Process Consumers Use Before During And After Making Purchases

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Chapter 6:
Consumer
Decision
By: Timmara Boykin

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The Consumer Decision Process
 Need Recognition
 Information Search
 Alternatives Evaluation
 Purchase And Consumption
 Post-Purchase

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Need Recognition
 Consumers recognize they have an unsatisfied need and they
would like to go from their actual, needy state to a different,
desired state.
Functional Needs
 Performance of an product or service.
Psychological Needs
 The personal gratification consumers associate with a product
and/or service

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Search For Information
 After a consumer recognizes a need, is to search for
information about the various options that exist to satisfy that
need.
Internal Search
 His or her own memory and knowledge about a product or
service gathered through past experience.
External Search
 Seek information outside of his or her personal knowledge base
to help make the buying decision.
 There are three factors that can affect the consumer process
which is perceived benefits versus perceived cost of search, the
locus control, and the actual perceived risk.

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Evaluation Of Alternatives
 Once a consumer has recognized a problem and explored the
possible options
Attribute Sets
 Universal sets: includes all possible choices for a product
category, but because it would be unwieldy for a person to recall
all possible alternatives for every purchase decision, marketers
tend to focus on only a subset of choices
 Retrieval Sets: brands or store brought forth from memory
 Evoked Sets: compromises the alternative brands or stores that
the consumer states he or she would consider when making a
purchase decision

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Evaluation Of Aternatives
 Consumer Decision Rules: set of criteria that consumers use
consciously or subconsciously to quickly and efficiently select
several alternatives.
 Compensatory Decision Rule: assumes that consumer, when
evaluating alternatives, trade off one characteristic against
another, such that good characteristics compensate for bad
characteristics.
 Noncompensatory Decision Rule: Consumers Choose a product
or service on the basis of one characteristic or one subset of a
characteristic, regardless of the valuesof its other attributes.

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Evaluation Of Alternatives
Choice Architecture
 Represents an effort to influence consumers through the design
of the environments in which they make their choices.
 Impulsive Products: products that are purchased without
planning.
 Nudge: one element of the choice architecture that alters
behavior in a predictable way, without forbidding other options or
significantly changing any economic incentives.

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Purchase And Consumption
 After evaluating the alternatives, customers are ready to buy.
 Conversion Rate: measure how well they have converted
purchase intentions into purchases. One way to measure is the
number real or virtual abandoned carts in the retailer’s store or
websites.

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Post-Purchase
 Postpurchase behavior entails actual rather than potential
customers.
 There are three outcomes customer satisfaction, postpurchase
cognitive dissonance, and customer loyalty ( or disloyalty ).
Customer Satisfaction
 Setting unrealistically high consumer expectations of the product
through advertising, personal selling, or other types of promotion
may lead to higher initial sales, but it eventually will result in
dissatisfaction if the product fails to achieve high performance
expectation.

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Post-Purchase
Postpurchase Cognitive Dissonance
 An internal conflict that arises from an inconsistency between
two beliefs or between beliefs and behavior.
Customer Loyalty
 Marketers attempts to solidify loyal relationships with their
customers and want customers to be satisfied with their
purchases and buy from the same company again.
Undesirable Consumer Behavior
 Negative word of mouth: occurs when someone spreads
negative information about a product, service, or store to others.