Consumer Decision Making Process

Authors Avatar

Consumer Decision Making Process

Paper presented by Syed Abid

Rivier College. Nashua. NH

September 28th 2005

A key factor in successfully marketing new/existing products or implementing a product

Extension is a thorough understanding of the motivation, learning, memory, and decision

Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch new products, segment the market, determine market entrance and in brand management.

Therefore, a better understanding of how consumers decide what to purchase is critical to the success of a product. There are numerous theories and models describing the consumer purchasing decision process. The basic concept behind these theories and models are similar.

Five steps describing the consumer purchase decision below followed by a brief description.

1. Problem Recognition

2. Information Search

3. Evaluation of Criteria

4. Purchase Decision

5. Post Purchase Evaluation

Problem recognition is simply the awareness of a need. The need may be perceived or real. The problem recognition process occurs every time consumers decide they need something whether it is toilet paper or a new home. This is the first and most basic step in the purchase decision process. Marketers can effectively initiate consumers’ awareness of a need with the right advertising campaign. For instance, the concession advertising prior to the start of a feature movie is geared toward making movie goers aware that they” need” a drink and a snack.

Information search is the process where consumers gather information on a prospective

Product. Consumers may rely on their past experiences, information recall, friends and family, publications, the media and the company to provide them with information on the product being considered. The extent of the information search is typically related to the cost of the product and the consumer’s prior knowledge and experience with the product and/or product category.

This is the process where the consumer will develop their purchase set, or group of products that they will consider purchasing. If a consumer is considering the purchase of a pick-up truck, at this stage they will collect information and research automobile manufacturers and their trucks. However, the information search may be less extensive when the consumer considers purchasing less-expensive or daily-use items.

Join now!

Marketers can significantly impact the decision process by providing product information.

Detailed product information, available product features/attributes and benefits may satisfy potential consumers need for information. Marketing at this step allows companies to “toot their own horn” to a degree and explain the advantages of their product. In some instances, companies compare their product to competing products to help the consumer realize that their product is clearly superior to its competitors. One consideration is that comparison information maybe misinterpreted or may confuse potential consumers. If this happens, the potential consumer might mistake the competing product as having the advantage over the ...

This is a preview of the whole essay