CHAPTER 9

CONSUMER DECISION PROCESS

Syllabus: Problem recognition, search and evaluation, purchasing processes, post
purchase behaviour.

Indices

Serial No. Topics Page

INTRODUCTION 353

10.01 Consumer Decision Making 353

10.02 Reasons behind Consumer Decisions Making 353

PROBLEM RECOGNITION 355

10.03 Introduction 355

10.04 Problem or Need Recognition 355

10.05 Need or Problem Recognition Process 356

10.06 Situations Leading to Problem Recognition 358

10.07 Marketing Strategy with Regards to Problem Recognition 359

10.08 Importance of Problem Recognition 361

10.09 Types of Problem Recognition 361

10.10 Problem Recognition Maslow’s Hierarchy of Needs 362

352 CONSUMER BEHAVIOUR

10.11 Examples of Problem Recognition 364

INFORMATION SEARCH AND EVALUATION 365

10.12 Information Search 365

10.13 Nature of Consumer’s Information Search 366

10.14 Sources Used by Consumers in Gathering Information 367

10.15 Factors Influencing the Level of External Search 368

10.16 Marketing Strategies Based on Information Search Patterns 370

PURCHASING PROCESSES AND POST-PURCHASE 370

BEHAVIOR

10.17 Introduction to Purchasing Processes 371

10.18 Why do people shop? 371

10.19 Factors Determining Store Selection 371

Influencing Store Attributes 372

Influencing consumer store selection 372

Buying behaviour in-store 373

After-purchase 373

Exercise 375

End of Chapter 10 376

 CHAPTER 9: CONSUMER DECISION PROCESS 353

INTRODUCTION
ভূমিকা

10.01 Consumer Decision Making

†fv³vi wm×všÍ MªnY
The consumer decision process also called the buyer decision process, helps markets identify how
consumers complete the journey from knowing about a product to making the purchase decision.
Understanding the buyer buying process is essential for marketing and sales. The consumer or
buyer decision process will enable them to set a marketing plan that convinces them to purchase
the product or service for fulfilling the buyer’s or consumer’s problem.
In the words of Mrinalini L, “Consumer Decision Making refers to the process under which
consumers go through in deciding what to purchase, including problem recognition, information
searching, evaluation of alternatives, making the decision and post-purchase evaluation.”
According to Rosa Hu, “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.”

10.02 Reasons behind Consumer Decisions Making

†fv³vi wm×všÍ Mªn‡Yi KviY
In the present world, a consumer has a lot of options while taking any decision. But basically the
consumer has five decision dimensions. These are as follows:

What to buy?

How much to buy?

Where to buy?

When to buy?

How to buy?
354 CONSUMER BEHAVIOUR

1. What to buy?
wK wKb‡Z n‡e?
The decision to buy any product is the most important task. Until and unless if a decision is
made a consumer cannot buy anything. The consumer has also to make the choice of the
product available in the market. After taking any decision consumers buy a product. Then the
consumer takes a decision about which brand to buy. This can be attached with the price and
features of the product.
2. How much to buy?
KZUv wKb‡Z n‡e?
The next decision the consumer has to make is to how much of the product to be purchased.
It depends on the type of the product to be purchased and then the purchases can be made.
The quantity to be purchased by the consumer depends on the availability and frequency of
use of the product.
3. Where to buy?
†Kv_vq wKb‡Z n‡e?
Another decision the consumer has to make is where the product should be bought.
Consumers usually will go to a place where the services offered are excellent. Also the other
factors like prices and outlets are being decided by the consumers. The consumer expects a
discount on the product. So, consumers usually go to such places where availability of the
product quantity and quality can be decided by just looking at the other brands of the same
product to be purchased. Many products have different features and therefore after thoroughly
examining the purchase is made.
4. When to buy?
KLb wKb‡Z n‡e?
The consumer also has to decide the time when the purchase has to be made. This also is
influenced by the availability of the products. Usually the purchase made by a consumer is
very high during the festive season, due to large volume of discount. This not only ensures
the consumer that they can get a product at a discount price. It is also influenced by opening
times, sale and clearance period, transportation etc., for the goods purchased.
5. How to buy?
wKfv‡e wKb‡Z n‡e?
Under this the consumer has to decide whether to pay cash or by credit payment. Also the
consumer expects the goods purchased to be delivered by the retailer. Also the installment
facility on line purchased option may boost the sale of the products. If this part is handled
 CHAPTER 9: CONSUMER DECISION PROCESS 355

with utmost care, the revenue for the retailer will go up. So, all the facility the consumer needs
if available, there is no problem to dispatch the goods. The sale will go up automatically of
course the proper paper work is done, depending on which the sale is made.
Every day we are involved in taking decisions related to the various aspects of our lives. Usually
such decisions are taken automatically without the involvement of any particular decision making
process.
For instance say a housewife goes to purchase a mid-priced range of tea, her decision making
merely involves making a selection from the various brands of tea like Taj Mahal, Tata Tea, Red
label, Yellow Label and so on. The process by which a person is required to make a choice from
various alternative options is referred to as decision making.
The marketing environment has been evolving, become competitive and more of a buyer’s market,
with each marketer trying to adopt unique strategies which can result in positive decision making
from the consumer’s side.
While the customer gains from having to decide and select from a wide array of choices, the
marketer will benefit from a substantial increase in sales when the consumer decides to purchase
their brands.

