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Consumer Decision Making Process
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Consumer Decision making is a process through which the customer
selects the most appropriate product out the several alternatives.
CHOOSE YOUR SUBJECT
The Consumer decision making process consists of a series of steps that a
buyer goes through in order to solve a problem or satisfy a need. They are Advertising Management (20)
as follows: Articles (240)
Banking and Insurance (10)
Blog (34)
(1) Need/Problem Recognition – A purchase process starts with a need, Business & Entrepreneurship (6)
a problem or a motive within a consumer`s mind. Any internal or external Business Communication (15)
stimulus may drive a customer to believe that he lacks something and Business Environment (21)
motivates him to look for something that will satisfy his need or solve his Business Ethics (2)

problem. Business Law (1)

Business Statistics (49)
Company Law (14)
(2) Information Search – When a need/problem receives heightened
Computer Applications (9)
attention from a buyer, he become more receptive about information that
Consumer Behaviour (22)
may solve his problem and starts gathering data about products/services
Cost Accounting (3)
that will satisfy this need. He uses his personal sources (friends, family,
E-commerce (8)
peers etc.) and commercial sources (radio, T.V., newspapers, internet etc.)
Entrepreneurship (11)
to look for relevant information.
Financial Accounting (2)
Financial Management (23)
(3) Evaluation of Alternatives – After collecting information from various
Financial Services (19)
sources, the customer evaluates the benefits and disadvantages of various Human Resource Management (18)
product alternatives and develops a set of choices regarding the product Income Tax (2)
attributes, brand, store etc. that suit his/her needs, taste & preference, International Business (13)
personality, lifestyle etc. Investment Analysis & Portfolio Management
(10)
(4) Selection and Trial – After keeping a set of choices in mind the IT & Technical Skills (5)
customer makes the first product trial. He may buy different products in Macro-Economics (9)
small quantities (1 kg, 1 packet, 1 bottle) or actually use products Management Accounting (5)
individually for some time (tasting food, inspecting phones, taking a test Management Information System (4)
drive) to form an opinion and develop an attitude towards the product. Managerial Economics (2)
Marketing & Advertising (7)
(5) Purchase Decision – When the customer believes that a product or Marketing Management (18)
service offers the best solution to his need or problem, he makes the actual Marketing of Services (6)
purchase. This includes making a product choice, choosing a brand, a Micro-Economics (2)

dealer and deciding the amount and time of purchase. Operations Management (2)
(5) Post Purchase Dissonance/Behaviour – A person seeks reassurance Organizational Behaviour (7)
after making a purchase. A purchase generally has the following three Personal Finance (2)
outcomes: Principles of Management (9)
Project Management (11)

Actual Performance is equal to expected performance – Customer`s Projects and Presentations (33)

behaviour is natural as the product performed according to his Public Finance (11)
Research Methodology (9)
expectations. This leads to repeat purchases.
Rural Marketing (1)
Actual Performance is less than expected performance – The
Strategic Management (14)
customer is dissatisfied as the product did not meet his expectations and
hence he rejects the product.
Actual Performance is more than expected performance – This leads RECENT POSTS
to customer delight/satisfaction as the product performance is better than
his expectations. This leads to customer loyalty. Investment Analysis – Introduction,
Objectives, Process

Levels of Consumer Decision Making May 5, 2018

Social Exchange, Equity & Balance Theory,

Extensive Problem Solving – Consumers are highly involved in the Interpersonal competence
product and critically evaluate the product on the basis of established April 16, 2018
product criteria that will fulfill his/her need.
IRDAI – Insurance Regulatory Development
and Authority of India
Limited Problem Solving – Consumer conducts a general search for a
April 1, 2018
product that will satisfy his/her basic product criteria from a selected group
of brands. Learning Theories – Cognitive,
Conditioning, Social Learning Theories

Routine Response Behaviour – The consumer has very low involvement March 31, 2018

in the product and he selects any product or brand that fulfills the basic
Leadership Styles – Types of Leadership
need. Styles
March 27, 2018

Models/ Four Views of Consumer Decision Making

Inventory, Inventory Control – Theory Notes
(A) Economic View or Model – This model assumes that a consumer is January 13, 2018

rational person and he takes rational decisions. He compares various

products, evaluates its benefits and disadvantages, and then makes a
purchase decision on the basis of information collected. He is aware of all Organization Design – Types of
Organization Structure
product alternatives and is capable of ranking products in terms of benefits
January 2, 2018
and disadvantages. However this model is considered unrealistic as people
are limited by skills, habits, existing values and perceptions and they are Marketing Information System –
not always rational when making a purchase decision. Components, Importance
December 20, 2017

Budget, Budgeting, Budgetary Control

December 20, 2017
(B) Passive View or Model – This model assumes that the consumers
take decisions according to the promotional efforts of the marketers and
Resistance to change – Levels, Overcoming
respond directly to the sales and advertisement appeals offered by the Resistance
marketers. It is opposite to the economic model, as it assumes people will December 18, 2017
evaluate a product depending upon how it is promoted and positioned in
the market. However this model is also unrealistic as the consumers are
capable of collecting and evaluating information about product alternatives
and then making a purchase.

(C) Cognitive View or Model – The cognitive view is the best of the four
models of consumer decision making. This model states that the
consumers make decisions on the basis of their own interests and
understanding of the market demand and not according to their rational
needs or promotional efforts of the marketers. Every marketer must help
consumers to develop a short-cut decision rules that shorten the decision
making process and lead to instant purchases.
(D) Emotional View or Model – The Emotional model states that all
consumers are emotional and act upon their emotions while making a
purchase decision. Consumers make more impulsive purchases when they
relate themselves with a product or service. They take less time to think
whether the product is necessary for them or not, but develops negative or
positive emotions related with the product. Hence products that bring
negative emotions are avoided and products that bring positive emotions in
a consumer are bought by him.

Consumer Decision Rules

(1) Compensatory Decision Rule – In such a decision rule the consumer

evaluates each brand in terms of each relevant attribute and then selects
the brand with the highest score.

Result: Consumer selects a product after carefully evaluating all product

attributes and balancing the pros and cons of each attribute.

(2) Non-compensatory Decision Rule – According to this decision rule, a

positive evaluation of a brand or product attribute does not compensate for
negative evaluation of the same brand or product on some other attribute
i.e. a positive attribute of the product does not make the consumer overlook
the negative attributes of the product.
 Conjunctive Decision Rule – Consumers establish a minimum cut-off
point for each product attribute and brands that fall below the cut-off point
on any one attribute are not considered.

Result: Consumer selects a product which has no negative attributes or

bad features.

Disjunctive Decision Rule – Consumers establish minimum cut-off

points for only those product attributes that are relevant to him.

Result: Consumer selects a product that excels in at least one attribute.

Lexicographic Rule – Consumers first rank the product attributes in

terms of importance and then compares the important attributes.

Result: Consumer selects the product that excels in the attribute that is
important to the consumer.

(3) Affect Referral Decision Rule – A type of consumer decision rule in

which a consumer makes a product choice on the basis of his previously
established experience and rating of the product/brand rather than on
specific attributes.

Result: Consumers buy a brand with the highest overall rating.

BY: BBAMANTRA / IN: ARTICLES, CONSUMER BEHAVIOUR / WITH: 0 COMMENTS

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