Consumer Decision Making Process

LESSON 3:
CONSUMER
DECISION MAKING
PROCESS
CONSUMER BEHAVIOR
Dennis T. Perez
Teodoro M. Luansing College of Rosario
CONSUMER DECISION
MAKING PROCESS
Introduction to Consumer
Decision Making
Consumers decisions are the results of
their life-style, which in turn is
influenced by the:
 marketing activities
Emotions
personality traits
 culture, sub-culture
Motives
 Values
perception, and:
 social status learning
 Demographics
 family type
Source: https://www.yourarticlelibrary.com/consumer-behaviour/consumer-decision-making/99878
CONSUMER DECISION
MAKING PROCESS
Introduction to Consumer Decision Making
 Consumer decisions result from perceived problems (as for example, being thirsty)
and opportunities (like, being in a market place).
 Consumer problems arise in specific situations and may trigger one or more levels of
the consumer decision-making process.
 The consumer decision process starts with the recognition of need, that is, the
consumer must recognize the need to purchase a product, then goes through the
process to choose the product.
CONSUMER DECISION
MAKING PROCESS
Meaning of Consumer Decision Making
 Consumer Decision Making refers to the process under
which consumers go through in deciding what to purchase,
including problem recognition, information searching,
evaluation of alternatives, making the decision and post-
purchase evaluation.
CONSUMER DECISION
MAKING PROCESS
Reasons behind Consumer
Decisions:
Basically the consumer has five
decision dimensions.
 What to buy?
 How much to buy?
 Where to buy?
 When to buy?
 How to buy?
CONSUMER DECISION
MAKING PROCESS
Basically the consumer has five decision dimensions.
1. What to buy?
 The decision to buy any product is the most important task. Until and unless
if a decision is made a consumer cannot buy anything.
 The consumer has also to make the choice of the product available in the
market. After taking any decision consumers buy a product. Then the
consumer takes a decision about which brand to buy.
 This can be attached with the price and features of the product.
CONSUMER DECISION
MAKING PROCESS
2. How much to buy?
 The next decision the consumer has to make is to how much of the product to
be purchased.
 It depends on the type of the product to be purchased and then the purchases
can be made.
 The quantity to be purchased by the consumer depends on the availability
and frequency of use of the product.
CONSUMER DECISION
MAKING PROCESS
3. Where to buy?
 Another decision the consumer has to make is where the product should be
bought. Consumers usually will go to a place where the services offered are
excellent.
 Also the other factors like prices and outlets are being decided by the
consumers.
 The consumer expects a discount on the product. So, consumers usually go to
such places where availability of the product quantity and quality can be decided
by just looking at the other brands of the same product to be purchased.
CONSUMER DECISION
MAKING PROCESS
4. When to buy?
 The consumer also has to decide the time when the purchase has to be made.
This also is influenced by the availability of the products.
 Usually the purchase made by a consumer is very high during the festive
season, due to large volume of discount.
 This not only ensures the consumer that they can get a product at a discount
price. It is also influenced by opening times, sale and clearance period,
transportation etc., for the goods purchased.
CONSUMER DECISION
MAKING PROCESS
5. How to buy?
 Under this the consumer has to decide whether to pay cash or by credit
payment.
 Also the consumer expects the goods purchased to be delivered by the
retailer.
 Also the installment facility on line purchased option may boost the sale of
the products.
CONSUMER DECISION
MAKING PROCESS
5. How to buy?
 Under this the consumer has to decide whether to pay cash or by credit
payment.
 Also the consumer expects the goods purchased to be delivered by the
retailer.
 Also the installment facility on line purchased option may boost the sale of
the products.
CONSUMER DECISION
MAKING PROCESS
Models or 4 Views of Consumer Decision Making
1. An Economical View or Model
2. The Passive View or Model
3. A Cognitive View or Model:
4. An Impulsive or Emotional View of Consumer:
CONSUMER DECISION
MAKING PROCESS
1. An Economical View or Model:
 Economists believe that consumers derive some utility (a feeling of satisfaction)
from consuming a particular product and so their consumption activity will be
directed towards pursuing maximization of utility.
 Economists also postulate that the utility from the consumption of a certain
product diminishes as the quantity of the product consumed increases
 If given a certain amount of purchasing power, and a set of needs and tastes, a
consumer will allocate his expenditure over different products at given prices
rationally so as to maximize utility
CONSUMER DECISION
MAKING PROCESS
2. The Passive View or Model:
 The passive view portrays the consumer as someone who is basically carried away
by the promotional and self-oriented efforts of the marketer.
 As per the passive view, consumers are perceived to be impulsive who take
irrational purchase decisions and are influenced by the promotional offers of the
marketers.
 The consumer will be involved in a decision making process wherein he seeks
information on the product, evaluates all the alternative brands and then makes a
selection based on the brand which provides him maximum satisfaction
