Purchasing Decisions

Key questions

● Who influences the decision to buy a product.● What does the customer buy.● When do customers buy.● Where do they look.● How is it perceived by customers.● Why do customers buy a particular product.

Five stage model

1. Problem recognition

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The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli.

2. Information Search

Consumers often search for limited amounts of information. Two types:1. Middler search state is called heightened attention.2. Active information search.

Information sources

● Personal● Commercial● Public● Experimental

Successive sets involved in consumer decision making

Evaluation of alternatives

1. The consumer is trying to satisfy a need.2. The consumer is looking for certain benefits from

the project.3. The consumer sees a project as bundle of attributes.

Beliefs and attitudes

● A Belief is a descriptive thought that a person holds.● Attitude : a person’s enduring favorable or

unfavorable evaluations, emotion feelings, and action tendencies toward some object.

It’s beliefs and attitudes become too negative,

however, more serious steps may be necessary.

Expectancy-value model

Purchase decision

Noncompensatory models

With noncompensatory models of consumer choice,positive and negative attributes considerations don’tnecessarily net out.

Heuristics

● Conjunctive heuristic● �Lexicographic heuristic● �Elimination-by-aspects heuristic

Steps between Evaluation of Alternatives and a Purchase Decision

Intervening factors

Perceived risks which modify consumer’s decision:1. Functional risk2. Physical risk3. Financial risk4. Social risk5. Psychological risk6. Time risk

Postpurchase behavior

Postpurchase satisfaction- Depending upon the product the consumer may be-

Disappointed Satisfied Delighted These are purchase actions

How customers use or dispose of products

Recap

1. Key questions2. Five stage model

a. Problem recognitionb. Information searchc. Evaluation of alternativesd. Purchase decisione. Postpurchase behavior

Declaration

Created byAkhila Polishetty, during an internship underProf. Sameer Mathur, IIMLucknow.www.IIMinternship.com

Thank you.