Consumer

Behaviour

CB CL- 7 | KIAMS-H | 2022 A publication of

Dr. Rajesh K Satpathy

: : Consumer Decision Making : :

The Stages of
Consumer Decision Making Process (CDMP)
 Decision Making Process
▪ In today’s day and age, Indian consumers
have a wide variety of product and/or
brand options to choose from.

▪ A purchase decision involves physical and

mental effort as well as time that a
consumer must expend.

▪ The extent of effort and time that a

consumer would need to spend would
depend on the good or service in
question, the situation, as well as the
nature of the person himself.
 Decision Making Process

▪ Decision-making is the selection

of an alternative out of the few
or many choices that are
available.

▪ Decision-making is a goal-
oriented process, which is
aimed at problem-solving.

▪ Decision-making can be of two

types, namely programmed
decision-making and non-
programmed decision-making.
 Decision Making Process
Programmed Decision Making:

Programmed decision-making takes

place for problems that occur
regularly and are routine in nature.
Problems are simple to deal with and
guidelines are often available to sort
out such problems.

Eg.: Purchase decisions made for

staples, toiletries, and stationery
products (Convenience & Shopping
Goods).
 Decision Making Process
Non-Programmed Decision Making:

Non-programmed decision-making occurs for

problems that arise suddenly and are unique
or novel and non-routine in nature.

It requires a lot of information gathering,

deliberation, and cognitive efforts & thought.

Eg.: Purchases of Specialty goods &

Emergency goods.

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 Consumer Decision Making Definition

It is defined as a process of gathering and processing

information about goods and service offerings and/or brands,
evaluating the alternatives, and selecting the best possible
option so as to reach a brand choice, which would help solve
the problem through the satisfaction of the need and want.
 Major Consumer Decisions
What to Buy?

Goods and Services

and/or Brands

How to Buy? Major How much to

Consumer Buy?
Decisions

When to Buy? Where to Buy?

 Consumer Decision Making

Consumer decision-making with respect to a

good and service category and/or brand would
vary by…

▪ the nature of the goods and service: high

versus low involvement or complex versus
simple;
▪ the consumer characteristics: level of
involvement or desire for deals; ASHIANA UTSAV – SENIOR LIVING IN
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▪ importance and significance of the
purchase; and
▪ the purchase situation.
 Consumer Decision Making

Based on the amount of time and effort required to complete the

purchase process as well as the level of involvement and risk
associated with a good or service category…

Consumer Problem-solving (manifested as the decision process and

purchase process) may be classified into three categories, namely…

• EPS,
• LPS, and
• RPS.
 Consumer Decision Making

Extensive Problem Solving

In EPS, the consumer is not aware, first, about the various decision criteria used
to evaluate the goods or service offering, and second, about the various brands
that are available, from which he needs to choose.

EPS: Customer being guided

on first time investment in a Bank
 Consumer Decision Making
Limited Problem Solving

In LPS, the consumer is familiar with the goods or service category that he/she
intends to purchase as well as the criteria used to evaluate the good or service
offering.
 Consumer Decision Making
Routinized Problem Solving or
Routinized Response Behaviour

In RPS, the consumer is well informed and

experienced with the goods or service
category and/or the brands that he/she
intends to purchase.

This is also called habitual buying behaviour.

The consumer is aware of both the decision

criteria and the various brands available.
 Comparison between EPS, LPS & RPS
Parameter EPS LPS RPS
1 Complexity of decision-making High Medium Low
2 Time taken to make decisions High Low to high Low
3 Information sources Many Few Few or none
4 Information gathering Yes Yes No
5 Awareness and knowledge of:
a) Decision criteria No Yes Yes
b) Alternative brands available No Somewhat Yes

6 Evaluative criteria Complex Moderate Simple (if at all)

7 Brands considered Many Few One (repeat
purchase)
8 Cognitive dissonance High Rare None
 Buying Roles
Children as

▪ Initiator

▪ Influencer

▪ Decider

▪ Buyer

▪ User
 Buying Roles

▪ Initiator: The initiator is a person who identifies as a Need or a

Want and is the first to suggest the idea of buying a particular goods
/ service.

▪ Influencer: The influencers give a boost to the need or want &

influences the buyer to make his / her final choices of the product /
brand
 Buying Roles

▪ Decider: The decider decides on the final choices, i.e. what to be

brought, when, from where and how.

▪ Buyer: The buyer is a person who enters into the final transaction &
exchange process and is involved in the physical activity of making
a purchase.

▪ User: The person who actually consumes the goods / services

offering is the User.
Thank You.