PROBLEM RECOGNITION
সিসযা শনাক্তকরণ
10.03 Introduction
ভূমিকা
Problem recognition is the initial step in the consumer decision making journey when a consumer
recognizes a need or a want which is not being fulfilled by any of the existing products or services
available. It starts when a customer is unable to fulfil current or future needs with the products at
disposal and starts to identify the gap which now has to be filled with a purchase of a product or a
service. It is also defined as a gap between the current state and the desired state from the
customer's perspective.
Problem recognition is followed by information search, evaluation of options, actual purchase and
post-purchase.

10.04 Problem or Need Recognition

সিসযা বা প্রয াজন শনাক্তকরণ
Need recognition of Problem Recognition is the first stage of the buyer decision process. During
need or problem recognition, the consumer recognizes a problem or need satisfied by a product
or service in the market.
356 CONSUMER BEHAVIOUR

The buyer feels a difference between his or her actual state and some desired state. Internal stimuli
can trigger the need. This occurs when one person’s normal needs, such as hunger, thirst, sex, rise
to a level high enough to become a driver. External stimuli can also trigger a need.
At this stage, the marketer should study the buyer to find answers to some important questions.
These are:
 What kinds of needs or problems arise?
 What is the root of these needs or problems?
 How they led the buyer or customer or consumers to a particular product?
This could be a simple as “I’m hungry; I need food.”
The need may have been triggered by internal stimuli (such as hunger or thirst) or external
stimuli (such as advertising or word of mouth).

10.05 Need or Problem Recognition Process

প্রয াজন বা সিসযা শনাক্তকরণ প্রমি া
When a consumer becomes aware that there is a difference between the desired state and an
actual condition, problem recognition occurs. Every individual has unsatisfied needs and wants
that create tension or discomfort.
Certain needs can be satisfied by purchasing and consuming goods and services. Deciding what
to buy starts when a need that can be satisfied through consumption becomes strong enough to
stimulate a person.
Thus, a problem is recognized when consumers have an unmet need, and everyday consumers
recognize purchase or consumption-related problems.
Consumers may have routine problems when they run out of daily necessities and may have
unexpected problems when major appliances suddenly go out of order. In addition to these two,
there is another type of problem that is subtle and evolve slowly over time, such as a desire to
buy a washing machine.
Consumer decision-making arises when an individual recognizes a problem or need that is not
met.
A problem or need exists when there is a discrepancy between a consumer’s actual state and the
desired state. This is shown in the following figure, along with different stages of the problem
recognition process.
Figure given below states that the desired state and existing state result from its lifestyle and
current situation. His desired and current state could be the same, or there could be discrepancies
between these two states.
 CHAPTER 9: CONSUMER DECISION PROCESS 357

If a consumer perceives a discrepancy between his desired and current state, he will recognize that
he is having a problem. A consumer defines his problems in terms of his motivation that we have
discussed in unit eleven.

Figure-10.1: Process of Problem Recognition

(Source: https://www.iedunote.com/buyer-decision-process)
The degree of an individual’s desire to resolve a particular problem depends on the degree of
discrepancy between the desired and existing states and the importance of the problem.
Thus, an individual consumer will be desirous of solving a problem if he considers the degree of
discrepancy as large enough and the problem as very serious or important.
After the problem is identified, the buyer has to define it in some meaningful term to help him
initiate an action to solve his problem.
358 CONSUMER BEHAVIOUR

For example, one may recognize that he is having a status related problem. This is problem
recognition. Now he has to define it in some meaningful term, which is causing the status problem.
A consumer may recognize both an active as well as the inactive problem that he is having. An
active problem is that he is aware of or will become aware of, and, on the other hand, an inactive
problem is one he is not aware of.

10.06 Situations Leading to Problem Recognition

mgm¨v ¯^xK…wZ‡Z ‡bZ…¯v’ bxq cwiw¯’wZ
There could be many situations that may lead a consumer to recognize a problem to exist. Major
situations leading to problem recognition are;
1. Insufficient Stock of Goods
2. Dissatisfaction or Discontentment with the Stock
3. Changes in the Environmental Characteristics
4. Changes in the Financial Status
5. Promotional Activities
6. Consumer’s Previous Decisions
7. Individual Development
8. Efforts of Consumer Groups and Governmental Agencies
9. Availability of Products
1. Insufficient Stock of Goods (`ª‡e¨i Ach©vß gRy`): The most common situation leading to
problem recognition by a consumer is the depletion of the stock of goods that he uses. 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 (gRy` wbq Amš‘wó ev Amš‘wó): If a consumer
becomes dissatisfied with the goods he owns or uses, he will recognize that he is having a
problem.
A 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 Characteristic (cwi‡ekMZ ‰ewk‡ó¨i cwieZ©b): With the change
in an individual’s or family’s environmental characteristics, the individual or the family may
recognize a problem.
For example, when a family moves from one stage of its life cycle to another stage, it requires
different types of products and services, and as a result, problems occur.
 CHAPTER 9: CONSUMER DECISION PROCESS 359

