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Consumer Decision
Making Process Making Process Making Process
For an effective service marketing Identifying and understanding the Identifying and understanding the
strategy development, it is important decision process that consumer used consumer decision making process
to diagnose and understand the during the consumption choices is that customers may go through while
decision process that customers are vital for the development of an making purchases is important for the
likely employ in making effective service marketing strategy. development of effective marketing
consumption choices and purchases. It is important for marketers to strategy. It allows marketers in
It is important to uncover the answer questions related to customers identifying the solution of customer-
mysteries behind customer-related such as which products do they buy? related queries such as the type of
questions like what do they buy? How do they choose between the purchase made by them, reasons for
Why do they buy? How they make available options? And many more. their purchases, process of making
selection among available choice? The strategy which is built not on the selection and factors affecting their
And what factors affect their basis of understanding but on the selection of product. Any strategy
decisions to buy and not to buy? A basis of impressions may not operate which is only based on the
strategy that is based on impressions because of the conflict between the impressions is not worthy of as there
and not insights may not work logic of the producer and the buyer. is difference between the logic of
because of clash between the maker's Thus the consumer decision-making marketers and the customers. The
logic and the taker's logic. It is in this process provides an effective framework for decisions like product
light consumer decision process structure for marketers to understand development, assortment design,
provides useful framework in under- their customers, which the marketers packaging, pricing and promotion is
standing customer mind which can be can use to make decisions about based on the consumer decision
used by the marketer in taking price, product development, making process.
decisions like product development, communication, and assortment
assortment design, packaging, pricing design.
and communication.
Consumer decision process model Engle, Kollat and Blackwell formed Engle, Kollat and Blackwell develops
developed by Engle, Kollat and the consumer decision process the consumer decision making process
Blackwell aims at capturing the model. The model aims to capture the aiming at identifying the activities that
activities that occur when decisions activities which arise when the are performed by the consumers in a
are made in a systematic format and decisions are taken in an organised chronological order displaying the
shows how various internal and way. It also exhibits how external interaction of internal and external
external forces interact and affect and internal forces interact with the factors and the impact of these factors
how consumers think, evaluate and customers and influences their ways on consumer purchases. Both buying
act. Buying is akin to problem to act, think and evaluate. The and problem-solving are similar, i.e.,
solving. Customers buy a product or product or service is purchased by the consumer purchase product when they
service when they have a problem or customer only when they need, want have any problem or need or want. In
need or want. The consumer decision or have a problem. There are seven order to determine the problems
process model shows that customers stages that are exhibited in the involved in marketing of a product or
pass through seven major stages consumer decision making model service, it is important to identify the
when making a decision. Discovering through which a customer goes type of decision process a customer is
as to what kind of decision process a through while making a decision. likely to follow in a given purchasing
customer is likely to employ in a Following are the seven stages of condition.
given buying situation is essential in consumer decision making process:
determining the challenges involved 1) Need recognition Decision process highlights the
in marketing of a product or service. 2) Information search cognitive thinking of the customers
Decision process throws light on 3) Pre-purchase evaluation and their capabilities or tendencies to
what a customer cognitively thinks 4) Purchase take action. For example, whether the
and feels and what are his or her 5) Consumption promotional programme should be
likely action tendencies. For instance, 6) Post consumption evaluation heavy on information or light on it,
whether the communication 7) Disinvestment whether logical thinking or emotions
programme should be information should be promoted, all of these
heavy or light, or logical thinking Identifying the limitations involved decisions may be made successfully
should be stimulated or emotions in marketing a product or service provided the decision process is
should be stirred, all of these kinds of requires determining what type of accurately defined. A marketer who
decisions can be effectively taken if decision-making process a customer develops a plan using a speculative or
decision process is correctly is likely to use in a given purchase trial-and-error approach may make
identified. A speculative or trial-and- situation. The decision process errors.
