HOW DO

CONSUMERS

MAKE

PURCHASING

DECISIONS?

THE BUYING DECISION IS A

5 STAGE PROCESS

PROBLEM RECOGNITION

INFORMATION SEARCH

EVALUATION OF

ALTERNATIVES

PURCHASE DECISION

POSTPURCHASE BEHAVIOUR

PROBLEM RECOGNITION

THE BUYER RECOGNIZES A PROBLEM OR A NEED TRIGGERED BY:

INTERNAL STIMULI LIKE HUNGER OR THIRST

EXTERNAL STIMULI LIKE ADVERTISEMENTS

THIS RECOGNITION OF A PROBLEM ULTIMATELY INSPIRES THOUGHTS ABOUT POSSIBILITIES OF A PURCHASE

….OR TWO….

INFORMATION SEARCH

SURPRISINGLY CUSTOMERS OFTEN SEARCH FOR LIMITED NUMBER OF OPTIONS

50%50%

CUSTOMERS WHO LOOK ATONE STORE

CUSTOMERS WHO LOOK ATMORE THAN 1 STORE

CUSTOMERS WHO LOOK FOR MORE THAN ONE BRAND OF APPLIANCE

CUSTOMERS WHO LOOK FOR ONE BRAND OF APPLIANCE

Public: Mass media, consumer-rating organizations

Experimental: Handling, examining, using the product

SEARCH DYNAMICS

TOTAL SET(ALL BRANDS AVAILABLE)

AWARENESS SET (SUBSET OF TOTAL SET KNOWN TO THE INDIVIDUAL CONSUMER)

CONSIDERATION SET(SET WHICH MEETS INITIAL BUYING CRITERIA)

CHOICE SET(STRONG CONTENDERS)

DECISION

EVALUATION OF ALTERNATIVES

CONSUMERS SEE COMMODITIES AS A BUNDLE

OF ATTRIBUTES

CONSUMERS PAY ATTENTION TO

ATTRIBUTES THAT DELIVER THE MOST SOUGHT-AFTER

BENEFITS

MARKET FOR A PRODUCT MAY BE

SEGMENTED ACCORDING TO

ATTRIBUTES MOST IMPORTANT TO

DIFFERENT CONSUMER GROUPS

BELIEFS AND ATTITUDES

A BELIEF IS A DESCRIPTIVE THOUGHT THAT A PERSON HOLDS ON ABOUT SOMETHING

AN ATTITUDE IS AN ENDURING EVALUATION,EMOTIONAL FEELINGS AND ACTION TENDENCIES OF AN INDIVIDUAL TOWARDS SOME OBJECT OR IDEA

BELIEFS AND ATTITUDES

ATTITUDES CAN BE HARD TO CHANGE AS THEY ECONOMIZE ON THOUGHT AND ENERGY

FOR ANY COMPANY IT IS FAR MORE ADVISABLE TO FIT ITS PRODUCTS INTO EXISTING ATTITUDES RATHER THAN TRY TO CHANGE ATTITUDES

EXPECTANCY-VALUE MODEL

THIS MODEL POSITS THAT THE CONUMER

EVALUATES THE PRODUCTS AND SERVICES BY

COMBINING THEIR POSTIVE AND NEGATIVE

BRAND BELIEFS ACCORDING TO IMPORTANCE

EXCELLENT CAR POOR SERVICE

?

PURCHASE DECISION

NON COMPENSATORY MODEL: POSITIVE AND

NEGATIVE ATTRIBUTES DO NOT NECESSARILY

NET OUT.THE CHOICE IS MAD BASED BY

EVALUATING SOME SINGLE PARTICULAR

CRITERIA IN ISOLATION

PURCHASE DECISION

.....IS ALSO AFFECTED BY INTERVENING FACTORS SUCH AS

1) ATTITUDES OF OTHERS

2) UNANTICIPATED SITUATIONAL FACTORS

3) PERCEIVED RISK

ATTITUDES OF OTHERS INFLUENCE PURCHASES BECAUSE OF TWO REASONS

1)INTENSITY OF OTHER PERSON’S NEGATIVITY TOWARDS THE CHOICE OF PRODUCT

2)MOTIVATION OF BUYER TO COMPLY WITH THAT OTHER PERSON’S WISHES

WHAT???YOU’RE CHOSING A HYUNDAI OVER A

HONDA?OBVIOUSLY YOU DON’T KNOW THE FIRST THING ABOUT CARS!!!!

HMMM…MAYBE DAD’S

RIGHT

UNANTICIPATED SITUATIONAL FACTORS

THE RECESSION

HIT ME HARD…BOY I DID NOT SEE

THAT COMING

PERCEIVED RISKS INCLUDE…

1) FUNCTIONAL RISK

2)PHYSICAL RISK

3)FINANCIAL RISK

4)SOCIAL RISK

5)PSYCHOLOGICAL RISK

6)TIME RISK

STEPS BETWEEN EVALUATION OF ALTERNATIVES AND A PURCHASE

DECISION

EVALUATION OF ALTERNATIVES

PURCHASE INTENTION

ATTITUDE OF OTHERS

UNANTICIPATED FACTORS

PURCHASE DECISION

POSTPURCHASE BEHAVIOUR

POSTPURCHASE SATISFACTION IS A FUNCTION OF THE GAP BEWEEN EXPECTATION AND THE PRODUCT’S PERCEIVED PERFORMANCE

IF PERCEIVED PERFORMANCE FALLS SHORT OF EXPECTATIONS,CONSUMER IS DISSATISFIED

IF MATCHES EXPECTATION,THEN SATISFIED

IF EXCEEDS EXPECTATIONS THHEN DELIGHTED

THESE FEELING HAVE A HUGE IMPACT ABOUT WHETHER THE CONSUMER BUYS THE PRODUCT AGAIN OR ENDORSES IT TO OTHERS.

POSTPURCHASE BEHAVIOUR

OF A CONSUMER ARE GOVERNED BY

THE SATISFACTION GENERATED FROM USING THE PRODUCT

A SATISFIED CONSUMER WILL BUY THE PRODUCT AGAIN AND ENDORSE IT TO OTHERS

A DISSATISFIED CONSUMER WILL ABANDON THE PRODUCT OR RETURN IT.IN EXTREME CASES THEY MAY TAKE PUBLIC ACTION AGAINST THE COMPANY PRODUCING THE PRODUCT