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How do consumers make purchasing decisions

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Vaishnavi Ketharnathan
Vaishnavi Ketharnathan

This document outlines a five stage model of consumer decision making: 1) need recognition triggered by internal or external stimuli, 2) information search through heightened attention or active searching from various sources, 3) evaluation of alternatives using expectancy value models and considering brand beliefs and importance of attributes, 4) purchase decision using heuristics like conjunctive or lexicographic rules, 5) post-purchase behavior and evaluation. The model seeks to explain how consumers identify needs, gather information, and make purchase decisions.

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CONSUMER DECISION MAKING
FIVE STAGE MODEL NEED AWARENES S INFORMATIO N SEARCH EVALUATING ALTERNATIVE S PURCHASE DECISION POST PURCHASE BEHAVIOUR
PROBLEM RECOGNITION NEED TRIGGERED BY STIMULI: EXTERNAL OR INTERNAL
INFORMATION SEARCH Two modes: heightened attention and active search
HEIGHTENED ATTENTION PERSON BECOMES MORE RECEPTIVE
CONSUMER DELIBERATELY SEARCHES FOR INFORMATION, ONLINE, IN A STORE, FROM FRIENDS
INFORMATION SOURCES PERSONAL COMMERCIAL PUBLIC EXPERIENTIAL
EXPECTANCY VALUE MODEL THIS MODEL STATES THAT CONSUMERS EVALUATE PRODUCTS AND SERVICES BY COMBINING THEIR BRAND BELIEFS- POSITIVES AND NEGATIVES ACCORDING TO IMPORTANCE.
INTERVENING FACTORS FACTORS WHICH AFFECT OUR OPINIONS ABOUT THE BRAND
ATTITUDE OF OTHERS OUR PERCEPTION CHANGE DEPENDS ON: • HOW NEGATIVE IS THE RESPONSE OF THE OTHER PERSON • HOW CLOSE THE OTHER PERSON IS TO US.
PURCHASE DECISION CONSUMER FORMS PREFERENCE LIST OF BRANDS HEURISTICS CONJUNCTIVE SETS A MINIMUM CRITERIA FOR ATTRIBUTES.CHOOSE THE FIRST PRODUCT THAT MEETS ALL LEXICOGRAPHIC CHOOSES THE BEST BRAND BASED ON MOST IMPORTANT PERCIEVED ATTRIBUTE. ELIMINATION BY ASPECTS BRANDS COMPARED ON THE BASIS OF RANDOM ATTRIBUTE.
POST PURCHASE BEHAVIOUR
DISCLAIMER Created by Abhigyan Singh, NIT Allahabad, during an internship by Prof. Sameer Mathur, IIM Lucknow.

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