CONSUMER DECISION
MAKING PROCESS
3. A Cognitive View or Model:
 As per the cognitive view consumers are involved in an information seeking and
processing method.
He is constantly involved in an active search for goods and services which will
not only satisfy his needs but enrich his life also
 This model of man as a thinker, views consumer as an information processor.
And all the focus is on the processes by which consumers seek and evaluate
information about the concerned brands and the respective retail outlets.
CONSUMER DECISION
MAKING PROCESS
 Another aspect of consumer decision making is that they can be emotional or
impulsive while taking purchase decisions. Very often, we, as consumers are
involved in purchases made on impulse or on a whim.
 In the absence of a search for pre-purchase information, it is the mood and feelings
of the consumer which will decide on the emotional purchase decision
 This type of behavior is displayed while making purchases of apparel, gifts, selecting
holiday destinations or toys (for children). In all the above situations, the final
decision may be made on the basis of emotion.
CONSUMER DECISION
MAKING PROCESS
 Related to consumers emotions and feeling is the ‘mood’ of the person.
 Mood may be defined as a feeling state or state of the mind.
 The basic difference between an emotion and a mood is that the former is a response to a
particular environment, while mood is an unfocused, pre-existing state-already present, when
the consumer gets motivated or experiences a positive feeling about an advertisement, or the
retail outlet or brand or a product.
 It has been observed that even within the shopping environment, the interior decor, the
attitude of the sales persons, the type of services provided etc. could affect the shoppers mood
and influence the consumer’s decision on how long to shop and on how often to go to that shop.
CONSUMER DECISION
MAKING PROCESS
Levels of Consumer Decision Making
1. Extensive problem-solving
 This is the highest level of decision-making, and it occurs when consumers are highly
involved in the purchase and carefully evaluate the product or service on the basis of
established criteria. Extensive problem-solving is often used for high-priced or complex
products, such as a new car or house.
 Example: A couple is looking to buy a new house. They have a long list of criteria that
they are looking for, such as the number of bedrooms and bathrooms, the size of the
yard, the location of the house, and the price. They spend several weeks researching
different houses and visiting open houses before they finally make a decision.
 Source: Kotler, Philip, and Kevin Lane Keller. Consumer Behavior: Building Customer Value. 14th ed. Pearson, 2023.
CONSUMER DECISION
MAKING PROCESS
2. Limited problem-solving
 Limited problem-solving occurs when consumers are moderately involved in the purchase
and engage in some information search, but they do not evaluate the product or service as
carefully as they would with extensive problem-solving. Limited problem-solving is often
used for lower-priced or less complex products, such as new clothes or a new smartphone.
 Example: A woman is looking to buy a new pair of jeans. She has a general idea of what
she is looking for, such as the style and fit of the jeans, but she is not too picky about the
brand or price. She goes to a few different stores and tries on a few different pairs of jeans
before she finally decides on a pair that she likes.
CONSUMER DECISION
MAKING PROCESS
3. Habitual problem-solving
 Habitual decision-making occurs when consumers are not actively involved in the
purchase and make a decision quickly and without much thought. Habitual decision-
making is often used for low-priced or frequently purchased products, such as milk,
bread, or gasoline.
 Example: A man goes to the grocery store every week to buy groceries. He always
buys the same brand of milk, bread, and eggs. He doesn't even think about it
anymore. He just grabs them off the shelf and puts them in his cart.
CONSUMER DECISION
MAKING PROCESS
3. Habitual problem-solving
 Habitual decision-making occurs when consumers are not actively involved in the
purchase and make a decision quickly and without much thought. Habitual decision-
making is often used for low-priced or frequently purchased products, such as milk,
bread, or gasoline.
 Example: A man goes to the grocery store every week to buy groceries. He always
buys the same brand of milk, bread, and eggs. He doesn't even think about it
anymore. He just grabs them off the shelf and puts them in his cart.
CONSUMER DECISION
MAKING PROCESS
5 Stages Involved in Consumer Decision Making Process
Stage 1 – Problem Recognition
Stage 2 – Information Search
Stage 3 – Evaluating Alternatives:
Stage 4 – Making the Purchase:
Stage 5 – Post-Purchase Evaluation:
CONSUMER DECISION
MAKING PROCESS
Stage 1 – Problem Recognition
 The buying process begins when consumers recognize they have a need to satisfy.
This is called the problem recognition stage.
 The first step in the consumer decision-making process is identifying the need. The
need is the most important element which leads towards the actual buying of the
product or service.
 Need is the trigger point of all the buying decisions.
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 Once consumers recognize a problem, they seek information that will help them
