KINNAIRD COLLEGE FOR WOMEN UNIVERSITY,

LAHORE

FINAL PROJECT
(GROUP#5)

SUBMITTED BY: Arooba Anmol (F19BSFN015)

Ayesha Masood (F19BSFN051)
Hamna Saqib (W19BCHE017)
Kainat Waseem (F19BECO013)
Minahil Faisal (F19BSFN007)
SUBMITTED TO: Miss Zara Haroon
COURSE TITLE: Consumer Psychology
SEMESTER: 4
SESSION: 2019-23
DATE OF SUBMISSION: 14th April, 2021
TOPIC: Consumer Decision Making Process
 CONSUMER DECISION MAKING PROCESS

 Abstract
People make hundreds of decisions on a daily basis, for example selecting what to eat, what to
wear, to the very vital choosing guardians for a baby, selecting a profession or any call relating
to future. As a customer, individuals perpetually build selections regarding the
acquisition of product and services. Decision-making is delineated in psychological
science because the psychological feature approach that ends to the choice of a conviction or a
course of action from a group of other. Within the decision making process the
matter recognition is that theoutcome of the discrepancy between ones desired state and an actual
state of satisfaction. Data Search is that the second stage within the Consumer
Decision method and through it, a clientsearches for internal or external data. The third stage is
information evaluation followed by purchase decision and post-purchase evaluation. EKB model
dictates the consumer behavior.

 What is decision making process?

People make dozens of decisions each day, from the mundane (e.g., choosing what to eat) to the
extremely important (e.g., selecting guardians for a child). As consumers, people constantly
make decisions about the purchase of products and services. Some of these decisions are trivial,
such as clicking a Web site for the online shopping, and others are complex, like deciding on a
birthday gift. Thus, consumer decision making is a multi-faceted process that ranges from
automatic to highly manual problem solving. It is all about how consumers recognise problems,
refer markets of interest, gather information to consider and purchase, and meet their satisfaction.
Decision making is the series of process of making choices by identifying a decision, gathering
information, and assessing alternative evaluation.
Using a step-by-step decision-making process can help you make more effective, deliberate and
thoughtful decisions by organizing relevant information and defining alternatives. This approach
increases the chances that you will choose the most satisfying alternative product possible. It is
regarded as the cognitive approach resulting in the selection of a thought or a course of action
among many possible alternative options, it can be either rational or irrational. Decision-making
process is a reasoning process based on assumptions of needs, preferences, action and beliefs of
the decision-maker.

Types of consumer decisions

Effort continuum

 Routine choice is carried out automatically, with conscious effort. As such, it includes no
information search or deliberation. Highly purchased, cheaper products, such as chewing
gum, toffees and milk, generally involve routinely responses. These purchase decisions
are highly familiar and relatively trivial because they involve little or no risk.

 Intermediate problem solving usually include minimum information search and

deliberation. Products such as snack foods, packed juices and soft drinks, for which
consumers usually have established preferences, typically entail intermediate effort.

 Extensive problem solving needs a deliberate and systematic effort from consumers. In
this type, consumers generally do not have well-established criteria to evaluate product
brands or may be unaware of the product category. Consumers generally engage in
extensive problem solving for infrequently purchased, high-cost products and services
 such as automobiles, graduate schools, and home security systems. Because these
decisions involve high risk levels, consumers usually invest a great deal of time and
effort in collecting information and evaluating alternate priorities to actually making a
purchase.

Involvement

Involvement is the personal relevance or importance of an issue or situation while purchasing.

Accordingly, highly involving decisions are characterised as important to consumers. High
involvement is often associated with emotional outcomes. Consumers approaches not only
functional benefits, such as the warmth of a new sweater, but also the social liking and rewards
of compliments on their good taste or fitting in with group norms. Finally, if a decision involves
a high level of perceived risk, i.e., the possibility of negative outcomes.

