The document outlines the 5-stage process consumers go through when making purchasing decisions: 1) problem recognition, 2) information search, 3) evaluation of alternatives, 4) purchase decision, and 5) post-purchase behavior. It describes each stage in detail, including how consumers are triggered to recognize problems, search for limited options, evaluate products based on attributes, and how their purchase decision can be influenced by others and unexpected factors. It also explains that post-purchase satisfaction depends on whether expectations are met or exceeded by the product.

1. HOW DO
CONSUMERS
MAKE
PURCHASING
DECISIONS?

2. THE BUYING DECISION IS A
5 STAGE PROCESS
PROBLEM
RECOGNITION
INFORMATIO
N SEARCH
EVALUATION
OF
ALTERNATIVES
PURCHASE
DECISION
POSTPURCHASE
BEHAVIOUR

3. PROBLEM RECOGNITION
THE BUYER RECOGNIZES A PROBLEM OR A NEED TRIGGERED BY:
INTERNAL STIMULI
LIKE HUNGER OR THIRST
EXTERNAL STIMULI
LIKE ADVERTISEMENTS

4. THIS RECOGNITION OF A
PROBLEM ULTIMATELY
INSPIRES THOUGHTS ABOUT
POSSIBILITIES OF A
PURCHASE
….OR TWO….

5. INFORMATION
SEARCH
SURPRISINGLY CUSTOMERS OFTEN SEARCH FOR LIMITED
NUMBER OF OPTIONS
50%50%
CUSTOMERS WHO LOOK AT
ONE STORE
CUSTOMERS WHO LOOK AT
MORE THAN 1 STORE
CUSTOMERS WHO LOOK FOR MORE THAN ONE BRAND OF APPLIANCE
CUSTOMERS WHO LOOK FOR ONE BRAND OF APPLIANCE

6. Public: Mass media,
consumer-rating organizations
Experimental:
Handling, examining, using
the product

7. SEARCH DYNAMICS
TOTAL SET
(ALL BRANDS
AVAILABLE)
AWARENESS SET
(SUBSET OF TOTAL SET KNOWN TO THE
INDIVIDUAL CONSUMER)
CONSIDERATION SET
(SET WHICH MEETS INITIAL BUYING CRITERIA)
CHOICE
SET(STRONG CONTENDERS)
DECISION

8. EVALUATION OF ALTERNATIVES
CONSUMERS SEE
COMMODITIES AS A BUNDLE
OF ATTRIBUTES
CONSUMERS PAY
ATTENTION TO
ATTRIBUTES THAT DELIVER
THE MOST SOUGHT-AFTER
BENEFITS
MARKET FOR A
PRODUCT MAY BE
SEGMENTED
ACCORDING TO
ATTRIBUTES MOST
IMPORTANT TO
DIFFERENT CONSUMER
GROUPS

9. BELIEFS AND ATTITUDES
A BELIEF IS A DESCRIPTIVE
THOUGHT THAT A PERSON
HOLDS ON ABOUT SOMETHING
AN ATTITUDE IS AN ENDURING
EVALUATION,EMOTIONAL
FEELINGS AND ACTION
TENDENCIES OF AN INDIVIDUAL
TOWARDS SOME OBJECT OR IDEA

10. BELIEFS AND ATTITUDES
ATTITUDES CAN BE HARD TO
CHANGE AS THEY ECONOMIZE
ON THOUGHT AND ENERGY
FOR ANY COMPANY IT IS FAR
MORE ADVISABLE TO FIT ITS
PRODUCTS INTO EXISTING
ATTITUDES RATHER THAN TRY
TO CHANGE ATTITUDES

11. EXPECTANCY-VALUE MODEL
THIS MODEL POSITS THAT THE CONUMER
EVALUATES THE PRODUCTS AND SERVICES BY
COMBINING THEIR POSTIVE AND NEGATIVE
BRAND BELIEFS ACCORDING TO IMPORTANCE
EXCELLENT CAR POOR SERVICE
?

12. PURCHASE DECISION
NON COMPENSATORY MODEL: POSITIVE AND
NEGATIVE ATTRIBUTES DO NOT NECESSARILY
NET OUT.THE CHOICE IS MAD BASED BY
EVALUATING SOME SINGLE PARTICULAR
CRITERIA IN ISOLATION

13. PURCHASE DECISION
.....IS ALSO AFFECTED BY INTERVENING
FACTORS SUCH AS
1) ATTITUDES OF OTHERS
2) UNANTICIPATED SITUATIONAL FACTORS
3) PERCEIVED RISK

14. ATTITUDES OF OTHERS INFLUENCE PURCHASES BECAUSE OF
TWO REASONS
1)INTENSITY OF OTHER PERSON’S NEGATIVITY TOWARDS THE CHOICE OF
PRODUCT
2)MOTIVATION OF BUYER TO COMPLY WITH THAT OTHER PERSON’S WISHES
WHAT???
YOU’RE CHOSING A
HYUNDAI OVER A
HONDA?OBVIOUSLY
YOU DON’T KNOW
THE FIRST THING
ABOUT CARS!!!!
HMMM…
MAYBE DAD’S
RIGHT

15. UNANTICIPATED SITUATIONAL
FACTORS
THE
RECESSION
HIT ME
HARD…BOY I
DID NOT SEE
THAT COMING

16. PERCEIVED RISKS INCLUDE…
1) FUNCTIONAL RISK
2)PHYSICAL RISK
3)FINANCIAL RISK
4)SOCIAL RISK
5)PSYCHOLOGICAL RISK
6)TIME RISK

17. STEPS BETWEEN EVALUATION OF
ALTERNATIVES AND A PURCHASE
DECISION
EVALUATION OF
ALTERNATIVES
PURCHASE INTENTION
ATTITUDE OF
OTHERS
UNANTICIPATED
FACTORS
PURCHASE DECISION

18. POSTPURCHASE
BEHAVIOUR
POSTPURCHASE SATISFACTION IS A FUNCTION
OF THE GAP BEWEEN EXPECTATION AND THE PRODUCT’S PERCEIVED PERFORMANCE
IF PERCEIVED PERFORMANCE FALLS SHORT OF EXPECTATIONS,CONSUMER IS
DISSATISFIED
IF MATCHES EXPECTATION,THEN SATISFIED
IF EXCEEDS EXPECTATIONS THHEN DELIGHTED
THESE FEELING HAVE A HUGE IMPACT ABOUT WHETHER THE CONSUMER BUYS THE
PRODUCT AGAIN OR ENDORSES IT TO OTHERS.

19. POSTPURCHASE
BEHAVIOUR
OF A CONSUMER ARE GOVERNED BY
THE SATISFACTION GENERATED FROM USING THE PRODUCT
A SATISFIED CONSUMER WILL BUY THE PRODUCT AGAIN AND ENDORSE IT TO OTHERS
A DISSATISFIED CONSUMER WILL ABANDON THE PRODUCT OR RETURN IT.IN EXTREME
CASES THEY MAY TAKE PUBLIC ACTION AGAINST THE COMPANY PRODUCING THE
PRODUCT