RISHABH RATHI

5TH SEMESTER
Assignment no.1

CONSUMER BEHAVIOUR
 Q1. What do you mean by consumer decision making? And discuss
in detail the consumer process model.
The consumer decision making process is the process by which consumers become
aware of and identify their needs; collect information on how to best solve these
needs; evaluate alternative available options; make a purchasing decision; and
evaluate their purchase.

The 5 Stages of the Consumer Decision Making Process — And How to Optimize

It’s important to note that the consumer decision making process has many
different names, including but not limited to the buyer journey, buying cycle, buyer
funnel, and consumer purchase decision process. But all the names essentially refer
to the same thing: The journey a customer goes through when making a purchase.

So, here’s a breakdown of what happens in each step:

The buying behavior model is one method used by marketers for identifying and
tracing the decision making process of a customer from the start to the end. The
process is categorized into 5 different stages which are explained as follows:

1. Need Recognition

Need recognition occurs when a consumer exactly determines their needs.

Consumers may feel like they are missing out something and needs to address
this issue so as to fill in the gap. When businesses are able to determine when
their target market starts developing these needs or wants, they can avail the
ideal opportunity to advertise their brands.
2. Information Search

The information search stage in the buyer decision process tends to change
continually as consumers require obtaining more and more information about
products which can satisfy their needs. Information can also be obtained
through recommendations from people having previous experiences with
products.At this level, consumers tend to consider risk management and prepare
a list of the features of a particular brand. This is done so because most people
do not want to regret their buying decision.

3. Evaluation of Alternatives

This step involves evaluating different alternatives that are available in the
market along with the product lifecycle. Once it has been determined by the
customer what can satisfy their need, they will start seeking out the best option
available. This evaluation can be based upon different factors like quality, price
or any other factor which are important for customers. They may compare
prices or read reviews and then select a product which satisfies their parameters
the most.

4. Purchase Decision

When all the above stages have been passed, the customer has now finally
decided to make a purchasing decision. At this stage, the consumer has
evaluated all facts and has arrived at a logical conclusion which is either based
upon the influence from marketing campaigns or upon emotional connections
or personal experiences or a combination of both.

5. Post Purchase Behavior

The purchase of the product is followed by post-purchase evaluation which

refers to analyzing as to whether the product was useful for the consumer or
not. If the product has matched the expectations of the customer, they will serve
as a brand ambassador who can influence other potential consumers which will
increase the customer base of that particular brand. The same is true for
negative experiences; however, it can halt the journey of potential customers
towards the product.
Q2. Explain the concept of perception? How it is going to
influence consumer behavior.

Perception is the conscious reception, selection, processing and

interpretation of information by our brain via all senses. Perception is also
used to describe what is perceived.

Perception is a psychological variable involved in the purchase decision

process that is known to influence consumer behavior. Other variables
included in this consumer process include: motivation, learning, attitude,
personality, and lifestyle. All of these concepts are crucial in interpreting the
consumer buying process and can also help guide marketing efforts.

Importance of Perception

Perception is a subjective, active and creative process through which we

assign meaning to sensory information to understand ourselves and others.
It can be defined as our recognition and interpretation of sensory
information. It also includes how we respond to the information.

It is the process by which an organism detects and interprets information

from the external world by means of the sensory receptors. It is our sensory
experience of the world around us and involves both the recognition of
environmental stimuli and actions in response to these stimuli.

Through the perceptual process, we gain information about the properties

and elements of the environment that are critical to our survival.

Perception not only creates our experience of the world around us; it allows
us to act within our environment.

1. Perception is very important in understanding human

behavior because every person perceives the world and approaches
 life problems differently. Whatever we see or feel is not necessarily
the same as it really is. When we buy something, it is not because it is
the best, but because we take it to be the best.

2. If people behave on the basis of their perception, we can predict their

behavior in the changed circumstances by understanding their
present perception of the environment. One person may be viewing
the facts in one way which may be different from the facts as seen by
another viewer.

3. With the help of perception, the needs of various people can be

determined, because people’s perception is influenced by their needs.

4. Perception is very important for the manager who wants to avoid

making errors when dealing with people and events in the work
setting. This problem is made more complicated by the fact that
different people perceive the same situation differently. In order to
deal with the subordinates effectively, the managers must understand
their perceptions properly.

5. Perception can be important because it offers more than objective

output; it ingests an observation and manufactures an altered reality
enriched with previous experiences.

6. Perception builds character (not necessarily good or bad character)

that defines different roles individuals fall into the clown, the
hypocrite, the self-righteous, the victim, etc..
 7. It is vitally important if we want to get along with others to try to see
things from their perspective or walk in their shoes for a while. If we
walk in their shoes we will gain a new perspective about things and in
that understand the other and also can love and help the other more
appropriately.

Thus, for understanding human behavior, it is very important to understand

their perception, that is, how they perceive the different situations.

People’s behavior is based on their perceptions of what reality is, not on

reality itself. The world as it is perceived is the world that is important for
understanding human behavior.