“Taught man what He Knew not” َ
َ‫م‬َّ‫ل‬َ‫ع‬
ََ‫ان‬َ‫س‬ْ‫ن‬ِ‫اال‬
َ
َ‫م‬
‫ا‬
َ
ْ‫م‬َ‫ل‬
‫م‬َ‫ل‬ْ‫ع‬َ‫ي‬
THE PRESENTATION ON THE TOPIC,
“TYPES OF CONSUMER
DECISION MAKING PROCESS”,
Submitted
by
Name:-Mohd Irfan Wani.
Enroll:-22036113016
Dept.:-Mba(HR and Marketing)
Submitted to:- Sir.Dr.Mir Shakeeb
TYPES OF CONSUMER DECISION MAKING
PROCESS
What Is the Consumer Decision-Making Process?
• The consumer decision-making process is a series of steps an
individual undergoes to make a purchase. It is also called the Buyer
Decision Process and covers the five stages a buyer goes through
before, during and after buying your product.
• The process starts with the buyer recognizing their need and ends
with them evaluating their purchase decision. Each step of this
process allows you to make smart moves that position you properly
and ensure the buyer chooses your product at the end of their
decision-making journey.
• Having a good knowledge of how your customers make buying
decisions allows you to create more targeted marketing strategies to
interact with them at each stage of the decision-making process.
Types of Consumer Decision Making
• The following are the types of decision making methods
Routinized Choice behaviour or
routinized response behaviour:-
It occurs after sufficient number of ‘trials’ or purchases of a
particular brand. The decision to again buy the product requires
little or no decision making as the routinized choice behaviour
becomes habitual with each subsequent purchase. Routinized
choice behaviour is a characteristic of being loyal to a brand as
well.
With the rapid increase of promotion, the problem lies in
measuring consumer response. An individual’s response to
promotions is indicated by the extent to which promotions play a
role in his or her purchase routine with respect to a brand.
Importance of Routinized Choice Behaviour:-
It is important for the marketers so that they avoid marketing
related environmental interruptions such as stockouts that could
force the loyal customers to try their competitor’s brand. In
marketing, it is important to understand the consumer buying
behaviour patterns to increase business and customer loyalty. The
decision making process of customers has different levels i.e.
extensive problem solving, limited problem solving and routinized
choice behaviour.
Advantages of Routinized Choice Behaviour:-
• 1. Consumers stick to your brand irrespective of marketing
promotion.
• 2. Companies avoid stockouts so that consumers don’t switch
their brand
• Disadvantages of Routinized Choice Behaviour:-
• 1. Matter of concern for other brands or new brands to establish
itself in the minds of the consumers by influencing their choice.
• 2. Consumers become biased about their choices and mayn’t
even try a new brand even if it is be better.
Example of Routinized Choice
Behaviour
• Let consider three consumers who purchases cup noodles from
among brand A, B and C. Consumer 1 strongly prefers brand C
and routinely buys C on every occasion as a routinized choice
behaviour. He/she ignores promotional activities of all the three
brands. Consumer 2 prefers both the brands A and C nearly
equally. He/she uses the promotional activities of A and C to
decide which brand to buy each time. Consumer 3 prefers the
brands A and B nearly equally. He/she uses only the promotional
activities of brands A and B only and not C to decide which one to
buy each time.
• Promotions by brand C do not affect the individual and choice
behaviour of consumer 1 and 3. Promotion by brand C is
effective in inducing a purchase for consumer 2. Each individual
may respond differently to the promotions of each brand in a
product class. So, the consumer’s routinized choice behaviour
shows that consumers pay attention to the promotional activities
of one brand while ignore that of the others.
Limited decision-making Process
Limited decision-making:- can be formally defined as a
decision-making process that does not include much thought or
consideration on the part of the consumer. Simply stated, limited
decision-making is the description of decision-making used by
consumers when purchasing products that an individual is familiar
with but needs to gather more information about which brand or
model will best fit their needs. In limited decision making,
consumers will combine the information they had before with
information they gather about the product to make their choice.
Limited decision-making is usually practiced when a consumer is
familiar with a product or product category but unfamiliar with the
used for occasional purchases. A consumer that applies limited
decision-making usually spends a medium amount of time
deciding on the brand from which they wish to purchase a
product. Such a customer could be familiar with the product or
brand but still want to acquire more information before
purchasing.
For instance, consumers with sensitive skin may fall under this
category of purchasing process. People with sensitive skin usually
are more conscious about skin care products. Once they have a
specific brand that they been using, it will take some times for the
person to switch to another unfamiliar brand. Product brand such
as SIMPLE skin care products are the specific product category for
women with sensitive skin. The products have been more than 50
years in the global market and the products are working very well.
