Consumer Decision Making Process with supported example of a consumer buying a car.

1. CONSUMER DECISION MAKING
PROCESS
PRESENTED BY
KHALIL AHMAD

2. CONTENTS
•INTRODUCTION
•FIVE FACTORS INFLUENCING DECISION
•LEVELS OF CONSUMER DECISION
MAKING
•TYPES OF CONSUMER BUYING DECISIONS
•CONSUMER DECISION-MAKING PROCESS

3. INTRODUCTION
• The purchase is only the visible part of a more complex
decision process created by the consumer for each buying
decision he makes.
• But what happens before and after this purchase?
• What are the factors influencing the choice of product
purchased by the consumer?
• Let’s focus on the Consumer Buying Decision Process and the
stages that lead to purchase a new product.

4. Five Factors Influencing Decisions
1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered

5. LEVELS OF CONSUMER DECISION
MAKING
• Not all consumer decisions receive or require the same amount of
effort in the information search.
• Researchers have identified three specific levels of consumer decision
making:
i. extensive problem solving,
ii. limited problem solving, and
iii. routinized response behavior.

6. Types of Consumer Buying Decisions
More
Involvement
Less
Involvement
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making

7. Extensive Problem Solving
• When consumers have no established criteria for evaluating a
product, or have not narrowed their choices, then they are in
extensive problem solving.
• At this level, the consumer needs a great deal of information to
establish a set of criteria on which to judge specific brands and a
correspondingly large amount of information concerning each of the
brands to be considered.
• Example- Used while buying expensive, important or technically
complicated product or services.

8. Limited Problem Solving
• At this level consumers have already established the basic criteria for
evaluating the product category but haven’t established preferred
categories.
• Their search for additional information is more like “fine-tuning;”
they must gather additional brand information to discriminate
among the various brands.
• Example- Usually used when purchasing a new, updated version of
something. Replacing something old with something new.

9. Routinized Response Behavior
• At this level, consumers have some experience with the product
category and a well-established set of criteria with which to evaluate
the brands they are considering.
• They may search for a small amount of additional information.
• Routinized response behavior implies little need for additional
information.
• Example- Day to day decisions.

10. Consumer Decision-Making Process
Postpurchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps

11. Consumer Profile
• Middle aged man
• Lives in Delhi
• Expected monthly income 35000
• Been Driving Tata Indigo Diesel for 4 years
• Daily drives atleast 25 kms.
• Faces parking problem at workplace.

12. Need Recognition
• Recognition of a need occurs when a consumer is faced with a
problem.
• Among consumers there seem to be two different problem
recognition styles.
• Actual state types —consumers who perceive that they have a
problem when a product fails to perform satisfactorily.
• Desired state types —the desire for something new may trigger
the decision process.

13. Need Recognition
• Fuel Efficient
• Less maintenance
• Good After Sales Service
• More Space Internally
• Price range 4,00,000-5,00,000
• Convenience for servicing
• Safety
• Comfort

14. Prepurchase Information Search
Internal Information Search
 Recall information in memory
External Information search
 Seek information in outside environment
 Non-marketing controlled
 Marketing controlled

15. - Advertising
- Salespeople
- Infomercials
- Websites
- Point-of-sales materials
Sources of Information
Marketer Dominated
- Friends
- Family
- Opinion leaders
- Media
Non-Marketer Dominated Stimuli

16. Factors that are likely to increase pre purchase
search
1. Product factors
2. Situational factors
• Experience
• Social acceptability
• Value-related considerations
3. Consumer factors
• Demographic characteristics
• Personality

17. Information Search
 Internal : Memory and Experience
 Friends and Family,
 Magazines and Media
 Respective Company sites
 Zig wheels
 Carwale.com
 Autos. Max about.com
 Auto Car India.com
 Test Drives

18. Evaluating Alternatives
Determine criteria to be used for
evaluation of products
Assess the relative importance of the
each criteria
Evaluate each alternative based on the
identified criteria

19. Evoked Set
Purchase!
Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by importance
Evaluation of Alternatives

20. Evaluation of Alternatives
• When evaluating potential alternatives, consumers tend to use two
types of information:
• A “list” of brands (the evoked set).
• The criteria they will use to evaluate each brand.
The evoked set refers to the specific brands the consumer considers
in making a purchase in a particular product category.
The inept set consists of brands the consumer excludes from
purchase consideration as unacceptable.
The inert set is those brands to which the consumer is indifferent
because they are perceived as having no advantage.

22. Evaluation of Alternatives
• Based on different parameters Many Cars were
evaluated some are:
• Ford Figo
• Chevrolet Beat
• Maruti A-Star, Ritz, Swift, Wagon-R
• Fiat Punto
• Hyundai i 10

23. :
A Star ZXI Ritz Vxi Bs 4 i-10 Figo 1.2 ZXI Beat Wagon R
Fuel Economy 15km/ltr 16km/ltr 16.8km/ltr 15.6km/ltr 14.5km/ltr 18.9km/ltr
Engine type K10B K12M drive by
wire technology
Irde 1.1 In line engine S-TEC II 16V K Series
Power steering yes yes no yes yes yes
Ground clearence 170 mm 170 165mm 168mm 165mm 165mm
Price(Ex- show
room)
4,18,000 4,35,616 4,23,000 4,08,600 4,75,000 4.,18,765
Dual Air-Bags Yes No yes No No yes
Turning radius
(mtrs)
4.7 4.7 4.7 4.9 4.8 4.6
anti lock braking
system
yes yes yes no no yes
Evaluation of Alternatives

24. Evaluation
A Star Ritz Vxi Bs 4 i-10 Figo 1.2 Duratec
ZXI
Beat Wagon R
Central locking Yes Yes Yes Yes Yes Yes
Child Safety Lock Yes Yes Yes No No Yes
Power Window yes yes no yes yes Yes
Rear Defogger Yes No No Yes Yes Yes

25. Purchase
To buy
or not to buy...

26. Types of Purchases
Consumers make three types of purchases:
Trial
Purchases
Repeat
Purchases
Long-Term
Commitment
Purchases

27. • Total set : All Cars
• Awareness set : Maruti, Tata, Hyundai, Honda,
volksvagon etc.
• Consideration set : Ford Figo, Chevrolet Beat, Maruti
A-Star, Ritz, Swift, Wagon-R, Fiat Punto,Hyundai i 10
• Decision set : Wagon-R
• Purchase set : Wagon-R

28. Why Wagon-R Vx i
• Excellent Safety and Security Features
• Highest Fuel Efficiency
• Good After Sales service as this car is been in the market for a very
long time.
• Largest number of service stations and dealers.
30 dealers in Delhi
• Low turning radius- best suited for metropolitan cities (4.6 mtr)

29. Postpurchase Behavior
Cognitive Dissonance
?Did I make a good decision?
Did I buy the right product?
Did I get a good value?

30. • As consumers use a product, they evaluate its
performance in light of their own expectations.
• There are three possible outcomes of such
evaluation.
• Actual performance matches the standard, leading
to a neutral feeling.
• Positive disconfirmation when the performance
exceeds the standard.
• Negative disconfirmation when the performance is
below the standard.

31. Outcomes of Postpurchase
Evaluation
• Actual Performance Matches Expectations
• Actual Performance Exceeds Expectations
• Positive Disconfirmation of Expectations
• Performance is Below Expectations
• Negative Disconfirmation of Expectations