5 Major Factors Influencing Consumer Behavior

Consumer behavior is influenced by many different factors. A marketer should try to understand the
factors that influence consumer behavior. Here are 5 major factors that influence consumer
behavior: 
1. Psychological Factors
Human psychology is a major determinant of consumer behavior. These factors are difficult to
measure but are powerful enough to influence a buying decision.
Some of the important psychological factors are:

i. Motivation
When a person is motivated enough, it influences the buying behaviour of the person. A person has
many needs such as the social needs, basic needs, security needs, esteem needs and self-
actualization needs. Out of all these needs, the basic needs and security needs take a position above
all other needs. Hence basic needs and security needs have the power to motivate a consumer to buy
products and services.
ii. Perception
Consumer perception is a major factor that influences consumer behavior. Customer perception is a
process where a customer collects information about a product and interprets the information to
make a meaningful image about a particular product.
When a customer sees advertisements, promotions, customer reviews, social media feedback, etc.
relating to a product, they develop an impression about the product. Hence consumer perception
becomes a great influence on the buying decision of consumers.
iii. Learning
When a person buys a product, he/she gets to learn something more about the product. Learning
comes over a period of time through experience. A consumer’s learning depends on skills and
knowledge. While a skill can be gained through practice, knowledge can be acquired only through
experience.
Learning can be either conditional or cognitive. In conditional learning the consumer is exposed to a
situation repeatedly, thereby making a consumer to develop a response towards it.
Whereas in cognitive learning, the consumer will apply his knowledge and skills to find satisfaction
and a solution from the product that he buys.
iv. Attitudes and Beliefs
Consumers have certain attitude and beliefs which influence the buying decisions of a consumer.
Based on this attitude, the consumer behaves in a particular way towards a product. This attitude
plays a significant role in defining the brand image of a product. Hence, the marketers try hard to
understand the attitude of a consumer to design their marketing campaigns.
2. Social Factors
Humans are social beings and they live around many people who influence their buying behavior.
Human try to imitate other humans and also wish to be socially accepted in the society. Hence their
buying behavior is influenced by other people around them. These factors are considered as social
factors. Some of the social factors are:
i. Family
Family plays a significant role in shaping the buying behavior of a person. A person develops
preferences from his childhood by watching family buy products and continues to buy the same
products even when they grow up.
ii. Reference Groups
Reference group is a group of people with whom a person associates himself. Generally, all the
people in the reference group have common buying behavior and influence each other.
iii. Roles and status
A person is influenced by the role that he holds in the society. If a person is in a high position, his
buying behavior will be influenced largely by his status. A person who is a Chief Executive Officer
in a company will buy according to his status while a staff or an employee of the same company will
have different buying pattern. 
3. Cultural factors
A group of people are associated with a set of values and ideologies that belong to a particular
community. When a person comes from a particular community, his/her behavior is highly
influenced by the culture relating to that particular community. Some of the cultural factors are:
i. Culture
Cultural Factors have strong influence on consumer buyer behavior.  Cultural Factors include the
basic values, needs, wants, preferences, perceptions, and behaviors that are observed and learned by
a consumer from their near family members and other important people around them.
ii. Subculture
Within a cultural group, there exists many subcultures. These subcultural groups share the same set
of beliefs and values. Subcultures can consist of people from different religion, caste, geographies
and nationalities. These subcultures by itself form a customer segment.
iii. Social Class
Each and every society across the globe has form of social class. The social class is not just
determined by the income, but also other factors such as the occupation, family background,
education and residence location. Social class is important to predict the consumer behavior.
4. Personal Factors
Factors that are personal to the consumers influence their buying behavior. These personal factors
differ from person to person, thereby producing different perceptions and consumer behavior.
Some of the personal factors are:
i. Age
Age is a major factor that influences buying behavior. The buying choices of youth differ from that
of middle-aged people. Elderly people have a totally different buying behavior. Teenagers will be
more interested in buying colorful clothes and beauty products. Middle-aged are focused on house,
property and vehicle for the family.
ii. Income
Income has the ability to influence the buying behavior of a person. Higher income gives higher
purchasing power to consumers. When a consumer has higher disposable income, it gives more
opportunity for the consumer to spend on luxurious products. Whereas low-income or middle-
income group consumers spend most of their income on basic needs such as groceries and clothes.
iii. Occupation
Occupation of a consumer influences the buying behavior. A person tends to buy things that are
appropriate to this/her profession. For example, a doctor would buy clothes according to this
profession while a professor will have different buying pattern.
iv. Lifestyle
Lifestyle is an attitude, and a way in which an individual stay in the society. The buying behavior is
highly influenced by the lifestyle of a consumer. For example when a consumer leads a healthy
lifestyle, then the products he buys will relate to healthy alternatives to junk food.
