Unit – 2 Consumer Decision Process

1. Types of consumer decision

There are several types of consumer decisions that individuals make when purchasing goods or
services. These include:

1. Complex decisions: These are decisions that involve a lot of research and consideration, such as
purchasing a car or a house.
2. Habitual decisions: These are decisions that are made based on established habits and routines,
such as purchasing a specific brand of toothpaste or coffee.
3. Impulse decisions: These are decisions that are made quickly and without much thought, such
as purchasing a snack or souvenir while traveling.
4. Routine decisions: These are decisions that are made regularly and with little effort, such as
purchasing groceries or household items.
5. Extended problem-solving decisions: These are decisions that involve a lot of research and
comparison-shopping, such as purchasing a new appliance or electronic device.
6. Limited problem-solving decisions: These are decisions that involve some research and
comparison, but not as much as extended problem-solving decisions. Examples include
purchasing a new shirt or book.

2. Purchase involvement levels and their decision process

Purchase involvement refers to the level of emotional or personal importance that a consumer
places on a particular purchase. Based on the level of purchase involvement, the decision-
making process may vary. Here are the different levels of purchase involvement and the
corresponding decision-making process:
1. High involvement: This refers to purchases that are very important to the consumer and involve
a lot of research and consideration. Examples include purchasing a car or a house. The decision-
making process for high involvement purchases is often more complex and may involve
gathering a lot of information, seeking advice from friends or experts, and comparing different
options.
2. Moderate involvement: This refers to purchases that are somewhat important to the consumer,
but not as much as high involvement purchases. Examples include purchasing a new appliance
or electronic device. The decision-making process for moderate involvement purchases may
involve some research and comparison, but not as much as high involvement purchases.
3. Low involvement: This refers to purchases that are not very important to the consumer and do
not involve much research or consideration. Examples include purchasing a snack or a low-cost
item. The decision-making process for low involvement purchases is often simple and may not
involve much thought or effort.

It's worth noting that the level of purchase involvement can vary from person to person and can
also change over time. For example, a person may view purchasing a car as a high involvement
decision, while another person may view it as a moderate involvement decision. Similarly, a
person may view purchasing a new phone as a high involvement decision when they are in the
market for a new phone, but view it as a low involvement decision when they are not in the
market.

3. Problem or need recognition by consumers

Problem or need recognition is an essential part of the consumer decision-making process. It

refers to the process by which a consumer becomes aware of a problem or need that they want
to solve or fulfill.

There are several ways in which consumers may recognize a problem or need:
1. Personal experience: A consumer may recognize a problem or need through their own personal
experience. For example, if their current phone is slow or has a low battery life, they may
recognize the need for a new phone.
2. External stimuli: A consumer may be made aware of a problem or need through external
stimuli, such as advertising or recommendations from friends or family.
3. Comparisons: A consumer may recognize a problem or need through comparisons with others.
For example, if a friend has a new, high-tech refrigerator, the consumer may recognize the need
for a newer, more advanced refrigerator of their own.
4. Internal stimuli: A consumer may recognize a problem or need through internal stimuli, such as
feelings of boredom, frustration, or discomfort.

Once a problem or need has been recognized, the consumer may then begin the process of
gathering information and considering different options in order to solve the problem or fulfill
the need.

4. Types of consumer's problems

There are many different types of consumer problems that individuals may encounter. Some
common types of consumer problems include:

1. Functional problems: These are problems related to the performance or functionality of a

product or service. For example, a consumer may have a functional problem with a phone if it
has poor battery life or frequently drops calls.
2. Physical problems: These are problems related to the physical appearance or condition of a
product or service. For example, a consumer may have a physical problem with a piece of
clothing if it is ill-fitting or has a stain.
3. Psychological problems: These are problems related to the emotional or psychological impact
of a product or service. For example, a consumer may have a psychological problem with a
particular brand of clothing if they feel that it does not align with their personal style or values.
4. Social problems: These are problems related to the social impact or consequences of a product
or service. For example, a consumer may have a social problem with a particular type of car if
they believe it is not environmentally friendly.
5. Economic problems: These are problems related to the cost or value of a product or service. For
example, a consumer may have an economic problem with a particular brand of clothing if they
feel that it is too expensive relative to its quality.

It's worth noting that consumers may encounter multiple types of problems simultaneously, and
the specific problems that a consumer encounters may vary depending on the individual and the
specific product or service in question.

5. Marketing strategy and problem recognition

Marketing strategy plays a role in problem recognition in several ways:

1. Identifying and addressing consumer needs: Marketing strategies often involve identifying and
understanding the needs and wants of consumers, and developing products or services that meet
those needs. This can help to prevent or solve problems that consumers may be facing.
2. Creating awareness of problems: Marketing strategies may also involve creating awareness of
problems that consumers may not be aware of, or that they may not have considered as
problems. For example, a marketing campaign for a new type of toothpaste may highlight the
benefits of using this toothpaste in order to prevent cavities, thus creating awareness of a
potential problem that consumers may not have been aware of.
3. Highlighting the consequences of not addressing a problem: Marketing strategies may also
involve highlighting the potential consequences of not addressing a particular problem. For
example, a marketing campaign for a home security system may focus on the risks of not
having a system in place, in order to create a sense of urgency and encourage consumers to
address this problem.
 Overall, marketing strategies can play a significant role in shaping the way that consumers think
about and recognize problems, and can influence their decision-making process when it comes
to solving those problems.

6. Problem identification and response

Problem identification and response refers to the process of recognizing and addressing
problems that may arise when using a product or service. This process is an important part of
the consumer decision-making process, as it can help to ensure that consumers are satisfied with
their purchases and that any issues are resolved in a timely and effective manner.

There are several steps involved in the problem identification and response process:

1. Identifying the problem: The first step in this process is to identify the problem. This may
involve recognizing that a problem exists, or it may involve receiving feedback from others
about a problem.
2. Analyzing the problem: Once the problem has been identified, it is important to carefully
analyze it in order to understand the root cause and identify potential solutions.
3. Developing a response plan: After the problem has been analyzed, the next step is to develop a
plan to address it. This may involve implementing a fix or solution, or it may involve taking
other actions such as replacing the product or seeking a refund.
4. Implementing the response plan: The final step in the process is to implement the response plan.
This may involve taking specific actions such as contacting the manufacturer or retailer, or it
may involve making changes to the product or service in order to address the problem.

It's worth noting that the problem identification and response process may vary depending on
the specific problem and the circumstances surrounding it. However, following these steps can
help to ensure that problems are effectively addressed and resolved.