More so, friends and reference groups’ influence may demand new and different products to
be bought by an individual or a family. Such a situation also leads to the recognition of a
problem.
4. Changes in the Financial Status (Avw_©K Ae¯’vi cwieZ©b): Changes in the financial status or
position of an individual or a family may also lead to problem recognition.
For example, if an individual’s financial position improves or worsens or anticipates an
improvement or deterioration, he may recognize a problem associated with his actual or
anticipated changing financial position.
5. Promotional Activities (cªPvig~jK Kvh©µg): By promotional activities, marketers try to trigger
drives in consumers. Through different promotional activities, marketers try to create a
discrepancy between actual and desired states of consumers. Such a situation will trigger
problem recognition in consumers.
6. Consumer’s Previous Decisions (†fv³vi c~e©eZ©x wm×všÍ): Other purchases made by a consumer
may also lead to problem recognition.
For example, if an individual buys a television, it may trigger buying an antenna or a voltage
stabilizer. The purchase of a computer may lead to the recognition of the problem of not
having a printer.
7. Individual Development (e¨w³MZ Dbœqb): With an individual’s mental development and
change in outlook, he may recognize not having certain products.
8. Efforts of Consumer Groups and Governmental Agencies (†fv³v †Mvôx Ges miKvix ms¯’vi
c«‡Póv): Activities of different consumer interest groups and different government agencies
may also lead to problem recognition. For example, if consumer groups advocate
environmentally friendly products, they may feel the need for such products creating
problems.
If the government puts an embargo on using private vehicles on the city’s main roads,
consumers can buy bicycles, thus causing a problem.
9. Availability of Products (c‡Y¨i cªvc¨Zv): The availability of a product makes customers aware
of it, making them feel to have one of those. Such a feeling may also lead to problem
recognition.

10.07 Marketing Strategy with Regards to Problem Recognition

mgm¨v ¯^xK…wZ msµvšÍ wecYb †KŠkj
Recognition of problems by consumers bears important marketing implications. They should first
identify the problems that consumers face, and, in the second stage, they should develop a
marketing mix aiming at consumers’ problem solutions.
360 CONSUMER BEHAVIOUR

Marketers may also create situations where consumers look for problems or create situations that
may suppress the consumers’ problem recognition.
 Measuring Problem Recognition (mgm¨v mbv³KiY cwigvc): The fast task is to identify the
problems faced by the consumers or the problems they recognize. A marketer can take
many approaches in measuring problems recognized by the consumers. One such
approach is “intuition.”
By evaluating his product, a marketer can determine whether he should improve his product,
and if so, how can he do so. Second, he can conduct surveys to identify the problems
recognized by his customers.
A marketer can also conduct activity analysis focusing on consumers’ particular activity, such
as how breakfast items are prepared. A product analysis may also be undertaken to identify
consumers’ problems or problems using a particular product.
Another technique used in identifying problems consumers recognize to undertake problem
analysis. Here, consumers are requested to identify the problems they face and give
suggestions relating to such problems.
 Marketing Mix Decision Aiming at Problem Solution (mgm¨v mgvav‡bi j‡¶¨ wecYb wgkªY wm×všÍ):
After the consumers’ problem is identified, a marketer may adjust their marketing mix
variables to help consumers overcome problems. This may be done through product
modification, changing the distribution strategy channel, adjusting prices, or changing
advertising or communication strategy.
 Activating Problem Recognition (mgm¨v mbv³Ki‡Yi mwµqKiY): Marketers themselves may
activate problem recognition by the consumers. Marketers may activate problem recognition,
first, by influencing the desired state. By emphasizing the benefits of products, marketers
may encourage people to buy a particular product they lack actively.
Through advertising, personal selling, and sales promotion activities, marketers can influence
consumers’ desired state, causing them to recognize problems. Marketers may also activate
problem recognition by influencing perceptions of consumers’ actual state.
For example, an individual buying a particular brand of a product may be given the idea that
another alternative is better than one he is having or using. This may also lead to problem
recognition by a consumer. Marketers may also activate problem recognition by influencing
the timing of problem recognition.
If a consumer thinks of buying a refrigerator before “Eid- Ul-Azha,” he may be given the
idea that refrigerators’ prices will rise during Eid time, causing him to recognize the problem
now instead of buying later.
 Suppressing Problem Recognition (mgm¨v mbv³KiY cÖwZ‡iva): By this time, you are aware
of the situations that trigger problems in consumers. Some of the problems recognized by
 CHAPTER 9: CONSUMER DECISION PROCESS 361

consumers may create problems for certain marketers. In such a situation, marketers try
to suppress the problem to be recognized by consumers.
A tobacco marketer may suppress problem recognition by the tobacco users caused by
consumer groups or other agencies by developing an advertisement that shows tobacco users
in a lively mood.

10.08 Importance of Problem Recognition

mgm¨v mbv³Ki‡Yi ¸iæZ¡
Problem recognition is the most important part of the consumer decisioning process as this is the
point where a person becomes a potential customer and can start the process of buying a new
product or a service. This is not only important for customers but also for the organizations,
manufacturers and marketers. The entire product lifecycle revolves around the problem statement
of the customers. If the problems ceases to exist so would be the need for the product.
Features phone still function but not many people want them as now the problem recognition is
just not about being able to talk but also to have a multimedia device which can give many
additional features like internet connectivity, social media, and apps. If a company does not
recognize the changing customer behaviour they would never be able to define the problem
statement and may become obsolete.
With technological advancements the problem recognition keeps getting refined and now may be
solved with an improved product or an entirely new product. Paper based documentation was very
critical few years back and many products like printers, scanners etc. are solving the problem. As
technology improved and automated solutions cut down the need for papers and work started
happening digitally, for the same need, paper based documentation became not a problem
anymore.

