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Consumer Decision Making Process

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Introduction

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. ...read more.

Middle

Marketers have an impact on this portion of the process by their interaction with consumers. Advertising directly impacts the purchase decision by stimulating consumers' awareness of a need, providing relevant product information and helping them evaluate the product and derive that this is their best purchase option. Where did this come from?????? The following lists provide the four types of purchasing behavior which are ranked according to the amount of research or information required in the purchase decision. �Impulse purchasing generally occurs spontaneously without conscious planning. Retail Establishments estimate that approximately 60% of all sales are impulse purchases. Impulse purchases generally only involve the first step of the purchasing behavior process - problem recognition or a "need."Consumers realize they have some real or perceived need for a product and make a purchase. �Routine purchases involve purchasing frequently-bought items (i.e., paper towels, soft Drinks, milk) and are purchased almost automatically. These products are generally Considered to be low-cost items and require very little research and decision effort. Routine purchases do not require lots of thought or research and involve the first, and to a Degree, the second step of the purchasing behavior process. ...read more.

Conclusion

Consumer personalities are quite varied; no two people are the same. Personalities are thought of as internal traits derived from hereditary and personal experience that makes individuals unique. Marketers try to match their products image to the Personalities (or perceived personalities) of their target market. Thus, creating a Means of allowing consumers to identify with the product. 4. Social factors play an important role in consumers purchasing decisions. Opinion Leaders (i.e., sport stars, musicians, politicians), families, reference groups, social class and culture all impact a consumers purchasing decision. Consumers may try to emulate famous people through purchasing certain products. Reference groups can be thought of as any group that has an influence, positive or negative, on an individual. Social class impacts purchasing decision directly and indirectly. Annual household income is used to define social status and also places limits on household spending. Culture impacts the purchasing decision process in that the values, ideas and attitudes of people are shaped by the culture in which they reside. Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer's purchasing decision. ...read more.

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