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Consumer decision process

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consumer behavior,consumer decision process

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Consumer decision process

  1. 1. Ruchika Kulshrestha Asst.Professor Mangalayatan University
  2. 2. Definition Decision making is the process of choosing between two or more alternatives Consumer decision making may be defined as a process of gathering and processing information, evaluating it and selecting the best possible option so as to solve a problem or make a buying choice. A buying decision process (or cost–benefit analysis) describes the process a customer goes through when buying a product.
  3. 3. Consumer Decision Making Process
  4. 4. Problem/need-recognition First and most important step. Without the recognition of the need, a purchase cannot take place. The need can be triggered by internal stimuli (e.g. hunger, thirst) or external stimuli (e.g. advertising). Maslow held that needs are arranged in a hierarchy According to Maslow hierarchy, only when a person has fulfilled the needs at a certain stage, can he or she move to the next stage. The problem must be addressed through the products or services available.  It's how the problem must be recognized.
  5. 5. Information Search The customers may take after they have recognized the problem or need in order to find out what they feel is the best solution . This is the buyers' effort at searching the internal and external business environments to identify and observe sources of information related to the focal buying decision Consumers can rely on print, visual, and/or voice media for getting information.
  6. 6. Evaluation of Alternatives Consumers evaluate different products/brands on the basis of varying product attributes, and whether these can deliver the benefits that the customers are seeking. This stage is heavily influenced by one's attitude, as "attitude puts one in a frame of mind: liking or disliking an object, moving towards or away from it“ Another factor that influences the evaluation process is the degree of involvement.
  7. 7. Customer involvement High Medium Low Characteristics High Medium Low Number of brands examined Many Several One Number of sellers considered Many Several Few Number of product attributes evaluated Many Moderate One Number of external information sources used Many Few None Time spent searching Considerable Little Minimal
  8. 8. Purchase decision The final purchase decision can be disrupted by two factors: negative feedback from other customers and the level of motivation to comply or accept the feedback. Secondly, the decision may be disrupted due to unanticipated situations such as a sudden job loss or the closing of a retail store.
  9. 9. Post-purchase behavior These stages are critical to retain customers. In short, customers compare products with their expectations and are either satisfied or dissatisfied. This can then greatly affect the decision process for a similar purchase from the same company in the future, mainly at the information search stage and evaluation of alternatives stage. If customers are satisfied, this results inbrand loyalty, and the information search and evaluation of alternative stages are often fast-tracked or skipped completely. Positive or negative feedback