CHAPTER 3

The consumer decision

process

The consumer decision process

How do consumers make purchase decisions?
How do firms use this information to develop new
products and marketing programs?
The CDP represents a road map of consumers
minds that marketers and managers can use to
help guide product mix, communications, and
sales strategies

The consumer decision process

P&G used consumer
information regarding
various decision process
stages to create and
market Dryel

Consumer decision process model

Need recognition
Search for information
Pre-purchase evaluation of alternatives
Purchase
Consumption
Post-consumption evaluation
Divestment

Need recognition
An individual senses a difference between what he
or she perceives to be the ideal versus the actual
state of affairs
Consumers recognise needs and seek to fulfill
them, or seek a product to solve their problems
Knowing consumers needs helps firms develop
products and marketing programs to reach them
more effectively

Need recognition

M
E
M
O
R
Y

Need
recognition

Environmental
Influences
- Culture
- Social class
- Personal influence
- Family
- Situation
Individual differences
- Consumer resources
- Motivation
- Knowledge
- Attitudes
- Personality, values
and lifestyle

Consumer decision process model

Need recognition
Internal
search

Environmental
influences

Exposure
Stimuli

Attention

Comprehension
Acceptance
Retention

Search

M
E
M
O
R
Y

Individual
differences

Search for information

Internal search: retrieving knowledge from
memory or genetic tendencies
External search: collecting information from
peers, family, and the marketplace
Search may be passive as consumers become
more receptive to information around them, or
active if they engage in search behaviour
Search refers to a receptivity of information that
solves problems or needs rather than a search for
specific products

Search: Sources of information

Marketer dominated
- Advertising
- Salespeople
- Infomercials
- Websites
- Point-of-sales materials

Non-marketer dominated stimuli

- Friends
- Family
- Opinion leaders
- Media

Information processing
As a consumer is exposed to information from
external search, they begin to process the stimuli

Exposure
Stimuli:
- Marketer
dominated
- Non-marketer
dominated

Attention
Comprehension
Acceptance
Retention

M
E
M
O
R
Y

Consumer decision process model

Need recognition
Internal
search
Exposure
Stimuli

Attention

Comprehension
Acceptance
Retention

M
E
M
O
R
Y

Search
Pre-purchase
evaluation of
alternatives

Environmental
influences
Individual
differences

Pre-purchase evaluation of
alternatives
The process of evaluating alternatives identified
from search, which leads to a product or brand
selection most likely to satisfy the consumer
Can use new or preexisting evaluations stored in
memory
Evaluative criteria: standards and specifications
used to compare different products and brands
Alternative can be considered on attributes that are
salient or determinant

Pre-purchase evaluation of
alternatives
Salient attributes such as price and reliability are
important to the consumer
Determinant attributes such as a cars style and
finish usually determine which brand or store
consumers choose

Consumer decision process model

Need recognition
Internal
search
Exposure
Stimuli

Attention

Comprehension
Acceptance
Retention

M
E
M
O
R
Y

Search
Pre-purchase
evaluation of
alternatives
Purchase

Environmental
influences
Individual
differences

Purchase
Acquisition of the product that involves choosing a
specific retailer, and in-store choices
Purchase intention can change during the purchase
stage it can be influenced by factors such as
in-store promotions, discounts, salespeople, failure
to find the product, or lack of financial resources

Consumer decision process model

Need recognition
Internal
search
Exposure
Stimuli

Attention

Comprehension
Acceptance
Retention

M
E
M
O
R
Y

Search
Pre-purchase
evaluation of
alternatives
Purchase
Consumption

Environmental
influences
Individual
differences

Consumption
The process of using the product or service
purchased
Consumption can either occur immediately or be
delayed
How consumers use a product affects satisfaction
with product
How carefully consumers use or maintain a product
also determines how long it will last before another
purchase is needed