5. Economic Factors
The consumer buying habits and decisions greatly depend on the economic situation of a country or
a market. When a nation is prosperous, the economy is strong, which leads to the greater money
supply in the market and higher purchasing power for consumers. When consumers experience a
positive economic environment, they are more confident to spend on buying products.
Whereas, a weak economy reflects a struggling market that is impacted by unemployment and lower
purchasing power.
Economic factors bear a significant influence on the buying decision of a consumer. Some of the
important economic factors are:
i. Personal Income
When a person has a higher disposable income, the purchasing power increases simultaneously.
Disposable income refers to the money that is left after spending towards the basic needs of a
person.
When there is an increase in disposable income, it leads to higher expenditure on various items. But
when the disposable income reduces, parallelly the spending on multiple items also reduced.
ii. Family Income
Family income is the total income from all the members of a family. When more people are earning
in the family, there is more income available for shopping basic needs and luxuries. Higher family
income influences the people in the family to buy more. When there is a surplus income available
for the family, the tendency is to buy more luxury items which otherwise a person might not have
been able to buy.
iii. Consumer Credit
When a consumer is offered easy credit to purchase goods, it promotes higher spending. Sellers are
making it easy for the consumers to avail credit in the form of credit cards, easy installments, bank
loans, hire purchase, and many such other credit options. When there is higher credit available to
consumers, the purchase of comfort and luxury items increases.
iv. Liquid Assets 
Consumers who have liquid assets tend to spend more on comfort and luxuries. Liquid assets are
those assets, which can be converted into cash very easily. Cash in hand, bank savings and securities
are some examples of liquid assets. When a consumer has higher liquid assets, it gives him more
confidence to buy luxury goods.
v. Savings
A consumer is highly influenced by the amount of savings he/she wishes to set aside from his
income. If a consumer decided to save more, then his expenditure on buying reduces. Whereas if a
consumer is interested in saving more, then most of his income will go towards buying products.

Consumer Decision Process (Buyer Decision Process)

The consumer decision process also called the buyer decision process, helps markets identify how
consumers complete the journey from knowing about a product to making the purchase decision.
Understanding the buyer buying process is essential for marketing and sales. The consumer or buyer
decision process will enable them to set a marketing plan that convinces them to purchase the
product or service for fulfilling the buyer’s or consumer’s problem.
The consumer decision process is composed of problem recognition, search, evaluation, and
purchase decision. Post-purchase behavior is the result of satisfaction or dissatisfaction that
the consumption provides. The buying process starts when the customer identifies a need or
problem or when a need arises. It can be activated through internal or external stimuli.

Consumers go through 5 stages in deciding to purchase any goods or services.

5 Stages of the consumer decision process (buyer decision process) are;
1. Problem Recognition or Need Recognition.
2. Information Search.
3. Evaluation of Alternatives.
4. Purchase Decision.
5. Post-Purchase Evaluation.
When making a purchase, the buyer goes through these 5 stages of the decision process.
Clearly, the buying process starts long before the actual purchase and continues long after. The
marketer’s job is to understand the buyer’s behavior at each stage and its influences.
The first step of the buyer decision process is the need recognition stage. Here the consumer
recognizes a need or problem and feels a difference between the actual state and some desired
state. They try to find goods to satisfy such needs.
This leads to the second stage of searching for information about the product. The consumer
tries the find out as much as possible about the product’s available brands.
At the Third stage, is consumer uses the information to evaluate alternative brands.
After that, the buyer makes the purchase decision at the fourth stage by selecting the most
suitable product.
The fifth stage is the post-purchase evaluation, and it is the most important one. Depending on
the level of satisfaction or dissatisfaction, the consumer will become a loyal customer or
actively avoid the brand and tells others to do so via online reviews and word of mouth.
Let’s explain all five stages of the buyer decision process.
1. Problem or Need Recognition
Need recognition of Problem Recognition is the first stage of the buyer decision process. During
need or problem recognition, the consumer recognizes a problem or need satisfied by a product or
service in the market.
