Consumer Decision-Making Process

The consumer decision-making process consists of 5 steps: need recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior. These can be used as a guideline when selling.

1. Need Recognition

The first step of this process requires determining the difference between an ideal state and the physical situation. It can be triggered through marketing.

Example: A mother sees a commerical for milk and realizes she is almost out.

2. Information Search

The second stage defines a consumer's options available and the product package - or bundle of benefits the customer perceives the item to be. This includes the price, quality, and acess to the product. Two types of information searches exist.

A) Internal: Most often used in frequent purchases. The potential buyer recalls memories and previous experiences with a product or with the company.

B) External: Most often used when there is a lack of prior experience with a product. The risk of making a wrong purchase decision is greater.

3 Primary sources of external information are...
-Personal (friends, family, co-workers)
-Public (media reviews, magazines, i.e. Consumer Reports)
-Marketed (commercials, print ads, websites, sales person)

3. Evaluation of Alternatives

Here the consumer notes product features he or she wants and does not want. Brands play a significant role in this step. A consumer is likely to go with a brand that is trusted, or resume #2 information search. The alternatives will be weighed to seek the best outcome.

4. Purchase Decision

This is the actual action taken by the consumer. Does the customer choose an alternative? If not, three possibilities remains...
-Where to buy (choose a person, location, or company). Past experience with the seller again will affect the decision, along with terms of the sale and policies.
-When to buy (immediate transaction or postpone until later). Time availability, convience, and sales are considered.
-Don't Buy

5. Postpurchase Behavior

This is the evaluation of purchase, pleased or displeased. If satisfied, customer loyalty is gained - the right decision was made. If not, negative feedback may occur and lose of loyalty. Warranties, support, future discounts, and surverys can contribute to postpurchase behavior.

3 Main categories of factors influence the process:

1. Personal

Personal factors are the demographics marketers study. Some examples are age, gender, race, sexual orientation, and other personal traits.

2. Psychological

Some primary physicological factors are:

Motives-

Perception-

Knowledge-

Attitude-

Personality-

Lifestyle-

3. Social