Understanding the techniques consumers use to purchase goods and services

1. Consumer Behavior
Allison Obach

2. Consumer Decision Process
The consumer decision process model
represents the steps that consumers go
through before, during, and after making
purchases.

3. 1. Need Recognition
The first step of the process- understanding there is an unsatisfied need and the
customer wants to go from their actual state, to their desired state.
There are...
● Functional needs
● Psychological needs
Functional Needs- performance of a product or
service to adequately fill the customers need.
Psychological needs- pertain to the personal
gratification a consumer associates with a
product or service.

4. 2. Search for Information
The second step includes a search for information about the various options that
exist to supply that need.
Internal Search for Information:
A situation where a customer
examines his or her own memory and
knowledge about the product or
service
External search for information:
When the customer seeks outside his
or her own personal knowledge
about a product or service.
ex. family, friends, salesperson,
internet

5. Search for Information
Risk also plays a large role in purchasing decisions. Four risks consumers consider
are as follows...
Performance- the perceived danger inherent in a poorly performing product or service
Financial- a monetary risk is involved in the initial cost of a product or service well as the cost of using that
item or service
Social- fears that consumers suffer when they worry others may not regard their purchases positively.
Psychological- fear that the product may harm the consumer id it happens to not perform properly

6. 3. Evaluation of Alternatives
Once a consumer has recognized a problem and explored the possible options, he
or she must sift through options and evaluate alternatives
Customers use evaluative criteria to judge the important attributes of a product. Evaluative criteria are
important attributes that may include price,fit, materials, construction quality, reputation of the brand,
customer service, etc.
Determinant attributes are those criteria that are important to the buyer that competitors may not be able
to offer

7. Evaluation of Alternatives
Other forms of evaluating include...
Compensatory Decision Rule- where trade-offs are made by the buyer. Bad and
good characteristics are evaluated and compensations are made.
Noncompensatory Decision Rule- where the buyer choses a product or service
based on one characteristic regardless of its other attributes.
Impulse products- products purchased without any prior planning

8. 4. Postpurchase
The final step is the customers postpurchase behavior. Companies try to create
satisfied customers which will
● Create customer loyalty
● Spread positive word of mouth

9. Postpurchase Cognitive Dissonance
Another experience a satisfied (or unsatisfied) customer will go through is
postpurchase cognitive dissonance.
It is an internal conflict that arises from an inconsistency between two beliefs or
beliefs and behavior.
Example: having buyers remorse after using a new tv, that for the price you wonder
if you experience better quality or not. Or, whether you need a television at all
considering you have your computer.
Expensive products tend to have a higher effect

10. Consumer Buying Decisions
Factors that influence the decision
process include psychological, safety,
love, and esteem needs. When all of
those are met, then one can reach
self-actualization.
When a product can meet all the
customers needs, it will help them
feel fulfilled and reach their greatest
potential.

11. Conclusion
In conclusion, customers want a product or service that will satisfy their needs.
Consumers are influenced by their environment-physically and socially- when it
comes to making purchases. We are creatures of habit, when we find products and
services that satisfy those needs, we are loyal customers that don't need an
evaluation process. The customer decision process is a constant loop that is in fact
subject to change, however, it is a basis to understand consumer behavior.