Chapter 4 The Decision Making Process

AMINE GDOURA
CONSUMER BEHAVIOR
3rd Year, Bachelor in Marketing
1st semester, 2021
1
AMINE GDOURA/CONSUMER BEHAVIOR /3rd Year bachelor in Marketing/Semester 1, 2021
THE 5 STAGES OF THE CONSUMER’S DECISION MAKING PROCESS 2

THE 5 STAGES OF THE CONSUMER’S DECISION MAKING PROCESS 3
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 The process of deciding what to buy starts when a need that can
be satisfied through consumption becomes strong enough to
stimulate a person.
 When a consumer becomes aware that there is a difference

between a desired state and an actual state, than problem
recognition occurs for that consumer.
 Active Versus Inactive problems:

Active: those you are aware of
Inactive: those that you are not yet aware of (but exist) 6
a- Examples of Situations leading to problem recognition:

1- Insufficient stock of goods:
If, for example, an individual runs out of necessities that he uses, he will identify a
problem to exist.
2- Dissatisfaction or Discontentment with the Stock

Family having a ten year’s old car may be willing to buy a late model car. Such a feeling
will lead to discontent, and as a result the family will recognize a car related problem.
3- Changes in the Environmental Characteristics :

For ex. When a family moves from one stage of its life cycle to an another stage, it
requires different types of products and services, and as a result problems occur.
4- Individual Development
With an individual’s mental development and change in outlook he may recognize
problems of not having certain types of products. 7
a- Example of situations leading to problem recognition:

5- Changes in the Financial Status
For ex. if an individual’s financial position improves or worsens, or if he anticipates an
improvement or deterioration, he may recognize a problem associated with his actual
or anticipated changing financial position.
6- Promotional Activities
By promotional activities marketers try to trigger drives in consumers. Through different
promotional activities, marketers try to create discrepancy between actual and desired
states of consumers. Such a situation will trigger problem recognition in
consumers.
7- Consumer’s Previous Decisions

For example, if an individual buys a smart television, it may trigger a problem of buying a
Netflix subscription .Or, purchase of a computer may lead to the recognition of a
problem of not having a printer.
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b- Problem recognition and marketing strategy
 Identify existing consumer problems and find solutions for these

 Lower the actual state
 Increase the desired state
 Increase the importance of the gap between actual and desired
states
 Convert inactive problems to active problems
 Convert problems into ones requiring an immediate solution
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b- Problem
recognition and
marketing strategy
Ex. Activating problem

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recognition
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 Once the consumer is aware of a problem or need, the consumer

(if he decides to continue the decision making process) searches
for information.
 Such a search may focus on numerous dimensions, such as

the availability of brands, product features, characteristics of
sellers, after sales service, warranties, prices, quality, and using
instructions.
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INTERNAL INFORMATION EXTERNAL INFORMATION

SEARCH SEARCH
• is the process of • Relies on information in
recalling information in the outside
memory. This includes environment.
prior experience or prior • This includes personal
knowledge about a and public references,
product. advertisements etc…
• The greater the past
experience, the less
external information
needed 13
Factors Influencing the Level of External Search:

SITUATIONAL SOCIAL VALUE-RELATED
PRODUCT FACTORS CONSUMER FACTOR
FACTORS ACCEPTABILITY FACTORS
HIGHER SEARCH HIGHER SEARCH HIGHER SEARCH HIGHER SEARCH HIGHER SEARCH
WHEN: WHEN: WHEN: WHEN: WHEN:
- It is a long-
lasting product - Experience is - Purchase is a gift - All alternatives -Consumers are
lower have both well-educated, have
- The price is high - Product is positive and higher income
- Previous socially visible in negative levels and are
- There are many experience was use qualities. younger
alternative unsatisfactory - No agreement - Level of
brands among users involvement is
exists high
- Etc. - Conflicting - Shopping is seen
information is as an enjoyable
available activity
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 The information search should yield a group of brands, or

evoked set, which are the consumer’s preferred alternatives.
 From this set, consumers will further evaluate the alternatives

and make a choice.
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Search for information and Marketing Strategy :
 If a marketer finds that his brand falls in the routinely purchased

product category, he should reinforce consumers to maintain their
existing behavior pattern.
 If a marketer finds that his brand is not included in the buyer’s

evoked set of alternatives, he may try to disrupt the existing
decision pattern by product improvement and persuasive
marketing communication that attracts target consumers’
attention to his brand.
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Search for information and Marketing