make the best possible decision about whether or not to purchase a product to
address the problem. Consumers will expend effort searching for information
based on how important they consider the purchase.
 Larger purchases, like buying a house or a new car, often require a great deal of
information gathering. Smaller purchases, such as – a gift for a new boyfriend or
new car speakers, may also involve extensive information searches because of their
importance to the consumer.
CONSUMER DECISION
MAKING PROCESS
Information searches fall into two main categories:
1. External Information Search
2. Internal Information Search
CONSUMER DECISION
MAKING PROCESS
1. External Information Search
 When consumers seek information beyond their personal knowledge and experience to
support them in their buying decision, they are engaging in an external information
search.
 Marketers can help consumers fill in their knowledge gaps through advertisements and
product websites.
 The Internet has become an increasingly powerful tool because it provides consumers
with on demand product information in a format that offers them as much or as little
detail as they prefer.
CONSUMER DECISION
MAKING PROCESS
A. External Information Search
 Many firms use social media to empower consumers’ external information search.
 For example, Ford uses Facebook, Twitter, YouTube, Flickr, and Scribd to
communicate information and deepen relationships with customers.
 The consumer’s friends and family serve as perhaps the most important sources of
external information. Think about the example of buying a new car and what those
in your life might say about different brands or types of vehicles.
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B. Internal Information Search
 In an internal information search, consumers use their past experiences with items
from the same brand or product class as sources of information.
 You can easily remember your favorite soft drink or vacation destination, which will
likely influence what you drink with lunch today or where you go for spring break
next year.
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MAKING PROCESS
B. Internal Information Search
 In our car example, your past experience with automobiles plays a significant role in
your new car purchase. If you have had a great experience driving a Ford Escape or
Toyota Camry, for example, you may decide to buy a newer model of that same car.
 Alternatively, if you have had a bad experience with a specific car, brand, or
dealership, you may quickly eliminate those automobiles from contention.
CONSUMER DECISION
MAKING PROCESS
Some Sources of information are mentioned below.
• Personal Contacts: This is a very strong source of information and has the greatest influence over
the mind of the consumer. Consumers tend to discuss the needs and their interests in different
products with friends, family, colleagues and acquaintances and make purchase decisions based upon
their recommendations.
• Commercial Information Sources: Electronic media, TV Ads, Newsletters, Sale Persons and Public
displays are some important types.
• Printed Sources – Newspapers and Magazines
• Previous Purchase Experiences: Consumer’s own personal experiences about the prior use of a
product.
CONSUMER DECISION
MAKING PROCESS
 Once consumers have acquired information, they can use it to evaluate different
alternatives, typically with a focus on identifying the benefits associated with each
product.
 Consumers’ evaluative criteria consist of attributes that they consider important
about a certain product.
CONSUMER DECISION
MAKING PROCESS
 For example, you would probably consider certain characteristics of a car, such as
the price, warranty, safety features, or fuel economy, more important than others
when evaluating which one to buy.
 Car marketers work very hard to convince you that the benefits of their car, truck, or
SUV reflect the criteria that matter to you.
 You should also keep in mind the importance of this stage of the decision-making
process as you interview for potential jobs. Employers are likely to evaluate you
against other job applicants on various attributes, such as – college major, GPA,
work experience, skill sets, and potential for development within the organization.
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Stage 4 – Making the Purchase:
 In this stage, the customer decides what to buy, where to buy after going through all
the above stages.
 After proper assessment of all the facts, the consumer makes a logical decision to
buy a product based upon his needs and wants.
 The Needs and want are often triggered by the advertising and marketing
campaigns, recommendations from personal connections, or maybe from both.
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Stage 5 – Post-purchase evaluation
 In the final stage of the consumer decision-making process the consumer
evaluates or analysis the purchased product, the usefulness of the product,
satisfaction delivered from the product, Value of the product with respect to the
need fulfillment of the consumer.
 If the consumer feels that the product bought delivered the value and has met
the expectation they will become the loyal customers of the product.
CONSUMER DECISION
MAKING PROCESS
 Consumers’ post-purchase evaluation is critical because their feelings about the
purchase will likely impact whether or not they become repeat buyers of that par
ticular good or service.
 As a consumer, you likely have experienced cognitive dissonance, which is
