
• Marketer Dominated
• Advertising
• Salespeople
• Infomercials
• Websites
• Point-of-sales Materials
• Non-Marketer Dominated Stimuli
• Friends
• Family
• Opinion Leaders
• Media

16. Factors the are likely to
increase pre-purchase search
1. Product factors
2. Situational factors
• Experience
• Social acceptability
• Value-related considerations
3. Consumer factors
• Demographic characteristics
• Personality

17. Information Search
• Internal : Memory and Experience
• Friends and Family,
• Magazines and Media
• Respective Company sites
• Zig wheels
• Carwale.com
• Autos. Max about.com
• Auto Car India.com
• Test Drives

18. Evaluating Alternatives
•Determine criteria to be used for
evaluation of products
•Assess the relative importance of
the each criteria
•Evaluate each alternative based
on the identified criteria

19. Evaluation of Alternatives
•Evaluation of Products
•Analyze product attributes
•Use cut-off criteria
•Rank attributes by
importance

20. Evaluation of Alternatives
• When evaluating potential alternatives, consumers tend
to use two types of information:
• A “list” of brands (the evoked set).
• The criteria they will use to evaluate each brand.
• The evoked set refers to the specific brands the
consumer considers in making a purchase in a particular
product category.
• The inept set consists of brands the consumer excludes
from purchase consideration as unacceptable.
• The inert set is those brands to which the consumer is
indifferent because they are perceived as having no
advantage.

21. All Brands
Known Brands
Acceptable
Brands
Purchased
Brands
Not
Purchased
Brands
Unacceptable
Brands
Indifferent
Brands
Overlooked
Brands
Unknown
Brands
Evoked Set
Inept Set Inert Set

22. Evaluation of Alternatives
• Based on different parameters, many
cars were evaluated some are:
• Ford Figo
• Chevrolet Beat
• Maruti A-Star, Ritz, Swift, Wagon-R
• Fiat Punto
• Hyundai i 10

23. Purchase
To buy or not
to buy