error method of strategy development describes what the consumer thinks,
may draw a marketer into committing feels and the expected behavioural Consumer decision making process
mistakes. tendencies. For example, whether a involves seven stages. These are:
communication program is heavy on 1) Need recognition
There are seven stages involved in information or light on information, 2) Information search
consumer decision process: need whether logical thinking should be 3) Pre-purchase evaluation
recognition, information search, pre- stimulated or emotions should be 4) Purchase
purchase evaluation, purchase, evoked, all such decisions could be 5) Consumption
consumption, post-consumption made efficiently taken if the decision 6) Post-consumption evaluation
evaluation and lastly divestment. process is properly identified. A 7) Divestment
speculative or trial-and-error method
of strategy development can tempt a
marketer to make mistakes.
1.1.9. Purchase
1.1.4. Purchase 1.1.3. Purchase
Finally the consumers decide to go Purchase is that step in the consumer
ahead and make a final call on the decision making process where the
purchase. customer finally decides to move
https://courses.lumenlearning.com/bo further and make purchase. In this
undless-marketing/chapter/the- stage the consumer develops a mind-
consumer-decision- set to purchase the most preferable
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%20post%2Dpurchase%20behavior. the value that the consumer will be
getting after purchasing the product.
During this time, the consumer may Following are the things that the
form an intention to buy the most customer must decide during this
preferred brand because he has stage:
evaluated all the alternatives and 1) The consumer must decide from
identified the value that it will bring whom they should buy, the terms
him. of sale, the return policy and the
During this stage, the consumer must early experience with the retailer.
decide the following: 2) The customers should also decide
when to buy, or which product
1) From whom they should buy, can get affected by the
which is influenced by price atmosphere of store, shopping
point, terms of sale, and previous experience, and presence of sale.
experience with or awareness of
the seller and the return policy.
2) When to buy, which can be
influenced by the store
atmosphere or environment, time
pressures and constraints, the
presence of a sale, and the
shopping experience. The selection of the retail store and
There are two phases of consumer the actual product in the store which is
decision towards the final purchase. discussed already in the “evaluation of
We already discussed these two alternatives” stage are the important
phases in the "evaluation of phases of consumer decision towards
alternatives" stage. The first is the the final purchase. There might be two
decision on the retail store and the possibilities while purchasing the
next is the actual products in store. A product, i.e., whether the consumer is
consumer may already have the exact clear about his/her need or the
product in mind, however, it often is consumer might change his/her
the case that once the consumer is in decision once he/she reaches the store.
the store, they may change their This is so because, once the
decision. This is because once the consumers have different alternatives,
consumer sees other choices, they there is possibility that they may
may choose different or even opt out change their decision of purchasing a
of buying all together. This is why it particular product. This is why it is
is very important for marketers to critical for marketers to position their
make sure that their product is products in such a manner that
positioned in such a way that consumers will be more likely to
consumers will be more prone to purchase them.
buying it. We will write an extensive
article on this topic.
1.1.12. Divestment/
1.1.6. Divestment/ Disposition
1.1.7. Divestment/ Disposition Disposition of divestment varies from
Disposition In context to disposition there are country to country. The primary
Here, substantial distinctions are met variations in the industrialised reason for this distinction is that it is
in the industrialized countries. First, countries. Firstly, the disposition is based on the social reasons and not on
divestment is often made due to made not due to practical reasons but the practical reasons. For example, a
social, not practical reasons. For due to the social factors. For consumer intends to purchase new
example, the consumer is very likely example, Consumers are ready to cloths because of the changed
to buy new clothes, not because the buy new clothes, not because they preferences of fashion or aesthetic and
ones he or she has are old or too few, have old clothes or fewer clothes, but not because of s/he has few or old
but because fashion or aesthetic because the fashion has changed. cloths. The other reason for the
preferences have changed. Secondly, Secondly, a significant social shift distinction in the process of
a major social shift toward toward environmental awareness has divestment is due to the social change
environmentalism has pushed prompted businesses and towards the more environmental
businesses and governments toward governments to recycle and employ friendly businesses and products. In
recycling and the use of ecologically friendly materials. In addition to this, consumer product
environmentally friendly materials. addition, consumer product disposal disposal has grown increasingly
Furthermore, the process of disposing has become increasingly ecologically ecologically conscious, and product
of products by consumers has conscious, and product selection is selection is frequently impacted by the
become very environmentally often influenced by product exposure impact of the product during and after
sensitive, and the choice of products during and after disinvestment. divestment.