Factors affecting decision making

 Programmed versus Non-programmed Decisions

Programmed decisions are made in predictable settings and managers have clear and unshaded
parameters and criteria. Problems are well structured and alternatives are well understood. Non-
programmed decisions are in unique circumstances and the results of such decisions are often
mishandled and unpredictable. Managers face ill-structured problems. These problems require a
professional response and are usually handled by the top management.

 Information Inputs
It is very important to have an adequate, accurate and to the point information about the product
for decision making, otherwise the quality of the decision will suffer. It must be recognized,
however, that on the individual has certain mental situation, which limit the number of
information gathered that he can accurately handle.

 Cognitive Constraints
A human mind, which is the source of thought, creativity, ideas and decision making, is limited
in capacity in a number of ways. For example, except for some unique circumstances, our
memory is short term, having the capacity of only a few stories, thoughts, ideas, words, and
symbols.
Also, we cannot perform more than a limited number of calculations in our head and it is tough
to compare all the possible alternatives and make a choice.

 Consumer Decision Making Process

Decision-making is described in psychology as the cognitive mechanism that leads to the
selection of a conviction or a course of action from a set of alternative alternatives. It may be
logical or irrational. The decision-making process is a thinking process focused on the decision-
interests, maker's desires, and principles. Every decision-making procedure leads to a definitive
decision, which may or may not result in motion.

The steps of the consumer decision making are explained in detail as follows:
 1. PROBLEM RECOGNITION
In the consumer decision process the problem recognition is the outcome of the discrepancy
between ones desired state and an actual state of satisfaction. When we talk about actual state it
means the way a person perceives their feelings and situations at a present time while the desired
state is the way an individual actually wants to feel.

Problem recognition can also be said as a trigger that leads to the purchase decision. Need or
problem recognition is originates because of internal or external stimuli. If this problem in not
initiated than the consumer will not move forward to purchase a good. The business marketers
need to be very skilled and should have excellent expertise in problem recognition because this
will lead to the success of the business venture. So in problem recognition the consumer
recognizes a difference between his or her actual state and some desired state. As we know that
need can be generated because of two main stimuli so the marketers should be active and
evaluate the consumer’s perspective by keeping in mind some of these questions such as what
types of problems arise? What brought them about and how lead the consumer towards the
particular product.

An American psychologist believed that needs are arranged in the form of hierarchy or levels.
Once a person achieved the foremost need than he moves forward to the next need. The pyramid
shown below is the shows the Maslow hierarchy of needs.

The customer passes through all these stages in every purchase of the commodity he does.
However just occasionally the consumers do reverse or skip some of the stages.
Example: For instance I feel hungry and want to but my favourite pizza than because of my
basic need (hunger), I just go to the purchase decision, skipping information and evaluation. An
aroused customer needs to decide that how much information is required. If the need is very
strong than the process of information research begins.

2. INFORMATION SEARCH
Information Search is the second stage in the Consumer Decision Process and during it, a
consumer searches for internal or external information. During this stage a consumer who has
recognized a specific problem or need is then persuaded to search for information which could
either be internal or external. During this time, the options that are available to the consumer are
identified or further clarified. In addition to this, they are also influenced by their past experience
with the brand or the product.

Information search can be internal or external research:

Internal research refers to a consumer’s memory and recollection of a product and is guided by
personal experience. This is when the person tries to search their memory to see if they are able
to recall past experiences with a product, brand or service. If the product is considered a
necessity or something that is frequently purchased then the internal information search may be
enough to trigger the purchase.

External research is conducted when a person has no past knowledge about a product which
then leads the consumer to seek information from personal sources for example, the word of
mouth from friends or family or from public sources e.g. online forums e.g. customer reviews or
marketer dominated sources e.g. sales persons or advertisements. This occurs especially when a
person’s previous experience is limited or deemed inefficient.
The consumer may have heightened attention and they may undertake an active search for
information. The amount of searching a consumer does, depends on the strength of his drive, the
amount of information he starts with and the ease with which more information is available. It
also depends on the satisfaction he gets from searching.