10.09 Types of Problem Recognition

mgm¨v mbv³Ki‡Yi aib
There are multiple types of problem recognition. The two most important are:
1. Expected and Active Problems (cªZ¨vwkZ Ges mwµq mgm¨v): These are the problems about
which the customers are actively aware and plan to solve it themselves by looking out for a
potential product or a solution which resolved the problem. These are expected like
broadband plan getting expired, Need to enroll for a college course after schooling, buying a
refill for printer, buying a bus ticket to travel to another town to meet a friend. These are
examples of expected and active problems which are to be solved by the customer while being
aware of them.
362 CONSUMER BEHAVIOUR

The marketers normally present the product which can solve the problem without defining
the problem again to customer as he or she is already aware. The benefits and resolution is
what the customer is interested in.
2. Unexpected and Inactive Problems (AcªZ¨vwkZ Ges wblwµq mgm¨v): These are the ones where
the customer does not know if they require to solve them or not. An example can be insurance
policy in which a customer has to be made aware that there is a need which is fulfilled by
buying an insurance policy and will eventually solve a future problem if it arises.
In B2B sales especially in technology, we see this problem recognition state. Many customers
have been working in the same way since many years but the new technology sellers convince
them that the new digital and automated solutions are much better for them as that would help
in cutting a lot of costs and increase efficiency. The customers were not aware until explained
and also were not expecting to solve them immediately. But once a customer is convinced
about solving the issue, then it becomes an active problem.
Many times, there can be some unexpected events in life which can lead to immediate problems
that require you to buy new products or services

10.10 Problem Recognition Maslow’s Hierarchy of Needs

mgm¨v mbv³Ki‡Y gvm‡jvi Pvwn`vi †kªwYweb¨vm
Business managers need to be skilled, have expertise in problem recognition and solution
techniques to be the greatest help in guiding their company towards greater success.

In problem recognition, the consumer recognizes a problem or need or want. The buyer recognizes
a difference between his or her actual state and some desired state.
 CHAPTER 9: CONSUMER DECISION PROCESS 363

The need can be generated by internal stimuli when one of the person’s normal needs − hunger,
thirst, sex, etc. rises to a high level sufficient to become a drive. A need can also be generated by
external stimuli.
At this stage, the marketer should evaluate the consumer’s perspective by considering the basic
questions like −
 What kinds of needs or problems or efforts arise.
 What brought them about and
 How it led the consumer towards the particular product.

 Maslow’s Hierarchy of Needs (gvm‡jvi Pvwn`vi †kªwYweb¨vm)

American Psychologist Abraham Harold Maslow believes that, needs are arranged in a hierarchy
form. Only after a human has achieved the needs at a certain stage, does he move to the next one.
The pyramid diagram showing the Maslow needs hierarchy.

According to Maslow's theory, when a human being goes up the levels of the hierarchy has
fulfilled the needs and wants in the hierarchy, one may ultimately achieve self-actualization.
364 CONSUMER BEHAVIOUR

Maslow in the end concluded that, self-actualization was not a regular outcome of satisfying the
other human needs. Human needs as identified by Maslow are as follow −

 At the bottom of the hierarchy level are the "Basic needs or Physiological needs" of a
human being − food, water, shelter, sleep, sex etc.

 The next level is "Safety Needs − Security, Order, safety and Stability". These two steps
are important for the physical survival of the person.

 The third level of need is "Love and Belonging", which are psychological needs; when
individuals have taken care of themselves physically, they are ready to share themselves
with others, such as with family, friends and relatives.

 The fourth level is achieved when individuals feel comfortable with what they have
achieved. This is the "Esteem" level, the need to be capable and recognized, such as
position, status and level of success.

 The fifth level is the "Cognitive" or the "self-actualization" level, where individuals
intellectually stimulate themselves and explore for their growth.

Finally, there is the "Aesthetic" level, which is the need for harmony, unity, order and beauty.

10.11 Examples of Problem Recognition

mgm¨v mbv³Ki‡Yi D`vnviY
The problem recognition might be due to:

1. A product being out of stock like Oil, floor, raw materials can lead to a problem

2. Dissatisfaction with the current product or state

3. New needs/wants based on the lifestyle and hierarchy in life

4. Related products/purchases e.g. After buying an expensive phone, people look to buy a case
immediately to protect the phone

5. Marketer induced problem recognition which are inactive problems

 CHAPTER 9: CONSUMER DECISION PROCESS 365

6. New products and categories e.g. When an iPad was launched, people were working on
phones and desktops. After the launch, a new category got created in the market called Tablet
PCs.