The buyer feels a difference between his or her actual state and some desired state. Internal stimuli
can trigger the need. This occurs when one person’s normal needs, such as hunger, thirst, sex, rise to
a level high enough to become a driver. External stimuli can also trigger a need.
At this stage, the marketer should study the buyer to find answers to some important questions.
These are:
 What kinds of needs or problems arise?
 What is the root of these needs or problems?
 How they led the buyer or customer or consumers to a particular product?
This could be a simple as “I’m hungry; I need food.”
The need may have been triggered by internal stimuli (such as hunger or thirst) or external stimuli
(such as advertising or word of mouth).
Need or Problem Recognition Process
When a consumer becomes aware that there is a difference between the desired state and an actual
condition, problem recognition occurs. Every individual has unsatisfied needs and wants that create
tension or discomfort.
Certain needs can be satisfied by purchasing and consuming goods and services. Deciding what to
buy starts when a need that can be satisfied through consumption becomes strong enough to
stimulate a person.
Thus, a problem is recognized when consumers have an unmet need, and everyday consumers
recognize purchase or consumption-related problems.
Consumers may have routine problems when they run out of daily necessities and may have
unexpected problems when major appliances suddenly go out of order. In addition to these two,
there is another type of problem that is subtle and evolve slowly over time, such as a desire to buy a
washing machine.
Consumer decision-making arises when an individual recognizes a problem or need that is not met.
A problem or need exists when there is a discrepancy between a consumer’s actual state and the
desired state. This is shown in the following figure, along with different stages of the problem
recognition process.

The above figure states that the desired state and existing state result from its lifestyle and current
situation. His desired and current state could be the same, or there could be discrepancies between
these two states.
If a consumer perceives a discrepancy between his desired and current state, he will recognize that
he is having a problem. A consumer defines his problems in terms of his motivation that we have
discussed in unit eleven.
The degree of an individual’s desire to resolve a particular problem depends on the degree of
discrepancy between the desired and existing states and the importance of the problem.
Thus, an individual consumer will be desirous of solving a problem if he considers the degree of
discrepancy as large enough and the problem as very serious or important.
After the problem is identified, the buyer has to define it in some meaningful term to help him
initiate an action to solve his problem.
For example, one may recognize that he is having a status related problem. This is problem
recognition. Now he has to define it in some meaningful term, which is causing the status problem.
A consumer may recognize both an active as well as the inactive problem that he is having. An
active problem is that he is aware of or will become aware of, and, on the other hand, an inactive
problem is one he is not aware of.
Situations Leading to Problem Recognition
There could be many situations that may lead a consumer to recognize a problem to exist. Major
situations leading to problem recognition are;
 Insufficient Stock of Goods
 Dissatisfaction or Discontentment with the Stock
 Changes in the Environmental Characteristics
 Changes in the Financial Status
 Promotional Activities
 Consumer’s Previous Decisions
 Individual Development
 Efforts of Consumer Groups and Governmental Agencies
 Availability of Products
Insufficient Stock of Goods
The most common situation leading to problem recognition by a consumer is the depletion of the
stock of goods that he uses. If, for example, an individual runs out of necessities that he uses, he will
identify a problem to exist.
Dissatisfaction or Discontentment with the Stock
If a consumer becomes dissatisfied with the goods he owns or uses, he will recognize that he is
having a problem.
A family having a ten year’s old car may be willing to buy a late model car. Such a feeling will lead
to discontent, and as a result, the family will recognize a car-related problem.
Changes in the Environmental Characteristics
With the change in an individual’s or family’s environmental characteristics, the individual or the
family may recognize a problem.
For example, when a family moves from one stage of its life cycle to another stage, it requires
different types of products and services, and as a result, problems occur.
More so, friends and reference groups’ influence may demand new and different products to be
bought by an individual or a family. Such a situation also leads to the recognition of a problem.
Changes in the Financial Status
Changes in the financial status or position of an individual or a family may also lead to problem
recognition.
For example, if an individual’s financial position improves or worsens or anticipates an
improvement or deterioration, he may recognize a problem associated with his actual or anticipated
changing financial position.
Promotional Activities
By promotional activities, marketers try to trigger drives in consumers. Through different
promotional activities, marketers try to create a discrepancy between actual and desired states of
consumers. Such a situation will trigger problem recognition in consumers.
