Who is a Consumer? In simpler words a consumer is one who consumes goods and services available in the market.
Purchase decision[ edit ] This is the fourth stage, where the purchase takes place. According to Kotler, Keller, Koshy and Jha the final purchase decision can be disrupted by two factors: However, because his good friend, who is also a photographer, gives him negative feedback, he will then be bound to change his preference.
Secondly, the decision may be disrupted due to unanticipated situations such as a sudden job loss or the closing of a retail store. Post-purchase behavior[ edit ] These stages are critical to retain customers. In short, customers compare products with their expectations and are either satisfied or dissatisfied.
This can then greatly affect the decision process for a similar purchase from the same company in the future,  mainly at the information search stage and evaluation of alternatives stage. If customers are satisfied, this results in brand loyaltyand the information search and evaluation of alternative stages are often fast-tracked or skipped completely.
As a result, brand loyalty is the ultimate aim of many companies. On the basis of either being satisfied or dissatisfied, a customer will spread either positive or negative feedback about the product.
At this stage, companies should carefully create positive post-purchase communication to engage the customers. Models of buyer decision-making[ edit ] Making a few last minute decisions before purchasing a gold necklace from a Navy Exchange vendor There are generally three ways of analysing consumer buying decisions: Economic models - largely quantitative and are based on the assumptions of rationality and near perfect knowledge.
The consumer is seen to maximize their utility. Game theory can also be used in some circumstances. Psychological models - psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences.
Consumer behaviour models - practical models used by marketers. They typically blend both economic and psychological models. In an early study of the buyer decision process literature, Frank Nicosia Nicosia, F. They are the univariate model He called it the "simple scheme".
He concluded that only this third type of model is capable of expressing the complexity of buyer decision processes. In chapter 7, Nicosia builds a comprehensive model involving five modules. The encoding module includes determinants like "attributes of the brand", "environmental factors", "consumer's attributes", "attributes of the organization", and "attributes of the message".
Other modules in the system include, consumer decoding, search and evaluation, decision, and consumption. Some neuromarketing research papers examined how approach motivation as indexed by electroencephalographic EEG asymmetry over the prefrontal cortex predicts purchase decision when brand and price are varied.
In a within-subjects design, the participants were presented purchase decision trials with 14 different grocery products seven private label and seven national brand products whose prices were increased and decreased while their EEG activity was recorded.
The results showed that relatively greater left frontal activation i. The relationship of frontal EEG asymmetry with purchase decision was stronger for national brand products compared with private label products and when the price of a product was below a normal price i.
Higher perceived need for a product and higher perceived product quality were associated with greater relative left frontal activation.
They also utilize an active information search process. The risk associated with such decision is very high. List of cognitive biases It is generally agreed that biases can creep into our decision-making processes, calling into question the correctness of a decision. Below is a list of some of the more common cognitive biases.
Selective search for evidence - We tend to be willing to gather facts that support certain conclusions but disregard other facts that support different conclusions.
Selective perception - We actively screen out information that we do not think is salient. Premature termination of search for evidence - We tend to accept the first alternative that looks like it might work.
Conservatism and inertia - Unwillingness to change thought patterns that we have used in the past in the face of new circumstances. Experiential limitations - Unwillingness or inability to look beyond the scope of our past experiences ; rejection of the unfamiliar.
Wishful thinking or optimism - We tend to want to see things in a positive light and this can distort our perception and thinking. Recency - We tend to place more attention on more recent information and either ignore or forget more distant information.
Repetition bias - A willingness to believe what we have been told most often and by the greatest number of different of sources. Anchoring - Decisions are unduly influenced by initial information that shapes our view of subsequent information.
Group think - Peer pressure to conform to the opinions held by the group. Source credibility bias - We reject something if we have a bias against the person, organization, or group to which the person belongs:a consumer goes through different stages in the buying decision process.
Starting from problem recognition, information search, evaluation of alternatives, purchase decision, and eventually, post-purchase behavior. Earlier this year, Selena Gomez has been named the new face of the luxurious brand Louis Vuitton. The ads were rolled out via Instagram, which sure was a canny move since Gomez is the most-followed person on Instagram with a huge, global fan following.
Patients and physicians (and the rest of the world) have embraced digital tools for learning and connecting with one another; the pharmaceutical industry’s commercial and . The consumer decision-making process consists of five steps, which are need recognition, information search, evaluations of alternatives, purchase and post-purchase behavior.
Module 2 will guide you through the consumer decision-making process.
Here you will explore how a potential-buyer researches a product, how they make their purchase decision, and . The Process of Decision Making - The second stage of decision making process is gathering and evaluating data.
As stated by Prasad (), the managers should identify the different choices available in order to get most acceptable outcome of a decision.