Module 2: Consumer Decision Process: Need recognition, information search, evaluation

of alternatives, purchase decision, consumption and post-purchase evaluation, Variables

that shape decision process- individual differences, psychological processes,
environmental influences, Types of decision process – complex decision making, variety
seeking, impulse buying, loyalty, degree of involvement in buying

Consumer Decision Process: The consumer decision process, also known as the consumer
buying process or the buyer's journey, is a series of steps that consumers go through when
purchasing a product or service. Understanding this process is crucial for businesses to
effectively market and sell their offerings. While there are various models describing the
consumer decision process, a common framework consists of five stages:
1. Need Recognition: This is the initial stage where a consumer becomes aware of a need or
want. This can be triggered by internal stimuli (like hunger, thirst, or boredom) or external
stimuli (such as advertising, recommendations, or seeing others with a product). Marketers
often focus on this stage to create awareness of their products or services and to stimulate
demand.
2. Information Search: Once the need is recognized, the consumer begins to search for
information about possible solutions. This can involve internal searches (drawing from
memory or past experiences) and external searches (consulting friends, family, reviews, or
conducting online research). Marketers try to provide relevant and easily accessible
information to aid consumers in this stage.
3. Evaluation of Alternatives: In this stage, the consumer assesses the available options
based on various criteria like price, quality, features, brand reputation, and personal
preferences. They may compare different products or services, weighing the pros and cons
of each. Marketers often try to differentiate their offerings from competitors and highlight
their unique value propositions to influence this evaluation process.
4. Purchase Decision: After evaluating alternatives, the consumer makes a decision to
purchase a particular product or service. Factors influencing this decision can include price,
availability, convenience, brand loyalty, and emotional factors. Marketers use various
strategies such as discounts, promotions, and persuasive messaging to encourage
consumers to make a purchase.
5. Consumption: This stage involves the actual use of the purchased product or service.
Consumers may derive satisfaction from their purchase if it meets their expectations and
fulfils their needs. Marketers aim to ensure a positive consumption experience by delivering
on promises, providing quality products, and offering excellent customer service.
6. Post-Purchase Evaluation: After consuming the product or service, the consumer
evaluates their satisfaction level. If the product meets or exceeds expectations, the
consumer is likely to experience satisfaction and may become a repeat customer or
advocate for the brand. Conversely, if the product fails to meet expectations, the consumer
may feel dissatisfied and may seek refunds, returns, or share negative feedback. Marketers
focus on post-purchase communication and support to reinforce positive experiences and
address any issues that may arise.

These stages collectively form the consumer decision-making process, which is dynamic and
influenced by various internal and external factors. Marketers analyze and understand
these stages to develop effective strategies that guide consumers through the process and
ultimately lead to successful conversions and long-term relationships.

Variables that shape decision process- individual differences, psychological processes,

environmental influences

Individual Differences:
 Demographics: Age, gender, income level, occupation, education, and family life cycle
stage can influence consumer preferences and decision-making behaviours. For
example, younger consumers may be more receptive to new technology, while older
consumers may prioritize reliability and familiarity.
 Personality and Lifestyle: Individual personality traits and lifestyle choices can impact
consumer behaviour. Some consumers may be more adventurous and willing to take
risks, while others may be more conservative and risk-averse. Lifestyle choices, such as
hobbies, interests, and values, also influence purchasing decisions.
 Attitudes and Beliefs: Consumers' attitudes and beliefs towards products, brands, and
marketing messages shape their decision-making process. Positive attitudes and strong
beliefs can lead to brand loyalty and repeat purchases, while negative attitudes can
deter consumers from buying certain products or brands.
 Motivation and Needs: Consumers' motivations and needs drive their purchasing
decisions. Maslow's hierarchy of needs suggests that individuals seek to fulfil
physiological, safety, social, esteem, and self-actualization needs, which influence their
buying behaviours. Understanding consumers' motivations helps marketers tailor their
messaging and offerings to resonate with their target audience.
 Perception and Learning: How consumers perceive and interpret information influences
their decision-making process. Perception involves how individuals select, organize, and
interpret sensory inputs to create meaningful experiences. Learning refers to the
process of acquiring new knowledge, behaviours, and attitudes through experience and
exposure to stimuli. Marketers leverage perception and learning principles to design
effective advertising campaigns and brand messaging.

Psychological Processes:
 Cognition: Mental processes such as attention, perception, memory, and problem-
solving play a crucial role in consumer decision-making. Consumers process information
from various sources and use cognitive processes to evaluate alternatives and make
decisions.
 Emotion: Emotions strongly influence consumer behaviours and decision-making.
Positive emotions, such as happiness and excitement, can drive impulse purchases and
brand loyalty, while negative emotions, such as fear and anxiety, can deter consumers
from buying certain products or engaging with certain brands.
 Motivation: Consumer motivation refers to the internal drives and desires that compel
individuals to act in certain ways. Motivated consumers are more likely to engage in
information search, evaluate alternatives, and make purchasing decisions. Marketers
use motivational appeals to influence consumer behaviours and encourage action.
 Perception: Perception involves how consumers interpret and make sense of
information from the external environment. Factors such as selective attention, selective
distortion, and selective retention influence how consumers perceive marketing
messages and products. Marketers strive to create positive perceptions of their offerings
through effective branding, positioning, and messaging.

