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CB 2 Consumer Decision Making Process

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Takudzwa Madamombe
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11 views17 pages

CB 2 Consumer Decision Making Process

Uploaded by

Takudzwa Madamombe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Consumer Decision Making

Process
The most important environment in which firms operate is
their customer environment.

The customer is the centre around which the business


revolves.

Therefore, business people need to understand the


processes that their customers go through when making
decision.
The consumer Decision process

Source: Kim et al . (2008)


1. Need Recognition/ Problem awareness

Needs may arise (triggered by) due to the following


stimulation:

• Advertising
• Thirsty
• Hunger
• Etc.
2. Information search( to solve a problem/ need)
Objective - is to build an awareness set, that is information
on brands that may present a solution to the problem. This
involves looking at competing products.

• Internal search
e.g. from memory / experience / marketing communications

• External search
e.g. from friends, family, work colleagues, neighbours etc.
3. Evaluation of alternatives

Elements considered may include

• Quality – fitness for the purpose


• Prices – which you can afford
• Durability - strength
• Past experience – products that worked well for you
• etc.
4. Purchase decision

Paying the price for the product or service


Sellers to:

• Business explains product benefits to


buyer/consumer
• Guarantees/warrantees
• etc.
Purchase
Consumers make three types of purchases

(a) Trial Purchase – purchase for the first time. Trial is not
feasible for durable goods such as cars ,tv etc.

(b) Repeat purchase – after trial- product meets customer


needs

(c) Long term commitment purchases –customer


continues purchasing the product
Consumption / usage
• At this point the consumer uses the product or service.

• Consumption of products may occur immediately soon after


the purchase or may be delayed.
5. Post purchase evaluation / behaviour
Post purchase evaluation / behaviour
• Positive disconfirmation occurs when performance is perceived
to be better than the predetermined expectations. Customer is
happy and is likely to be loyal to a business.

• Negative disconfirmation occurs when performance is lower


than expectations. Of course, negative disconfirmation leads to
dissatisfied or unhappy customers.

• Zero disconfirmation occurs when performance is perceived to


be exactly equal to expectations
Post Consumption Evaluation
• At this stage consumers experience a sense of either
satisfaction or dissatisfaction.

• If the consumer is satisfied subsequent purchase behavior


becomes easier, consumers tend to buy the same brand.

• The most important determinants of satisfaction is


consumption(how consumers use the product).

• The product might be good but consumers may not use


the product properly and this leads to dissatisfaction.
Types of buying behaviours
Generally speaking, there are four types of consumer buying
behaviours:

• Routine response
• Impulsive buying
• Limited decision making
• Extensive decision making
Routine Response/Programmed Behaviour

• buying low involvement frequently purchased


low cost items; need very little search and
decision effort; purchased almost

Impulse buying
• no conscious planning
Limited Decision Making
• Requires a moderate amount of time for information
gathering.

• Examples include Clothes, you need to know product class but


not the brand
Extensive/Complex Decision Making high
involvement
• These are high involvement products
• unfamiliar, expensive and/or infrequently bought products.
• High degree of economic/performance/psychological risk.
Examples include cars, homes, computers, education.
• Spend a lot of time seeking information and deciding.
Low and High involvement buying
• A consumer's level of involvement is how interested he or she is
in buying and consuming a product.

• Low-involvement -usually inexpensive and pose a low risk to the


buyer if he or she makes a mistake by purchasing them.

• A high involvement -exists when a consumer has to buy a


product or service that is expensive or that poses the risk of
significant emotional consequences if a mistake is made.

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