3.2 Consumer Decision-Making Process

Understanding consumer decision-making is crucial for effective marketing. This process involves several stages, from recognizing a need to evaluating post-purchase satisfaction. Marketers aim to influence each step, guiding consumers towards their products.

The decision-making journey isn't always linear. Consumers may skip steps or revisit previous ones. Factors like involvement level, perceived risk, and personal preferences shape how individuals navigate this process.

Problem Recognition and Information Search

Identifying and Defining the Problem

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• Problem recognition occurs when a consumer realizes a discrepancy between their current state and desired state
• Can be triggered by internal stimuli (hunger, thirst) or external stimuli (advertisements, seeing a new product)
• Marketers often try to create or highlight problems that their products can solve (bad breath, dull hair)
• The magnitude of the problem determines the level of involvement in the decision-making process
• Consumers may engage in an active or passive information search depending on the perceived risk and importance of the purchase

Gathering Information to Solve the Problem

• Information search involves gathering data to make an informed decision
• Includes internal search (retrieving knowledge from memory) and external search (collecting information from outside sources)
• External sources include personal sources (friends, family), commercial sources (advertising, salespeople), public sources (news, review sites), and experiential sources (handling or testing the product)
• The amount of information searched depends on factors like the consumer's level of involvement, perceived risk, and time constraints
• Marketers aim to be a part of the consumer's evoked set, the small set of brands a consumer considers when making a purchase (Coke, Pepsi)

Evaluation and Decision-Making

Assessing and Comparing Options

• Evaluation of alternatives involves comparing the options identified during the information search
• Consumers establish criteria for evaluating alternatives, which may be objective (price, features) or subjective (style, prestige)
• The importance of each criterion varies by consumer and product category (price may be more important for a car than for a candy bar)
• Consumers often use heuristics or mental shortcuts to simplify the evaluation process (brand loyalty, price-quality relationship)
• Marketers can influence the evaluation process by framing their products in a favorable light (emphasizing unique features or benefits)

Making the Purchase Decision

• Purchase decision is the selection of a product or brand to buy
• Rational decision-making involves carefully weighing the costs and benefits of each alternative (comparing prices, features, and reviews)
• Emotional decision-making is driven by feelings and impulses rather than logic (buying a sports car to feel young and adventurous)
• The decision may be influenced by unexpected situational factors (store is out of stock, a friend offers a recommendation)
• Marketers aim to reduce barriers to purchase and create a seamless buying experience (easy online checkout, free shipping)

Post-Purchase Behavior

Evaluating the Purchase Decision

• Post-purchase behavior refers to a consumer's actions and feelings after making a purchase
• Consumers often evaluate their decision, comparing the product's performance to their expectations
• Satisfaction occurs when the product meets or exceeds expectations, leading to brand loyalty and positive word-of-mouth
• Dissatisfaction occurs when the product falls short of expectations, resulting in complaints, returns, or negative reviews
• Cognitive dissonance or buyer's remorse is the feeling of regret or uncertainty after a purchase, often due to the high cost or perceived risk (buying an expensive designer handbag)

Unplanned and Impulsive Purchasing

• Impulse buying is making an unplanned, on-the-spot purchase with little or no deliberation
• Can be triggered by external stimuli (attractive displays, limited-time offers) or internal states (mood, emotions)
• Often driven by hedonic or pleasure-seeking motives rather than utilitarian or practical needs (buying a candy bar at the checkout counter)
• Marketers encourage impulse buying through point-of-purchase displays, product packaging, and promotional offers (buy one, get one free)
• Consumers may try to control impulse buying by setting budgets, making lists, or avoiding tempting situations (not going to the mall when feeling stressed)