Chapter 2: Understanding How Consumers Make Purchase Decisions

Chapter 2: Understanding How Consumers Make Purchase Decisions

1. Outlining the Decision-Making Process

   • Customers
     • Go Through a Five-Stage Decision-Making Process
       • PHASE 1
         • A CONSUMER BECOMES AWARE OF A NEED
           • NEED
             • INTERNAL STIMULUS
               • EVALUATION
               • PHYSIOLOGICAL NEEDS
           • DESIRE
             • EXTERNAL STIMULUS
               • ADVERTISEMENTS
               • CONVERSATIONS
               • CONSULTATIVE SELLING
       • PHASE 5
         • THE CONSUMER EVALUATES THE PURCHASE
           • CATEGORIZE THE POST-PURCHASE
             • COGNITIVE DISSONANCE
               • PURCHASE IS BELOW EXPECTATION
                 • NOT HAPPY
                 • LOW CHANCES OF RECOMENDATION TO OTHERS
                 • HIGH CHANCE OF ASK FOR A CHANGE OR REFUND
               • PURCHASE MATCHES EXPECTATION
                 • HIGH POSSIBILITIES OF NOT HEARING BACK FROM THE CUSTOMER
               • PURCHASE EXCEEDS EXPECTSTIONS
                 • LIKELY TO BE A FUTURE CUSTOMER
                 • WILL SEND NEW BUYERS
                 • WILL HEAR FROM THE CUSTOMER AGAIN
       • PHASE 3
         • EVALUATING THE ALTERNATIVES
           • CRITERIA
             • COLOR
             • DURABILITY
             • OPTIONS
             • PRICE
             • SAFETY
             • QUALITY
             • WARRANTY
             • STYLE
             • STATUS
           • TYPES OF CHOICE PROCESSES
             • AFFECTIVE CHOICE
             • ATTITUDE-BASED CHOICE
             • ATTRIBUTE CHOICE
           • PURCHASES CONSUMERS MAKE
             • LOW INVESTMENT
             • HIGH INVESTMENT
       • PHASE 2
         • SEEKING AND RESEARCHING POSSIBLE SOLUTIONS
           • SEARCH PROCESS
             • INTERNAL SEARCH (1)
               • FULFILL OUR NEEDS ON A PERSONAL LEVEL
                 • HEIGHTENED ATTENTION
                   • MAGAZINES
                     • ACTIVE INFORMATION SEARCH
                   • ADVERTISEMENTS ON LINE
                     • ACTIVE INFORMATION SEARCH
                       • INVESTS IN THE SEARCH PROCESS
             • EXTERNAL SEARCH (2)
               • FAMILY
               • FRIENDS
               • SALESPEOPLE
               • ADVERTISMENTS
       • PHASE 4
         • ASSESSING THE VALUE OF THE CHOSEN PRODUCT OR SERVICE
           • WHO WILL I BUY FROM?
             • TERMS OF SCALE
             • PAST EXPERIENCE FROM SELLER
             • RETURN POLICY
             • APPLICATION IN MARTKETING
           • WHEN WILL I BUY?
             • STORE ATMOSPHERE
             • PRESENCE OF TIME PRESSURE
             • SPECIALS OR SALES ON PRODUCTS/ SERVICES
             • PLEASANTNESS OF THE OVERALL SHOPPING EXPERIENCE
             • APPLICATION IN MARTKETING
               • SET A GOOD ATMOSPHERE
               • MAKE SALES
               • PAY ATTENTION TO CUSTOMER SERVICE
               • SAVE TIME FOR YOUR CUSTOMER BY BEING CLEAR
     • EXTERNAL INFLUENCES
       • CULTURE
       • SUBCULTURE
       • HOUSEHOLD STRUCTURE / ROLE
       • SOCIAL GROUPS
       • DECISION MAKING
     • INTERNAL INFLUENCES
       • PERCEPTION SELF-CONCEPTS
       • LIFESTYLE
       • MOTIVATION
       • EMOTION/ATTITUDES
       • DECISION MAKING