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Consumer Decisiion Making

This document discusses traditional models of consumer decision making that view consumers as rational information processors going through stages. It summarizes a 5-stage model of problem recognition, information search, evaluation of alternatives, decision implementation, and post-purchase evaluation. It also discusses a hierarchy of effects model showing psychological stages from awareness to purchase. While these models view decision making as cognitive, some argue emotions and preferences can form before knowledge.

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Jitendra Singh
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0% found this document useful (0 votes)
36 views4 pages

Consumer Decisiion Making

This document discusses traditional models of consumer decision making that view consumers as rational information processors going through stages. It summarizes a 5-stage model of problem recognition, information search, evaluation of alternatives, decision implementation, and post-purchase evaluation. It also discusses a hierarchy of effects model showing psychological stages from awareness to purchase. While these models view decision making as cognitive, some argue emotions and preferences can form before knowledge.

Uploaded by

Jitendra Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Consumers As Problem Solvers Traditionally, consumer researchers have approached decision making process from a rational perspective.

This dominant school of thought views consumers as being cognitive and, to some but a lesser degree, emotional.1 Such a view is reflected in the stage model of a typical buying process (often called the consumer information processing model) depicted in Figure 1.
Problem Recognition

Information Search

In this model, the consumer passes through five stages: problem recognition, information search, evaluation and selection of alternatives, decision implementation, and post-purchase evaluation.

Problem Recognition In this information processing model, the consumer buying process begins when the buyer recognizes a problem or need. For Decision Implementation example, Kathleen may recognize that her personal computer is not performing as well as she thought it should. This is the kind of problem that we as consumers encounter all Post-purchase Evaluation the time. When we found out a difference between the actual state and a desired state, a problem is recognized. When we find a problem, we usually try to solve the problem. We, in other words, recognize the need to solve the problem. But how?
Evaluation and Selection of Alternatives

Information Search When a consumer discovers a problem, he/she is likely to search for more information. Kathleen may simply pay more attention to product information of a personal computer. She becomes more attentive to computer ads, computers purchased by her friends, and peer conversations about computers. Or, she may more actively seek information by visiting stores, talking to friends, or reading computer magazines, among others. Through gathering information, the consumer learns more about some brands that compete in the market and their features and characteristics. Evaluation and Selection of Alternatives How does the consumer process competitive brand information and evaluate the value of the brands? Unfortunately there is no single, simple evaluation process applied by all consumers or by one consumer in all buying situations.

One dominant view, however, is to see the evaluation process as being cognitively driven and rational. Under this view, a consumer is trying to solve the problem and ultimately satisfying his/her need. The distinctions among the need, benefits, and attributes are very important. One useful way to organize the relationships among the three is a hierarchical Decision Implementation To actually implement the purchase decision, however, a consumer needs to select both specific items and specific outlets to resolve the problems. There are, in fact, three ways these decisions can be made: 1) simultaneously; 2) item first, outlet second; or 3) outlet first, item second. 2 In many situations, consumers engage in a simultaneous selection process of stores3 and brands. Post-purchase Evaluation Post-purchase evaluation processes are directly influenced by the type of preceding decision-making process. Directly relevant here is the level of purchase involvement of the consumer. Purchase involvement is often referred to as the level of concern for or interest in the purchase 4 situation, and it determines how extensively the consumer searches information in making a purchase decision.5 consume and/or dispose of the product with very limited postpurchase evaluation, and generally maintain a high level of repeat purchase motivation (Figure 3).
Purchase Product U se Disposition Simple Evaluation Repeat Purchase M otivation

Figure 4

Elaborate Post-purchase Evaluation

According to the research, the likelihood of experiencing this kind of dissonance and the magnitude of it is a function of:6 The degree of commitment or irrevocability of the decision, The importance of the decision to the consumer, The difficulty of choosing among the alternatives, and The individuals tendency to experience anxiety. Because dissonance is uncomfortable, the consumer may use one or more of the following approaches to reduce it:7 Increase the desirability of the brand purchased. Decrease the desirability of rejected alternatives. Decrease the importance of the purchase decision. Reject the negative data on the brand purchased. The Hierarchy of Effects

Another widely-used model in marketing that attempts to explain consumer decision making process is called the hierarchy of effects model. Although different researchers developed slightly different models, the basic idea is the same: people experience a sequence of psychological stages before purchasing a product. Such a model is provided in Figure 5. 8 Figure 5 A General Model of the Hierarchy of Effects Originally conceived to explain how advertising affects Pr hs uc a e consumers purchase decisions, the hierarchy of effects (HOE) model focuses on consumer learning that takes place C n icio ov t n as he/she processes information from the external world. The HOE model begins with the state where a consumer has no awareness about the brand then develops awareness Pe e e c r f r ne triggered by external stimuli, such as advertising message or word of mouth. As he/she obtains and processes more L in ik g information, the consumer develops more specific knowledge about the brand. The knowledge, then, is used Ko l d e nw g e as basis to form a liking (or disliking), leading to a preference of brand(s) relative to the others. However, people need to be pushed beyond the preference stage to A ae e s wr n s actually buy the brand of preference. The preference stage, after all, simply means that the consumer has formed a Ua a e e s n wr n s preference psychologically. Now it takes conviction for him/her before actually buying the brand. By now, you might have realized at least two points. One, it seems reasonable that not all the consumers are at the same stage. Two, it also seems reasonable that not all people at one stage move onto the next stage. The HOE model is quite similar to the consumer information processing model because it also assumes that people are cognitively driven, thinking information processors. Controversy exists,9 of course, as to whether that is necessarily true. Some may claim that they often form liking and preference toward brands before developing cognitive judgment on them. Others argue that people form preference and knowledge simultaneously. Although each argument has its own support, the general model seems to be valid especially in relatively complex or high-involvement decision making situations, providing a conceptual framework for thinking about the sequence of events which begins from the initial awareness to the final action.

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