1. Chapter Name: Consumer Buying Decision Process
Chapter No: 03
Chapter Name: Consumer Buying Decision Process
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

2. Consumer Behavior
Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

3. Consumer Behavior
The actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions. The behavioral sciences help answer questions such as:
Why people choose one product or brand over another?
How they make these choices? and
How companies use this knowledge to provide value to consumers?
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

4. Simplified Linear Model of the Consumer Decision Process
Problem
Recognition
Information
Search
Evaluation of
Alternatives
Purchase
Decision
Expectations
Post Purchase
Behavior
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

5. Major Influences in the Consumer’s “Black Box”
SITUATIONAL INFLUENCES
Physical and
Social Surroundings
Time
Purchase Use
Buyer’s Condition
PSYCHOLOGICAL
ENFLUENCES
Perception
Motives
Learning
Attitudes
Personality
SOCIAL INFLUENCES
Roles
Family
Reference Groups Social Classes
Culture
Consumer Decision Process
Problem Recognition
Post Purchase
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

6. Buying Process Stage 1 Problem or need recognition BUYING PROCESS
Increase
Gap
Size
Existent
State
Desired
State
Increase Intensity of (Need) Want
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

7. Major Causes of Problem Recognition or Opportunity
Science and Technology Advancements
new products
new information
Changing Consumer Circumstances & Expectations
improved education
family life cycle
income adjustments
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

8. Psychology of Simplification/Complication
Consumers try to simplify decision making by reducing the amount of information processing
High
Information
Amount
Low
Simple Decision
Complex
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

9. Information Is knowledge
Buying Process
Information
Search
Stage 2
Information Is knowledge
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

10. Examples of Dell’s Customer Feedback
Information Gaps
Examples of Dell’s Customer Feedback
- Where’s the power button?
- Won’t work after I washed the
keyboard
I refuse to read manual
Click any key to continue
(Where’s the any key?)
- fax won’t work
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

11. Information Sources Internal Sources (Psychological) experience
memory storage/retrieval
mental processing
External Sources (Social)
family
friends
professionals
Personal interaction
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

12. Information Sources Public Sources Commercial Sources
government studies
product testing magazines
media stories
Commercial Sources
advertising
sales people
product pamphlets
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

13. Information Search leads to a consideration set of Brand Alternatives
All brands in a product Class
Unknown brands
Known brands
Brands found accidentally
Brands found through search
Evoked set
Unrecalled brands
Consideration set of brand choice alternatives
+ I like
o Neutral
- I dislike
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

14. Buying Process Stage 3 Evaluation of Alternatives
Utility Theory - Consumers perform rational, quantitative calculations to maximize personal utilities .. economic, behavioral & societal.
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

15. 3 Major Evaluation Criteria
Economic: cost/performance
Behavioral: prestige/status/peer influence/lifestyle
Societal: product externalities
- society’s long run welfare
- environmental effects
Lots of storage
Performance
Safety
Variety of colors
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

16. Supermarket Selection Criteria Change over time
1974
1981
1985
Cleanliness
attractive
Product Quality
Low prices
location
Location
Labeling of Products
Product variety
Product Variety
Courteous employees
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

17. Applying Evaluative Criteria
(Behavioral, Societal, Economic)
Toothpaste
Decay Prevention
and Price
Economic Attributes
Taste and Flavor
Behavioral Attributes
Packaging
Societal Attributes
(safety, recyclable, resources)
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

18. Buying Process Purchase Stage 4 Decision(s) WHO BUYS? WHAT? WHEN?
WHERE?
AND WHY?
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

19. Influences on Purchase Decisions
Purchase Situation(s)
Usage (Social or Private)
Time Perspective (long or short)
Resource Capabilities
Level of personal control
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

20. Purchase Decisions
Principle: Consumers dislike making decisions/choices
Tactic: Show satisfied customers
ordinary people
experts
celebrities
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

21. Buying Process Post-Purchase Stage 5 Behavior Cognitive dissonance:
post-purchase tension
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

22. Cognitive Dissonance

23. Cognitive Dissonance Causes: Perceived Risk Performance risk
Physical risk (wear-out)
High financial commitment
High involvement level
High social visibility
Information Overload
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

24. Post Purchase Behavior
Product Experience
Actual
Benefits
Actual
Expectations
Gap
Size
Satisfied
Dissatisfied
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

25. Post Purchase Behavior
Principle: Dissatisfied customers communicate more negative word of mouth than satisfied customers communicating positive word of mouth
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

26. Types of Consumer Buying Behavior
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –

27. Questions?

28. Thank You … For staying with me …
Leon G. Schiffman & Leslie Lazar Kanuk “Consumer Behavior” 8th edition, Prentice Hall –