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Presented to Amit Kumar Das Assistant professor, DBA-JNSMS Assam University

Presented by Krishna Kanta Dutta(60) Kailash Khandelia(61) Debojit Deb(62)

The consumer decision process

How do consumers make purchase decisions? Whether to Buy the Product or not? What Feature (versus price) trade-offs to Accept? Which Brand to Buy? Where to Buy it from? ..?????????????? And in Deciding on all this, How Much Effort to Put In? The CDP represents a road map of consumers minds that marketers and managers can use to help guide product mix, communications, and sales strategies.

The Consumer Decision Model

A consumer decision model is a means of describing the processes that consumers go through before, during, and after making a purchase (choice). A model shows the causes or antecedents(origin of some thing existing) of a particular behavior and each of its results or consequences.

Consumer Decision-Making Process

A five-step process used by consumers when buying goods or services.

Consumer Decision-Making Process

Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior 2003 South-Western

Need recognition
When an individual realise that there is a difference between actual and desired states then he recognised the NEED The higher the gap, the stronger the need (or bigger the problem)
Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems Knowing consumers needs helps firms develop products and marketing programs to reach them more effectively

Need recognition
Environmental Influences - Culture - Social class - Personal influence - Family - Situation Individual differences - Consumer resources - Motivation - Knowledge - Attitudes - Personality, values and lifestyle


Need recognition

Information Searches
Process of recalling past information stored in the memory.


Process of seeking information in the outside environment.

Information Search
A customer can obtain information from several sources: Personal sources: family, friends, neighbours etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays Public sources: newspapers, radio, television, consumer organizations'; specialist magazines Experiential sources: handling, examining, using the product External Information search Seek information in outside environment Non-marketing 2003 South-Western controlled Marketing controlled

External Search: Sources of information

Marketer dominated

Infomercials Websites

Point-of-sales materials

Non-marketer dominated stimuli

Friends Family Opinion leaders Media

Evaluation of Alternatives
Evoked Set
Group of brands, resulting from an information search, from which a buyer

can choose.

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Evaluation of Alternatives
Evoked Set
Evaluation of Products
Analyze product attributes Use cutoff criteria Rank attributes by importance

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Purchase Decision

which depends on such considerations


Terms of sale Past experience buying from the seller Return policy.

From whom to buy


Three possibilities

which can be influenced by

o o

When to buy

store atmosphere time pressure.

Do not buy

Post- Purchase Behavior

After buying a product, the consumer compares it with expectations and is either satisfied or dissatisfied.
Satisfaction or dissatisfaction affects consumer value perceptions consumer communications repeat-purchase behavior. Many firms work to produce positive post purchase communications among consumers and contribute to relationship building between sellers and buyers. Firms often use ads or follow-up calls from salespeople in this post purchase stage to try to convince buyers that they made the right decision.

Five Factors influencing Decisions

1. Level of consumer involvement 2. Length of time to make decision 3. Cost of good or service

4. Degree of information search

5. Number of alternatives considered

Types of Consumer Buying Decisions A. Routine Response Behavior

Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision
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B. Limited Decision Making

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands Short to moderate time to decide
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C. Extensive Decision Making

High levels of involvement High cost goods Evaluation of many brands

Long time to decide

May experience cognitive dissonance
2003 South-Western