the mental conflict that people undergo when they acquire new information that
contradicts their beliefs or assumptions.
 Cognitive dissonance is sometimes referred to as buyer’s regret and often arises
when consumers begin to wonder if they made the right purchase decision.
CONSUMER DECISION
MAKING PROCESS
 Consumers’ post-purchase evaluation is critical because their feelings about the
purchase will likely impact whether or not they become repeat buyers of that par
ticular good or service.
 As a consumer, you likely have experienced cognitive dissonance, which is
the mental conflict that people undergo when they acquire new information that
contradicts their beliefs or assumptions.
 Cognitive dissonance is sometimes referred to as buyer’s regret and often arises
when consumers begin to wonder if they made the right purchase decision.
CONSUMER DECISION
MAKING PROCESS
Top 4 Factors Affecting Consumer’s Purchase Decision
A consumer’s purchase decision tends to be affected by the following four
factors:
 1. Demographic factors
 2. Psychological factors
 3. Environmental factors `
 4. Lifestyle.
CONSUMER DECISION
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1. Demographic factors
 Demographic factors are unique to a particular person. They are objective,
quantifiable, and easily identifiable population data such as sex, income, age,
and marital status.
 They also involve identification of who is responsible for the decision-making or
buying and who is the ultimate consumer.
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2. Psychographic factors
 Psychological factors refer to the intrinsic or inner aspects of an individual. An
understanding of consumer psychology guides the marketers’ segmentation
strategy.
 For example, consumers respond differently towards the same retail marketing
mix due to their respective motives, personality, perception, learning, level of
involvement, and attitude.
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 Psychological factors refer to the intrinsic or inner aspects of an
individual. An understanding of consumer psychology guides the marketers’
segmentation strategy.
 For example, consumers respond differently towards the same retail marketing
mix due to their respective motives, personality, perception, learning,
level of involvement, and attitude.
CONSUMER DECISION
MAKING PROCESS
A. Motives
 A motive is an internal energizing force that orients a person’s activities towards
satisfying a need or achieving a goal.
 Actions are influenced by a set of motives and not by just one.
 If marketers can identify the relevant motives behind consumer shopping, they can
develop a better retail marketing mix.
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A. Motives
 Maslow’s hierarchy of needs is one of the best frameworks used in this respect.
It identifies the following five needs as motives for consumer shopping:
 Physiological needs, Safety needs, Social needs, Self-esteem needs, &
Self-actualization needs
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B. Perception
 Perception is the process of selecting, organizing, and interpreting
information inputs to produce meaning.
 Recognition, selection, organization, and response to a particular stimulus is an
extremely personal process subject to individual needs, values, and expectations.
 A stimulus is any unit of input to any sensory organ.
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C. Learning
 Learning is the process through which a relatively permanent change in
behavior results from the consequences of past behavior.
 There are various theories regarding the processes involved in causing such a
permanent change in behavior.
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C. Learning
 Learning is the process through which a relatively permanent change in
behavior results from the consequences of past behavior.
 There are various theories regarding the processes involved in causing such a
permanent change in behavior.
CONSUMER DECISION
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D. Attitude
 Attitude is the consumers’ predisposition to respond favorably or unfavorably to an
element of retail mix or the retail mix in its entirety. It comprises knowledge and positive and
negative feelings about an object or activity. The object could be tangible or intangible, living
or non-living. An individual learns attitudes through experience and interaction with others.
 Consumers’ attitude towards a store and its products greatly influences the success or failure
of a retail outlet’s marketing strategy.
 Consumers’ personality and lifestyle influences attitude and attitudes change. Consumers
screen out information that conflicts with their attitudes.
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E. Personality
 Personality refers to all the internal traits and behaviors that make a person
unique.
Uniqueness is derived from heredity and personal experience.
In the retail context, consumers’ consistent and enduring patterns of shopping
behavior represents a set of characteristics which is used to target segments.
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3. Environmental factors
 Environmental factors cover all the physical and social characteristics of a
consumer’s external world, including:
 physical objects (goods and outlets)
 spatial relationships (location of the shopping center and merchandise in