Buyers or customers generally get information about goods from different sources.

Personal sources: which include family, friends, neighbors and acquaintance

Commercial source: which include advertising, salespeople, dealers, packaging, display

Public sources: This includes all the mass media, consumer rating organizations

The relative influence of these information sources do vary with the product and the buyer.
Generally, the consumer receives the most information about a product from commercial
sources-which are controlled by the marketer.

For these reasons the marketer and the brand should make sure that they provide consumers with
the information that they want and then hope that the consumers buy their product. They should
also present as a trustworthy source of knowledge and information. Another important strategy is
word of mouth the since consumers trust each other more than they trust the business thus
consumer-generated content like customer reviews and video testimonials may also influence
purchase.

3. INORMATION EVALUATION
Evaluation of alternatives is the third stage in the Consumer Buying Decision process and during
this stage the consumers evaluate all the product and brand options that they have on a scale of
attributes which have the ability to deliver the benefit that the customer is searching for. The
number of alternatives that a consumer is considering for a particular product, which basically
means the number of brand choices, is called their evoked set. For example:
In an exhibition, the consumers have a variety of options
to compare and evaluate

The consumers evaluate alternatives in terms of the

functional and psychological benefits that they offer. The
alternatives that the consumer is considering may present
themselves in the form of lower prices, additional product
benefits, product availability, or something as trivial such as
color or style options thus the goal of the marketer should be
convincing consumers that their product is superior to other alternatives. For this reason the
marketer should also be aware of the competitors to answer the consumer and to compare
benefits.

Example: The customer compares a few brands that she likes and she knows that she wants a
brightly colored coat that will complement the rest of her wardrobe, and secondly she would
spend less money but she also wants to find a coat made from sustainable fabric.

The consumer’s evaluation is influenced by two major characteristics:

Objective: which include features, functionality, price, ease of use

Subjective: which include feelings about a brand (based on previous experience or input from
past customers)

Example: When comparing cameras, the consumers will first weigh the objective characteristics
of the camera. Does it have all the features or characteristics I want? How easy is it easy to use?
Is it in my desired budget? Then, the subjective consideration will also kick in: Do other people
also think it has all the features it should? Is it considered to have a good value for money?

Thus the marketers should make sure that their site is informative, their prices are competitive
and most importantly, post reviews from the past buyers to boost customer trust.

Extended problem solving:

When a consumer spends significant time in the comparative process and reviews the price,
warranties, terms and condition of sale and other features, it is said that they are involved in
extended problem solving.
Unlike routine problem solving, the extended problem solving comprises of external research
and the evaluation of alternatives. It is mostly done when the customer is buying a high-priced or
scarce product or service e.g., the purchase of a car. Likewise the consumers also use extensive
problem solving for infrequently purchased, expensive, or new goods for example for a product
as inexpensive as Mac Donald’s new burger or as expensive as Hyundai’s new launch, Elantra.

During this stage, the consumers can also be significantly influenced by their attitude and the
degree of involvement that they may have with the product or brand. For example, if the
customer involvement is high, they will evaluate several brands, whereas if it’s low, they may
look at one brand only. In low involvement buying the activity is done frequently or is habitual
to a certain extent and there is generally only little difference between the brands. Whereas, high
involvement buying involves products with significant differences. The behavior is more
complex and thus research is more detail oriented.

Some criteria on which evaluation is based, according to a research study:

 Evaluation of alternatives based on price:

Price is an important criteria used for evaluation of alternatives since consumers form opinions
about the company, product and brands based on the price they offer. Sometimes, the consumers
believe that price is the only relevant product attribute to evaluate the various alternatives. About
2% of the respondents, answered with ‘never evaluated based on price, 25% as ‘frequently’
whereas 50% as ‘always’.

 Evaluation of alternatives based on Quality:

It is also another important criteria for evaluating the various alternatives of a consumer. Often
the price and quality of the product are closely related to each other. Generally consumers
consider price as an attribute which helps the consumers to make judgment about the product
quality. About 1% responded as ‘never evaluated alternatives based on quality’ whereas 55%
responded as ‘always’.