An emotional appeal in
product consumption

Consumer decision process model

Need recognition
Internal
search
Exposure
Stimuli

Attention

Comprehension
Acceptance
Retention
External
search

M
E
M
O
R
Y

Search
Pre-purchase
evaluation of
alternatives
Purchase

Environmental
influences
Individual
differences

Consumption
Post-consumption
evaluation

Dissatisfaction

Satisfaction

Post-consumption evaluation
Consumption is an important determinant of satisfaction
Satisfaction: when consumers expectations are matched by
perceived performance
Dissatisfaction: when experiences and performance fall
short of expectations
Cognitive dissonance: questioning the purchase decision
(post-purchase regret)
Usually, the higher the price, the higher the level of cognitive
dissonance
Emotion strongly affects the evaluation of a product or
transaction

Consumer decision process model

Need Recognition
Internal
Search
Exposure
Stimuli

Attention

Comprehension
Acceptance
Retention
External
Search

M
E
M
O
R
Y

Search
Pre-purchase
Evaluation of
Alternatives
Purchase

Environmental
Influences
Individual
Differences

Consumption
Post-consumption
Evaluation

Dissatisfaction

Satisfaction

Divestment

Divestment
How consumers dispose of the packaging or
product after use
Options include:
Disposal
Remarketing or reselling
Recycling

Variables shaping the decision

process
Identify relationships and variables that affect
consumer decision making
Identify topics for additional research
Develop and implement marketing mix strategies

Variables shaping the decision

process
Individual differences:
Demographics, psychographics, values, and personality
Consumer resources
Motivation
Knowledge
Attitudes

Environmental differences:
Culture
Social class
Family
Personal influence
Situation behaviours

Variables Shaping the Decision

Process
Psychological processes influencing
consumer behaviour
Information processing
Learning
Attitude and behavior change

Consumer decision process

continuum
Extended
Problem
Solving
(EPS)

Midrange
Problem
Solving

High
Degree of complexity

Limited
Problem
Solving
(LPS)

Low

Consumer decision process

continuum: Repeat purchases
Extended
Problem
Solving

Midrange
Problem
Solving

High
Degree of complexity

Limited
Problem
Solving

Habitual
Problem
Solving

Low

Types of decision processes

Initial purchase
Extended Problem Solving (EPS):
Problem solving of a higher degree of complexity that
influences consumers actions
Often occurs with expensive items or can be fueled by
doubts and fears
Importance in making the right choice
All seven consumer decision making stages are often
activated
Dissatisfaction is often vocal

Types of decision processes

Initial purchase
Limited Problem Solving (LPS):
Problem solving of a lower degree of complexity that
influences consumers actions
Consumers dont have motivation, time, or resources to
engage in EPS
Little search and evaluation before purchase
Need recognition leads to buying action; extensive search
and evaluation often avoided as the purchase is not of great
importance

Types of decision processes

Initial purchase
Midrange Problem Solving:
Many decisions occur along the middle of the continuum
Decisions are made with a minimal amount of time and
only moderate deliberation

Repeat purchases
Repeated Problem Solving
Habitual Decision Making

Impulse Buying
Unplanned, spur-of-the-moment action triggered by
product display or point of sale promotion
Least complex form of LPS but differs in some
important ways

Types of decision processes

Variety seeking
Consumers may be
satisfied with the present
brand but still engage in
brand switching
Can be triggered
because bored with current
brand or because of
special offer

Factors influencing problem

solving extent
Degree of involvement: Level of perceived personal
importance and interest evoked by a stimulus in a
specific situation (High-Low)
Personal factors (self-image, health, beauty, or
physical condition)
Product factors (is there perceived risk in
purchasing and using a particular brand or
product?)
Situational factors (is the product purchased for
personal use or as a gift?)

Factors influencing problem

solving extent
Degree of Involvement (High-Low)
Perceptions of differences among alternatives
Time availability
How much time is available to devote to solving the problem?
How quickly does the decision need to be made?

Consumers mood state

How people feel at a
particular moment
Mood can reduce or
increase length and
complexity of decision process