stores), and the;
 social factors (opinion leaders, the person’s family, co-customers, reference
groups, social class, and culture).
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4. Lifestyle
 Lifestyle refers to an individual’s mode of living as identified by his activities,
interests, and opinions.
 Lifestyle variables have been measured by identifying a consumer’s day-to-day
activities and interests.
 Lifestyle is considered to be highly correlated with consumer values and
personality.
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4. Lifestyle
 An individual’s lifestyle is influenced, among other things, by the social group he
belongs to and his occupation.
For example, double-income-no-kids (DINKS) families in metros shop very
regularly at the super malls because of the limited time at their disposal, and
they also look for entertainment while shopping on weekends.
At the same time, they are higher spenders than single- income families.
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Top 3 Models which will Examine the Consumer Decision Making Process
1. Schiffman & Kanuk’s Model of Consumer Decision Making

2. Assaell’s Consumer Decision Making Model
3. Simple Stimulus – Response Model
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 This model speaks of the interactions between the marketer and consumer. This
process can be seen in the form of three distinct though interactive (or
interlocking) stages.
 Input stage
 Process stage
 Output stage
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Input stage
 The input stage in the consumer decision making model consists of external
environmental influences, or two major sources of information.
 These sources are the firm’s marketing mix elements (including the product or
service, its price, its promotion and location of availability) as well as the external
sociological influences on the consumer (family, peer and friends,
neighbours, other informal and non-commercial sources, social class, group
influence, religion and cultural etc.).
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Process stage
 The process stage mentioned in the model informs us on how consumers make
decisions.
 There are a few psychological factors existing within each individual (motivation,
perception, learning, personality and attitudes) which affect how the external inputs
from the input stage influences the consumer’s decision making process (recognition of
a need, pre-purchase information search and evaluation of alternatives).
 Further, the experience of going through the evaluation of alternatives, in turn, can
affect the consumer’s existing psychological attributes.
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Output stage
 The output stage of the consumer decision making model consists of two closely
linked post decision activities namely, purchase behavior and post purchase
evaluation.
 The post decision activities is also dependent upon the type of decision involved.
 For example, the purchase behavior for a low-cost nondurable product say a new
toothpaste, could be influenced by the free coupon offer and may in fact be a trial
purchase.
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Output stage
 In case the consumer is satisfied with the product after use, he or she may repeat the
purchase. The trial forms the exploratory phase of the purchase behavior, when the
consumer evaluates the product through direct usage. A repeat purchase will
indicate product adoption by the consumer.
 For a relatively durable product such as ‘ipod’ (because such products have a rapid
rate of obsolescence), the purchase is more likely to signify adoption.
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 Assaell’s model on consumer decision making as seen in figure 1.4 indicates that
the consumer’s involvement in the decision making will vary depending upon
the type of purchase involved.
 For instance, in case of high involvement purchases (or complex decisions) the
decision making process will involve information search and evaluating brand
alternatives.
 Whereas, in case of low involvement purchases the consumer make seek little or
no information and considers only one brand.
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 Figure 1.5 given below shows the various individual and environmental factors,
which can influence consumers purchase decisions.
 The consumer decision making process goes beyond the traditional facets such
as product features and design, benefits sought from the product (or brand),
suitable pricing and ideal location.
CONSUMER DECISION
MAKING PROCESS
Top 3 Models
which will
Examine
the Consumer
Decision
Making Process
2. Assaell’s
Consumer
Decision
Making Model
CONSUMER DECISION
MAKING PROCESS
3. Simple-response model
 The stimulus-response model in consumer marketing decision making process is a
simple model that suggests that consumer behavior is a direct result of external stimuli.
 The stimuli can be marketing stimuli, such as advertising, product packaging, and sales
promotions, or environmental stimuli, such as social factors, cultural factors, and
economic factors.
 The stimulus-response model is a black box model, which means that it does not take
into account the internal processes that occur in the consumer's mind when they are
responding to stimuli.
