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CONSUMER BEHAVIOUR

MCB 3013

CONSUMER DECISION MAKING PROCESS


MATRIC NO. STUDENT NAME
1111768 MUHAMMAD ZARIN BIN MISLAN
1111773 MOHAMAD MUSTAIN BIN SAARI
1111790 MUHAMMAD MUIZZUDDIN BIN MUSA
1111787 MUHAMMAD ZAEMI BIN IBRAHIM

LECTURER: MOHAMMAD NOORIZZUDDIN NOOH


1.0 INTRODUCTION

Decision making is a daily activity for any human being. There is no exception about that. When it
comes to purchasing something, decision making is a habit and a process as well.
Effective and successful decisions make profit to the company or individual and unsuccessful
ones make losses. Therefore, decision making process is the most critical process to individual or in any
organization.
In the decision making process, we choose one course of action from a few possible alternatives.
In the process of decision making, we may use many tools, techniques and perceptions. Buyers who face
a new-task buying situation usually go through all stages of the buying process. Buyers making modified
or straight rebuys may skip some of the stages.
In addition, we may make our own private decisions or may prefer a collective decision from the
opinion of others. Usually, decision making is hard. Majority of corporate decisions involve some level of
dissatisfaction or conflict with another party.




2.0 STEPS OF DECISION MAKING PROCESS






















STEP 1
Problem Recognition
STEP 2
Information Research
STEP 3
Information Evaluation
STEP 4
Selection Stage
STEP 5
Evaluation of Decision
2.1 PROBLEM RECOGNITION
Most decision making starts with some sort of problem. The consumer develops a need or a want
that they want to be satisfied. The consumer feel like something is missing and needs to address it to get
back to feeling normal.
Example: Zakiuddin is an IPTA student in Islamic Science University of Malaysia. Zakiuddin feels his
mobile phone is outdated than the other students in that university. He has decided to purchase a new
mobile phone.
There are a couple of questions one should ask when it comes to identifying the purpose of the decision.
What exactly is the problem?
Why the problem should be solved?
Who are the affected parties of the problem?
Does the problem have a deadline or a specific time-line?

Later, after get through all the decision making process, all the question above will be involved in
order to solve the problem.
2.2 INFORMATION RESEARCH
Most of us are not experts on everything around us. In the searching phase, we research for
products or services that can satisfy our needs or wants.
This part of the consumers decision making process is where they are looking for more
information. They search for this either internally or externally. Whats the difference between the two?
Internal search is what someone already knows, such as pre-existing knowledge of the product or from
the consumers memory. An external search is as simple as the consumer going on Google to look for a
product review or perhaps even video demonstrations on YouTube.
This table below show us about the difference between internal and external source:


INTERNAL SOURCE EXTERNAL SOURCE
Definition
Information or data that come from the
consumer-self.
Information or data that come from the
outside of consumer-self. It can be
from the environment around him.
Example Self-knowledge, Experiences
Internet, Book, Catalog, Family,
Friends

Search Engines have become our primary research tool for answers. It is an instant and easy
way to find out what you are looking for. In this situation, Zakiuddin can simply search about the
specification or descriptions of the mobile phone straightly using Google, Yahoo search or Bing, which is
the search engines. There are variety of website that discussing about mobile phone. For example, GSM
Arena offers wide information about mobile phone. Hence, he can easily found the information about the
mobile phone that meet his expectations.
Also dont forget about actual human beings. His friends and families all have had many different
experiences and can offer him a better recommendation. In most cases, recommendations from actual
people instead of a search engines are preferred. Obviously, we have more of a trust factor with people
close to you then a computer program.
A part from that, he also may have had past experiences that assist him in purchasing a new
mobile phone. He may have had a life experience in the past that helps you make the correct purchase
decision. He could also just know what decision to make just by picking up things over the years and
knowing how to solve them and not simply jump into the same mistakes again.

After that, after collecting all the informations and data from the different source whether internal
or external, Zakiuddin can jump into next step of decision making process. However, in this situation, he
will start to set or change his target. Its because the data or information that he get may affect him to
change his target. He will start to evaluate and make an alternative in order to prevent the risk. People
often dont want to regret making a decision so extra time being put into managing risk may be worth it.
Lastly, all the information and data will help him in purchasing the new mobile phone and he can
start to evaluate the information, which is the next step of decision making processes.
2.3 INFORMATION EVALUATION
Nowadays there are many different types of mobile phones from various brands such as Lenovo,
Nokia, Samsung, LG and so on. Each of which has advantages of the weaknesses. Android cell phone is
the trend nowadays. As a consumer, mobile phones can be considered as a necessity.
For example, Zakiuddin want to buy a new mobile phone. He wants to buy of touch screen mobile
phones. He uses a variety of ways to find information on a cell phone he wanted to buy. So, from the
information he got, he chose two types of mobile phones from the Lenovo brand and Samsung.
Lenovo is a brand from China and Samsung from Korea. The model was compared between Lenovo
A880 and Samsung Mega. So from two types of cell phone, he has made a comparison in terms of price,
design, color, durability and so on.
He made a comparison based on information obtained from the Internet and opinion from his friend.
Lenovo A880: cheap prices
Samsung Mega: better specification

2.4 SELECTION STAGE
Selection stage is second last step or the fourth step in decision making. This process will
determine the product will be buy or not after look over all of chosen criteria. Besides, the consumer had
been thought about all the risk that they would get after purchasing this product. This is all conclude the
price, warranty, strength, long lasting, design, specification, and so on.
According to this situation, Zakiuddin wanted to buy a mobile phone as smartphone for ease him
as student to search and learn from that regarding to this era. So he had a deepest thought that
smartphone from Lenovo are the best phone to him as student. This is because of the price are not too
expensive, design is simple and all the specification are good and can be useful for him as student in
USIM. This some detail of how Zakiuddin purchasing this phone:
1) Brand: Lenovo
2) Model: A880
3) Dealer: A smartphone shop in LOWYAT plaza
4) Quantity: one
5) Timing: weekend
6) Payment method: Cash
7) Price: RM 450
2.5 EVALUATION OF DECISION
The consumer decision process does not end once the product or service has been purchased.
After using a product or service, the consumer compares the level of performance with expectations.
Satisfaction occurs when the consumers expectations are either met or exceeded, while dissatisfaction
results when performance is below expectations. Another possible outcome of purchase is cognitive
dissonance, which refers to a feeling of psychological tension, or post-purchase doubt a consumer may
experience after making a difficult purchase choice. This is the meter customers value:




On This situation, Zakiuddin had purchased a new smartphone from Lenovo. He had used it for a
month and there had no doubt about that smartphone. The model A880 just too suit for him and its also
had helped Zakiuddin on his routine life as a student in USIM. On his smartphone he had save a lot of
note for ease him to make a revision anywhere at anytime. Besides, this smartphone also had lot of
application that can help Zakiuddin in campus. For example, using internet for searching something, word
for writing document, power point for presentation and so on. So, the value meter of Zakiuddin is
satisfaction, he is very glad and happy with this purchase.