UNDERSTANDING HOW

CONSUMERS MAKE
BUYING DECISIONS
 UNDERSTANDING HOW CONSUMERS MAKE BUYING
DECISIONS

Understanding how consumers make buying decision

requires an in-depth knowledge of the Decision Making
Unit (DMU) and the Decision Making Process (DMP)
THE DECISION MAKING
UNIT (DMU)
 THE DECISION MAKING UNIT (DMU)
Knowledge about the Decision Making Unit (DMU)
encompasses knowing who is involved in the purchasing process
and the role they play. A member or the DMU can be:
 Initiator(s)
 Decider(s)
 Influencer(s)
 Purchaser(s)
 User(s)
THE BUYING DECISION
PROCESS
 THE BUYING DECISION PROCESS
Customer typically go through five stages when making buying
decisions:
 Identification of need or problem
 search for information or level of involvement
 identification and evaluation of alternatives
 purchase decision
 post-purchase behavior
 CUSTOMER SATISFACTION IS KEY TO A FIRM`S
SUCCESS FOR THE FOLLOWING REASON:
 THE COST OF ATTRACTING A NEW CUSTOMER IS
SEVERAL TIMES THE COST OF RETAINING ONE
 THE AVERAGE FIRM LOSES 10 % OF ITS CUSTOMER
PER YEAR
 REDUCTIONS IN CUSTOMER DEFECTION INCREASES
PROFITS
 THE PROFITABILITYOF RETAINED CUSTOMER TENDS
TO INCREASE OVER TIME.
THANK YOU FOR LISTENING
GOD BLESS US ALL :)
 REPORTED BY:
ANGELLO, JENICA LOUISE
ARELLANO, MICHAELLA
VILLANUEVA, GLADYS FAITH

BSOA 4-1

TO GOD BE THE GLORY