INFORMATION SEARCH AND EVALUATION

Z_¨ AbymÜvb I g~j¨vqb
10.12 Information Search
Z_¨ AbymÜvb
The second stage of the purchasing process is searching for information. Once the need is
recognized, the consumer is aroused to seek more information and moves into the information
search stage.
The consumer may have heightened attention or may undertake an active search for information.
The amount of searching a consumer will depend on the strength of his drive, the amount of
information he starts with, the ease of obtaining more information, the value he places on
additional information, and the satisfaction he gets from searching.
Buyers or customers can get information about goods from different sources.
 Personal sources (e¨w³MZ Drm): This includes family, friends, neighbors, acquaintance,
etc.
 Commercial source (evwYwR¨K Drm): This includes advertising, salespeople, dealers,
packaging, display, etc.
 Public sources (cvewjK †mvm©): This includes mass media, consumer rating organizations,
etc. they also become confidential to provide information.
 Experimental sources (cix¶vg~jK Drm): This includes handling, examining, using, etc.
Such information becomes decisive and confidential.
The relative influence of these information sources varies with the product and the buyer.
Generally, the consumer receives the most information about a product from commercial sources-
those controlled by the marketer.
The most effective sources, however, tend to be personal. Personal sources appear to be even more
important in influencing the purchase of services. Commercial sources normally inform the buyer,
but personal sources legitimize or evaluate products for the buyer.
For example, doctors normally learn new drugs from commercial sources but turn to other doctors
for evaluative information.
366 CONSUMER BEHAVIOUR

The consumer’s awareness and knowledge of the available brands and features increase as they
get more information. In designing the marketing mix, a company should make the target
customers aware of its brand. Buyers’ sources of information should be carefully identified, and
the importance of each source should also be assessed.

10.13 Nature of Consumer’s Information Search

†fv³v Z_¨ AbymÜv‡bi cªK…wZ
Consumers arrive at purchase decisions based on information gathered regarding the product
under consideration. They collect information from many different sources.
The effort, a consumer, will put into collecting information from external sources depends on
several factors. Once information is gathered, the consumer evaluates them to arrive at the
purchase decision.
Understanding how consumers evaluate alternatives is essential from a marketing point of view.
The second step in the buying decision-making process is obtaining purchasing related
information to solve the buyer’s problem. 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 brands’ availability, product features,
sellers’ characteristics, after-sales service, warranties, prices, quality, and use instructions.
How long the consumer will search for information and how intense his search process will depend
on his buying the product and the importance of purchase to him.
The consumer may go for both internal as well as an external search of information. Information
search is a mental process, and physical activity performed to make decisions and attain the desired
goals.
Such a search requires time, energy, as well as money. It may also require a consumer to forego
more desirable activities.
Time consumers spent seeking information, and the amount of information a consumer seeks
depends on many factors.
A consumer may seek information from within, or he may search externally. If he tries to recollect
his memory to help him decide on the brand to buy, he searches internally.
Past purchase experience may help him decide on the desired course of action related to his
perceived problem. If he fails to arrive at an appropriate solution to his problem, he may go for an
external search.
 CHAPTER 9: CONSUMER DECISION PROCESS 367

A consumer may solve some of his recognized problems using his past experiences that he is
having with purchases of similar products or brands.
By recalling his memory, he may decide to buy the same brand that he bought before the previous
purchase is considered satisfactory.
Marketers can influence internal search through different marketing activities, such as advertising
and personal selling, or sales promotion that may remind consumers of the brand he bought last
time.
A consumer may go for an external search of information if he fails to find a satisfactory solution
to his recognized problem using his stored information.
Externally, he may take friends’, neighbors’, and relatives’ opinions; may rely on information
provided by the marketers through different advertising materials; he may go for sampling and
gather first-hand experience; or he may gather information reading articles, books, or company
brochures, pamphlets, or leaflets.

10.14 Sources Used by Consumers in Gathering Information

Z_¨ msMª‡n †fv³vi e¨eüZ Drm
In seeking information, a consumer may turn to one of several major sources of information. The
most widely used source is experience. This is one of the primary sources of information.
Personal experience with a product may provide selected kinds of information to the consumer.
This is most vital because such a selected kind of information may not be acquired in any other
way by a consumer.
In acquiring information through personal experience, marketers can help consumers significantly.
This may be done by distributing free samples, arranging a demonstration of the product, or
allowing consumers to use the product temporarily with or without charging any price.
Another important source of information used by consumers includes friends, relatives, family
members, neighbors, or associates. This is referred to as a personal source. Consumers rely heavily
on their friends, family members, relatives, neighbors, and associates.
The reason is that consumers trust this source more than any other source. Another source of
information, as used by the consumers, is the marketing source. It includes salespersons,
advertisements, product displays, and packages and labels.
Though such a source provides marketer generated messages, it can influence other information
sources that consumers use.
368 CONSUMER BEHAVIOUR

Consumers can also use public or independent sources of information. They include government
reports, news presentations, reports from product testing information, and reports published by
different consumer groups.
These sources are considered most credible as they are independent sources and are likely to
provide the most neutral and factual information. Another most widely used source is the memory
search.
Here consumer tries to recollect his memory to find any relevant information if there is any stored
in his memory. If a consumer can successfully search for information, it can yield him a group of
brands that he may view as possible alternatives.

