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Consumer Purchase Decision Process

Up to now, we have focused on various psychological, sociological and situational factors that contribute to different
patterns of consumer behaviour. Of particular importance to marketers is how these sources of influence affect the
purchase decision process.

When making a purchase, the buyer goes through a Consumer Purchase Decision Process consisting of five stages:

 Stage 1: Problem Recognition

Stage 1 of the consumer decision process is problem recognition. And this is when a person perceive a difference
between his ideal state and his actual state and this difference is big enough for him to trigger a decision.

For example, you really wanted the latest iPhone and you realised that your old phone is faulty and this caused you
to make a decision to purchase a new phone.​

 Stage 2: Information Search

Stage 2 of the consumer decision process is information search. After recognising your problem, the consumer
begins to search for information about products or services out there that can satisfy the newly discovered need.
The consumer can go through:

Internal search - scan own memory for previous experiences with the product or with the brand, often
sufficient for frequently purchased products.
External search

 Stage 3: Alternative Evaluation

Alternative evaluation is the stage of the buyer decision process in which the consumer uses information to
evaluate alternative brands in the choice set.

For example, when buying a phone, your evaluative criteria might be based on four attributes - camera, phone
memory, screen size and price. You then narrow your phone choices to three brands, Apple, Samsung and OPPO.
These 3 brands will form your consideration set.

Once consumers arrive at the consideration set, marketers need to know how consumers process information to
choose among alternative brands.

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How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific
buying situation. The evaluation may involve careful calculations and logical thinking or little or no evaluating,
buying on impulse, and relying on intuition.

 Stage 4: Purchase Decision

After examining the alternatives in the consideration set, the consumer is now ready to make his purchase decision.
Purchase decision is the buyer’s decision about which brand to purchase. The purchase intention may not be the
purchase decision due to:

Attitudes of others - for example if someone important to you think that you should buy the cheapest phone,
then the chance of you buying an expensive phone is reduced.

Unexpected situational factors - for example unexpected events such as retrenchment, economic crisis or
flash sales from another brand.

 Stage 5: Postpurchase Behaviour

The marketer’s job does not end when the product is bought. After purchasing the product, the consumer will either
be satisfied or dissatisfied and will engage in postpurchase behaviour of interest to the marketer.

Postpurchase behaviour is the stage of the consumer decision process in which consumers take further action after
purchase, based on their satisfaction or dissatisfaction.

What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in the relationship
between the consumer’s expectations and the product’s perceived performance.

If the product falls short of expectations, the customer will have doubt regarding their purchase decision and they
may be asking if they make the right decision. This feeling of postpurchase psychological tension or anxiety is called
cognitive dissonance.

The marketer’s job is to understand the buyer’s behaviour at each stage and the influences that are
operating.

Does a customer go through the entire consumer decision process all the
time?

Well… Yes and No.

Consumer Involvement and Problem-Solving

Consumer involvement is the significance (financial, social or personal) of the purchase to the consumer.

Consumers sometimes minimise or skip steps in the purchase decision process if it is a low consumer involvement
decision. For example, when you want a bubble tea, you probably just buy your preferred brand without much though.
However, when changing a new phone, you probably go through the entire consumer decision process before deciding
your purchase.

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Three Variations in Consumer Purchase Decision Process

 Extended Problem Solving

Items are expensive

Serious personal consequences

Reflect one’s social image

For example, buying a car, house...

 Limited Problem Solving

Involves recognising a problem for which there are several possible solutions

Require a little more thinking or a little more consideration

For example, buying a handphone, laptop...

 Routine Problem Solving

Habitual purchase

For example, buying grocery items such as bread, oil, rice, eggs...

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