 Evaluation of alternatives based on Brand Name:

A common way of simplifying the decision making process is by selecting and staying loyal to a
particular brand. Thus, the consumer can spend less time on the information search and
evaluation of alternatives. Brands are also a significant evaluative criteria since consumers
identify themselves with a particular brand identity. About 5% responded as ‘never’ whereas
43% responded as ‘always’.

 Evaluation of alternatives based on Discounts:

The discounts and deals are other important criteria for evaluating alternatives. It is one of the
most attractive factors in shopping. Some consumers also emphasize on the enjoyment of
looking out for discounts on various products before purchasing any product. This is called
Value shopping. Among the different personality types, extroverts enjoy shopping for bargains
and discounts as they find, searching for deals exciting.

These are some factors that are considered while evaluating different option.

4. PURCHASE DECISION
The purchase decision is the fourth stage in the consumer decision process and it is when the
purchase actually takes place. During this time, the consumer may form an intention to buy the
most preferred brand because he has evaluated all the alternatives and identified the value that it
will bring him.

Example: The customer finds a pink winter coat that’s on sale for 20% off. After confirming that
the brand uses sustainable fabric and asking friends for their feedback, she orders the coat online.

According to Philip Kotler, Keller, Koshy and Jha (2009), the final purchase decision can be
affected by two factors:

 Negative feedback of others and our ability to accept the feedback. For example, after
going through the need recognition, information search, and alternative evaluation stages,
one might decides to buy a Nikon camera, but a close photographer friend might share
negative feedback, which could drastically influence personal preference.
  The decision may be disrupted due to a situation that one did not anticipate, such as
losing a job or a retail store closing down.

5. POST-PURCHASE EVALUATION
Post purchase evaluation is the key to influence future purchase patterns for the consumers.
When the consumers buy any product they relate there products with expectation. The consumers
is either satisfied or dissatisfied with the product. It depends upon consumer’s value, perception,
communication and repeat purchase behavior. Satisfaction play a very important role in
evaluation stage. It effects on post purchase of the consumer. The satisfaction of the consumer is
very important. In case of dissatisfaction, the consumer will never repurchase or change the
brand next time.

For Example, if there is a dress which original price is less or a shopkeeper sale the same dress
with high margin or profit, then the consumer will never repurchase any product from that shop.

So, it is important for the marketing team to fulfil the needs of their clients. Decision making is
not always rotational. Sometimes we make decisions with little information.

Tools used for Post-purchase Evaluation

Post purchase evaluation is used to determine the quality of the product. This evaluation helps
the marketer to evaluate the weakness of their products or decide the qualities of new products.
Some tools can be used by the marketers to collect the feedbacks of the consumers. Following
are some tools which are used for post purchase evaluation:

 Suggestion boxes:
Suggestion boxes also known as feedback boxes are used to get feedbacks of their customers.
These boxes are placed at the stores. These boxes in the form of mini forms which are given to
their clients where consumers can give any suggestion or gives feedback. It helps the marketer to
know about their consumer that whether the client is satisfied or dissatisfied.

 Surveys:
Surveys and questionnaires are also used to get feedback or opinions of the consumers. It is not
important to ask the name and details of the clients. So, the marketers makes a small
questionnaire form or multiple choice questions which also saves the time of the consumer.
  Mini interviews:
Mini interviews are conducted by the marketers to their consumers by the phone calls and get
their feedbacks of the company’s products they have been using.

 Social networking:
Social networking are actually the sites where consumers can give their honest reviews. On these
sites, the reviews are seen by everybody. So, the unknown persons are able to purchase the good
products on the basis of these reviews.

 Focus groups:
In focus groups, the reviews are given from a group of around 6 to 10 people instead of a single
and special persons.