is often influenced by their effect
during and after divestment. Some products are consumed in their
Few products never reach the eternity and do not go through the
Some products never go through a disposal stage because they have disposition stage. Whereas some
disposition stage, because they are been completely used up and there is products left residual either in the
consumed in their entirety, and there no packaging or garbage left. form of actual product, which may or
is no residual packaging or waste. Though, there is a residue that may or may not be function, or in the form of
For many other products, however, may not serve as packaging or as the packaging. One may engage in any of
there is a residual, either in the form actual product for many other the disposition behaviours based on
of packaging, or in the form of the products. Any of these disposition the product, its residual value and the
actual product (which may or may behaviours may be used depending ability to dispose of it. Disposition of
not function). Depending on the on the product, its residual value and some products such as motor oils, and
product, its residual value, and the its ability to be disposed of. Some tyres are heavily regulated and
ability to dispose of it, one may items are regulated by law, and their governed by the laws. Bottle deposit
engage in any of these disposition disposal is strictly controlled. For laws are also acted in some states.
behaviours. Some products are example, motor oil and tyres. There
governed by law, and their are bottle deposit laws in some states.
disposition is regulated heavily (like A product’s or its package’s disposal
motor oils and tyres). Some states A product’s or its package’s disposal might happen before, during, or after
have bottle deposit laws. might happen before, during, or after use. Because of the ecological
use. Because of many consumers concerns of many consumers, the
Disposition of a product or its package environmental concerns, the cost and costs and scarcity of raw materials,
may occur before, during, or after scarcity of raw resources, and the and the activities of legislatures and
product use. Understanding disposition activity of lawmakers and regulatory regulatory agencies, it is important for
behaviour has become increasingly bodies, understanding disposition the marketing managers to understand
important to marketing managers behaviour has become increasingly the disposition behaviour. The key
because of the ecological concerns of crucial for marketing managers. For product attribute for many consumers
many consumers, the costs and scarcity many consumers, the ease with which is the ease of recycling or re-using the
of raw materials, and the activities of a product’s container can be recycled container of a product.
legislatures and regulatory agencies. or reused is a crucial feature.
The ease of recycling or re-using a Following are the basic reasons due to
product’s container is a key product Due to the following product which product disposition is the major
attribute for many consumers. disposition is a key consideration in concern in marketing strategy:
marketing strategy: 1) Sometimes, due to the financial or
Product disposition is a major 1) This can sometimes precede a space limitations, the purchase
consideration in marketing strategy purchase due to financial or must be preceded by the
because: location limitations. disposition.
1) Disposition sometimes must 2) Some disposition strategies may 2) A used or re-built market is raised
precede the purchase because of lead to a used or recreated due to the disposition of certain
financial or space limitations. market. strategies.
2) Certain disposition strategies 3) Unsatisfactory or difficult 3) Some consumers withdraw from
may give rise to a used or re-built choices in nature may cause the market for a particular product
market. some customers to withdraw because of the difficult or
3) Difficult or unsatisfactory from the market for a specific unsatisfactory disposition
disposition alternatives may item. alternatives.
cause some consumers to
withdraw from the market for a The disposition action of consumers
particular item. often involves logical and reasonable
motives. For example, people sell
The consumers always have some their possessions in order to make a
reasonable and logical motives profit. They may, on the other hand,
Consumers often have logical and behind their disposition actions. opt to give something without
reasonable motives behind their receiving a tax benefit, or they may
disposition actions. For example, want to pass an item along out of a
people sell things to earn an desire to help someone while also
economic return and come out ahead. avoiding wasting the goods.
