Consumer Decision-Making Process Summary

  • Consumer's Decision-Making Process:
    Steps involved:

    • Problem Recognition
    • Information Search
    • Evaluation of Alternatives
    • Purchase Decision
    • Postpurchase Evaluation

  • Learning Outcomes:

    • Analyze internal and external information searches.
    • Understand models like Evoked Set, Multi-attribute, and Affect Referral.

  • Problem Recognition:

    • Initiated by a need or want; gap between current and desired state.
    • Marketing can trigger needs by highlighting potential problems solutions.

  • Information Search:

    • Consumers look for products/brands to satisfy their needs.
    • Active searching involves filtering and interpreting information.

  • Internal Search:

    • Mental recall of known brands/products.
    • Eliminates brands with negative outcomes or poor awareness.
    • High brand awareness increases inclusion in consideration set.

  • External Information:

    • Sought when internal search is inadequate.
    • Sources include online reviews, word-of-mouth, and product trials.
    • Time spent based on:
    1. Ability
    2. Motivation
    3. Costs vs. Benefits

  • Factors Influencing External Search:

    • Ability:
    • Product knowledge and education level impact search extent.
    • Motivation:
    • Higher involvement, need for cognition, and shopping enthusiasm increase motivation to search.
    • Level of Involvement:
    • Decisions involving higher cost or importance lead to higher engagement.

  • Evaluation of Alternatives:

    • Steps involve understanding consumer evaluations for better marketing.
    • Models:
    1. Evoked Set Approach:
      • Brands immediately considered based on previous experiences and loyalty.
      • Brands are sought to increase visibility and embed in memory.
    2. Multi-Attribute Approach:
      • Consumers assess brands based on attributes important to them.
      • Better performance on important attributes influences purchase decisions.
    3. Affect Referral:
      • Decisions influenced by overall liking and trust, convenient for low-involvement purchases.

  • Conclusion:

    • Understanding this process is vital for creating effective marketing strategies.