Presented BySaroj kumar jena Ankur Astik singh

Vishwa vishwani institute of

Factors Influencing Buying Decisions

Cultural Factors

Social Factors

Individual Factors

Psychological Factors

CONSUMER DECISIONMAKING PROCESS

BUY / DONT BUY

Individual Influences

Gender

Age Life Cycle

Personality Self-Concept Lifestyle

Psychological Influences

Perception

Motivation
Learning Beliefs & Attitudes

Consumer Decision-Making Process

Consumer Decision-Making Process

A five-step process used by consumers when buying goods or services.

Consumer Decision-Making Process

Need Recognition Information Search Evaluation of Alternatives

Cultural, Social, Individual and Psychological Factors affect all steps

Purchase
Postpurchase Behavior

Need Recognition
Need Recognition
Result of an imbalance between actual and desired states.

Need Recognition

Present Status

Preferre d State

Marketing helps consumers recognize an imbalance between present status and preferred state.

Stimulus
Stimulus
Any unit of input affecting one or more of the five senses:
sight smell taste touch hearing

Recognition of Unfulfilled Wants

When a current product isnt performing properly When the consumer is running out of a product

When another product seems superior to the one currently used

Information Search
Internal Information Search

Recall information in memory

External Information search

Seek information in outside environment
Nonmarketing controlled Marketing controlled

Cognitive Dissonance
Cognitive Dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

Postpurchase Behavior
Consumers can reduce dissonance by:

Seeking information that reinforces positive ideas about the purchase Avoiding information that contradicts the purchase decision

Revoking the original decision by returning the product

Marketing can minimize through: Effective Communication Follow-up Guarantees Warranties

Consumer Buying Decisions and Consumer Involvement

Routine Response Behavior Limited Decision Making Extensive Decision Making

Less Involvement

More Involvement

Five Factors Influencing Decisions

1. Level of consumer involvement

2. Length of time to make decision

3. Cost of good or service

4. Degree of information search

5. Number of alternatives considered

Continuum of Consumer Buying Decisions

Routine Response Behavior

Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision

Limited Decision Making

Low levels of involvement
Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide

Extensive Decision Making

High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance

APPLICATION BASED QUESTION

Q. You are working with a famous publisher to promote a new business magazine by a renowned management guru. Develop a strategic Marketing plan to market the new magazine for the national market.

STRATEGIC PLAN
Knowing the Audience Circulation In-Store Promotions Develop Brand Partnership to get noticed