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Customer Decision- Making Process
1. What is the Customer Service Decision Making Process?
The customer decision-making process is a series of steps that an individual
undergoes to make a purchase. This process may also be known as the Buyer
Decision Process and covers the five stages a customer goes through before,
during, and after buying a product.
2. Step 1:
The first step in the Customer Service Decision Making Process is Need
Recognition. Need Recognition begins when customers recognize they have an
unsatisfied need. This step could be triggered by internal or external stimuli.
Internal stimuli are those that arise from within the consumer, such as hunger, thirst,
or boredom. External stimuli are those that come from outside the consumer, such
as advertising, recommendations from friends or family, or a change in
circumstances.
3. Step 2:
Step 2 in the Customer Service Decision Making Process is Information Search.
After a consumer recognizes a need, they search for information about the various
options that exist to satisfy that need. There are two different types of searches,
Internal and External. Internal Search Information is when the buyer examines his or
her own memory and knowledge about the product or service gathered through
past experiences. External Search Information is when the buyer seeks information
outside his or her personal knowledge base to help buying decision.
4. Step 3:
Step 3 in the Customer Service Decision Making process is Alternative Evaluation.
Alternative Evaluation often occurs while the consumer is engaged in the process
of information search. This is the stage in which the consumer uses information to
evaluate alternative brands in the choice set. This is the stage where a business
really needs to focus on what makes their product or service the best solution for a
problem and why it is unique from the competition.
5. Step 4:
Step 4 in the Customer Service Decision Making Process is Purchase and
Consumption. At this point in the process, the consumer should have all of the
information they need as well as looked at other possibilities to come to a final
conclusion as to which product or service they desire.
6. Step 4 Continued:
In step 4 of the Customer Service Decision Making Process, if you have provided
the consumer with all the right information up to this point, then they have decided
to choose your brand over the competition. This does not mean that you are
finished with your marketing strategies right then and there.
7. Step 5:
Step 5 in the Customer Service Decision Making Process is Post-Purchase. This is a
customer engagement strategy employed to improve customer retention rate. This
refers to the strategies and activities implemented after a customer has made a
purchase, and aims to drive sales by providing customers with compelling reasons
to make additional purchases and fostering long-term customer loyalty.
8. Examples of Each Step of the Consumer Decision-Making
Process
Step 1: A young woman named Kennedy wants to work out with her friends and achieve a healthier lifestyle.
Step 2: Kennedy speaks with her friends who have fitness-tracking watches, asking them for their opinion about the product.
Specifically, she asks what they like and dislike about the watch and inquires about its features. She then visits the retailer's website to
understand the different options available to her, and she reads various reviews about the product online.
Step 3: To make sure that she's making the best decision for her needs, Kennedy goes online to look up alternatives to the fitness-
tracking watch that her friends have. She finds three well-reviewed alternatives and measures their qualities against those of the
initial product. One of the products is cheaper but doesn't provide the features she wants. The other two are similar to the initial
product but aren't available in the style or color she wants.
9. Examples of Each Step of the Consumer Decision-Making
Process
Step 4: Based on her criteria, Kennedy decides that the initial fitness-tracking watch—the same type that
her friends have—best suits her needs. She returns to the retailer's website and chooses her preferred
color and style options. At checkout, she inputs her shipping information and credit card number.
Step 5: Three months later, Kennedy still uses her fitness-tracking wristband. She likes how it keeps her
accountable for her health and motivates her to engage in healthy activities with her friends. She decides
that she wants to purchase from the same retailer in the future.
10. How has the Customer Service Decision Making Process
important in Marketing?
The Customer Service Decision Making Process is important in Marketing because
understanding the consumer decision-making process is crucial for marketers
because it allows them to identify the driving forces behind consumers purchasing
goods and services.