Environmental Influences:
 Cultural Factors: Culture, subculture, and social class shape consumers' values, beliefs,
and behaviours. Cultural norms, traditions, symbols, and rituals influence product
preferences, consumption patterns, and purchasing decisions. Marketers must
understand cultural differences and tailor their strategies accordingly to resonate with
diverse consumer segments.
 Social Factors: Social influences such as reference groups, family, peers, and social
networks impact consumer decision-making. Consumers seek approval, acceptance, and
validation from others, leading them to conform to group norms and adopt group
preferences. Word-of-mouth recommendations, social proof, and social media
interactions play a significant role in shaping consumer perceptions and behaviours.
 Personal Influence: Personal influences such as opinion leaders, influencers, and role
models can sway consumer attitudes and purchasing decisions. Individuals may seek
advice, guidance, and recommendations from trusted sources when making buying
decisions. Marketers often leverage personal influence tactics to engage with influential
individuals and amplify their brand messaging.
 Situational Factors: Situational factors such as time constraints, urgency, and context
influence consumer decision-making. Consumers may adjust their preferences and
choices based on situational factors such as location, weather, occasion, and mood.
Marketers can capitalize on situational cues to create targeted promotions and
personalized experiences that align with consumers' immediate needs and desires.

Understanding these variables allows marketers to develop more effective strategies that
resonate with consumers and drive desired outcomes. By addressing individual differences,
psychological processes, and environmental influences, marketers can create tailored
experiences that meet consumers' needs, preferences, and motivations.

Types of decision process – complex decision making, variety seeking, impulse buying,
loyalty, degree of involvement in buying

1. Complex Decision Making:

 Description: Complex decision making occurs when consumers face high-involvement
purchases that involve significant investment of time, effort, and resources. These
purchases typically involve expensive or high-risk products/services with substantial
consequences.
 Characteristics: Consumers engage in extensive information search, carefully ev aluate
alternatives, consider multiple criteria, and deliberate over their choices. They may seek
out detailed product information, compare features and benefits, read reviews, and
consult with experts or peers before making a decision.
 Example: Buying a house, selecting a college or university, choosing a healthcare
provider, purchasing a car, or investing in financial products.

2. Variety Seeking:
 Description: Variety seeking occurs when consumers seek novelty and variety in their
purchases. They may be motivated by a desire for stimulation, exploration, or change
and may choose different options to avoid boredom or routine.
 Characteristics: Consumers may exhibit spontaneous and unpredictable buying
behaviours, trying new products or brands without extensive evaluation. They may be
attracted to unique or unconventional offerings and enjoy experimenting with different
choices.
 Example: Trying a new restaurant, exploring new fashion trends, experimenting with
different flavours of a product, or sampling various leisure activities.

3. Impulse Buying:
 Description: Impulse buying refers to spontaneous, unplanned purchases made without
much forethought or deliberation. These purchases are often driven by emotional
impulses, immediate desires, or situational factors.
 Characteristics: Consumers make impulsive purchases on the spur of the moment, often
influenced by factors such as attractive displays, limited-time offers, peer pressure, or
mood. They may experience a sudden urge to buy and act on impulse without fully
considering the consequences.
 Example: Buying snacks at the checkout counter, purchasing items featured in a flash
sale, making unplanned purchases while browsing online, or buying souvenirs on
vacation.

4. Loyalty:
 Description: Loyalty decision making occurs when consumers repeatedly purchase the
same brand or product over time. It reflects a strong preference for a particular brand or
a sense of attachment and commitment to the brand.
 Characteristics: Consumers exhibit brand loyalty by consistently choosing a specific
brand or product, even when other alternatives are available. They may develop strong
brand associations, trust in the brand's quality and reliability, and feel a sense of
identification with the brand's values.
 Example: Always buying a particular brand of clothing, consistently choosing a specific
brand of smartphone, remaining loyal to a favourite coffee shop or restaurant, or
sticking with a preferred airline or hotel chain.

5. Degree of Involvement in Buying:

 Description: Degree of involvement refers to the level of importance and personal
relevance that consumers attach to a purchase decision. It varies based on factors such
as product category, consumer preferences, and situational context.
 Characteristics: Consumers may exhibit different levels of involvement ranging from low
involvement (routine or habitual purchases with minimal decision-making effort) to high
involvement (significant investment of time, effort, and emotional energy).
 Example: Low-involvement purchases may include everyday items like groceries,
toiletries, or household supplies, while high-involvement purchases may include major
appliances, electronics, or luxury goods.

Understanding these types of decision processes helps marketers tailor their strategies to
effectively reach and engage consumers based on their specific decision-making behaviours
and preferences. By recognizing the factors that influence consumer decision making,
marketers can develop targeted approaches to influence purchasing decisions and build
lasting relationships with their target audience.