1. Consumer Decision Process (CDP)
It represents a road map of consumer’s mind that marketers and managers can use to help guide product mix, communication and sales strategies.

2. Stages of buying process

3. Problem Recognition
Internal Stimuli: When individuals themselves recognize the need of a product. E.g. Hunger, Thirst.
External Stimuli: When stimuli is provided by some external factors, as media or friends, family etc.

4. 2. Information Search Commercial Sources Public Sources
Personal Sources
2. Information Search
Commercial Sources
Family, friends, neighbors
Most influential source of
information
Public Sources
Advertising, salespeople
Receives most information
from these sources
Experiential Sources
Mass Media
Consumer-rating groups
Handling the product
Examining the product
Using the product
Contd……..

5. 2. Information Search
Company must identify other brands in the consumer’s choice so that it can plan competitive appeals.
*Consumers should be asked how they first heard about the brand, what information came in later, and the relative importance of different information sources.

6. 3. Evaluation of Alternatives
Product Attributes
Evaluation of Quality, Price, & Features
Degree of Importance
Which attributes matter most to me?
Brand Beliefs
What do I believe about each available brand?
Total Product Satisfaction
Based on what I’m looking for, how satisfied
would I be with each product?
Evaluation Procedures
Choosing a product (and brand) based on one
or more attributes.
Contd……..

7. 3. Evaluation of Alternatives
Computers
Attributes
Memory Capacity
Graphic Capabilities
Size & Weight
Price A 10 8 6 4 B 9 3 C 5 D 7
10= Highest level of first three attributes
10= Lowest Price
Contd……..

8. 3. Evaluation of Alternatives
40% importance to Memory Capacity
30% importance to Graphic Capacity
20% importance to Size & Weight
10% importance to Price
Computation of Perceived value:
A= 0.4 (10) (8) (6) + 0.1(4)= 8
B = (8) (9) (8) +0.1 (3) = 7.8
C = (6) (8) (10) +0.1 (5) = 7.3
D = (4) (3) (7) (8) = 4.7
Best
Alternative

9. Desire to buy the most preferred brand Unexpected situational factors
4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Unexpected situational factors
Attitudes of others
Purchase Decision
Contd……..

10. 4. Purchase Decision
The extent to which another person’s attitude reduces one’s preferred alternative depends on:
(A) Intensity of other person’s negative attitude toward the consumer’s preferred alternative
(B) Consumer’s motivation to comply with the other person’s wishes.
Amount of perceived risk influence purchase decision. Perceived risk varies with:
·        Amount of money at stake
·        Amount of attribute uncertainty
·        Amount of consumer self confidence
Purchase sub- decision
Brand decision
Vendor decision
Quantity decision
Timing decision
Payment-method decision

11. 5. Post Purchase Behavior
Title
Post Purchase Use & Disposal
Post Purchase Satisfaction
Post Purchase Actions

12. Post-Purchase Satisfaction
Customer Satisfaction: Dependent on the product’s perceived performance relative to a buyer’s expectations.
If performance (P) is lower than expectations (E), satisfaction is low.
If performance (P) is higher than expectations (E), satisfaction is high.
E= > P=8
E= < P=12

13. Post-Purchase Actions
Higher probability of purchasing the product again
Customer is Satisfied
They will say good things about the brands to others
May abandon or return the product
Customer is Dissatisfied
Exit Option
(Stop buying product)
May take an action
Private Action
Public Action
(Complaining to company, lawyer or other groups)
Voice Option
(Warning Friends)

14. Post-Purchase Use & Disposal

15. Variables that shape the Decision Process
Individual Differences
Demographic, psychographics, values and personality
Consumer resources (Time, money, information reception and processing capabilities)
Motivation
Knowledge
Attitudes
Environmental influences
Culture
Social Class
Family
Personal Influence
Situation Behaviors
Psychological processes
Information Processing (information retrieval, transformation, reduction, elaboration, storage and recovery)
Learning
Attitude and behavior change

16. Types of Decision Process
Sometimes consumers undertake a complex decision process requiring substantial amounts of time and energy. Sometimes consumers undertake a simplistic process in which relatively little time and effort are devoted to the decision.
Initial Purchases
Extended problem solving
Midrange problem solving
Limited problem solving
Repeat Purchases
Habitual Decision Making

17. Extended Problem Solving
Problem solving of a higher degree of complexity that influences consumer’s actions.
E.g. purchasing automobiles, expensive clothing etc. where risk of wrong decision is high.
All the stages of decision making are likely to be followed.

18. Limited Problem Solving
Problem solving of a lower degree of complexity that influences consumer’s actions.
In this need recognition leads to buying action, extensive search and evaluation are avoided because the purchase does not assume great importance.

19. Midrange Problem Solving
Some decisions are extremes on decision process continuum, but many decisions occur along the middle of the continuum and require midrange problem solving.
E.g. deciding which movie to see. A minimal amount of time is usually needed to find out what is playing, where it is playing and at what time.

20. Habitual Decision Making
Repeat purchases will be made on the basis of habits or routines that simplify life for the consumer.
Brand or Company loyalty: Satisfied customer becomes a loyal customer and reward the company with continued use over time. Such buyers have no incentive to change unless there is a demonstrable competitive breakthrough.
Inertia: Where loyalty consists of several brands, all of which are almost equal. E.g. in case of toothpaste. When prices are lowered or another brand is promoted as offering something new, customers switch to those brands.

21. Impulse Buying
An unplanned, spur of the moment action triggered by product display or point of sale promotion. Least complex form of LPS.
A sudden and spontaneous desire
A state of psychological disequilibrium
Onset of conflict and struggle
Minimal objective evaluation
Lack of regard for consequences

22. Variety Seeking
Consumers often are satisfied with their present brand but still engage in brand switching.
It occurs when there are many similar alternatives, frequent brand shifts, and high purchase frequency.

23. Factors influencing extent of problem solving
Degree of involvement
Personal factors
Product factors
Situational factors
Perception of difference among alternatives
Time availability
Consumer’s mood state

24. Summary
Three important points to be covered while studying buying process: buying roles, buying behavior and stages of buying process.
There are six buying roles. These roles can be played by single or many persons.
According to type of product, buying behavior also change. It is of four types.
Five stages are involved in buying process. It starts with the recognition of the need.
Then consumer search for information from various sources.
This information is evaluated on different criterion. Then the best alternative is chosen.
Final purchase decision depends upon the environmental factors and influence of others.
After purchase, post-purchase behavior is observed to find out the satisfaction level and use & disposal of the product.

25. Thank You !