Consumer Behavior

Roger D. Blackwell
Paul W. Miniard
James F. Engel
 CHAPTER 3

The Consumer Decision

Process

By
Prof.Kameswara Rao
The Consumer Decision Process
The Consumer Decision Process

How do consumers make

purchase decisions?

How do firms use this information

to develop new products and
marketing programs?
The Consumer Decision Process

The CDP represents a road map of

consumers’ minds that marketers
and managers can use to help
guide product mix,
communications, and sales
strategies
The Consumer Decision Process

P&G used
consumer
information
regarding
various
decision
process stages
to create and

By permission of Drexel.
market Dryel
Consumer Decision Process Stages
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase

Consumption

Post-consumption Evaluation

Divestment
Consumer Decision Process Model
Need Recognition
Need Recognition
An individual senses a difference
between what he or she perceives
to be the ideal versus the actual
state of affairs
Need Recognition
Consumers recognize needs and
seek to fulfill them, or seek a
product to solve their problems
Knowing consumers’ needs helps
firms develop products and
marketing programs to reach them
more effectively
Need Recognition
Environmental
Influences
- Culture
M - Social Class
- Personal Influence
E - Family
M Need - Situation
O Recognition
Individual Differences
R - Consumer Resources
Y - Motivation
- Knowledge
- Attitudes
- Personality, Values,
and Lifestyle
Consumer Decision Process Model
Need Recognition

Search for Information

CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure mental
Influences
Attention M
Stimuli
E
Comprehension Individual
M Differences
O
Acceptance R
Y
Retention
Search for Information
Internal search: retrieving know-
ledge from memory or genetic
tendencies
External search: collecting informa-
tion from peers, family, and the
marketplace
Search for Information
Search may be passive as
consumers become more receptive
to information around them, or
active if they engage in search
behavior

Search refers to a receptivity of

information that solves problems
or needs rather than a search for
specific products
Search for Information

Need Environmental
Recognition Influences

Internal
Search Search Individual
Differences
M
External
E
Search
M
O
R
Y
Search: Sources of Information
Marketer Dominated
Non-Marketer Dominated Stimuli
Search: Sources of Information
Marketer Dominated
- Advertising
- Salespeople
- Infomercials
- Websites
- Point-of-sales materials
Search: Sources of Information
Non-Marketer Dominated Stimuli
- Friends
- Family
- Opinion leaders
- Media
Information Processing
As a consumer is exposed to
information from external search,
they begin to process the stimuli
 Information Processing
Exposure

Stimuli: Attention M
- Marketer E
Dominated
Comprehension M
- Nonmarketer
Dominated
O
Acceptance R
Y
Retention
Search: Information Processing

Exposure

Attention

Comprehension

Acceptance

Retention
Ads That Create a Brand Image
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Individual
M Differences
O
Acceptance R
Y
Retention
Pre-purchase Evaluation of
Alternatives
The process of evaluating
alternatives identified from search,
which leads to a product or brand
selection most likely to satisfy the
consumer
Pre-purchase Evaluation of
Alternatives
Can use new or preexisting
evaluations stored in memory
Evaluative criteria: standards and
specifications used to compare
different products and brands
Alternative can be considered on
attributes that are salient or
determinant
Pre-purchase Evaluation of
Alternatives
Salient attributes such as price and
reliability are important to the
consumer
Determinant attributes such as a
car’s style and finish usually
determine which brand or store
consumers choose
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase
CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Purchase Individual
M Differences
O
Acceptance R
Y
Retention
Purchase
Acquisition of the product that
involves choosing a specific
retailer, and in-store choices
Purchase
Acquisition of the product that involves
choosing a specific retailer, and in-store
choices

Purchase intention can change

during the purchase stage—it can
be influenced by factors such as
in-store promotions, discounts,
salespeople, failure to find the
product, or lack of financial
resources
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase

Consumption
CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Purchase Individual
M Differences
O
Acceptance Consumption
R
Y
Retention
Consumption
The process of using the product or
service purchased
Consumption can either occur
immediately or be delayed
Consumption
The process of using the product or
service purchased
Consumption can either occur
immediately or be delayed
How consumers use a product
affects satisfaction with product
How carefully consumers use or
maintain a product also determines
how long it will last before another
purchase is needed
An Emotional Appeal in
Product Consumption
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase

Consumption

Post-consumption Evaluation
CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Purchase Individual
M Differences
O
Acceptance Consumption
R
Y
Retention Post-consumption
Evaluation

External
Dissatisfaction Satisfaction
Search
Post-consumption Evaluation
Consumption is an important
determinant of satisfaction
Satisfaction: when consumers’
expectations are matched by
perceived performance
Dissatisfaction: when experiences
and performance fall short of
expectations
Post-Consumption Evaluation
Cognitive dissonance: questioning
the purchase decision (post-
purchase regret)
Usually, the higher the price, the
higher the level of cognitive
dissonance
Emotion strongly affects the
evaluation of a product or
transaction
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase

Consumption

Post-consumption Evaluation

Divestment
CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Purchase Individual
M Differences
O
Acceptance Consumption
R
Y
Retention Post-consumption
Evaluation

External
Dissatisfaction Satisfaction
Search
Divestment
Divestment
How consumers dispose of the
packaging or product after use
Options include:
Disposal
Remarketing or reselling
Recycling
How Organizations Use the CDP
Model
Variables Shaping the Decision
Process
Identify relationships and variables
that affect consumer decision
making
Identify topics for additional
research
Develop and implement marketing
mix strategies
Variables Shaping the Decision
Process
Individual Differences:
Demographics, psychographics,
values, and personality
Consumer resources
Motivation
Knowledge
Attitudes
Variables Shaping the Decision
Process
Environmental Differences:
Culture
Social Class
Family
Personal Influence
Situation behaviors
Variables Shaping the Decision
Process
Environmental Differences:
Culture: values, ideas, artifacts, and
symbols that help individuals interpret,
communicate, and evaluate as
members of society
Variables Shaping the Decision
Process
Environmental Differences:
Social Class: division within
society composed of individuals
sharing similar values, interests,
and behaviors
Variables Shaping the Decision
Process
Environmental Differences:
Family: often the primary decision
making unit with a complex and
varying pattern or roles and
functions
Variables Shaping the Decision
Process
Environmental Differences:
Personal Influence: our behaviors
are often affected by those with
whom we closely associate
Variables Shaping the Decision
Process
Environmental Differences:
Situation behaviors: as situations
change, so does the individual’s
behavior
Variables Shaping the Decision
Process
Psychological Processes
Influencing Consumer Behavior
Information processing
Learning
Attitude and behavior change
Types of Decision Processes
Consumer Decision Process
Continuum

Extended Midrange Limited

Problem Problem Problem
Solving Solving Solving
(EPS) (LPS)

High Low

Degree of Complexity
Consumer Decision Process
Continuum: Repeat Purchases

Extended Midrange Limited Habitual

Problem Problem Problem Problem
Solving Solving Solving Solving

High Low

Degree of Complexity
Types of Decision Processes
Initial Purchase
Extended Problem Solving (EPS):
Problem solving of a higher degree of
complexity that influences consumers
actions
Types of Decision Processes
Initial Purchase
Extended Problem Solving (EPS):
Often occurs with expensive items or
can be fueled by doubts and fears
Importance in making the “right
choice”
All seven consumer decision making
stages are often activated
Dissatisfaction is often vocal
Types of Decision Processes
Initial Purchase
Limited Problem Solving (LPS):
Problem solving of a lower degree
of complexity that influences
consumers’ actions
Types of Decision Processes
Initial Purchase
Limited Problem Solving (LPS):
Consumers don’t have motivation,
time, or resources to engage in EPS
Little search and evaluation before
purchase
Need recognition leads to buying
action; extensive search and evaluation
often avoided as the purchase is not of
great importance
Types of Decision Processes
Initial Purchase
Midrange Problem Solving:
Many decisions occur along the middle
of the continuum
Decisions are made with a minimal
amount of time and only moderate
deliberation
Types of Decision Processes
Repeat Purchases
Repeated Problem Solving
Habitual Decision Making
Types of Decision Processes
Repeat Purchases
Repeated Problem Solving
Habitual Decision Making
Impulse Buying
Unplanned, spur-of-the-moment action
triggered by product display or point of
sale promotion (least complex form of
LPS)
Types of Decision Processes
Repeat Purchases
Repeated Problem Solving
Habitual Decision Making
Impulse Buying
Unplanned, spur-of-the-moment action
triggered by product display or point of
sale promotion
Least complex form of LPS but differs in
some important ways
Types of Decision Processes
Repeat Purchases
Repeated Problem Solving
Habitual Decision Making
Impulse Buying
Variety Seeking
Consumers may be satisfied with the
present brand but still engage in brand
switching
Can be triggered because bored with
current brand or because of special offer
Factors Influencing Problem
Solving Extent
Factors Influencing Problem
Solving Extent
Degree of Involvement: Level of
perceived personal importance and
interest evoked by a stimulus in a
specific situation (High-Low)
Factors Influencing Problem
Solving Extent
Degree of Involvement (High-Low)
Personal Factors (self-image, health,
beauty, or physical condition)
Product Factors (is there perceived risk
in purchasing and using a particular
brand or product?)
Situational Factors (is the product
purchased for personal use or as a gift?)
Factors Influencing Problem
Solving Extent
Degree of Involvement (High-Low)

Perceptions of differences among

alternatives
Factors Influencing Problem
Solving Extent
Time Availability
How much time is available to devote to
solving the problem?
How quickly does the decision need to be
made?
Factors Influencing Problem
Solving Extent
Time Availability
How much time is available to devote to
solving the problem?
How quickly does the decision need to be
made?
Consumers’ Mood State
How people feel at a particular moment
Mood can reduce or increase length and
complexity of decision process