10.15 Factors Influencing the Level of External Search

evwn¨K AbymÜv‡bi ¯Íi‡K cªfvweZKvix Dcv`vb
A consumer goes for an external search if an internal search cannot provide him with sufficient
information to solve his recognized problem.
He also goes for an external search if he perceives that the external search benefits will offset its
costs. Several factors determine a consumer’s level of external search.
They are;
1. Marketplace characteristics;
2. Product characteristics;
3. Consumer characteristics; and,
4. Situational characteristics.
Let us now have a look at them in turn:
1. Marketplace Characteristics Influencing the Level of External Search (evRv‡ii ˆewkó¨
ewnivMZ AbymÜv‡bi ¯Íi‡K cªfvweZ K‡i): Certain characteristics of the marketplace determine the
level of external search of a consumer. These characteristics affect the level of external search
as they determine the costs involved in search and the corresponding benefits that a consumer
may derive from such a search.
They include an available number of alternatives, price range, store distribution, and
information availability. If there is only one brand available in a particular product category,
the consumer does not require an external search regarding that product.
But, if the number of alternative products, brands, and stores is numerous, there will be an
extensive external search that a consumer will go for.
 CHAPTER 9: CONSUMER DECISION PROCESS 369

The consumer goes for extensive external search if prices of alternatives vary greatly as he
intends to make the best utilization of his money being spent on a product. If the stores selling
a particular type of product are clustered, the external search will be intense.
But, if stores selling a particular product are situated in dispersed locations, it will reduce the
external search level because it involves consumers’ time and money to move around stores.
Instant availability of external information may also increase the level of external search. It
provides convenience to the consumer looking at and comparing many alternatives, which
helps him make the most appropriate decision to solve his recognized problem.
2. Product Characteristics Influencing the Level of External Search (c‡Y¨i ˆewkó¨ evwn¨K
AbymÜv‡bi ¯Íi‡K cªfvweZ K‡i): Product characteristics such as price level and product
differentiation also influence the level of external search of consumers. The consumer will
do a limited external search if a product’s price is considered insignificant or very low.
On the contrary, if the price level is high from the consumer’s point of view, he will go for
an extensive external search. Product differentiation is another product related characteristic
that influences the level of consumer’s external search.
If a consumer perceives many differences between alternative brands, he will heavily be
involved in the external search. He may consider competing brands differ in quality, features,
design, appearance, or style.
3. Consumer Characteristics Influencing the Level of External Search (†fv³v ˆewkó¨ evwn¨K
AbymÜv‡bi ¯Íi‡K cªfvweZ K‡i): Consumer characteristics, such as learning and experience,
personality and self-concept, social class, age and stage in the family life cycle, and perceived
risk, may also influence the level of a consumer’s external search of information.
If a consumer is satisfied with his prior purchase and consumption of a particular brand in a
product category, he will go for repeat purchase instead of searching externally for more
information on that product category (applies in case of habitual or routine purchase).
One’s personality characteristics and self-concept also influence his level of external search
of information.
An individual who considers himself a deliberate information seeker will go for extensive
external search. A person of an authoritarian type of personality will go for less external
search. The social class of a consumer is another determinant of the level of external search.
Generally, lower and middle-class people go for more external searches than upper-class
people. The level of information search decreases with an individual’s age as his learning and
370 CONSUMER BEHAVIOUR

maturity increase. Families in the earlier stages of the life cycle involve them heavily in
external information search.
With the increase in risk perception, the level of external search increases as the consumer
tries to minimize his dissatisfaction with the purchase and consumption.
4. Situational Characteristics Influencing the Level of External Search (evwn¨K AbymÜv‡bi ¯Íi‡K
cªfvweZ K‡i cwiw¯’wZMZ ˆewkó¨): Situations surrounding consumers influence his level or intensity
of external search. If a consumer, for example, is time-pressed, he will go for a limited
external search.
A consumer will reduce his search if he finds shops are overcrowded that he visits. He may
also search less for information if he considers a desirable purchase offer made by a seller.
The physical and mental conditions of a consumer may also influence his level of external
search. If he is not physically or mentally energetic, he will reduce his level of external search.

10.16 Marketing Strategies Based on Information Search Patterns

µqv cªwµqvv Ges µqv-cieZ©x AvPiY
While developing marketing strategies, a marketer should actively consider the information search
patterns of his target consumers. The following discussion will illustrate the strategy implication
concerning the information search patterns of consumers.
If a marketer finds that his brand falls in the routinely purchased product category, he should
reinforce consumers’ existing behavior patterns.
He can maintain product quality, ensure regular distribution, and reinforce consumers through
persuasive advertising. He should also combat competitive, disruptive activities immediately.
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.
He may also disrupt the existing decision pattern by distributing free samples, reducing price and
announcing price cuts, or offering coupons or other inducements to customers.
Where consumers search for limited information, a marketer can identify the places where
consumers search for information and then provide them with sufficient attention-getting and
influencing information to capture a large market size as possible.
 CHAPTER 9: CONSUMER DECISION PROCESS 371

PURCHASING PROCESSES AND POST-PURCHASE BEHAVIOR

µqv cªwµqv Ges µq cieZ©x AvPiY

10.17 Introduction to Purchasing Processes

µqv cªwµqvi f~wgKv
Purchasing procedures include buying decisions and actions. Information searching and
evaluation lead to buying. Even if a consumer learns everything about a product, they may not buy
it. His other evaluation could be erroneous, leading to a bad decision. If you don't comprehend
advertising or other material, you may add or leave out products. Situational circumstances can
also influence a buyer's decision. A marketer should pre-sell so that unanticipated events don't
sway consumers' thoughts. He may also exploit the reasons people buy his stuff.
After reviewing choices, a consumer must complete the transaction. He may not buy if he doesn't
like his alternative options. If he buys, he must decide on features, prices, warranties, installation,
credit, where and when to buy (choosing a store), how to take delivery, and how to pay, among
other things. Buying anything is the first of many decisions. You must choose where to buy. People
shop in places that reflect their likes, values, and status. Making the product easy to find and
creating favourable conditions encourages sales. Next, we'll discuss the buying process.

