INTERNATIONAL MARKETING RESEARCH Presentation topic CONSUMER DECISION MAKING PROCESS

Presented by:-

Presented to:Prof. Vasim Khan

Kapil Madhan Madhu Nahar Mahak Modi Manish Khare Manisha patel Mansi Nandecha Mohd. Hasan Khan

What is DECISION MAKING???

To choose the best amongst two or more available alternatives or options.

Consumer Decision-Making Process

A five-step process used by consumers when buying goods or services.

Consumer Decision-Making Process

Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior

Need Recognition

Result of an imbalance between actual and desired states.

Stage 1: Need Recognition

Marketing helps consumers recognize an imbalance between present status and preferred state

Internal Stimuli and External Stimuli

Preferred State

Present Status

Stimulus
Any unit of input affecting one or more of the five Senses: sight smell taste

touch
hearing

Want
Recognition of an
unfulfilled need and a product (or attribute or feature) that will satisfy it.

Recognition of Unfulfilled Wants

When a current product isnt performing properly When the consumer is running out of an product When another product seems superior to the one currently used

Stage 2 - Information Searches

Internal
Process of recalling past information stored
in the memory. Process of seeking information in the outside environment.

External

Information Search
Internal Information Search Recall information in memory

External Information search

Seek information in outside environment Non-marketing controlled Marketing controlled

External Information Searches

Need Less Information
Less Risk More knowledge More product experience Low level of interest

Need More Information

More Risk Less knowledge Less product experience High level of interest

Stage 3: Evaluation of Alternatives

Evoked Set
Evaluation of Products
Analyze product attributes Use cutoff criteria

Rank attributes by importance

Purchase!

Stage 4: Purchase

To buy or not to buy...

Determines which attributes are most important in influencing a consumers choice

Stage 5: Post-purchase Behavior

Cognitive Dissonance

Did I make a good decision?

Did I buy the right product?

Did I get a good value?

Can minimize through: Effective Communication Follow-up Guarantees Warranties

Types of Consumer Buying Decisions

Routine Response Behavior Limited Decision Making Extensive Decision Making

Less Involvement

More Involvement

Five Factors influencing Decisions

1. Level of consumer involvement
2. Length of time to make decision 3. Cost of good or service

4. Degree of information search 5. Number of alternatives considered

Routine Response Behavior

Little involvement in selection process
Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision

Limited Decision Making

Low levels of involvement
Low to moderate cost goods Evaluation of a few alternative brands

Short to moderate time to decide

Extensive Decision Making

High levels of involvement
High cost goods

Evaluation of many brands

Long time to decide May experience cognitive dissonance

Level of Involvement
Previous Experience Interest

Factors Determining Level of Involvement

Perceived Risk of Negative Consequences

Situation Social Visibility

Factors Influencing Buying Decisions

Cultural Factors Social Factors

Individual Factors

Psychological Factors

CONSUMER DECISIONMAKING PROCESS

BUY / DONT BUY

Cultural Influences on Buying Decisions

Values Language Myths Customs

Components of Culture

Rituals
Laws Material Artifacts

Social Influences
Social Influences on Buying Decisions

Reference Groups Opinion Leaders

Family Members

Reference Group

A group in society that influences an individuals purchasing behavior.

Opinion Leaders

An individual who influences the opinion of others.

Family
Instigators Influencers
Purchase Roles in the Family

Decision-Makers Purchasers Consumers

Children Influence Purchase Decisions

Psychological Influences
Perception

Motivation

Learning

Psychological Influences on Buying Decisions

Beliefs & Attitudes

THANK YOU