Stages of Consumer Decision Making

What Influences Consumer Behaviour?

 Consumer behaviour is the study of how individuals, groups, and

organizations select, buy, use, and dispose of goods, services, ideas,
or experiences to satisfy their needs and wants.
 A consumer’s buying behaviour is influenced by cultural, social, and
personal factors.
Consumer Buying Decision Process Defined

 The buying decision process is the decision-making process used by

consumers regarding the market transactions before, during, and
after the purchase of a good or service. It can be seen as a particular
form of a cost–benefit analysis in the presence of multiple
alternatives
 The Buying Decision Process:
The Five-Stage Model
 The consumer typically passes through five stages:
1. Problem Recognition,
2. Information Search,
3. Evaluation of Alternatives,
4. Purchase Decision,
5. and Post Purchase Behaviour.
 Clearly, the buying process starts long before the actual purchase and has
consequences long afterward.
 Consumers don’t always pass through all five stages—they may skip or reverse
some
5 Stages of Consumer Buying Decision Process
 Stage 1- Problem Recognition

 The buying process starts when the buyer recognizes a problem or need triggered by
internal or external stimuli.
 Here the consumer recognizes a need or problem and feels a difference between
the actual state and some desired state.
 They try to find goods for satisfying such needs
 Marketers need to identify the circumstances that trigger a particular need by
gathering information from a number of consumers.
 Stage 2: Information Search

 This leads to the second stage of searching for information about the product. The
consumer tries the find out as much as possible about the product’s available
brands.
 We can distinguish between two levels of engagement in the search.
 The milder search state is called heightened attention.
 At the next level, the person may enter an active information search.
 Step 2: Information Search Contd...
Information Sources
 Major information sources to which consumers will turn fall into four groups:
1. Personal. Family, friends, neighbours, acquaintances
2. Commercial. Advertising, Websites, salespersons, dealers, packaging,
displays
3. Public. Mass media, consumer-rating organizations
4. Experiential. Handling, examining, using the product
Stage 2: Information Search Contd..
Search Dynamics
Apple, Samsung, Lenovo, Micromax, LG,
OnePlus, Sony

Apple, Samsung, Lenovo, LG, OnePlus,

Apple, Samsung, OnePlus,

Apple, Samsung

Apple
 Stage 3: Evaluation of Alternatives

 During this stage the consumer compares the different options on

identified parameters and evaluates pros and cons of all the
alternatives very carefully to select the best alternative, keeping in
mind his future needs.
 Stage 4: Purchase Decision

 After much searching and evaluating, or perhaps very little, consumers at

some point have to decide whether they are going to buy.
 Stage 5: Post Purchase Behaviour

 The fifth stage is the post-purchase evaluation, and it is the most important
one.
 Depending on the level of satisfaction or dissatisfaction, the consumer will
become a loyal customer or actively avoid the brand.
 Satisfaction is a function of the closeness between expectations and the
product’s perceived performance.
 If performance falls short of expectations, the consumer is disappointed; if it
meets expectations, the consumer is satisfied; if it exceeds expectations, the
consumer is delighted.
 These feelings make a difference in whether the customer buys the product
again and talks favourably or unfavourably about it to others.
Post purchase Behaviour…contd
Post purchase dissonance
Reducing Post Purchase Dissonance
Thank You!