How do consumers make buying decisions

HOW DO CONSUMERS MAKE BUYING DECISIONS ?

1 Problem Recognition

(Initial stage that invokes the need for a product)

“Buyer recognizes the problem or a need due to a stimulus.

2.INFORMATION SEARCHQueries that lay the path towards choosing a right

product that would fulfill your needs.

Personal

Gathering information from family, friends.

Public

Gathering information from social , mass media.

Commercial

Gathering information from ads, newspapers.

Experiential

By Handling , examining the product.

3.EVALUATION OF ALTERNATIVES

Customers evaluate the options to see which ones deliver the most desirable attributes

4. Purchase DecisionThis is based on a number of heuristics

Purchasing Decision

▷ Customers may not spend time weighing the pros and cons of the brands.

▷ This is based on a number of heuristics.

Heuristics

Conjunctive

Setting a minimum cut-off level for each attribute.

Lexicographic

Choosing the best brand on the basis of one attribute.

Elimination by Aspects.

Comparing the brands and eliminating the ones that don’t meet the cutoff .

5.INTERVENING FACTORS

Involves reconsideration of evaluation of the product.

Intervening Factors

▷ Due to attitude of others

▷ Unanticipated Situations

Post Purchase Behaviour

ActionNegative or

Positive mouthpublicity

SatisfactionCloseness between

expected and actual

performance

DisposalFaster the

consumption,sooner the re-

purchase

Thank You !Hope you had learnt something useful :)

Credits

Special thanks to all the people who made and released these awesome resources for free:

▷ Presentation template by SlidesCarnival▷ Photographs by Unsplash▷ Google Images

Presentation design

Created By:

Praneeth Ponnekanti , IIITD&M Kancheepuram

During an internship under :

Prof. Sameer Mathur , IIM Lucknow

www.IIMInternship.com