This presentation is made during an internship under Prof. Sameer Mathur, IIML

2. The
consumers generally
passes through a
Five-Stage Model
while
making a
purchase decision.

3. 1.
PROBLEM
RECOGNITION
2.
INFORMATION
SEARCH
3.
EVALUATION OF
ALTERNATIVES
4.
PURCHASE
DECISION
5.
POSTPURCHASE
BEHAVIOUR
FIVE-STAGE
MODEL OF
CONSUMER
BUYING

4. PROBLEM
RECOGNITION
Buying process starts
when needs are
triggered by
INTERNAL
OR
EXTERNAL STIMULI.
1.

5. INTERNAL STIMULI SUCH AS HUNGER, THIRST, SEX.

6. OMG! MY FRIEND HAS GOT SUCH A
NICE PAIR OF SHOES.!
EXTERNAL STIMULI WHEN WE ADMIRE SOMETHING OR SEE AN ATTRACTIVE
ADVERTISEMENT.

7. INFORMATION
SEARCH
The next step is to
search
information about
the desired
product.
2.

8. INFORMATION
SOURCES
C
O
M
M
E
R
C
I
A
L
PERSONAL
PUBLIC- mass media, ratings
E
X
P
E
R
I
M
E
N
T
A
L

9. SEARCH DYNAMICS
By 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 COME
TO 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

10. NIKE
PUMA
ADIDAS
REEBOK
FILA
EVALUATION
OF
ALTERVATIVES
It a process by which a
consumer process
competitive brand
information and make a
final judgement.
3.

11. 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

12. BELIEF AND ATTITUDES
We by default have certain belief about some brands which develops
our positive or negative attitude towards them.

13. 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

14. PURCHASE
DECISION
The consumer has
decided his
purchase
intentions but
certain factors
may change his
decision.
4.

15. NON-COMPENSATORY MODELS OF CONSUMER CHOICE
The 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 HEURISTIC
Consumer compares
brands on an attribute
selected
probabilistically.

16. INVERVENING FACTORS
Factors such as attitude of others could affect our decidion
Person’s attitute Critics attitude.

17. POSTPURCHASE
BEHAVIOUR
The person’s
attitude after he
has purchased the
products.
5.

18. POSTPURCHASE SATISFACTION
DELIGHTED DISSAPOINTEDSATISFIED

19. POSTPURCHASE ACTION
PRIVATE ACTION- suggesting others not
to buy the product
LEGAL ACTION- we may also file
case in consumer forum.

20. POSTPURCHASE
OFFERS

21. 1. Problem Recognition
2. 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

24. DISCLAIMER:
Deepalijain
HBTI,KANPUR
during an internship by
Prof. Sameer Mathur,
IIM Lucknow
www.iiminternship.com