Cognitive Dissonance

Cognitive dissonance relate with the thinking of a consumer about the product they recently
purchased. Post purchase is different in a way that it is not only depend on the quality of a
product but also on the consumer needs. Post purchase evaluation is a behavior in which there is
an assessment of product purchased by a consumer. The outcome of post purchase evaluation is
satisfaction or dissatisfaction. Its helps the marketers to make changes in their products or in
upcoming launching products.
The word "cognitive dissonance" refers to the mental tension that occurs when two opposing
views, values, or behaviors are held. People need continuity with their attitudes and expectations,
so this tension may make them feel uneasy or uncomfortable.

This discrepancy in what people think and how they function motivates them to take acts that can
alleviate their distress. People try to alleviate this stress in a variety of ways, including refusing,
reasoning aside, or ignoring new facts.

 While anyone feels cognitive dissonance to some degree, it is not always easy to
understand. The below are some symptoms that your feelings might be linked to
dissonance:
 Uncomfortable feelings prior to doing something or making a decision
 Attempting to defend or rationalize a decision you've made or a course of action you've
taken
 You're humiliated or ashamed by what you've done, and you're trying to shield it from
others.
 Feeling guilty or remorseful for what you've done before
 And if it wasn't something you wanted to do, you did it out of peer pressure or a fear of
losing out (FOMO).

Impact of Cognitive Dissonance

People can feel uneasy and uncomfortable as a result of cognitive dissonance, especially if the
difference between their views and attitudes affects something that is fundamental to their sense
of self. Behaving in ways that are inconsistent with your personal beliefs, for example, can cause
extreme pain. Your actions contradict not just your views about the universe, but also your
beliefs about yourself.

This dissatisfaction will show up in a number of ways. People can have anxiety, regret, shame,
embarrassment and stress.

Cognitive dissonance can also affect how people feel about themselves and how they see
themselves, leading to low self-esteem and self-worth.

Tips to reduce Cognitive Dissonance:

The dissatisfaction of a consumer can negatively affect the product and brand.in order to reduce
this, following tips are required:

 Research before purchasing:

Consumers must do research before purchasing anything from online sites and opinions from
family members and friends.

Example: which brand is good for teenage boy’s dresses, checking online reviews etc.

 Re-evaluating the need:

Always evaluate the need before buying anything. Do not buy anything if the product not fulfill
your needs.

Example: we buy some old fashioned clothes or off season clothes and wear.

 Creating new cognitions:

It means that you make yourself fool by saying that you need this product.

Example: Making too many dresses and saying that you need these dresses.

 Money back guarantee:

This technique is used to reduce cognitive dissonance. The customers are satisfied that if you do
not like the product they will get their money back.

Example: some online products have money back guarantee.

 Example of a decision making process

 EKB Model
The Engel Kollat Blackwell Model of Consumer Behavior was developed to explain the rapidly
expanding body of information in the field of consumer behavior. This model, like others, has
undergone several revisions to enhance its ability to describe the fundamental relationships
between components and sub-components.

The Engel Kollat Blackwell Consumer Behavior Model is divided into four stages.

1. Information Input Stage

The customer receives input from both marketing and non-marketing outlets at this time, which
influences the issue identification stage of the decision-making process. If the consumer is
already unable to make a decision, the quest for external evidence may be initiated in order to
help the consumer make a decision, or if the consumer is experiencing dissonance because the
chosen option is less suitable than intended.

2. Information Processing Stage

The consumer's exposure, concentration, interpretation, approval, and retention of incoming
information are all part of this stage. To remember the message, the user must first be introduced
to it, reserve space for it, interpret the stimulus, and pass the feedback to long-term memory.

3. Decision Process Stage

The model's core emphasis is on five fundamental decision-process stages: problem

identification, alternative quest, alternate assessment (during which perceptions may contribute
to the creation of expectations, which may lead to a buying intention), purchase, and outcomes.
However, not every customer would go through any of these stages; it depends on whether the
problem-solving behavior is expanded or routine.

