How do consumer make purchasing decisions

How do consumer make purchasing Decisions?

Problem recognition

buyer recognises needs triggered by internal or external stimulus

Information Search

Heightened attention

At this level a person simply becomes more receptive to information about a product

Active information searchAt this level a person starts looking for reading material,going online,phoning friends,visiting stores to learn about product

ExperientialHandling,examining,using the product

Information Sources Public

Mass media,consumer-rating organisations

Personalfamily,friends,neighbours

commercialAdvertising,websites,salesperson,dealers,packaging, displays

Market Partitioning

It is the process of identifying the hierarchy of attributes that guide consumer decision making

Successive sets involved in consumer decision making

Evaluation of alternatives

Some basic concepts1) Consumer is trying to satisfy a need2) Consumer is looking for benefits from the

product Solution3) Consumer sees each product as a bundle of

attributes with varying abilities to deliver the benefits

According to the model the consumer evaluates product and services by combining their brand beliefs,the positives and negatives according to importance

Expectancy value model

Example

Purchase decision

Elimination by aspects heuristicsconsumer compares brand on an attribute selected according to its importance and rejects the brand that do not meet minimum cutoff

Lexicographic heuristicsConsumer chooses the best brand on the basis of its perceived most important attribute

Conjunctive heuristicsthe consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard of all attributes

Intervening Factors

Thank You

Created by Rishabh Salgia,IIT Bombay,during an internship by Prof.Sameer Mathur,IIM Lucknow

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