Consumer’s Previous Decisions
Other purchases made by a consumer may also lead to problem recognition.
For example, if an individual buys a television, it may trigger buying an antenna or a voltage
stabilizer. The purchase of a computer may lead to the recognition of the problem of not having a
printer.
Individual Development
With an individual’s mental development and change in outlook, he may recognize not having
certain products.
Efforts of Consumer Groups and Governmental Agencies
Activities of different consumer interest groups and different government agencies may also lead to
problem recognition. For example, if consumer groups advocate environmentally friendly
products, they may feel the need for such products creating problems.
If the government puts an embargo on using private vehicles on the city’s main roads, consumers
can buy bicycles, thus causing a problem.
Availability of Products
The availability of a product makes customers aware of it, making them feel to have one of those.
Such a feeling may also lead to problem recognition.
Marketing Strategy with Regards to Problem Recognition
Recognition of problems by consumers bears important marketing implications. They should first
identify the problems that consumers face, and, in the second stage, they should develop a marketing
mix aiming at consumers’ problem solutions.
Marketers may also create situations where consumers look for problems or create situations that
may suppress the consumers’ problem recognition.
Measuring Problem Recognition
The fast task is to identify the problems faced by the consumers or the problems they recognize. A
marketer can take many approaches in measuring problems recognized by the consumers. One such
approach is “intuition.”
By evaluating his product, a marketer can determine whether he should improve his product, and if
so, how can he do so. Second, he can conduct surveys to identify the problems recognized by his
customers.
A marketer can also conduct activity analysis focusing on consumers’ particular activity, such as
how breakfast items are prepared. A product analysis may also be undertaken to identify consumers’
problems or problems using a particular product.
Another technique used in identifying problems consumers recognize to undertake problem analysis.
Here, consumers are requested to identify the problems they face and give suggestions relating to
such problems.
Marketing Mix Decision Aiming at Problem Solution
After the consumers’ problem is identified, a marketer may adjust their marketing mix variables to
help consumers overcome problems. This may be done through product modification, changing the
distribution strategy channel, adjusting prices, or changing advertising or communication strategy.
Activating Problem Recognition
Marketers themselves may activate problem recognition by the consumers. Marketers may activate
problem recognition, first, by influencing the desired state. By emphasizing the benefits of products,
marketers may encourage people to buy a particular product they lack actively.
Through advertising, personal selling, and sales promotion activities, marketers can influence
consumers’ desired state, causing them to recognize problems. Marketers may also activate problem
recognition by influencing perceptions of consumers’ actual state.
Ad by Valueimpression
For example, an individual buying a particular brand of a product may be given the idea that another
alternative is better than one he is having or using. This may also lead to problem recognition by a
consumer. Marketers may also activate problem recognition by influencing the timing of problem
recognition.
If a consumer thinks of buying a refrigerator before “Eid- Ul-Azha,” he may be given the idea that
refrigerators’ prices will rise during Eid time, causing him to recognize the problem now instead of
buying later.
Suppressing Problem Recognition
By this time, you are aware of the situations that trigger problems in consumers. Some of the
problems recognized by consumers may create problems for certain marketers. In such a situation,
marketers try to suppress the problem to be recognized by consumers.
A tobacco marketer may suppress problem recognition by the tobacco users caused by consumer
groups or other agencies by developing an advertisement that shows tobacco users in a lively mood.
2. Information Search
The second stage of the purchasing process is searching for information. Once the need is
recognized, the consumer is aroused to seek more information and moves into the information
search stage.
The consumer may have heightened attention or may undertake an active search for information.
The amount of searching a consumer will depend on the strength of his drive, the amount of
information he starts with, the ease of obtaining more information, the value he places on additional
information, and the satisfaction he gets from searching.
Buyers or customers can get information about goods from different sources.
 Personal sources: This includes family, friends, neighbors, acquaintance, etc.
 Commercial source: This includes advertising, salespeople, dealers, packaging, display, etc.
 Public sources: This includes mass media, consumer rating organizations, etc. they also
become confidential to provide information.
 Experimental sources: This includes handling, examining, using, etc. Such information
becomes decisive and confidential.
The relative influence of these information sources varies with the product and the buyer. Generally,
the consumer receives the most information about a product from commercial sources-those
controlled by the marketer.