 However, the model does suggest that the consumer's response will be influenced by
their individual characteristics, such as their personality, values, and lifestyle.
CONSUMER DECISION
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3. Stimulus-response model
Here is an example of how the stimulus-response model can be applied to consumer marketing
decision making:
1. Stimulus: A consumer sees an advertisement for a new smartphone that is being offered at a
discounted price.
2. Response: The consumer is interested in the smartphone because it is new and has the features
that they are looking for. They also like the fact that it is on sale.
3. Consumer characteristics: The consumer is a tech-savvy person who is always looking for the
latest and greatest gadgets. They are also price-conscious and like to save money on their
purchases.
CONSUMER DECISION
MAKING PROCESS
3. Stimulus-response model
Here is an example of how the stimulus-response model can be applied to consumer marketing decision making:
1. Stimulus: A consumer sees an advertisement for a new smartphone that is being offered at a discounted
price.
2. Response: The consumer is interested in the smartphone because it is new and has the features that they are
looking for. They also like the fact that it is on sale.
3. Consumer characteristics: The consumer is a tech-savvy person who is always looking for the latest and
greatest gadgets. They are also price-conscious and like to save money on their purchases.
In this example, the stimulus (the advertisement) triggered a response (the consumer's interest in the smartphone)
because of the consumer's individual characteristics (their tech-savvy nature and price-consciousness).
CONSUMER DECISION
MAKING PROCESS
Top 3
Models
which will
Examine
the Consum
er Decision
Making
Process
3. Stimulus-
response
model
CONSUMER DECISION
MAKING PROCESS
Socio-Cultural Influences on Consumer Buying Decisions
People around us also influence buying decisions.
There are four broad groups:
 1. Role influences
 2. Reference groups influences
 3. Social class influences
 4. Culture infuences
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 1. Role influences
 A role is a set of characteristics and expected social behavior based on the
expectations of others.
 The role assumed influences both the general behavior and buying behavior.
 A woman can be a housewife and a buyer at a supermarket. As a shopper, she takes
many buying decisions.
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 2. Reference group influences
 It is a group to which we belong or which is used for comparison purposes.
Members of reference groups tend to influence the values, attitudes and behavior of
others.
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Here are some examples of reference groups that influence consumer buying decisions:
• Family: Family members are often the most influential reference group, especially for younger
consumers. Family members can influence consumer buying decisions in a variety of ways, such as by
recommending products or services, sharing their own opinions and experiences, and serving as role
models.
• Friends: Friends are another important reference group that can influence consumer buying
decisions. Consumers often look to their friends for advice and recommendations on products and
services. They may also be influenced by the products and services that their friends use.
• Peers: Peers are individuals who are similar to consumers in terms of age, social status, and other
factors. Consumers may be influenced by the products and services that their peers use, as well as by
their peers' opinions and attitudes towards different products and brands.
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Here are some examples of reference groups that influence consumer buying decisions:
• Co-workers: Co-workers are another important reference group that can influence consumer buying
decisions. Consumers may be influenced by the products and services that their co-workers use, as well
as by their co-workers' opinions and attitudes towards different products and brands.
• Aspirational groups: Aspirational groups are groups of people that consumers admire and aspire to
be like. Aspirational groups can influence consumer buying decisions by motivating consumers to
purchase products and services that will help them to achieve their desired lifestyle.
Source: Kotler, Philip, and Kevin Lane Keller. Consumer Behavior: Building Customer Value. 14th ed. Pearson, 2023.
CONSUMER DECISION
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 3. Social class influences
 A social class consists of similar people in terms of income, occupation, life-styles, interests, behaviors.
 People are ranked according to social classes, e.g., upper class, middle class and lower class. Each major
class can have sub-categories such as upper class, middle upper class, and lower upper class.
 There are several factors that indicate the class, e.g., land or house ownership, education, income, area
of residence, etc.
 People of one social class have similar attitudes, values and possessions. Marketers target their products
to a particular social class.
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MAKING PROCESS
 4. Cultural influences
 Culture is the accumulation of values and beliefs, rules of behavior, transmitted

