How do consumers make purchasing

decisions?

The consumer passes through 5 stages during buying process

Problem recognition

Information Search

Evaluation of Alternatives

Purchase decision

Postpurchase behaviour

Problem recognition

A problem or need is triggered by internal

or external stimuli

Internal stimuli- Hunger, thirst.

External stimuli – your friend’s new car!

Marketers need to identify the circumstances

that trigger a need

Information Search

Sources of information can be commercial,

public, personal or experiential

Consumers receive highest amount of info. from

commercial sources,

But most effective info. is from personal sources

Dynamics of the Search process

Total Set

Apple

Dell

HP

Toshiba

Compaq

Awareness set

Apple

Dell

HP

Toshiba

Consideration Set

Apple

Dell

Toshiba

Choice Set

Apple

Dell

Decision

??

Evaluation of Alternatives

Our Belief and Attitudes determine

behaviour towards products

and services

Companies tend to fit their products

into the existing attitude of consumers

Evaluation of AlternativesExpectancy Value Model of attitude formationposits that

Consumers evaluate products by combining their brand beliefs

Say you buy a laptop,you give 50% importance to memory capacity,30% to graphics, 20% to price. Then you rate alternatives based on these factors

Purchase Decision

During purchase , consumers make 5 subdecisions-

Brand

Dealer

Quantity

Timing

Payment Method

Purchase Decision

NONCOMPENSTAORY MODELS OF CONSUMER

CHOICE

Involves choice heuristics(shortcuts)-

Conjunctive Heuristic (deciding a minimum cutoff of an

attribute)

Lexicographic Heuristic ( Based on most important attribute)

Elimination by aspects Heuristic

(probabilistic choice of an attribute based on importance)

Purchase Decision

INTERVENING FACTORS like

Attitude of others towards

product, and

Unanticipated situational factors , like losing job

influence decision

Perceived risks(like financial, physical, functional risks)

influence buyer behaviour

Marketers must provide proper knowledge for risk reduction

Postpurchase behaviour

Marketing communications should supply beliefs that reinforce

the consumer’s choice

Postpurchase satisfaction , actions , use and disposalmust be monitored

Thank you for watching!!

UPLOADED BY SHREYANS DAGA,MNIT JAIPURDURING AN INTERNSHIP BY PROF. SAMEER MATHUR,IIM LUCKNOWVisit www.iiminternship.com

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