The most effective sources, however, tend to be personal. Personal sources appear to be even more
important in influencing the purchase of services. Commercial sources normally inform the buyer,
but personal sources legitimize or evaluate products for the buyer.
For example, doctors normally learn new drugs from commercial sources but turn to other doctors
for evaluative information.
The consumer’s awareness and knowledge of the available brands and features increase as they get
more information. In designing the marketing mix, a company should make the target
customers aware of its brand. Buyers’ sources of information should be carefully identified, and
the importance of each source should also be assessed.
Nature of Consumer’s Information Search
Consumers arrive at purchase decisions based on information gathered regarding the product under
consideration. They collect information from many different sources.
The effort, a consumer, will put into collecting information from external sources depends on
several factors. Once information is gathered, the consumer evaluates them to arrive at the purchase
decision.
Understanding how consumers evaluate alternatives is essential from a marketing point of view.
The second step in the buying decision-making process is obtaining purchasing related information
to solve the buyer’s problem. Once the consumer is aware of a problem or need, the consumer (if he
decides to continue the decision-making process) searches for information.
Such a search may focus on numerous dimensions, such as brands’ availability, product features,
sellers’ characteristics, after-sales service, warranties, prices, quality, and use instructions.
How long the consumer will search for information and how intense his search process will depend
on his buying the product and the importance of purchase to him.
The consumer may go for both internal as well as an external search of information. Information
search is a mental process, and physical activity performed to make decisions and attain the desired
goals.
Such a search requires time, energy, as well as money. It may also require a consumer to forego
more desirable activities.
Time consumers spent seeking information, and the amount of information a consumer seeks
depends on many factors.
A consumer may seek information from within, or he may search externally. If he tries to recollect
his memory to help him decide on the brand to buy, he searches internally.
Past purchase experience may help him decide on the desired course of action related to his
perceived problem. If he fails to arrive at an appropriate solution to his problem, he may go for an
external search.
A consumer may solve some of his recognized problems using his past experiences that he is having
with purchases of similar products or brands.
By recalling his memory, he may decide to buy the same brand that he bought before the previous
purchase is considered satisfactory.
Marketers can influence internal search through different marketing activities, such as advertising
and personal selling, or sales promotion that may remind consumers of the brand he bought last
time.
A consumer may go for an external search of information if he fails to find a satisfactory solution to
his recognized problem using his stored information.
Externally, he may take friends’, neighbors’, and relatives’ opinions; may rely on information
provided by the marketers through different advertising materials; he may go for sampling and
gather first-hand experience; or he may gather information reading articles, books, or company
brochures, pamphlets, or leaflets.
Sources Used by Consumers in Gathering Information
In seeking information, a consumer may turn to one of several major sources of information. The
most widely used source is experience. This is one of the primary sources of information.
Personal experience with a product may provide selected kinds of information to the consumer. This
is most vital because such a selected kind of information may not be acquired in any other way by a
consumer.
In acquiring information through personal experience, marketers can help consumers significantly.
This may be done by distributing free samples, arranging a demonstration of the product, or
allowing consumers to use the product temporarily with or without charging any price.
Another important source of information used by consumers includes friends, relatives, family
members, neighbors, or associates. This is referred to as a personal source. Consumers rely heavily
on their friends, family members, relatives, neighbors, and associates.
The reason is that consumers trust this source more than any other source. Another source of
information, as used by the consumers, is the marketing source. It includes salespersons,
advertisements, product displays, and packages and labels.
Though such a source provides marketer generated messages, it can influence other information
sources that consumers use.
Consumers can also use public or independent sources of information. They include government
reports, news presentations, reports from product testing information, and reports published by
different consumer groups.
These sources are considered most credible as they are independent sources and are likely to provide
the most neutral and factual information. Another most widely used source is the memory search.
Here consumer tries to recollect his memory to find any relevant information if there is any stored in
his memory. If a consumer can successfully search for information, it can yield him a group of
brands that he may view as possible alternatives.
Factors Influencing the Level of External Search
A consumer goes for an external search if an internal search cannot provide him with sufficient
information to solve his recognized problem.
He also goes for an external search if he perceives that the external search benefits will offset its
costs. Several factors determine a consumer’s level of external search.
They are;
a. marketplace characteristics;
b. product characteristics;
c. consumer characteristics; and,
d. situational characteristics.