behavioral patterns, forms of expression and the like for a group of people who
share a common language and environment.
 Culture either encourages or discourages particular behavior.
 Language is the main vehicle for cultural transmission.
CONSUMER DECISION
MAKING PROCESS
 4. Cultural influences
Here is an example of cultural influences on consumer buying decisions:

 Consumers in China are more likely to purchase red products during the Chinese New Year holiday.
 This is because the color red is associated with good luck and prosperity in Chinese culture. During the Chinese
New Year holiday, consumers often purchase red clothing, decorations, and food items to bring themselves good
luck in the coming year.
 Another example is that consumers in India are more likely to purchase gold jewelry than consumers in other
cultures. This is because gold is seen as a status symbol and an investment in India. Indian consumers often
purchase gold jewelry for special occasions, such as weddings and festivals.
CONSUMER DECISION
MAKING PROCESS
Influencers in Household Buying Decision-Making Process
The key influencers in the household decision-making process can vary depending on
the specific product or service being purchased, as well as the individual household's
dynamics. However, some of the most common key influencers include:
• Spouses/partners: Spouses and partners often have a significant influence on
each other's purchasing decisions. They may consult with each other on major
purchases, such as a new car or home, or they may simply influence each other's
preferences over time.
• Parents: Parents often have a significant influence on their children's purchasing
decisions. This is especially true for younger children, who may rely on their parents
to provide them with information and guidance about products and services.
CONSUMER DECISION
MAKING PROCESS
Influencers in Household Buying Decision-Making Process
• Children: Children can also influence their parents' purchasing decisions. This is
especially true for older children, who may have more disposable income and their
own unique preferences.
• Other household members: Other household members, such as grandparents,
siblings, and roommates, can also influence household purchasing decisions. Their
influence may vary depending on the specific product or service being purchased, as
well as their relationship with the other household members.
In addition to the key influencers listed above, other factors such as social class,
culture, and lifestyle can also influence household purchasing decisions.
CONSUMER DECISION
MAKING PROCESS
How did women changed the rules in buying decision-making process in
the society?
Women have changed the rules of buying decision-making in the society in a number
of ways.
 First, women have become more financially independent. In the past,
women were often financially dependent on their husbands or fathers. This meant
that they had less say in household purchasing decisions.
 However, today, more and more women are working and have their own disposable
income. This has given them more power in the household and more influence over
purchasing decisions.
CONSUMER DECISION
MAKING PROCESS
the society?
of ways.
 Second, women have become more educated. In the past, women were often
less educated than men. This meant that they may have had less knowledge about
products and services and less confidence in their ability to make informed
purchasing decisions.
 However, today, more and more women are attending college and graduate school.
This has given them the knowledge and confidence to make informed purchasing
decisions.
CONSUMER DECISION
MAKING PROCESS
the society?
of ways.
 Third, women have become more visible in the workforce and in society
as a whole. In the past, women were often confined to the home. This meant that
they had less exposure to the outside world and less access to information about
products and services.
 However, today, women are working in all industries and holding all levels of
positions. This has given them more exposure to the outside world and more access
to information about products and services.
CONSUMER DECISION
MAKING PROCESS
the society?
of ways.
 Third, women have become more visible in the workforce and in society
as a whole. In the past, women were often confined to the home. This meant that
they had less exposure to the outside world and less access to information about
products and services.
 However, today, women are working in all industries and holding all levels of
positions. This has given them more exposure to the outside world and more access
to information about products and services.
CONSUMER DECISION
MAKING PROCESS
the society?
As a result of these changes, women have become more powerful buyers. They have
more financial independence, more education, and more exposure to the outside
world. This has given them more influence over household purchasing decisions and
more influence over the products and services that are available in the marketplace.
Here are some specific examples of how women have changed the rules of buying
decision-making in society:
• Women are now the primary breadwinners in many households. This means that
they have more influence over how money is spent.
CONSUMER DECISION
MAKING PROCESS
How did women changed the rules in buying decision-making process in the
society?
Here are some specific examples of how women have changed the rules of buying decision-
making in society:
• Women are more likely to do online research before making a purchase. This gives them
more information about products and services and allows them to compare prices more easily.
• Women are more likely to read product reviews and recommendations from other
consumers before making a purchase. This helps them to make more informed decisions.
• Women are more likely to share their shopping experiences with others, both online and
offline. This helps to spread the word about products and services and can influence the
purchasing decisions of others.

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LESSON 3:

 Mood may be defined as a feeling state or state of the mind.

 spatial relationships (location of the shopping center and merchandise in

1. Schiffman & Kanuk’s Model of Consumer Decision Making

 Culture is the accumulation of values and beliefs, rules of behavior, transmitted

 Language is the main vehicle for cultural transmission.

Here is an example of cultural influences on consumer buying decisions:

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