This slideshow thoroughly explains each step of the consumer decision process.

1. The Consumer
Decision Process
Presentation by Audrey Arthur

2. What is the consumer decision
process?
The consumer decision process outlines each step a
consumer takes when deciding to make a purchase. It
includes the steps before, during, and after the
decision. This process is valuable for marketers to look
at because it provides insight into how and why
consumers make decisions. Overall, by understanding
consumer’s thoughts and behavior, marketers can
develop more effective strategies to influence
consumer’s decisions.

3. The Consumer Decision Process has
5 steps…
Step 1- Need Recognition
Step 2- Information Search
Step 3- Alternative Evaluation
Step 4- Purchase and Consumption
Step 5- Post-purchase

4. STEP 1- Need Recognition
● The consumer decision process starts when a consumer realizes
that they have an unsatisfied need.
● Once this is recognized, the consumer then wants to shift from
this state of desire to a more satisfied state.
● The greater the difference is between feeling needy and satisfied,
the greater the consumer’s need recognition will be in return.
● 2 types of needs…
● Functional- performance of product/service, how well does it
work?
● Psychological- personal gratification, how does product/service
make the consumer feel?
Example: consumer
realizes that they are
going on a beach vacation
but they don’t have any
sunscreen. They recognize
that they have the need to
obtain sunscreen.

5. STEP 2- Information Search
● Once the consumer recognizes their need, they will now research the
different options that exist to satisfy that need.
● The search level may be high or low depending on how valuable the
product/service is to the consumer.
● 2 types of searches…
Internal search- consumer relies on their knowledge/experiences to gather
information and produce options.
External search- consumer uses other types of sources to gather information
and produce options.

6. STEP 2- Information Search
(cont.)
Factors that may affect the search process…
• Perceived benefits vs. perceived cost of search- How much time/effort
researching is this product/service worth?
• The locus of control- internal locus of control- consumer believes that their
own actions control what the outcome will be, external locus of control-
consumer believes the outcome is up to fate or other factors.
• Actual or perceived risk, 5 types of risk…
1. Performance- will the product/service function poorly?
2. Financial- will the product/service be a financial burden?
3. Social- will other people dislike the purchase?
4. Physiological/Safety- will it be harmful if the performance is poor?
5. Psychological- will the product/service present the target image to others?

7. STEP 3- Alternative Evaluation
● Once the consumer researches their options, they review these options and evaluate the alternatives. They can
then also rule out any options that do not work for them.
● Attribute sets (Universal sets, Retrieval sets, Evoked set). Consumers tend to organize their options into
different groups based off how likely they are to consider that option when making the decision.
● Evaluative criteria- specific factors that the consumer considers when evaluating an option
● Determinate attributes- features within a product/service that are important to the consumer, which are
perceived to differ between different stores/brands.
● Compensatory decision rule- good characteristics of a product/service compensate for bad ones.
● Non-compensatory decision rule- the basis of a specific characteristic is most valuable, regardless of that of
other characteristics.
● Choice architecture- regards strategies that marketers may use to present different choices, aiding
consumer decisions.

8. STEP 4- Purchase &
Consumption
● Once the consumer is done researching and are ready to make a purchase, they
may or may not choose to buy the product/service from the original store.
● This brings us to the store’s conversion rate, which tells a store how often
purchase intentions are made into purchases. For example, did the consumer
leave the item in their cart, or did they fully order/check out?
● Marketers can use different strategies to ensure that purchase intentions
actually lead to a purchase. This could include matching its options to those of
competing brands or even personalizing the shopping experience a bit more for
their customers. This can help boost the conversion rate by leading consumers
to be more likely to make the purchase.

9. STEP 5- Post-purchase
● The final step of the consumer decision process is the post-purchase behavior. Since this
involves actual customers rather than potential customers, it is especially important for
marketers to look at.
● There are 3 possible post-purchase outcomes…
1. Customer satisfaction- customers are satisfied when their expectations are met, this is why it
is important for marketers to create very clear, realistic yet satisfying expectations through their
advertising. It is also important to engage with their customers.
2. Customer loyalty- this outcome is particularly ideal for marketers, as it creates positive
relationships with loyal customers and could lead to these customers only buying from their
specific company
3. Post-purchase cognitive dissonance- this outcome is where the customer feels an internal
conflict due to an inconsistency with their beliefs and behavior. If the customer is questioning
their purchase, they may even consider returning it.

10. Thank you!
Presentation by Audrey Arthur