Let us now have a look at them in turn:
Marketplace Characteristics Influencing the Level of External Search
Certain characteristics of the marketplace determine the level of external search of a consumer.
These characteristics affect the level of external search as they determine the costs involved in
search and the corresponding benefits that a consumer may derive from such a search.
They include an available number of alternatives, price range, store distribution, and information
availability. If there is only one brand available in a particular product category, the consumer does
not require an external search regarding that product.
But, if the number of alternative products, brands, and stores is numerous, there will be an extensive
external search that a consumer will go for.
The consumer goes for extensive external search if prices of alternatives vary greatly as he intends
to make the best utilization of his money being spent on a product. If the stores selling a particular
type of product are clustered, the external search will be intense.
But, if stores selling a particular product are situated in dispersed locations, it will reduce the
external search level because it involves consumers’ time and money to move around stores.
Instant availability of external information may also increase the level of external search. It provides
convenience to the consumer looking at and comparing many alternatives, which helps him make
the most appropriate decision to solve his recognized problem.
Product Characteristics Influencing the Level of External Search
Product characteristics such as price level and product differentiation also influence the level of
external search of consumers. The consumer will do a limited external search if a product’s price is
considered insignificant or very low.
On the contrary, if the price level is high from the consumer’s point of view, he will go for an
extensive external search. Product differentiation is another product related characteristic that
influences the level of consumer’s external search.
If a consumer perceives many differences between alternative brands, he will heavily be involved in
the external search. He may consider competing brands differ in quality, features, design,
appearance, or style.
Consumer Characteristics Influencing the Level of External Search
Consumer characteristics, such as learning and experience, personality and self-concept, social class,
age and stage in the family life cycle, and perceived risk, may also influence the level of a
consumer’s external search of information.
If a consumer is satisfied with his prior purchase and consumption of a particular brand in a product
category, he will go for repeat purchase instead of searching externally for more information on that
product category (applies in case of habitual or routine purchase).
One’s personality characteristics and self-concept also influence his level of external search of
information.
An individual who considers himself a deliberate information seeker will go for extensive external
search. A person of an authoritarian type of personality will go for less external search. The social
class of a consumer is another determinant of the level of external search.
Generally, lower and middle-class people go for more external searches than upper-class people.
The level of information search decreases with an individual’s age as his learning and maturity
increase. Families in the earlier stages of the life cycle involve them heavily in external information
search.
With the increase in risk perception, the level of external search increases as the consumer tries to
minimize his dissatisfaction with the purchase and consumption.
Situational Characteristics Influencing the Level of External Search
Situations surrounding consumers influence his level or intensity of external search. If a consumer,
for example, is time-pressed, he will go for a limited external search.
A consumer will reduce his search if he finds shops are overcrowded that he visits. He may also
search less for information if he considers a desirable purchase offer made by a seller.
The physical and mental conditions of a consumer may also influence his level of external search. If
he is not physically or mentally energetic, he will reduce his level of external search.
3. Evaluation of Alternatives

With the information in hand, the consumer proceeds to alternative evaluation, during which the
information is used to evaluate” brands in the choice set.
Evaluation of alternatives is the third stage of the buying process. Various points of information
collected from different sources are used in evaluating different alternatives and their attractiveness.
While evaluating goods and services, different consumers use different bases.
Generally, the buyer evaluates the alternatives based on the product’s attributes, the degree of
importance, belief in the brand, satisfaction, etc. to choose correctly.
A marketer must know how the consumer processes information to arrive at brand choices.
Consumers do not always follow a simple and single evaluation process. Rather several evaluation
processes are in practice.
Consumer evaluation processes can be explained with the help of some basic concepts.
1. First, it is assumed that each consumer sees a product as a bundle of product attributes. For
refrigerators, product attributes might include cooling capacity, size, space, price, and other
features. Buyers will pay more attention to those attributes relevant to their needs.
2. Second, the importance of depending upon their needs and wants.
3. Third, the consumer will develop a set of brand beliefs about where each brand stands on
each attribute. The set of beliefs buyers hold about a particular brand is called brand image.
Based on the buyer’s experience and the effects of selective perception, distortion, and
retention, the consumers’ beliefs may differ from actual attributes.
4. Fourth, the consumer’s expected total product satisfaction will vary with the changes at the
levels of different attributes.