If someone is using SIMPLE products and the products really work
well on that person, for that person to switch to another brand for
the same solution might requires a careful evaluation and it won’t
be immediate process.
Extensive Problem Solving
Behaviour
Extensive Problem Solving:-
Extensive problem solving is the purchase decision
marking in a situation in which the buyer has no
information, experience about the products, services and
suppliers. In extensive problem solving, lack of information
also spreads to the brands for the product and also the
criterion that they set for segregating the brands to be
small or manageable subsets that help in the purchasing
decision later. Consumers usually go for extensive problem
solving when they discover that a need is completely new
Elements of Extensive Problem Solving
Behaviour:-
The various Elements which leads to extensive problem solving
are:
1. Highly Priced Products: Like a car, house
2. Infrequent Purchases: Purchasing an automobile, HD TV.
3. More Customer Participation: Purchasing a laptop with
selection of RAM, ROM, display etc
4. Unfamiliar Product Category: Real-estate is a very unexplored
category.
5. Extensive Research & Time: Locality of buying house, proximity
to hospital, market, etc.
Importance of Extensive Problem Solving
Behaviour:-
• It is very important for marketers to know the process that
customers go through before purchasing.They cannot rely upon
re-buys and word of mouth all the time for acquiring new
customers. The customer in general goes through problem
recognition, information search, evaluation, purchase decision
and post-purchase evaluation. Closely related to a purchase
decision is the problem solving phase. A new product with long
term investment leads to extensive problem solving from a
customer. This signifies that not all buying situations are same. A
rebuy is very much differentfrom a first choice purchase. The
recognition that a brand enjoys in a customer’s mind helps the
customer to make purchase decisions easily. If the brand has a
dedicated marketing communication effort, whenever a consumer
feels the need for a new product, they instantly go for it.To help
customers in extensive problem solving, companies must have
Example of Extensive Problem
Solving Behaviour
Suppose, that Amber wants to buy a High Definition TV.
The problem being, she has no idea regarding it. This is a
case of extensive problem solving as the amount of
information is low,the risk she is taking is high as she is
going with the opinion that she gathers from her peers, the
item is expensive and at the same time it also demands
huge amount of involvement from the customer. Similarly,
buying high price and long-term assets or products like car,
motorcycle, house etc leads to extensive problem solving
“THANKS”

muteebwanipresentation.com.pptx_consumer

  • 1.
    “Taught man whatHe Knew not” َ َ‫م‬َّ‫ل‬َ‫ع‬ ََ‫ان‬َ‫س‬ْ‫ن‬ِ‫اال‬ َ َ‫م‬ ‫ا‬ َ ْ‫م‬َ‫ل‬ ‫م‬َ‫ل‬ْ‫ع‬َ‫ي‬ THE PRESENTATION ON THE TOPIC, “TYPES OF CONSUMER DECISION MAKING PROCESS”, Submitted by Name:-Mohd Irfan Wani. Enroll:-22036113016 Dept.:-Mba(HR and Marketing) Submitted to:- Sir.Dr.Mir Shakeeb
  • 2.
    TYPES OF CONSUMERDECISION MAKING PROCESS What Is the Consumer Decision-Making Process? • The consumer decision-making process is a series of steps an individual undergoes to make a purchase. It is also called the Buyer Decision Process and covers the five stages a buyer goes through before, during and after buying your product. • The process starts with the buyer recognizing their need and ends with them evaluating their purchase decision. Each step of this process allows you to make smart moves that position you properly and ensure the buyer chooses your product at the end of their decision-making journey. • Having a good knowledge of how your customers make buying decisions allows you to create more targeted marketing strategies to interact with them at each stage of the decision-making process. Types of Consumer Decision Making • The following are the types of decision making methods
  • 3.
    Routinized Choice behaviouror routinized response behaviour:- It occurs after sufficient number of ‘trials’ or purchases of a particular brand. The decision to again buy the product requires little or no decision making as the routinized choice behaviour becomes habitual with each subsequent purchase. Routinized choice behaviour is a characteristic of being loyal to a brand as well. With the rapid increase of promotion, the problem lies in measuring consumer response. An individual’s response to promotions is indicated by the extent to which promotions play a role in his or her purchase routine with respect to a brand.
  • 4.
    Importance of RoutinizedChoice Behaviour:- It is important for the marketers so that they avoid marketing related environmental interruptions such as stockouts that could force the loyal customers to try their competitor’s brand. In marketing, it is important to understand the consumer buying behaviour patterns to increase business and customer loyalty. The decision making process of customers has different levels i.e. extensive problem solving, limited problem solving and routinized choice behaviour.
  • 5.