4. Variables Influencing the Decision Process

Person and environmental influences impact all five phases of the decision-making process in
this stage. Motives, beliefs, lifestyle, and personality are individual characteristics; society,
comparison classes, and family are external factors. Situational factors, such as a customer's
financial situation, also play a role in the decision-making process.
Many factors affect customer decision-making, including beliefs, lifestyle, attitude, and history,
according to the Engel Kollat Blackwell Model of Consumer Behavior. The model didn't explain
what factors influence these things, or why different personality styles can result in different
decision-making. How can we put these principles into practice while dealing with various
personalities? Religion may clarify some of the consumer's behavioral patterns, leading to a
deeper interpretation of the paradigm and a more holistic view of decision-making.

Strengths

The input or 'search' loop, which allows for iterations of partial decision-making, is one of the
model's strengths. For example, a customer can skip past the inputs to the required problem
detection point, conduct an external search for facts, and then opt out of the decision-making
process for some purpose. Although the decision-making process may be started, there may be
no intention to buy, because the process can be stopped or delayed at any moment, generating
suggestions to be used as inputs the next time a need arises. The stereotype of 'window
shopping,' or, in the case of financial services, attending an investing conference without actually
intending to invest in the short term, is an example of this. The procedure may have been
completed as a test run for a later recall, the process may have been delayed by something more
significant, or the customer actually did not have the capacity to complete the remaining steps.

Despite the many feedback loops and interactions, this model depicts a more linear user
decision-making mechanism. A simple flow of activities is at the heart of this model, depicting
an idealistic decision-making mechanism in which the person recognizes a problem with a
market solution but has no ‘other awareness' of the environment. The person then conducts a
search for appropriate knowledge on options, evaluates the alternatives against a set of
parameters, selects one, and performs the tasks necessary to buy the goods, in that order.

Weaknesses

Since the components of the buyer decision-making mechanism do not all appear in a fixed
series (Brinberg & Lutz, 1986), and some which occur simultaneously, the model's sequential
structure is a major source of critique (Phillips & Bradshaw, 1993). While it is convenient to
believe that when an individual seeks a solution to an issue, they look for facts, develop a set of
parameters to compare alternative alternatives, and then analyze these options as best they can,
this does not correspond to the types of decisions taken in the actual financial services
marketplace. This is due to the fact that the level of other established factors and the complexity
or scale of the decision-making process can be significantly more or significantly less complex.
As a result, some of the variables may be removed from their conventional order, and others may
be skipped entirely – especially for repeat transactions or those of low value.

Another flaw in the model is the tacit presumption that buyers are capable of weighing the
options and making a reasonable decision about the right option. Financial services, like many
other services, have high credibility values and numerous moderating factors, making them
impossible for customers to test, even after purchasing (Chung-Herrera, 2007; Ennew, 1993;
Harrison, 2003; Harrison et al., 2006; McKechnie, 1992). Consumers, for example, have trouble
assessing the recommendations given after a consultation with a financial planner.

Bray (2008) summarizes the model's general critiques by stating that its mechanistic approach
does not translate effectively to a variety of decision-making situations. He also points out that
the environmental and market factors, as well as the processes by which they influence decision-
making, have not been clearly defined (Bray, 2008). These flaws in the model are particularly
important to the financial services industry: Consumer variables are important because many
financial services are personal, and it is well recognized that the service environment has a
significant effect on decision-making, particularly in the absence of other observable quality
cues.

 Analysis
Whether making an online purchase or going to the market to buy some goods, people go
through a process of decision making, which is an automatic process consisting of five steps that
include problem recognition, information search, evaluation of the information, the actual
purchase decision and post purchase evaluation. Each subsequent step merges smoothly with the
previous one. Consumer decision making process is totally based on the cognitive ability of the
consumer. In other words, the process of problem recognition through evaluation of the
information, and post purchase evaluation takes place in the mind of the consumer. The actual
purchase process is physically done by the consumer. The mind process of the decision making
can be intentional or unintentional, in most cases it is unintentional. The need recognition molds
the path for the subsequent steps of this process.

