The document discusses consumer decision making, including three levels of involvement (routine response behavior, limited decision making, and extensive decision making), and presents a five-stage model of consumer decision making. The model includes need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Routine decisions involve little consideration, while extensive decisions involve high costs and extensive research between many alternatives.

1. Levels of Consumer Decision
Making & A Model of Consumer
Decision Making
Presented by:
Ajit Kumar Gautam
MBA-IB(3rd Sem)

2. Consumer Decision Making
 Process by which consumer identify
their needs, collect information,
evaluate alternatives and make
purchase decision.
 These actions are determined by
psychological and economical factors,
and are influenced by environmental
factors such as culture, group, and
social values.

3. Levels of consumer decision
making
 Extensive Problem Solving
 Limited problem Solving
 Routinized Response Behaviour

4. Consumer Involvement
Routine
Response
Behaviour
Limited Decision
making
Extensive Decision
making
Less Involvement High Involvement

5. Routine Response Behaviour
 Little involvement in selection process
 May stick with one brand
 Quick Decision
 Frequently purchase low cost goods
 Examples are soap , shampoo etc

6. Limited Decision Making
 Moderate involvement in selection
process
 Purchasing process is shorter
 Evaluation of few alternative brands
 Examples are clothing, cosmetics

7. Extensive Decision Making
 High level of involvement
 High cost goods
 Long time to decide
 Evaluation of many brands
 Examples are buying a car or a
computer

8. A Model of Consumer
Decision Making

10. Consumer decision making
process
Need of Recognition Information Search
Evaluation of
Alternatives
Purchase DecisionPost-Purchase
Behaviour

11. Need of Recognition: Result of an imbalance
between actual and desired states. E.g feeling
bored is actual state and Listen music/call a
friend is desired state.
Information Search: Recall information in
memory called as internal search. Seek
information in outside environment like web,
books, articles.
Evaluation of alternatives: Consumer use
several attributes when they are evaluating
alternative products and they are more
interested in a specific attributes. Ex. Price,
Quality, availability, service.
Purchase decision: To “Buy” or “not to buy”.
Determine which attributes are most important
in influencing Consumer’s choice.

12. Post – Purchase Behaviour
 The purchasing process does not end when
consumer buys a product. After the
purchase consumer tend to evaluate their
experience to decide whether they
‘satisfied’ or ‘dissatisfied’.
 The information will be used in decision
making.
 The performance of the product or services
will be compare with consumer’s
expectations. a) Perceived performance
meeting expectations.
b) Perceived performance exceeds
expectations