5. Fifth, the consumer develops attitudes toward the different brands through some evaluation
procedure. Buyers use one or more of several evaluation procedures, depending on the
consumer and the buying decision.
The mode of evaluating purchase alternatives depends on the individual consumer and the specific
buying situation. In some instances, consumers apply meticulous calculations and logical thinking.
In other situations. The same consumers may not make any evaluation. Rather they buy on impulse
and use intuition.
Sometimes consumers themselves make buying decisions. At other times they rely on friends,
consumer guides, or salespeople for buying advice. Marketers should study buyers to know how
they evaluate brand alternatives.
Marketers can take appropriate steps to influence the buyer’s decision to know what the buyers
follow evaluative processes.
4. Purchase Decision
At this stage of the buyer decision process, the consumer buys the product. After the alternatives
have been evaluated, consumers decide to purchase products and services. They decide to buy the
best brand. But their decision is influenced by others’ attitudes and situational factors.
Usually, the consumer will buy the most preferred brand.
But two factors might influence the purchase intention and the purchase decision. The first factor is
the attitudes of other people related to the consumer.
The second factor is unexpected situational factors. The consumer may form a purchase intention
based on factors such as expected price and expected product benefits.
However, unexpected events may alter the purchase intention. Thus, preferences and even purchase
intentions do not always lead to actual purchase choice.
5. Post-Purchase Evaluation
In the buyer decision process’s final stage, post-purchase-purchase behavior, the consumer takes
action based on satisfaction or dissatisfaction.
In this stage, the consumer determines if they are satisfied or dissatisfied with the purchasing
outcome. Here is where cognitive dissonance occurs, “Did I make the right decision.”
At this stage of the buyer decision process, consumers take further action after purchase based on
their satisfaction or dissatisfaction.
What determines whether the buyer is satisfied or dissatisfied with a purchase?
The answer lies in the relationship between the consumer’s expectations and the product’s perceived
performance.
If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the
consumer is satisfied; if it exceeds expectations, the consumer is delighted.
Final words: Consumers go through the 5 stages of the decision process to purchase any goods
or services.
Napoleon said that nothing is more difficult than to be able to decide. The same is true for
consumer’s decision making, and, as a result, marketers are keen to understand the consumer
decision-making process.
Buyers form their expectations on information they receive from sellers, friends, and other sources.
If the seller overstates the product’s performance, consumer expectations will not be met, and
dissatisfaction will occur.
The wider the gap between expectations and performance, the greater the consumer’s
dissatisfaction. This implies that sellers claim that the product’s performance should be genuine so
that buyers are satisfied.
It is also found that some sellers understate performance levels to enhance consumer satisfaction
with the product.
For example, Boeing sells aircraft worth ten million dollars each, and consumer satisfaction is
important for repeat purchases and the company’s reputation.
Boeing’s salespeople tend to be conservative when they estimate their product’s potential benefits.
They almost always underestimate fuel efficiency – they promise a 5 percent saving that turns out to
be 8 percent.
Customers are delighted with better-than-expected performance; they buy again and tell other
potential customers that Boeing lives up to its promises.
In almost all purchases, buyer experience cognitive dissonance. Cognitive dissonance is the
discomfort felt by the buyers due to the post-purchase conflict.
Customers are happy with the benefits of the chosen brand and forget the benefits of brands not
bought. Also, they feel unhappy about the chosen brand’s demerits and remembers the benefits of
the brands not chosen.
Here, the consumer makes a compromise. Thus, buyers experience some post-purchase-purchase
dissonance for every purchase.
So, to reduce cognitive dissonance, a company should measure customer satisfaction regularly. The
company should seek out and respond to complaints of the customers.
The company can also take other steps to reduce consumer post-purchase-purchase dissatisfaction
and help customers feel satisfied with their purchases.
For example, Toyota writes or phones new car owners with congratulations on having selected a
fine car.
It places ads showing satisfied owners talking about their new cars (“I love what you do for me,
Toyota!). Toyota also obtains customer suggestions for improvements and lists the location of
available services.
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Purchase decision
This is the moment the consumer has been waiting for: the actual purchase. Once they have gathered
all the facts, including feedback from previous customers, consumers should arrive at a logical
conclusion on the product or service to purchase.
If you’ve done your job correctly, the consumer will recognize that your product is the best option
and decide to purchase.
Example: The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the
brand uses sustainable materials and asking friends for their feedback, she orders the coat online.