10.18 Why do people shop?

gvbyl †Kb †KbvKvUv K‡i?
Before examining where and how customers shop, it's important to understand why they shop.
Shoppers have motives. Personal or social motives exist. Role playing, diversion, self-satisfaction,
learning new trends, physical exertion, and sensory stimulation are personal motives. Social
reasons include social experience outside the home, communication with like-minded people, peer
group attractiveness, status and authority, and bargaining.
A consumer may shop to display their role. Consumers shop to escape their routines. Though
economic theories explain buying as problem solving, a consumer may purchase for self-
gratification. Consumers buy to learn new trends or display a distinct lifestyle. Some shoppers
love shopping because it replaces exercise. Consumers may shop to satisfy their senses, such as
hearing sound or touching items.
Consumers shop to socialise outside the home. Shopping lets you meet new people and experience
different scenarios. Shoppers can meet others with similar needs, feelings, ideas, and attitudes. A
person may go shopping with friends and colleagues. People go shopping to show off their power
and position. Bargaining is another reason people shop. Some feel bargaining might help them
save money on things.
372 CONSUMER BEHAVIOUR

10.19 Factors Determining Store Selection

†÷vi wbe©vPb wbY©qvKvix Dcv`vb
Next, a marketer should know how consumers choose stores. Consumers evaluate stores using cr
iteria. A consumer evaluates stores and brands in the same way. Consumers utilise these charact
eristics to choose stores. One is shop or consumer traits. Now let's discuss each.
1. Influencing Store Attributes (†`vKvb ˆewkó¨ c«fvweZKiY): Consumers choose stores by
comparing store attributes. Location, store image, retail advertising, store design and physical
facilities, store size, product diversity, salesperson behaviour, and customer service are
common store qualities. The influence of these variables varies by product, shop, and
consumer.
The store's location is a major factor in a consumer's store choice. Consumers prefer stores
near home or office. Store image influences consumer store choice. Store image is how
people view a store's attributes. All store-related attributes affect a store's appearance. Most
shoppers prefer stores with a good reputation.
Consumers find shop information via ads. Thus, stores that advertise more will attract more
customers, who may shop at those stores. Heavy advertising might give consumers the
impression that a store is well-established and reliable. Thus, people choose advertising-
heavy stores. Price advertising of stores may attract bargain-hunters.
Some buyers choose stores based on their decor and facilities. Design includes layout, aisle
arrangement, carpeting, and architecture. Elevators, escalators, lighting, air conditioning,
children's corner, and washing facilities are provided. These can affect consumers' mood and
store choice.
Size influences buyers' store choice. Larger stores are easier to navigate for most shoppers.
Larger stores may display a bigger variety of products, helping customers choose their
favourite brand and product.
Consumers choose stores based on product variety and assortment. Consumers choose stores
with more variety. Consumers can avoid shopping at many stores. If a store stocks things
that consumers buy frequently (or seldom), it will draw more customers than retailers with a
limited assortment.
Consumers demand well-treated salespeople. Thus, people prefer establishments with warm,
friendly, and courteous service. Customers want knowledgeable salespeople. They choose
stores with qualified salespeople.
 CHAPTER 9: CONSUMER DECISION PROCESS 373

Consumers buy items and services. They expect shop credit, replacement, information,
instalment, delivery, parking, free wrapping, etc. A consumer may consider the
aforementioned considerations when choosing a store.
2. Influencing consumer store selection (†fv³v †`vKvb wbe©vPb c«fvweZKiY): Consumers choose
stores based on store and customer attributes. Four customer traits affect retailer choice.
Perceived danger, consumer confidence, family traits, purchasing inclination. You learned
that customers view purchase risks differently. Consumers choose stores that reduce social
and performance hazards. Higher-class consumers choose status stores to lessen social
hazards, whereas lower-middle-class people avoid them to reduce financial risks. Consumer
confidence affects store selection.
Highly confident consumers don't mind buying from new shops, but less confident customers
choose well-established stores. Family characteristics and engagement in purchase decisions
also influence a family's store choice.
In some families, spouses make shopping decisions and choose stores. This lesson's
introduction discussed consumers' buying motives. Distinct categories of merchandise have
different purchase motives. Purchase motivations for a product category determine a
consumer's buying approach. Different consumers like different stores. Consumers who
dislike shopping choose convenience stores.
3. Buying behaviour in-store (†`vKv‡b µq AvPiY): Some people visit a store intending to buy one
brand but leave with another. Why do they? In-store atmosphere may explain their
behavioural change. Store layout and traffic patterns, ambience, point-of-purchase displays
(POP), product shelving, price strategies, stockouts, sales people, and packaging can affect
consumer behaviour.
Store layout may influence a consumer's store selection and buying behaviour. Visibility may
influence a consumer's store choice and purchasing decision. Store layout affects traffic flow.
If a store's traffic flow creates a mood, consumers will be more eager to shop there because
of the favourable environment. The store's atmosphere influences consumer store choice.
Lighting, merchandise presentation, fixtures, floor coverings, colours, sounds, odours,
salespeople's attire and demeanour, and other customers' traits and behaviour influence store
atmosphere.
These may influence consumers to shop at a certain store or buy a certain product. Point-of-
purchase displays affect retailer selection and buying behaviour. POP displays attract and
influence shoppers. A woman may buy a "sharee" because of its display instead of one she
374 CONSUMER BEHAVIOUR

