Consumer Decision Making Process

Made by Pawan KumarParul Saxena

CONSUMER BEHAVIOR

• Consumer behaviour is the study of when, why, how, and where people do or do not buy a product.

• It blends elements from psychology, sociology, social anthropology and economics.

• It attempts to understand the buyer decision making process, both individually and in groups.

• It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand peoples wants.

• Consumer behaviour in management is a very young discipline and form an important part in both formulation and implementation of all marketing strategies .

• It was during the 1950s, that marketing concept developed, and thus the need to study the behaviour of consumers was recognised.

• Marketing starts with the needs of the customer and ends with their satisfaction.

• When every thing revolves round the customer, then the study of consumer behaviour becomes a necessity.

CHARACTERISTIC AFFECTING CONSUMER BEHAVIOR

CULTURALCultural

SubcultureSocial class

SOCIAL

Reference groupsFamily

Roles & Status

PERSONAL

Age and Life cycle stage

OccupationEconomic situation

Life style Personality

Self concept

PSYCHOLOGICAL Motivation Perception Learning Beliefs and attitudes

BUYERS DECISION PROCESSPROCESS

Need Recognition

Information Search

Evaluation of alternatives

Purchase decision

Post purchase decision

NEED RECOGNITION

Need of Consumer• External Stimuli• Internal Stimuli• InterestExample:Need recognition: It’s sunday night. You’re hungry

(internal physiological stimuli) and there is nothing in the fridge. You will order food (statement of need).

INFORMATION SEARCH• Personal: Friends, Family, Neighbours• Commercial: Advertising, dealers, salesperson,

websites• Public: Mass media• Experimental: Handling, Examining, using the ProductExample:Information search: You already have ordered to the Indian

restaurant in your street last month (internal information). A friend recommended a pizzeria in your neighbourhood (external information from environment). And this morning you’ve found a flyer for a sushi restaurant in your mailbox (external information from advertising).

EVALUATION OF ALTERNATIVES• Belief• Price• Styling• Warranty• Attitudes

Example:Alternative evaluation: You have a bad opinion of the Indian

restaurant since you’ve been sick the last time (inept set). The pizzeria is both recommended by your friend and also happens to be a well-known brand (positive perception – evoked set). As for the sushi restaurant, it got good reviews on Tripadvisor.

PURCHASE DECISION• Dealer• Brand• Quantity• Payment method• Timing In executing a purchase intention the consumer make up to five

subdivisions

Example:Purchase decision: After evaluating the possibilities, you’ve

decided to choose the well-known pizza delivery chain. In addition, a new episode of your favorite TV show is broadcasted tonight on TV

POST PURCHASE BEHAVIOUR • POST PURCHASE SATISFACTION:Disappointed, Satisfied, Delighted• POST PURCHASE ACTION:Exit potion, voice option• POST PURCHASE:Use and Disposal

Example:Post-purchase behavior: The pizza was good (positive review).

But you know there was too many calories and you regret a little bit (mixed feelings about yourself). The next time you will choose the sushi restaurant. There is less fat in sushi than pizza (next purchase behavior)!

Let’s have some more examples...!

Cosmetics Mobile

Home

Appliance Services

Daily utilities

Understand the Consumer Buying Decision Process in order to adapt your marketing

strategy

• By improving their knowledge of the Consumer Buying Decision Process, brands can improve their marketing strategy to effectively respond and be present with their customers at each stage of their buying behavior. And thus raise and create a need, strengthen their relationship with their customers and grow their sales.