How do consumer make purchasing decisions?

The consumers generally

passes through a Five-Stage Model

while making a

purchase decision.

1. PROBLEM

RECOGNITION

2. INFORMATION

SEARCH

3. EVALUATION OF ALTERNATIVES

4. PURCHASE DECISION

5. POSTPURCHASE

BEHAVIOUR

FIVE-STAGE MODEL OF

CONSUMER BUYING

PROBLEM RECOGNITION

Buying process starts when needs are

triggered by INTERNAL

OREXTERNAL STIMULI.

1.

INTERNAL STIMULI SUCH AS HUNGER, THIRST, SEX.

OMG! MY FRIEND HAS GOT SUCH A NICE PAIR OF SHOES.!

EXTERNAL STIMULI WHEN WE ADMIRE SOMETHING OR SEE AN ATTRACTIVE ADVERTISEMENT.

INFORMATION SEARCH

The next step is to search

information about the desired

product.

2.

INFORMATION SOURCES

COMMERCIAL

PERSONAL

PUBLIC- mass media, ratings

EXPERI

MENTAL

SEARCH DYNAMICSBy gathering information, the consumer learns about competing brands

1. TOTAL SET BRANDS

AVAILABLE IN THE MARKET

2. AWARENESS SET

5. DECISION

3. CONSIDERATION SET

4. CHOICE SET

BRANDS ABOUT

INDIVIDUAL COMETO KNOW

BRANDS THAT FULFILL ONES BUYING CRITERIA

BRANDS THAT CONSUMERS CHOOSE BY GATHERING MORE

INFORMATION

BRAND THAT CONSUMER FINALLY DECIDES?

NIKE,PUMA

NIKE,ADIDAS,PUMA

NIKE,ADIDAS,PUMA, REEBOK ,SKETCHERS

NIKE,ADIDAS,PUMA,REEBOK,FILA,SKETCHERS

NIKE

PUMA

ADIDAS

REEBOK

FILA

EVALUATION OF

ALTERVATIVESIt a process by which a

consumer process competitive brand

information and make a final judgement.

3.

CONSUMER EVALUATION PROCESS

1. The consumer would select a product which satisfy his need.

2. The consumer would also be looking for certain benefits from the product solution.

3. The consumer would see each product as a bundle of attributes with varying abilities to deliver the benefits

BELIEF AND ATTITUDESWe by default have certain belief about some brands which develops

our positive or negative attitude towards them.

THE BEST

BRAND MEMORY CAPACITY

OPERATING SYSTEM

PRICE

A 7 7 7

B 7 6 8

C 5 8 9

EXPECTANCY-VALUE MODEL

Suppose we need to choose between 3 brands A,B,C to

purchase a smartphone.We rate the important

attributes according to out beliefs and then assign the

importance of each attribute in terms of percentage.

IF we rate memory capacity as 30%, operating system as 45% & price as 25% , then

A 0.3*7+0.45*7+0.25*7 7

B 0.3*7+0.45*6+0.25*8 6.8

C 0.3*5+0.45*8+0.25*9 7.35

THEREFORE, WE ARE MORE LIKELY TO CHOOSE BRAND C ACCORDING TO THIS CRITERIA

PURCHASE DECISION

The consumer has decided his

purchase intentions but certain factors may change his

decision.

4.

NON-COMPENSATORY MODELS OF CONSUMER CHOICEThe consumers often tale “mental shortcuts” called heuristics in the

decision process.

CONJUNCTIVE HEURISTIC

Consumer sets a minimum acceptable cutoff level for each

attribute .

LEXICOGRAPHIC HEURISTIC

Consumer chooses the best brand on the basis

of its perceived most important attribute.

ELEMINATION-BY-ASPECTS HEURISTICConsumer compares

brands on an attribute selected

probabilistically.

INVERVENING FACTORS Factors such as attitude of others could affect our decidion

Person’s attitute Critics attitude.

POSTPURCHASE BEHAVIOURThe person’s

attitude after he has purchased the

products.

5.

POSTPURCHASE SATISFACTION

DELIGHTED DISSAPOINTEDSATISFIED

POSTPURCHASE ACTION

PRIVATE ACTION- suggesting others not to buy the product

LEGAL ACTION- we may also file case in consumer forum.

POSTPURCHASE OFFERS

1. Problem Recognition2. Information Search Information Sources Search Dynamics

4. Purchase Decision Non-compensatory

model Intervening factors

3. Evaluation of Alternatives Beliefs &

Attitudes Expectancy-Value

Model

5. Postpurchase Behaviour Satisfaction Actions Offers& uses

SUMMARYConsumers make purchase decisions by a 5- stage model

KOTLER, P. & KELLER, K. 2011. Marketing Management 14th Edition , Upper Saddle River, NJ, Prentice Hall(With due thanks

to the owners of Photograph

CREDITS:

DISCLAIMER:Deepali jainHBTI, KANPUR

during an internship by Prof. Sameer Mathur,

IIM Lucknowwww.iiminternship.com