CONSUMER DECISION PROCESS IN BUYING BEHAVIOR

A report submitted to the Department of ManagementIn partial fulfillment for the Bachelor in Management

Submitted byUjjwal Devkota

Faculty of management Modern Nepal College, Bagbazar

Kathmandu, Nepal2014

OBJECTIVES OF STUDIES

To define about consumer role in different buying condition.

To find out about consumer buying decision process.

To measure about changing consumer behavior according to changing environmental condition.

GENERAL BACKGROUND

Consumers are the decision makers regarding the purchase of goods and services that can provide current and future satisfaction. Consumers purchase several products in different situations.

Consumer behavior is the decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services.

The consumer buying decision can be classified into routine purchase/low involvement decision, extensive purchase/high involvement decision and limited purchase decision.

CONSUMER BEHAVIOR ROLES

Initiator Influencer Buyer User

PROBLEM RECOGNITION

PURCHASE

POST PURCHASE

EVALUATION

CONSUMER INFORMATION PROCESSING

EVALUATION OF

ALTERNATIVES

CONSUMER BUYINGDECISION PROCESS

FOCUS: help people provide solutions to their problems (satisfying needs)

1. Need/Problem Recognition

Problem recognition results when a consumer recognizes differences between actual state and desire state.

The actual state refers to the ways in which a need is already met.

Desire state is the way a person would like to satisfy the need.

Problem solving situation

Number of respondents

…..out of 20……..

a. Depleted or inadequate stock of goods

4

a. Discontentment with the stock of goods

3

a. Changing environmental circumstance

5

a. Changing financial circumstance

6

a. Marketing activities

2

When collecting the data consumer have selected one of the major situations of problem solving which are shown below as per the view of interviewed consumers:

Depleted or in-adequate stock of goodsDiscontentment with the stock of goodsChanging en-vironmental circumstanceChanging finan-cial circumstanceMarketing activi-ties

On the basis of purposes

Number of respondents

……..out of 20………..

Pre-purchase search

13

Ongoing search 7

After the need has been realized, the person tries to search for the product. The search can be classified in terms of purpose, sources and the extent of search.

2.Information Search:

On the basis of Extent of search

Number of respondent….out of 20….

Minor purchase Major purchase

High search 0 16

Low search 13 0

Selective search 7 4

3. EVALUATION OF ALTERNATING:

A consumer evaluates a brand on the basis of a number of choice criteria. The number and type of evaluative criteria may vary by product.

The processes of evaluation of alternating:Brand processing:In brand processing, the buyer assesses one brand at a

time. Thus, the consumer may decide to look at a particular brand, examine several attributes of it, and then assess several attributes of a second and third brand.

Attribute processing:In attribute processing, the consumer examines a specific

attribute and then compares several other brands on that attribute. Then, a second attribute may be selected for comparison and so on.

4. PURCHASE (DECISION):

This stage involves the selection of best supplier and placing an order after negotiation. It is then received and approved and payment is made. It would be wise to select two or three suppliers to avoid dependency on one supplier. This step of taking decision are:

Factor affecting brand choice Factor affecting store choice

Factor influencing brand decisions

Number of respondent

…….out of 20…….

Point of purchase displays

7

Price reduction 4

Store layout 3

Stock out 2

Sales personnel 4

Factor affecting brand choice:The consumer can choose different types of brand according to the

different factor which affect in the selection of brand. The following are the major factor which will affect in brand choice and the number of respondent considering same factor as the major one:

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t of p

urch

ase

disp

lay

price

redu

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n

stor

e la

yout

stoc

k ou

t

sale

s pe

rson

nel

0

2

4

6

8

Factor affecting store choice:

Factor influencing store

choice

Number of respondent

…..out of 20…….

Store location 6

Physical design and layout

2

Merchandise 0

Advertising and sales promotion

5

Personnel 4

Customer services

3

0

2

4

6

The consumer can choose different store according to the different factor which affect in the selection of store. The following are the major factors which will affect in store choice and the number of respondent considering same factor as the major one:

5. POST PURCHASE EVALUATION Cognitive dissonance: It occur as a result of a discrepancy

between a consumer’s decision and consumer’s prior evaluation. The way of reducing cognitive dissonance are: Changing the ways of evolution Seek new information Changes attitudes

Satisfaction and Dis-satisfaction: Satisfaction is a kind of stepping away from an experience and evaluating it …… one could have a pleasurable experience that caused dissatisfaction because even though pleasurable, it wasn’t as pleasurable as it was supposed or expected to be.

Complaint behavior: It is the unfavorable attitude toward the product and sharing unfavorable word of mouth to customer and service provider

Product disposal: Disposal of product often occurs in connection with the changing role of consumer and changing status. The ways of product disposal can be: Keep it Get rid of it permanently Get rid of it temporarily

FINDING The research has help to define about

consumer role in different buying condition and how they react over there.

It provides an idea about consumer buying decision process and step involve on it.

Research has provided knowledge about changing consumer behavior according to changing environmental condition.

It helps to know consumers decision regarding brand choice and store choice decision.

Help to get idea about problem solving situation in buying condition.

RECOMMENDATIONS:

Consumer must have to collect knowledge about the product.

Before choosing any product or service consumer must have to do analysis about attribute and characteristics of the product.

Before choosing the store or brand consumer has to know about price related and service related factor.

ANY

QUERIE

S

????

THANK YOU

ALL

FOR

CO-

OPERATING

WITH ME