3.1 Consumer decision-making processes

Consumer decision-making is a complex process that shapes purchasing behavior. It starts with problem recognition, where consumers identify a need or desire, and continues through information search and evaluation of alternatives.

The process culminates in a purchase decision, influenced by both rational and emotional factors. Post-purchase behavior, including satisfaction and cognitive dissonance, plays a crucial role in shaping future buying habits and brand loyalty.

Problem Recognition and Information Search

Recognizing Consumer Needs and Initiating Search

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• Problem recognition occurs when consumers perceive a gap between their current state and desired state
• Internal stimuli trigger problem recognition through physical sensations (hunger) or emotional needs (boredom)
• External stimuli prompt problem recognition via advertising, social influences, or situational factors
• Information search begins after problem recognition to gather data about potential solutions
• Internal search involves recalling past experiences and knowledge from memory
• External search utilizes outside sources like friends, websites, or store visits to collect product information
• Search intensity varies based on involvement level, perceived risk, and time constraints

Heuristics and Information Processing Strategies

• Heuristics function as mental shortcuts or rules of thumb to simplify decision-making
• Availability heuristic relies on easily recalled information to make judgments (recent news stories)
• Representativeness heuristic uses stereotypes or typical examples to categorize new information
• Anchoring and adjustment heuristic bases decisions on an initial reference point, adjusting from there
• Consumers employ satisficing to find an acceptable solution rather than the optimal one
• Consumers use elimination-by-aspects to narrow choices by eliminating options that don't meet criteria
• Lexicographic strategy involves comparing alternatives on the most important attribute, then the next most important

Evaluation and Decision-Making

Evaluating Product Alternatives

• Evaluation of alternatives involves comparing potential solutions based on important attributes
• Consumers develop a set of evaluative criteria to judge products (price, quality, brand reputation)
• Importance weights assigned to criteria vary based on individual preferences and situational factors
• Compensatory models allow positive attributes to offset negative ones (high price balanced by high quality)
• Non-compensatory models eliminate options that don't meet minimum standards on key attributes
• Conjunctive rule requires products to meet minimum levels on all important attributes
• Disjunctive rule accepts products that excel in at least one important attribute

Making Purchase Decisions

• Purchase decision follows evaluation, selecting the most preferred alternative
• Intervening factors can affect final purchase decision (unexpected situations, perceived risks)
• Buying roles influence decisions in group purchases (initiator, influencer, decider, buyer, user)
• Decision rules guide choices, ranging from simple (buy the cheapest) to complex (weighted adding)
• Choice deferral occurs when consumers postpone decisions due to difficulty or uncertainty
• Purchase timing depends on factors like urgency, sales promotions, and product availability
• Impulse purchases result from sudden, powerful urges to buy without careful consideration

Rational vs. Emotional Decision-Making

• Rational decision-making follows a logical, step-by-step process to maximize utility
• Emotional decision-making relies on feelings, intuition, and gut reactions to guide choices
• Dual-process theory suggests both rational and emotional systems influence decisions
• Cognitive factors in rational decisions include information processing and problem-solving
• Affective factors in emotional decisions include mood, emotions, and unconscious biases
• Rational decisions predominate for high-involvement, high-risk purchases (buying a house)
• Emotional decisions often drive low-involvement, low-risk purchases (choosing a snack)

Post-Purchase Processes

Evaluating Purchase Outcomes

• Post-purchase behavior involves consumer actions and experiences after making a purchase
• Satisfaction results when product performance meets or exceeds pre-purchase expectations
• Dissatisfaction occurs when product performance falls short of expectations
• Consumer responses to satisfaction include repeat purchases, brand loyalty, and positive word-of-mouth
• Responses to dissatisfaction include complaints, returns, negative reviews, and brand switching
• Product usage patterns affect satisfaction and future purchase intentions
• Disposition decisions determine how consumers use, reuse, or dispose of products after use

Managing Cognitive Dissonance

• Cognitive dissonance describes psychological discomfort from conflicting thoughts or beliefs
• Post-purchase dissonance arises when consumers question the wisdom of their purchase decision
• Factors influencing dissonance include decision importance, alternatives' attractiveness, and irreversibility
• Consumers reduce dissonance by seeking confirming information about their choice
• Selective exposure involves avoiding information that contradicts the purchase decision
• Consumers may change attitudes or beliefs to align with their purchase behavior
• Companies can reduce post-purchase dissonance through follow-up communication and support