meant to buy. Product placement might also entice customers. Wider products get more
attention. Keeping things at eye level influences consumer purchase behaviour.
Pricing tactics influence retailer selection and buying behaviour. Special offers and
promotions bring in clients. In-store price cuts and special pricing inducements like coupons,
discounts, and gifts may influence a buyer choose a store or product.
If a consumer can't locate his desired brand in a favoured store, he may move brands or stores,
delay the purchase, or postpone it temporarily or permanently.
Consumers' in-store purchase behaviour may be influenced by salesperson traits. An
aggressive and compelling salesperson may sell to a sceptic. A knowledgeable salesman can
present consumers with information that may sway them toward the store or its items.
Packaging affects consumer behaviour in-store. Packaging is convenient, indicates status, and
promotes sales. Packaging can replace salespeople. Some people choose a brand based on its
beautiful packaging. Attractive packaging can influence buyers and boost sales.
4. After-purchase (†Kbvi c‡i): As most buying is repeated, marketers interested in repeat
business must focus on post-purchase consumer behaviour. Previous purchase determines
customer learning as he evaluates it, influencing future behaviour.
A consumer chooses items, brands, merchants, and services. These decisions influence the
consumer's future purchase decisions. A consumer may be happy or unhappy with a past
purchase. His happiness will affect future purchases. "Satisfaction refers to a consumer being
sufficiently rewarded for his sacrifice." Satisfaction depends on expectations and product
performance. If buyer's expectations match product results, he's satisfied; if not, he's
unsatisfied. The seller's statements and claims affect consumer expectations. Exaggerated
claims may dissatisfy consumers. Marketers should make promises that fit a product's
qualities and quality. Thus, a marketer's job does not finish after a buyer purchases his goods,
as his future behaviour depends on happiness with purchase and consumption of a brand.
Post-purchase conduct is implied.
A happy consumer might become a marketer's best buddy. A delighted customer will buy
other company products. He'll also recommend the company's items to friends. Unsatisfied
customers can sue companies. He can sue the company's products publicly or privately.
Public action includes demanding remedy directly from the corporation, taking legal action,
or complaining to business, private, or governmental agencies. Private actions include not
buying the product, boycotting the seller, and telling friends and others about it. A consumer's
purchases may cause cognitive dissonance. Was it wise to buy this brand? He won't buy the
same brand if this happens. A marketer may supply consumers with information to reinforce
 CHAPTER 9: CONSUMER DECISION PROCESS 375

their selections, making them feel good about their purchases. A marketer can reassure buyers
by delivering warranty cards, manuals, and quality and service questionnaires.

EXERCISE

1. What is consumer decision making? (Point 10.01, Page 353)

2. What are the reasons behind consumer decisions making? (Point 10.02, Page 353)

3. What is problem or need recognition? (Point 10.04, Page 355)

4. Explain the need or problem recognition process in brief. (Point 10.05, Page 356)

5. What are the situations leading to problem recognition? (Point 10.06, Page 358)

6. Discuss marketing strategy with regards to problem recognition. (Point 10.07, Page 359)

7. What are the importance of problem recognition? (Point 10.08, Page 361)

8. Explain types of problem recognition? (Point 10.09, Page 361)

9. How Maslow’s Hierarchy of Needs is used in problem recognition? (Point 10.10, Page 362)

10. Give some examples of problem recognition? (Point 10.11, Page 364)

11. What is information search? (Point 10.12, Page 365)

12. Explain the nature of consumer’s information search. (Point 10.13, Page 366)

13. What are the sources used by consumers in gathering information? (Point 10.14, Page 367)

14. What are the factors that influence the level of external search? (Point 10.15, Page 368)

15. Explain the marketing strategies based on information search patterns. (Point 10.16, Page
370)
376 CONSUMER BEHAVIOUR

16. What do you mean by purchasing processes? (Point 10.17, Page 371)

17. Why do people shop? (Point 10.18, Page 371)

18. What are the factors used in determining store selection. (Point 10.19, Page 371)

19. Explain how the store attributes influence store selection? (Point 10.19, Page 372)

20. Explain how consumer influence store selection? (Point 10.19, Page 372)

21. Explain how buying behaviour influence store selection? (Point 10.19, Page 373)

22. Explain how after-purchase behaviour influence store selection? (Point 10.19, Page 373)
CHAPTER 9: CONSUMER DECISION PROCESS 377