In contrast, they may choose to Disposition possibilities can also be
donate something without getting a influenced by situational and product-
tax deduction, or they may pass an related variables. For example,
item along out of a desire to help consumers most likely to dispose of a
someone as well as a desire not to let possession by throwing it away,
the product go to waste. Situational giving it away or abandoning it
and product-related factors can also because of having limited time or
affect disposition options. For storage space. Rather than throwing
example, when consumers have away, consumers generally prefer to
limited time or storage space, they disposing of a possession of high
may be more likely to dispose of a value by selling it or giving it to
possession by throwing it away, someone special. Generally, different
giving it away, or abandoning it. product categories have different
Consumers disposing of a possession disposition behaviours.
of high value are likely to sell it or to
give it to someone special rather than
to throw it away. In general, the
frequency of different disposition 1.1.6.1. Disposition
behaviours varies by product Alternatives 1.1.12.1. Disposition
category. Following are the three common Alternatives
choices that appear when a consumer Following are the disposition
1.1.7.1. Disposition considers the disposition of the alternatives available to the customers:
Alternatives product:
When a consumer contemplates the 1) Keep the Product: When the
disposition of a product, there appear customers decides to keep the 1) Keep the Product: When the
to be three general choices available product then they may: consumer decides to keep the
to him: i) Use it for its actual purpose product, then s/he may:
1) Keep the Product: If he decides ii) Use it to satisfy another i) Use the product continuously
to keep the product, he may purpose for its original purpose.
either: iii) Keep it for using it later ii) Change the product to serve
i) Continue to use it for its 2) Permanently Dispose of it: another purpose.
original purpose. When the customers want to iii) Store the product for its later
ii) Convert it to serve another permanently dispose of then they use.
purpose. can: 2) Permanently Dispose of it:
iii) Store it, perhaps for later use. i) Throw out the product When consumer decides to
ii) Give it away dispose of the product
2) Permanently Dispose of it: If he iii) Trade it permanently, then s/he may:
decides to get rid of it iv) Sold it i) Give it away.
permanently, he can: ii) Sell or trade it.
i) Throw it away or abandon it. 3) Temporarily Dispose of it: iii) Throw it away or abandon it.
ii) Give it away. When the customers wants to 3) Temporarily Dispose of it: When
iii) Sell it. dispose it off only temporarily consumer decides to dispose of
iv) Trade it then they may: the product temporarily, then s/he
i) Give it on loan may:
3) Temporarily Dispose of it: ii) Give it on rent to somebody i) Rent it to someone else.
Finally, if he decides to dispose else ii) Loan it.
of it only temporarily, he can:
i) Loan it. 1.1.6.2. Marketing
ii) Rent it to someone else. Implications 1.1.12.2. Marketing
The implications of consumer Implications
product disposition have been Various areas of marketing reflect the
1.1.7.2. Marketing observed in various areas of implications of product disposition
Implications marketing. Some implications are process. There are consequences from
The implications of the consumer seen from the perspective of public both a public policy and a tactical
product disposition process reflect on policy as well as strategy. standpoint.
several areas of marketing. There are
implications from a public policy The implications of disposition on
perspective as well as from a strategy public policy are numerous. For
perspective. example, the long-term impacts of a
throwaway lifestyle, the resources lost
The public policy effects of when an item is thrown, and the
disposition are many. For example, resource drained when it is replaced
the effects of disposition choice on are all repercussions of disposition
the environment include the long run decision on the ecosystem. As a result,
effects of a throwaway lifestyle, the examining consumer inclination might
resources wasted when an item is
discarded and the resource depleted help researchers better understand the
when it is replaced. Thus, study of numerous problems of pollution and
the many problems of polluting and littering.
littering could be better addressed by
considering consumer disposition.