Consumer Decision Making

A. What is Consumer Decision Making?

Consumer decision-making is the decision-making process used by consumers regarding market

transactions before, during, and after the purchase of a good or service. It can be seen as a particular
form of a cost–benefit analysis in the presence of multiple alternatives.

B. Consumer decision-making process

The consumer decision-making process involves five basic steps. This is the process by which
consumers evaluate making a purchasing decision. The 5 steps are problem recognition, information
search, alternatives evaluation, purchase decision, and post-purchase evaluation.

1. Problem recognition
The first step of the consumer decision-making process is recognizing the need for a service
or product. Need recognition, whether prompted internally or externally, results in the same
response: a want. Once consumers recognize a want, they need to gather information to
understand how they can fulfill that want, which leads to step two.

Consumer issues can be simple or complex. Their needs, on the other hand, can be primitive
or derivative. Furthermore, they can be momentarily generated or influenced by external
stimuli.

In individuals, Internal or External stimulus senses the need for any product or service.
1) Internal Stimuli
In this, the need generation occurs due to internal drives like Thrust, Hunger, etc.
2) External Stimuli
Need that generates in response to any Advertisement, Radio Jingle, Pamphlets,
Social media Ads, etc.

But how can we influence the consumer at this stage? Internal stimuli come from within and
involve basic impulses such as hunger and lifestyle changes, so sales and marketing efforts
Focus on external stimuli.

Source of need recognition:

 Out of stock
 Dissatisfaction
 New needs or wants
 Related product purchase
 Market introduces the recognition
 New product

By evaluating the consumers’ needs, marketers can develop and improve their products.
They can also design products that can solve the problems of the consumers.
2. Information search
After identifying the need, the consumers start collecting valuable information about how
they can meet their needs. For research, the consumer uses both Internal and External
sources.
 Internal Sources
Process of recalling past information stored in the memory
 External Sources
Process of seeking information outside the environment
Through research, he will be able to identify the desired product to solve his problem.

The information search broadly involves research about:

 The types of products available.

 The number of brands available for the same.
 The location from where it can be acquired.

The information varies with the Products and Buyers’ characteristics. Below are sourced
from which consumers can gather relevant information:

1) Personal sources
 Family
 Friends
 Neighbour
 Acquittances

2) Commercial Sources
 Advertisements
 Dealers
 Retailers
 Salesperson
 Window Displaying, etc

3) Public Sources
 Mass media and News Paper
 Radio and Television
 Consumer Rating Organizations
 Experiences Sources
 Demo
 Test Drives, etc

If consumers are well-informed, they can make purchasing decisions quickly. However, if he
fails to gather sufficient information, he may wait or suppress the need. Or repeat the
procedure until he finds the valuable information.
 3. Evaluation of Alternatives

The next step in the forgoing process is the evaluation of the alternatives. The consumer
must choose between the researched Brands, Products, and Services.

Consumers evaluate different options by comparing multiple attributes, parameters, and

criteria. Filter alternatives by assigning weights to factors or their combinations.

Mostly, they use heuristics and make rational judgments during product selection.

Marketers must consider the parameters and characteristics that consumers use to evaluate
products. They need to instill these properties into their products during manufacturing.

4. Purchase Decision
After a detailed evaluation of the alternatives, the consumer makes the purchase decision.
He will choose and buy the most suitable option that perfectly satisfies his need.

In this stage, marketers must work on their selling skills and sales pitch. Their pitch must be
effective and capable of closing the deal instantly.

5. Post-purchase behaviour
It is the last but most essential stage of the process. In this, the post-purchase behaviour of
the consumer is analyzed. It gives feedback to the marketer about the Success and Failure of
the product.

Marketers focus on this stage because it has the potential to evoke subsequent sales. They
can also get their products marketed by a powerful tool, i.e., Word-of-Mouth.

C. Conclusion

In summary, the consumer decision-making process is a problem-solving process. It starts with an

unmet need and ends with the purchase of the right product.