Consumer Buying decision

Making Process
 Problem Recognition
 Information Search
 Alternative Evaluation & Selection
 Store Choice
 Post Purchase Behaviour/Processes
Consumer decision Porcess
 Purchase Involvement : Level of concern for or interest in the purchase
process triggered by the need to consider a particular purchase.
 Product Involvement
 A consumer may have very involved with a brand (Café Coffee Day or
Ford) or a product category (coffee or cars) and yet have a very low
;level of involvement with a particular purchase of that product because
of brand loyalty , time pressures etc. TYPES OF
Consumer Decisions
 Habitual Decision Making
 Limited decision Making
 Extended Decision Making
 Involvement and Types Of decision Making
Low –Purchase Involvement High –
Purchase Involvement

Nominal Decis ion Making Limited Extended decision Making

Problem Recognition Problem Recognition Problem Recognition

Infomration Search Infomration Search Information search

(Internal) (Internal and limited external) (Internal and external)

Alternative Evaluation Alternative evaluation

(few attributes) (many attributes)
(few alternatives) (many alternatives)

Purchase Purchase Purchase

Post purchase Post Purchase Post Purchase

No dissonance No Dissonance Dissonance

Limited evaluation Complex Evaluation

Process of Problem Recognition
 Routine Problems Of Depletion : toothpaste over, petrol
over---> readily recognized, defined and resolved.
 Unexpected breakdown of a major appliance (CTV, W/M)
creates an unplanned problem that is easily recognized but
is often more difficult to resolve.
 Recognition of other problems such as need for PC , may
take longer as they may be subtle and evolve slowly over
time.
Nature of Problem Recognition

Problem recognition is the first stage in the consumer decision process

 Problem recognition is the result of a discrepancy between a desired
state and an actual state that is sufficient to arouse and activate the
decision process
 An actual state : is the way an individual perceives his/her feelings and
situation to be at the present state.
 A desired State: way an individual wants to feel or be at the present
time.
 Process of Problem Recognition
Desired Consumer Lifestyle Current Situation

Desired State Actual State

NATURE OF DISCREPANCY

No difference Desired state exceeds Actual state

Actual state exceeds desired state
Satisfaction

No action problem recognized

(Information search initiated)
Desire to Resolve Recognized problems.

 The level of one’s desire to resolve a particular problem depends on two

factors : 1) The magnitude of the discrepancy between the desired and
actual states and 2) The relative importance of the problem e.g : 1)
A person has a car which gives 15 km per litre. He desires to have 18
Km/litre. Thus discrepancy exists , but the magnitude is not large enough to
motivate the consumer to proceed to next step of decision process. 2) A
consumer owns an old Esteem and desires to buy Skoda. The discrepancy is
large but the relative importance could be small. Compared to other
consumption problems such as hosing, utilities and food. Relative
importance is critical concept because all consumers have budget constraints
, time constraints or both.
 Marketing Strategy & Problem recognition

 Marketing Managers have 4 concerns related to problem recognition

1) Discovering Consumer Problems.

2) Responding to consumer Problems

3)Helping consumers recognize problems

4) Suppressing problem recognition

 1) Discovering consumer Problems

 a) intuition : managers analyze a given product category and logically

determine were improvements can be made. B) Research techniques:
1) Survey 2) Focus group Both focus group and survey tend to take
one of the following approaches to problem identification. B1---> Activity
analysis : Focuses on a particular activity such as preparing dinner,,
maintaining the lawn etc. Focus group attempts to determine what problems
the consumers feel occur during the performance of the activity. B2:--->
Product Analysis: Examines the purchase and /or use of a particular
product/brand. E.g :-- consumers may be asked about problems
faced with W/M or CTV or Bikes etc.
 B3:--- Problem Analysis : It starts with the list of problems and asks to
indicate which activities , products or brands are associated with those
problems.
E.g A study dealing in packaging could include questions like
1) ------------ Packages are hard to open
2) ___________ doesn't pour well
3) Packages of ---------- don’t fit on the shelf.
2) Responding to consumer Problems

 Marketers structure the marketing mix to solve the problems

 This can involve developing a new product or altering existing one ,

changing pricing policy , distribution or promotion. E.g :

Weekend and late night stores (some 24 hours format)and also internet
stores --- response to consumer problems of limited weekday shopping
activities ---> particularly important to families were both spouses are
working The approach of graduation , companies respond with
credit cards , insurance - to solve problems associated with onset of
financial independence and major change in lifestyle.
3. Approaches to activate problem recognition
:

 a) Influence desired state: marketers often advertise the

benefits their products will provide , hoping that these benefits will

become desired by consumers e.g Hyundai Accent ad

b) Influence perceptions of existing state : e.g Personal

care ads use statements that generate concerns about an existing state

Lifebouy ad -- showing 3 college girls

3. Approaches to activate problem recognition
:
 The Timing Of Problem recognition : Consumers often recognize
problems at times when purchasing a solution is difficult. Or
impossible.
E.g Need for insurance after the accident
Need for cold medicine when we are sick but we don’t fell
like going to the store to buy one.
Common strategy is to trigger problem recognition in advance of
actual problem
CEASTE FIRE
national Assurance , Dabur Chywanprash
Franklin templeton ads.
 4. Suppressing Problem recognition

 In some cases the above needs to be done

 e.g : A cigarette company giving an ad saying “ Alive with Pleasure”
showing a happy laughing couple . This could easily be interpreted as
an attempt to minimize any problem recognition caused by the
mandatory warning at the bottom of the advertising “ Cigarette
smoking is injurious to health”
Stage 2: Information search
 What is nature of information search.
 What types of information are sought
 What sources of information are used
 What marketing strategies can be developed based on patterns of search
behavior. A) Nature of Information Search 1) Internal Search : “ If
Trishun had given relief against cold last time , he would go to nearest
store and buy Trishun without further information search or evaluation”
2)External Search : a)Opinion of friends , neighbors , relatives
b) Professional information that is provided in internet ,
newspapers ,magazines etc. C) Ads, Instore displays
 B) Types of Information Search:
1) Appropriate evaluation criteria for the solution of a
problem 2) Existence of various alternative solution.
3) performance level or characteristics of each
alternative solution on each alternative criterion