Levels of Consumer Decision

Making & A Model of Consumer

Decision Making

Presented by:

Ajit Kumar Gautam

MBA-IB(3rd Sem)

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.

Levels of consumer decision

making

Extensive Problem Solving

Limited problem Solving

Routinized Response Behaviour

Consumer Involvement

Routine

Response

Behaviour

Limited Decision

making

Extensive Decision

making

Less Involvement High Involvement

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

Limited Decision Making

Moderate involvement in selection

process

Purchasing process is shorter

Evaluation of few alternative brands

Examples are clothing, cosmetics

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

A Model of Consumer

Decision Making

Consumer decision making

process

Need of Recognition Information SearchEvaluation of

Alternatives

Purchase DecisionPost-Purchase

Behaviour

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.

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

c) Perceived performance lower than