Strategy :
 Where consumers search limited information, a marketer can
identify the places where consumers search information, and then
provide them with sufficient, attention getting, and influencing
information to capture as large market size as possible.
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 Regardless of the total number of brands (or models) in a product category,

a consumer’s evoked set tends to be quite small on average, often
consisting of only three to five brands or model
 A consumer, in evaluating the products in his evoked set, that results from
information search, establishes a set of criteria against which he compares
characteristics of different alternatives.
 How many evaluative criteria a consumer will use? what different types of
criteria he will consider? and the importance he will place on each of them
depends on the consumer himself and the product under consideration
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 Regardless of the total number of brands (or models) in a product category,

a consumer’s evoked set tends to be quite small on average, often
consisting of only three to five brands or model
 A consumer, in evaluating the products in his evoked set, that results from
information search, establishes a set of criteria against which he compares
characteristics of different alternatives.
 How many evaluative criteria a consumer will use? what different types of
criteria he will consider? and the importance he will place on each of them
depends on the consumer himself and the product under consideration
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Evaluation of alternatives and Marketing Strategy :

 Marketers should identify the number and type of evaluative
criteria that his target consumers use, and also know the relative
importance placed on each of, the considered criteria (By
conducting market studies).
 A consumer’s evaluation may yield him no brand that he is willing

to buy. In such a situation, the consumer may go for further search.
If his evaluation yields him one or more brands that he is willing to
buy, he is ready to move on to the next step of the purchase
decision making process.
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 After assuming all the criteria for the decision the customers now
decide on what they will purchase and where.
 He may also decide not to purchase, if alternatives evaluated

by him are not considered desirable.
 If he decides to buy, a series of related decisions must be made

regarding features, prices, warranties, installation, credit where
and when to make the actual purchase (store selection / website
selection…), how to take delivery, the method of payment, and
other related issues
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 Once a purchase decision is made, the next step in the

process is the evaluation of the product after purchase.
 Consumers expect certain outcomes from the purchase, and

how well these expectations are met determines the level of
customer satisfaction.
 Price influences the level of expectations for a product or

service.
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 If the consumer post-purchase evaluation leads him to realize

that he made the right decision, he faces delight.
 If he realize that he made the wrong decision he faces

cognitive dissonance.
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COGNITIVE DISSONANCE
 When people feel inconsistency between their values or

opinions and their behavior, they feel an inner tension called
cognitive dissonance.
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 A cognition can be considered as a belief.

 If you like to smoke this can be considered a cognition
 If you think that cats are amazing animals that’s another
cognition
 Those two beliefs are not related to each other but if one of
the cognitions becomes dissonant (discordant) with the other
then according to the cognitive dissonance theory, cognitive
dissonance will happen 28
 Examples:
• Knowing that smoking is harmful (first cognition) while
liking to smoke (second cognition). The cognitive
dissonance theory’s conditions were met because
those cognitions are dissonant
• Liking a friend (first cognition) while knowing that he

hates your parents (second cognition)
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 Consumer can reduce cognitive dissonance by:
 Seeking information that reinforces positive ideas about the

purchase.
 Avoiding information that contradicts the purchase decision.
 Revoking the original decision by returning the product
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 Marketers can reduce cognitive dissonance by:
• Undertaking program to provide information to
consumers to reinforce their decisions, which may
make them feel good about the purchases they made.
• A marketer can help reassure buyers that they made

the right decision by sending them extended warranty
cards, providing manuals, and sending out
questionnaires on product quality and service. 31

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AMINE GDOURA

THE 5 STAGES OF THE CONSUMER’S DECISION MAKING PROCESS 2

 When a consumer becomes aware that there is a difference

 Active Versus Inactive problems:

a- Examples of Situations leading to problem recognition:

2- Dissatisfaction or Discontentment with the Stock

3- Changes in the Environmental Characteristics :

a- Example of situations leading to problem recognition:

7- Consumer’s Previous Decisions

b- Problem recognition and marketing strategy

 Identify existing consumer problems and find solutions for these

Ex. Activating problem

 Once the consumer is aware of a problem or need, the consumer

 Such a search may focus on numerous dimensions, such as

INTERNAL INFORMATION EXTERNAL INFORMATION

Factors Influencing the Level of External Search:

 The information search should yield a group of brands, or

 From this set, consumers will further evaluate the alternatives

Search for information and Marketing Strategy :

 If a marketer finds that his brand falls in the routinely purchased

 If a marketer finds that his brand is not included in the buyer’s

Search for information and Marketing

 Regardless of the total number of brands (or models) in a product category,

 Regardless of the total number of brands (or models) in a product category,

Evaluation of alternatives and Marketing Strategy :

 A consumer’s evaluation may yield him no brand that he is willing

 He may also decide not to purchase, if alternatives evaluated

 If he decides to buy, a series of related decisions must be made

 Once a purchase decision is made, the next step in the

 Consumers expect certain outcomes from the purchase, and

 Price influences the level of expectations for a product or

 If the consumer post-purchase evaluation leads him to realize

 If he realize that he made the wrong decision he faces

 When people feel inconsistency between their values or

 A cognition can be considered as a belief.

• Liking a friend (first cognition) while knowing that he

 Seeking information that reinforces positive ideas about the

• A marketer can help reassure buyers that they made

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