P R O F P R A S H A N T K U M A R G U P T AJ A I N C O L L E G E O F M B A A N D M C A

BUYING DECISION PROCESS

FIVE STAGE MODEL

Problem Recognition

Information Search

Evaluation Of Alternatives

Purchase Decision

Post Purchase Decision

PROBLEM/NEED RECOGNITION

•Need can be triggered by internal or external stimuli• Internal stimulus like hunger and thirst• External stimuli like someone motivating you.

• Point of importance is to identify what triggers the need

INFORMATION SEARCH

• Two levels for information search exist1. Heightened attention where one becomes more

receptive to information.2. Active information search

Point of importance is what are the major information sources, which are of four categories:-3. Personal : Friends, family , neighbour4. Commercial: Advertising, salesman, packing5. Public: Mass media, Consumer rating

organisations6. Experimental: Handling & Examining the product

Decision

?

Choice SetIBM Dell

Consideration SetIBM Dell Apple

Awareness SetIBM Apple Dell HP

Total SetIBM Apple Dell HP Toshiba Compaq

EVALUATION OF ALTERNATIVES

• The most recent model says that the judgements are taken consciously and rationally which is termed as cognitively oriented.

• Ask questions?1. Do you want to satisfy a need2. Are you looking for some benefit3. What are the attributes that are being looked

for?

**Beliefs and attitudes affects this process.

PURCHASE DECISION

• Sub-decisions have to be taken about:-1. Brand2. Dealer3. Quantity4. Timing5. Payment Method

Timing and steps in the process depends upon the product that needs to be purchased.

POST-PURCHASE BEHAVIOUR

•Marketer must observe:-1. Post-purchase satisfaction2. Post-purchase actions3. Post-purchase product uses

POST-PURCHASE BEHAVIOUR :SATISFACTION

• Performance less than expectation results into dissatisfaction.

• Performance as per the expectation leaves a satisfied customer.

• Performance better than expected leads to a delighted consumer.

Point of importance is that it will affect his future decision making process.

POST-PURCHASE BEHAVIOUR :ACTIONS

• Satisfaction or dissatisfaction may influence a consumer’s subsequent behaviour.

• If its favourable it may lead to a repeat purchase.

• If dissatisfied the consumer may stop buying the product (Exit Option) or warn people around (Voice Option)

POST-PURCHASE BEHAVIOUR :USE AND DISPOSAL

• Its important to calculate the consumption rate, i.e. frequency of purchase.

• Profits come from sales and key driver of sales is consumption rate.

ASSIGNMENT

• Find the types of risk that a consumer takes while making a purchase decision,.• Find the intervening factors in a purchase

decision.