The amount of effort put into a decision making process depends on the risk factor, i.e. the risk
that the decision process carries. Routine purchases are automatic, with little effort required.
Purchases which have already established preferences are require some intermediate effort for
the information search. They carry little or minimal risk. High risk purchases usually have no
established preferences and require a great deal of time for decision making. Such goods are
infrequently purchased.

How much a person is involved in the decision making process is also a matter of consumers’
mind. People have their own preferences for the goods the purchase. How much a product is
important to a consumer affects the involvement of consumer in the purchase process of that
particular product.

Decision making process is affected by the amount of information we have and the cognitive
constraints. Our short-term and long-term memory is affected by how important a matter is for
us, which solely depends on out cognitive ability i.e. what a person perceives and processes.

Coming back to the decision-making process, the first step is problem recognition. It is the
difference perceived by the mind between the desired state and the state of satisfaction perceived
by the consumer in a way the consumer wants to feel. It triggers the need to purchase a specific
commodity. The needs are in the form of a hierarchy, with the base of the hierarchy displaying
basic needs and commodities of life, and narrowing up to the psychological and self-fulfillment
needs. This hierarchy shows that the basic needs need to be fulfilled the most, without which we
cannot live e.g. physiological needs i.e. food and water and the safety needs. Then come the
psychological needs which include belongingness and esteem needs i.e. feeling of fulfillment.
The top of the hierarchy is occupied by self-actualization or self-fulfillment needs.

The second step in decision making process is information search. The two types are internal and
external search. Internal research is purely cognitive as the consumer search their memory for
any past experiences. In case of the external research, the consumer believes in the word-of-
mouth of their relatives and friends, or the online consumer reviews of the product.
The next step is the information evaluation by the consumer. The information collected from the
previous step is now processed in the mind of the consumer. The consumer filters the
information they consider as important or trivial. They have a mind-made attribute scale, on
which they use to rate the brands, or the products according to different features of the product.
The consumer may consider different product features like price, color, benefits and availability.
When a significant time is spent on the comparing process, they are involved in extended
problem solving. This occurs as the product may be expensive, scarce. This has a cognitive
aspect as well; since it may be a one-time-purchase in the long run, the consumer believes that
such a product should be purchased as can satisfy the needs for the long time period, while
providing full benefit. The products are evaluated on the basis of price, quality, brand-name and
discounts available. Today’s consumer prefers purchasing a product that provides benefit for a
long time and is economical. The quality should be perfect and consumer prefers that it should
last for a longer time. Discounts are the most attractive for the customer, as the same product
with a good quality can be purchased in a lower-than-original price.

The next step is the purchase decision, i.e. when the purchase is actually done. The brand most
preferred after the evaluation of many of the competing brand or products is purchased. The
purchase can be affected by a negative comment of a close one and the decision to buy that
certain product may be changed. The decision may also change due to an unanticipated situation,
which may leave the consumer disheartened.

The last step, post-purchase evaluation, influences future decision to buy a product from the
same brand. The consumer compares the expectations and the reality of the product. If a
consumer is satisfied with the product they buy, that person is likely to purchase goods from the
same brand. But if the product leaves him dissatisfied, it is likely that the consumer may not buy
that certain good again. Surveys and interviews may be used by the marketer for this process.

Cognitive dissonance occurs when two opposing views are held. Disparity of views may leave
the consumer anxious, stressed and embarrassed. It occurs when a consumer is forced to do some
work, or when faced with some new information. It can be reduced by re-evaluating the need and
proper researching before making any purchase.

There are many models that explain consumer behavior. Engel-Kollatt Blackwell model explains
the growing mass of information in field of consumer behavior. It is divided into four stages,
namely information input stage, information processing stage, decision processing stage, and
variables that affect the decision process. EKB model has an input “loop” that allows for partial
decision making. The decision making mechanism is linear. However the demerit of this model
is that it follows a non-sequential order, and this mechanistic approach does not translate to a
decision making situations.
 References
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