Consumer decision making

Consumer decision making

1. Need recognition

   • Is the result of an imbalance between actual and desired states

2. Information search

   • After recognizing a need or want
     • Consumer do an information search
       • Internal information search
         • Person recalls information stored
       • External information search
         • Seeks information in the outside environment

3. Evaluation of alternatives and purchase

   • Buy or not buy
     • Whether to buy
       • When to buy
         • What to buy
           • Where to buy
             • How to pay

4. Postpurchase behavior

   • The consumer has certain expectation about the product or service he just purchased

5. Types of consumer buying decisions and consumer involvement

   • Involvement is the amount of time and effort a buyer invests in the search, evaluation and decision processes of consumer behavior

6. Factors determining the level of consumer involvement

   • Previous experience
   • Interest
   • Perceived risk of negative consequences
   • Social visibility