    Advantages of RoutinizedChoice Behaviour:- • 1. Consumers stick to your brand irrespective of marketing promotion. • 2. Companies avoid stockouts so that consumers don’t switch their brand • Disadvantages of Routinized Choice Behaviour:- • 1. Matter of concern for other brands or new brands to establish itself in the minds of the consumers by influencing their choice. • 2. Consumers become biased about their choices and mayn’t even try a new brand even if it is be better.
  • 6.
    Example of RoutinizedChoice Behaviour • Let consider three consumers who purchases cup noodles from among brand A, B and C. Consumer 1 strongly prefers brand C and routinely buys C on every occasion as a routinized choice behaviour. He/she ignores promotional activities of all the three brands. Consumer 2 prefers both the brands A and C nearly equally. He/she uses the promotional activities of A and C to decide which brand to buy each time. Consumer 3 prefers the brands A and B nearly equally. He/she uses only the promotional activities of brands A and B only and not C to decide which one to buy each time. • Promotions by brand C do not affect the individual and choice behaviour of consumer 1 and 3. Promotion by brand C is effective in inducing a purchase for consumer 2. Each individual
  • 7.
    may respond differentlyto the promotions of each brand in a product class. So, the consumer’s routinized choice behaviour shows that consumers pay attention to the promotional activities of one brand while ignore that of the others.
  • 8.
    Limited decision-making Process Limiteddecision-making:- can be formally defined as a decision-making process that does not include much thought or consideration on the part of the consumer. Simply stated, limited decision-making is the description of decision-making used by consumers when purchasing products that an individual is familiar with but needs to gather more information about which brand or model will best fit their needs. In limited decision making, consumers will combine the information they had before with information they gather about the product to make their choice. Limited decision-making is usually practiced when a consumer is familiar with a product or product category but unfamiliar with the
  • 9.
    used for occasionalpurchases. A consumer that applies limited decision-making usually spends a medium amount of time deciding on the brand from which they wish to purchase a product. Such a customer could be familiar with the product or brand but still want to acquire more information before purchasing.
  • 10.
    For instance, consumerswith sensitive skin may fall under this category of purchasing process. People with sensitive skin usually are more conscious about skin care products. Once they have a specific brand that they been using, it will take some times for the person to switch to another unfamiliar brand. Product brand such as SIMPLE skin care products are the specific product category for women with sensitive skin. The products have been more than 50 years in the global market and the products are working very well. If someone is using SIMPLE products and the products really work well on that person, for that person to switch to another brand for the same solution might requires a careful evaluation and it won’t be immediate process.
  • 11.
    Extensive Problem Solving Behaviour ExtensiveProblem Solving:- Extensive problem solving is the purchase decision marking in a situation in which the buyer has no information, experience about the products, services and suppliers. In extensive problem solving, lack of information also spreads to the brands for the product and also the criterion that they set for segregating the brands to be small or manageable subsets that help in the purchasing decision later. Consumers usually go for extensive problem solving when they discover that a need is completely new
  • 12.
    Elements of ExtensiveProblem Solving Behaviour:- The various Elements which leads to extensive problem solving are: 1. Highly Priced Products: Like a car, house 2. Infrequent Purchases: Purchasing an automobile, HD TV. 3. More Customer Participation: Purchasing a laptop with selection of RAM, ROM, display etc 4. Unfamiliar Product Category: Real-estate is a very unexplored category. 5. Extensive Research & Time: Locality of buying house, proximity to hospital, market, etc.
  • 13.
    Importance of ExtensiveProblem Solving Behaviour:- • It is very important for marketers to know the process that customers go through before purchasing.They cannot rely upon re-buys and word of mouth all the time for acquiring new customers. The customer in general goes through problem recognition, information search, evaluation, purchase decision and post-purchase evaluation. Closely related to a purchase decision is the problem solving phase. A new product with long term investment leads to extensive problem solving from a customer. This signifies that not all buying situations are same. A rebuy is very much differentfrom a first choice purchase. The recognition that a brand enjoys in a customer’s mind helps the customer to make purchase decisions easily. If the brand has a dedicated marketing communication effort, whenever a consumer feels the need for a new product, they instantly go for it.To help customers in extensive problem solving, companies must have
  • 14.
    Example of ExtensiveProblem Solving Behaviour Suppose, that Amber wants to buy a High Definition TV. The problem being, she has no idea regarding it. This is a case of extensive problem solving as the amount of information is low,the risk she is taking is high as she is going with the opinion that she gathers from her peers, the item is expensive and at the same time it also demands huge amount of involvement from the customer. Similarly, buying high price and long-term assets or products like car, motorcycle, house etc leads to extensive problem solving
  • 15.