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18/09/2014 04:00:19 PM

Consumer Purchase Decision Process

Consumer Purchase Decision Process

A decision process underlies the visible act of making a purchase.

The purchase decision process is the series of steps or stages a consumer passes through in making choices about which products and services to buy. The process consists of five stages: (1) problem recognition, (2) Information search, (3) alternative evaluation, (4) purchase decision, and (5) post purchase evaluation.

1. Problem Recognition: Perceiving a Need

Problem recognition is a perceived difference between a person's ideal and actual situation big enough to trigger a decision. Without the recognition of the need, a purchase cannot take place. The need can be triggered by internal stimuli (e.g. hunger, thirst) or external stimuli (e.g. advertising). Maslow held that needs are arranged in a hierarchy. According to Maslow's hierarchy, only when a person has fulfilled the needs at a certain stage, can he or she move to the next stage. The problem must be addressed through the products or services available. It's how the problem must be recognized.

2. Information Search: Seeking Value

The information search stage serves to clarify the options open to the consumer and may involve two steps:

-  An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem. Internal search is often sufficient for frequently purchased products.

- An external search may be necessary particularly when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low.

- The primary sources of external information are:

a. Personal sources (friends and family)

b. Public sources (rating services like Consumer Reports)

c. Marketer-dominated sources (advertising or sales people)

3. Alternative Evaluation: Assessing Value

The alternative evaluation stage begins with the examination of a consumer's evaluative criteria -- both the "objective" attributes of a brand and the "subjective" factors a consumer considers important. These criteria establish a consumer's evoked set -- the group of brands that a consumer would consider buying from among all the brands in the product class of which he or she is aware.

Another factor that influences the evaluation process is the degree of involvement. For example, if the customer involvement is high, then he/she will evaluate a number of brands; whereas if it is low, only one brand will be evaluated.

Customer involvement

High

Medium

Low

Characteristics

High

Medium

Low

Number of brands examined

Many

Several

One

Number of sellers considered

Many

Several

Few

Number of product attributes evaluated

Many

Moderate

One

Number of external information sources used

Many

Few

None

Time spent searching

Considerable

Little

Minimal

4. Purchase Decision: Buying Value

The purchase decision involves judging the alternatives and is often influenced by seller characteristics and incentives provided by sellers at the point of purchase. According to Kotler, Keller, Koshy and Jha (2009),[4] the final purchase decision can be disrupted by two factors: negative feedback from other customers and the level of motivation to comply or accept the feedback. For example, after going through the above three stages, a customer chooses to buy a Nikon D80 DSLR camera. However, because his good friend, who is also a photographer, gives him negative feedback, he will then be bound to change his preference. Secondly, the decision may be disrupted due to unanticipated situations such as a sudden job loss or the closing of a retail store.

5. Post-purchase Behavior: Value in Consumption or Use

Post purchase behavior is the continuation of the consumer purchase decision process after the product choice has been made. An important result of this stage is anxiety. Post- purchase anxiety, called cognitive dissonance, often results when two or more highly attractive alternatives exist in a purchase decision.

The steps included in the purchase decision process are affected by consumer involvement -- the personal, social and economic significance of the purchase to the consumer. High involvement products typically have at least one of three characteristics:

-  Expensive relative to a consumer's disposable income.

- Could have serious social and/or economic consequences.

- Can be perceived as reflecting a person's social image.

Three general problem-solving variations exist in the consumer purchase decision process:

a. Routine problem solving involves little or no effort to acquire external information or evaluate alternatives; typically used for frequently purchased or low unit value products.

b. Limited problem solving involves the use of moderate information-seeking efforts, often used when the buyer has little time or desire to consider the purchase.

c. Extended problem solving involves considerable time in each stage of the consumer purchase decision process.

 

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