Consumer Behaviour

THE DECISION PROCESS

 Process by which consumers identify their needs, collect
information, evaluate the available alternatives, and make
the purchase decision.

 These actions are determined by psychological and

economical factors, and are influenced by environmental
factors such as cultural, group, and social values.
LEVELS OF CONSUMER
DECISION MAKING
EXTENSIVE
PROBLEM
SOLVING

Limited
Problem
Solving

Routine
Problem
Solving
VARIABLES THAT SHAPE DECISION
MAKING

• Individual differences
• Environment influences
• Psychological processes
 INDIVIDUAL DIFFERENCES

• Consumer resources
• Knowledge
• Attitudes
• Motivation
• Personality, values, lifestyle
 ENVIRONMENTAL INFLUENCES

• Culture
• Social class
• Personal influence
• Family
• Situation
 CONSUMER DECISION MAKING
STAGES

• Need recognition
• Search for information
• Alternative's evaluation
• Purchase decision
• Post-purchase evaluation
 1. PROBLEM/NEED RECOGNITION
 Sometimes arises from changes in
circumstances
 Sometimes arises from marketing

 Two different need recognition styles

1. Desired state: consumers whose desire for
something new triggers the decision process
2. Actual state: consumers who believe they have a
problem/need when a product fails
2. PRE-PURCHASE SEARCH ACTIVITY
• Begins as soon as the problem/need is identified
• Extent of search depends on degree of involvement
• Nature of search depends on consumer’s level of
experience with the product
• Two types of searches
1. Internal
2. External
 INTERNAL SEARCH
• Consumer will search his/her memory before seeking
external sources
• The greater the past experience, the less external
information needed
• Many decisions are based exclusively or primarily on
internal information
• Level of risk perceived is a major factor in determining
extent of search
 EXTERNAL SEARCH
• Advertising and promotion
• Including point of purchase and internet

• Store visits

• Objective sources (consumer reports, e.G.)

• Friends and family (word of mouth)

 3. IDENTIFYING ALTERNATIVES

• Consumers consider only a limited number of

alternatives

• Small number of brands the consumer is familiar

with, remembers, and finds acceptable

• Cost benefit analysis (value gain)

4. PURCHASE OR COMMITMENT:
CONSUMER DECISION RULES

• Purchase decision is the outcome of the search and

evaluation process
• In reaching a decision, consumers use a number of
decision rules
• Rules reduce the burden of making complex
decisions by providing guidelines or routines
 5. POST-PURCHASE EVALUATION
 As consumers use a product, they evaluate its
performance in light of their expectations. The extent of
the evaluation depends on the importance of the product
decision
 The product may
 Meet expectations
 Exceed expectations
 Fall short of expectations

 Post-purchase evaluation becomes part of the consumer’s

experience and may affect future related decisions
THANK YOU