The document outlines the consumer decision-making process, covering stages such as problem recognition, information search, evaluation of alternatives, purchase decisions, post-purchase evaluation, and customer satisfaction. It emphasizes how consumers identify needs, seek information, and make purchase choices based on evaluations of product attributes, brand loyalty, and satisfaction with outcomes. Additionally, it highlights the importance of marketing strategies that address consumer problems and the role of customer service in ensuring satisfaction and retention.

1. Consumer Decision Making
Process
Chapter 9 group 4

2. Model of Consumer Decision
Making Process

3. Problem Recognition
• It is also called need recognition or problem identification
• The realization that there is a difference
between actual and desired states
- The higher the gap, the stronger the need (or
bigger the problem)

4. • Consumer identifies the problems in two
ways
1.Actual State
- The product they are using failed to perform
satisfactorily
- Dose not fulfill the needs
2.Desired State
- Something consumer feel is missing to fulfill needs
- That gap triggers the desire to purchase the
product

5. Problem Recognition and Marketing
Strategy
• Identify existing consumer problems and find
solutions for these
• Lower the actual state
• Increase the desired state
• Increase the importance of the gap between
actual and desired states
• Convert problems into ones requiring an
immediate solution

6. Information Search
• There are 2 ways to search information
1.Past experience
- It is the internal source of information
- Consumers use past experience to make the present choice
- It serve as a long-term memory
2.No Experience
- It is the external source of information
- External sources include: shopping, friends, family, internet,
etc
- Consumer relies on the marketing messages related to
products

7. Search Regret
• When the information search is not
successful a situation occurs called
“Search Regret”
• There can be many reasons for this, like
- Online search was not enough
- Web store did not provide correct information
- Some products like clothes, cosmetics and
electronic gadgets need to be touched before
purchasing

8. Evaluation of Alternatives
• Consumer evaluate the products in two
steps
1.Consideration set
2.Criteria for evaluation

9. Consideration set
• Consumer makes a list of brands which they consider
to purchase
• It is also called evoked set
• Since consumers prioritize few brands to consider, thus
they excludes other brands
• It many be for following reasons
• They may feel the other products are inferior
• The products are out of range in terms of resources
• Or the consumer does not about the other products

10. Criteria for evaluation
• Consumer select one option from the
consideration set on the basis of product
attributes.
e.g. the product attributes of camera are
- Size and weight
- Lens type
- Image stabilization
- Auto focus, etc

11. • As every consumer is different, the
criteria for evaluation of each
consume is different.
• Consumer give weight age to every
product features of each brand in
consideration set and then calculate
the total points

12. • The brand which has maximum total will be
considered by the consumer for purchasing.
- e.g. while purchasing laptop consumer can consider following
evaluation
• The decision can be affected by brand loyalty,
past experience or overall brand image of the
product.

13. Purchase Decision
• Consumer makes 3 types of purchase
decisions
1.Trail purchase
2.Repeat purchase
3.Long-term commitment purchase

14. Trail Purchase
• Consumer purchases the product for the
first time in small quantity
• This helps the consumer to evaluate the
product through direct use
• If the product fulfils consumer needs, he/
she can go for repeat purchase
• Marketers can encourage trail purchase
by giving coupons, gifts or sales

15. Repeat Purchase
• It is closely related to brand loyalty
• It only happens when consumer gives
approval to trail purchases
• It helps the marketers to gain large
market share and stable position in the
market

16. Long-term commitment
purchase
• This purchase is the actual form of brand
loyalty
• Consumers only purchases these
products with which they are
comfortable and familiar
- Trail purchase cannot be possible in some durable
goods and the consumer buys them with long-term
commitment
- E.g. washing machines, automobiles, ovens,
refrigerators, etc

17. Post-Purchase Evaluation
• Consumer evaluate the products by
comparing them with their outcomes
• 3 types of outcomes
1.Neutral
- When your expectations matches the product performance
2.Positive
- When the product performance exceeds the expectation
- Consumer feels satisfaction
3.Negative
- When the product performance is below expectations
- Consumer feels dissatisfaction

18. Uncertainty
• Consumer expectation is an important
part of post-purchase evaluation
• It reduces the uncertainty associated
with the product
- It is evident that consumer may feel discomfort after
making the final decision of purchasing the
product
- Specially those products that are related to self-
esteem and social acceptance.

19. • Thus consumer use following strategies to
reduce their feeling of discomfort and
uncertainty
- They may reassure themselves that their purchase
decision is wise
- They seek those advertisements that support their
choices and avoid competitive brands
- They persuade their family and friends to purchase
the same brand
- Or they may turn to other satisfied users for
reassurance.

20. Customer Satisfaction - Feedback
• When product’s performance meets or
exceeds the consumer expectation, the
consumer will feel satisfied and will repurchase
the product
• If the consumer is happy and satisfied with one
product of the brand, there is a likelihood the
consumer will purchase the other products of
the same brand
- e.g. Nestle
- It has build 150 years of trust among the consumers by
keeping them satisfied and fulfilling their needs
- Finally leading the company to customer retention.

21. • Giving value is a two-way process.
- Marketing firm gives values to the customers, by
providing benefits that fulfills their needs
- And the customer gives value to the firm in terms of
monetary value, helping them in increasing their
market share and sales.
• Services play an important role in
customer satisfaction
- If the services associated with the product are nor
good even if the product performance was
satisfactory, the consumer will feel dissatisfied.