Consumer Decision Making:

Process & Types

Dr. Devkant Kala

How do we make decisions?
Consumer Decision Journey/
Marketing Funnel
Consumer Decision-Making Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-Purchase Behaviour
 Need Recognition

Need recognition occurs when the consumer recognizes a

problem or need triggered by:

• Internal stimuli
▪ Need or Requirement.
▪ Existing product is not performing well.

• External stimuli
▪ Advertisement of the new product.
▪ Notice a new feature in the product.
▪ Receive a sales call from a sales executives.
 Information Search

Information search is the amount of information needed in the

buying process and depends on:
• The strength of the drive
• The amount of information consumer start with
• The ease of obtaining the information
• The value placed on the additional information
• The satisfaction from searching.
 Information Search

Information Types Role of

Source Information
Personal Family, Friends, Legitimize
Neighbours, Acquaintances Evaluate

Commercial Advertising, Salespersons Inform

Websites, Dealers
Packaging, Display
Public Mass Media Inform
Consumer Rating Organizations
Internet Searches
Experiential Personal Handling, Examining and Evaluate
use of Brand
Evaluation of Alternatives
Evaluation of alternatives is how the consumer processes
information to arrive at brand choices.

◼ Evaluative Criteria
◼ Ways to compare the alternatives

◼ Determinant Attributes
◼ Aspects on which the alternatives clearly differ

◼ Decision Criteria
◼ Decision rules
Purchase Decision

The purchase decision is the act by the consumer to buy

the most preferred brand.

◼ What to purchase.

◼ Where, when and how to pay.

◼ Decision is not the same as actual purchase.

 Post-Purchase Decision
The post-purchase decision is the satisfaction or dissatisfaction
the consumer feels about the purchase.

Relationship between:
❑ Consumer’s expectations
❑ Product’s perceived performance

Expectation = Performance (Satisfaction)

Expectation > Performance (Dissatisfaction)
Expectation < Performance (Delight)
Post-Purchase Decision

The larger the gap between expectation and performance, the

greater the consumer’s dissatisfaction.

Customer satisfaction is a key to building profitable relationships

with consumers - to keeping and growing consumers and reaping
their customer lifetime value.
Consumer Decision Making
(Marketer-Side)

Awareness/Attention

Interest

Desire

Action
 Types of Consumer Buying Behavior
Degree of Involvement
High Low
Significant
Complex Buying Variety Seeking
Difference among Behaviour Buying Behaviour
Brands

No significant Dissonance
Difference among Habitual Buying
Reducing Buying
Behaviour
Brands Behaviour
Complex Buying Behavior
• Occurs when consumers are highly involved in a purchase and perceive
significant differences among brands.

• Purchasers are highly involved when:

• Product is expensive.
• Product is risky.
• Product is purchased infrequently.
• Product is highly self-expressive.

• Extensive search for brand information.

• High evaluation of brand characteristics.
• Active receiver of brand information.
Dissonance-Reducing Buying Behavior
• Occurs when consumer is highly involved in the purchase due to the
dissatisfaction (dissonance) associated with previous purchase.
• Post-purchase dissonance occurs when the consumer notices certain
disadvantages of the product purchased or hears favorable things about a
product not purchased.
• Purpose: Take appropriate decision to gain satisfaction.
• Consumer collects information about products from various sources and
take more time in the evaluation of alternatives in order to make the best
decision.
 Variety-Seeking Buying Behavior
• Occurs when consumers have low involvement and there are significant
brand differences.

• Consumers are low involved when:

• Product is inexpensive.
• Product is purchased frequently.
• Product is not related to the status.

• Consumers purchase different brands in order to seek different variety,

taste and experience.
Habitual Buying Behavior
• Occurs when consumers have low involvement and there is little
significant brand difference.

• No extensive search for brand information.

• Little evaluation of brand characteristics.

• Passive reception of brand information.

• Purchase a particular brand due to Habit.

Thank You.