Assignment 1

Consumer Decision Making

Kartik Katekar
C039

5 steps of the consumer decision making process

1. Problem recognition: Recognizes the need for a service or
product
2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against
comparable alternatives
4. Purchase decision: Makes actual purchase
5. Post-purchase evaluation: Reflects on the purchase they
made

Looking for a new Home:

Anvi and her husband have been thinking of buying their first home but since it
is a lifetime decision, they want to think and collect more information on it.

1. Problem recognition
The consumer buying process starts off with the customer having a problem that can
be solved by a product or service. This manifests itself in a number of ways.
In some cases, the shopper starts off feeling the symptoms of an issue. For example,
In Anvi’s house buying case they might not be sure about buying a new house but they
will still look for new house as a second option because of the small small issues faced
by them in old house
In other cases, the problem is more straight cut. Anvi’s is straight cut done with the
old house and will immediately make the decision of buying a new house
2. Information search
Now that the Anvi has realized a need to get a new home, it’s time to find
solutions to her problem. In this stage, it’s very crucial to make the right choice by
doing the right research. Even If Anvi makes the slightest mistake, she may have to
tolerate it for the rest of her life.

Anvi’s most important search list should inlcude:

1. Local authority search (LAS): This search finds out information on any
nearby road schemes, contaminations, or planning works as well as several
smaller searches.
2. Planning search: Planning searches look for details of any existing planning
consents or planning applications within a 250-metre radius of a property.
3. Drainage and water search: This search is to find out where all the
drainage systems are around a property and show if these are at risk of
affecting the property in the future.
4. Environmental search: These look at issues such as flood risk, subsidence
risk, previous uses of land and cover you for environmental issues within 500
metres of the house.
5. Flood risk search: If the property you want to buy is near to water. For
example; a river, lake, reservoir or coastline, then this search will reveal how
high the risk of flooding is in the area.
6. Land registry pre-completion search: This search will reveal if the
individual selling the property is the legitimate owner of the property and if any
bankruptcy has taken place. It ensures that the property is legally safe to buy.

3. Alternatives evaluation
Anvi and her husband weigh paying more to get a smaller house in the city or paying less
to get a bigger house in the suburbs.

She might decide to buy that particular house for several of the following reason:
● The location is perfect.
● People are cooperative and socializing.
● The house has all the features she wants.
● House as well as other features are attractive.
● Price of the house is within her range.
● Other public utilities and features are nearby and not-trouble causing.
4. Purchase decision

Anvi and her husband are more likely to choose a location which is close to school, main
street and their workplace. Their consideration withh be near shopping mall when
making a home purchase decision. However, location close to sport facilities, health
centre and government departments are not in their choice.

Age, marital status, educational background, occupation and family status all
significantly influenced location of home buyers’ purchase decision; on the other hand,
gender and incomes did not have significant influences on the location of home buyers’
purchase decision.

5. Post-purchase evaluation

Anvi and her husband discuss how happy they are with the new four-bedroom house and
its location . This is the stage when they are at their most engaged about their
purchase, and they can be susceptible to strategies that encourage long term
engagement.