This document reports on a study of consumer decision processes in buying behavior. The objectives were to define consumer roles, understand the consumer buying decision process, and examine how consumer behavior changes with the environment. The study found that consumers go through problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation. It identified common factors influencing brand and store choice like price, location, and promotions. The research helped define consumer roles and provided insight into how their decisions and behaviors change.

1. CONSUMER DECISION PROCESS IN BUYING BEHAVIOR
A report submitted to the Department of Management
In partial fulfillment for the Bachelor in Management
Submitted by
Ujjwal Devkota
Faculty of management
Modern Nepal College, Bagbazar
Kathmandu, Nepal
2014

2. OBJECTIVES OF STUDIES
To define about consumer role in different
buying condition.
 To find out about consumer buying decision
process.
 To
measure about changing consumer
behavior
according
to
changing
environmental condition.


3. GENERAL BACKGROUND



Consumers are the decision makers regarding the purchase
of goods and services that can provide current and future
satisfaction. Consumers purchase several products in
different situations.
Consumer behavior is the decision process and physical
activity individuals engage in when evaluating, acquiring,
using or disposing of goods and services.
The consumer buying decision can be classified into routine
purchase/low
involvement
decision,
extensive
purchase/high involvement decision and limited purchase
decision.

4. CONSUMER BEHAVIOR ROLES
Initiator
 Influencer
 Buyer
 User


5. CONSUMER BUYINGDECISION
PROCESS
PROBLEM
RECOGNITION
CONSUMER
INFORMATION
PROCESSING
PURCHASE
EVALUATION OF
ALTERNATIVES
POST PURCHASE
EVALUATION
FOCUS: help people provide
solutions to their problems
(satisfying needs)

6. 1. Need/Problem Recognition
Problem recognition results when a consumer
recognizes differences between actual state
and desire state.
The actual state refers to the ways in which a need
is already met.
Desire state is the way a person would like to
satisfy the need.

7. When collecting the data consumer have selected one of the
major situations of problem solving which are shown below
as per the view of interviewed consumers:
Problem solving
situation
Number of
respondents
…..out of
20……..
a.
Depleted or
inadequate
stock of goods
4
a.
Discontentme
nt with the
stock of goods
3
a.
Changing
environmenta
l circumstance
5
a.
Changing
financial
circumstance
6
a.
Marketing
activities
2
Depleted or
inadequate stock of
goods
Discontentment with
the stock of goods
Changing
environmental
circumstance
Changing financial
circumstance
Marketing activities

8. 2.Information Search:
After the need has been realized, the person tries to search for the product. The
search can be classified in terms of purpose, sources and the extent of search.
On the basis of
purposes
Pre-purchase
search
Ongoing search
Number of
respondents
……..out of
20………..
13
7
On the basis of
Extent of search
Number of respondent
….out of 20….
Minor purchase
Major purchase
High search
0
16
Low search
13
0
7
4
Selective search

9. 3. EVALUATION OF ALTERNATING:
A consumer evaluates a brand on the basis of a number of
choice criteria. The number and type of evaluative criteria
may vary by product.
 The processes of evaluation of alternating:
Brand processing:
In brand processing, the buyer assesses one brand at a time.
Thus, the consumer may decide to look at a particular
brand, examine several attributes of it, and then assess
several attributes of a second and third brand.
Attribute processing:

In attribute processing, the consumer examines a specific
attribute and then compares several other brands on that
attribute. Then, a second attribute may be selected for
comparison and so on.

10. 4. PURCHASE (DECISION):



This stage involves the selection of best
supplier and placing an order after negotiation.
It is then received and approved and payment is
made. It would be wise to select two or three
suppliers to avoid dependency on one supplier.
This step of taking decision are:
Factor affecting brand choice
Factor affecting store choice

11. Factor affecting brand
The consumer can choose choice:types of brand according to the
different
different factor which affect in the selection of brand. The following are
the major factor which will affect in brand choice and the number of
respondent considering same factor as the major one:
Factor influencing
brand decisions
Number of
respondent
…….out of 20…….
Point of purchase
displays
7
Price reduction
4
Store layout
3
Stock out
2
Sales personnel
4
8
7
6
5
4
3
2
1
0

12. Factor affecting store choice:
The consumer can choose different store according to the different
factor which affect in the selection of store. The following are the major
factors which will affect in store choice and the number of respondent
considering same factor as the major one:
Factor
influencing store
choice
Store location
Number of
respondent
…..out of 20…….
6
Physical design
and layout
Merchandise
2
Advertising and
sales promotion
Personnel
5
Customer
services
3
0
4
7
6
5
4
3
2
1
0

13. 5. POST PURCHASE EVALUATION

Cognitive dissonance:
It occur as a result of a discrepancy
between a consumer’s decision and consumer’s prior evaluation. The way of
reducing cognitive dissonance are:



Changing the ways of evolution
Seek new information
Changes attitudes

Satisfaction and Dis-satisfaction:

Complaint behavior:

Product disposal:
Satisfaction is a kind of
stepping away from an experience and evaluating it …… one could have a
pleasurable experience that caused dissatisfaction because even though
pleasurable, it wasn’t as pleasurable as it was supposed or expected to be.
It is the unfavorable attitude toward the product
and sharing unfavorable word of mouth to customer and service provider
Disposal of product often occurs in connection with
the changing role of consumer and changing status. The ways of product disposal
can be:



Keep it
Get rid of it permanently
Get rid of it temporarily

14. FINDING
The research has help to define about
consumer role in different buying condition
and how they react over there.
 It provides an idea about consumer buying
decision process and step involve on it.
 Research has provided knowledge about
changing consumer behavior according to
changing environmental condition.
 It helps to know consumers decision
regarding brand choice and store choice
decision.
 Help to get idea about problem solving
situation in buying condition.


15. RECOMMENDATIONS:
Consumer must have to collect knowledge
about the product.
 Before choosing any product or service
consumer must have to do analysis about
attribute and characteristics of the product.
 Before choosing the store or brand
consumer has to know about price related
and service related factor.
