Consumer Decision Making Process - Term Paper Example

Lecturer: presented: Introduction Consumer decision making process is the procedure that is followed by consumers leading to the purchase of commodities in the market. Decision making is undertaken prior to purchase, at the time of purchase and after acquiring the commodity. It is a process that involves determination of the guiding principles towards purchasing goods or services. The outcome is psychological in the sense that decisions are not tangible, but from the customer’s behavior, one can easily tell that a certain decision has been made (Assael, 1995 p.16). It is a process that culminates in action. Consumers make varied decisions due to the fact that they have different needs and they view issues differently. However, there is a generality in behavior especially when it comes to decision making purchasing. This is the reason that makes it possible to attract the attention of many consumers with a single marketing strategy such as advertisement or attractive packaging and display. However, consumers usually tend to be predisposed towards tangible offers. There are several models that are used by marketers to identify the aspects of decision making process. This essay is a critical analysis of the aspects of the consumer decision making process and an evaluation of how they are changing as consumers consumption patterns evolve. Aspects of Consumer Decision Making Process Need Identification It begins with consumers identifying their needs whereby they recognize that there is a gap that requires to be filled in regard to their desires. Need identification can either be gradual or swift which depends on necessity of the commodity in question and the personality of the consumer. At this point, consumers exhibit individual characteristics that are dependent on their standards of living, awareness, feelings and stimulus. Customers usually focus on past experiences and memories of the utility derived from purchasing particular commodities. They compare the present situation with that in which they will be in possession of the commodity. Socio-economic and cultural factors are also part of the issues that influence need identification. Need identification is usually dependent on the availability of financial resources to acquire goods or services. This means that the need for a particular item in the market may be suppressed by financial difficulties. Customers are influenced by social factors whereby they compare the necessity of a certain commodity with another in a family setting. They tend to arrange their purchasing needs in order of importance in to the family (Batra & Kazmi 2004 pp. 76-78). Information Search This stage involves searching and analyzing relevant information in regard to the commodity to be purchased. The consumer uses this information to resolve problems associated with purchasing. It is usually acquired from the consumer’s memory, surrounding environment as well as external sources. Through remembrance, it is easy to recall where a certain product was previously purchased, the manner in which it was packaged, prices as well as the various brands that were available. The consumer may also seek information from friends and family members. Their experience with particular commodities can be used by the potential consumer to evaluate its utility (Bauber, 2004 p. 65). Mass advertisements are also a useful source of information whereby consumers acquire information regarding brands. Information on prices can also be determined from the advertisements of the sellers. The consumer emerges out of this stage with a list of alternatives regarding possible items that can be purchased. There is a risk of making the wrong decision especially when the consumers are purchasing the commodity for the first time, hence the need to take time in consultations and evaluation of information gathered from external sources. More over, there is usually little or no cost of gathering information. Information search is useful for the consumer to obtain intelligibility in regard to the product as well as making the right suggestions regarding the organization or the criteria to be used in buying (Bauber, 2004 p 92). Evaluation Stage This is the third stage whereby the consumer is involved in assessment of the possibility of the purchasing criteria to satisfy the consumer’s needs. It entails an analysis of the features of the product, and their closeness to the desired product characteristics by the consumers. The consumer analyzes and ranks the products in terms of the level at which they match with the desired characteristics. Through this analysis, the consumer understands the most appropriate product to buy. Consumers emerge from this stage with readiness to purchase the product. It is largely dependent on the information gathered from the previous stage. If precise information was not corrected, it is easy to purchase an inferior commodity (Belk, & Askegaard, 2003 p. 56). Purchase Stage This is the stage whereby the consumer has already chosen the product to be purchased. There are several factors that the consumer considers before purchasing the product. These include the price, the seller, manner in which the products will be delivered to the buyer, warranty of the product as well as the after sale services among other things. The consumer makes the decision on the seller from whom to buy depending on the terms of sale, an earlier purchase from the same seller or a supplier’s return policy especially on defective commodities. Discount on purchases are a major motivator for consumers to purchase (Michael 2006 p. 54). On the other hand, they tend to purchase from vendors who offer after sale services such as transportation, installation especially for electrical equipment. Their confidence of consumers in a particular seller can also be based on experience from earlier purchases, and the utility derived from such is usually associated with the intended purchase. On the other hand, consumers consider the possibility of failure of commodities to satisfy their needs or faulty commodities. Their confidence can only be achieved through the realization that the seller has in place favorable return policies. This enables them to identify where to purchase the merchandise. However, the storage facilities, the time that it takes for products to reach the consumer are also factors that affect purchasing decisions. It is through evaluating them that the customer chooses the appropriate time to make the purchase. In this stage, the consumer may choose not to buy the commodities. It is a very important stage since the transactions are completed at this point. The buyer makes payments and expects to derive maximum utility from the product (Chisnall, 2001 pp 66-67). Post-purchase Evaluation This stage is significant since the buyer uses the chance to evaluate whether the commodity purchased satisfies his/her desires. The return policies are useful in this case since the customer can return the refuted or defective commodities to the seller. The customer checks the performance of the purchased items to certify that they are functioning appropriately or whether they are faulty. The expectations of the customer are evaluated against the properties of the commodity. If it results in dissatisfaction, the product is returned to the seller. If the customer is satisfied with the product, the relationship between the customer and the seller improves. It also influences future purchase of the commodity from the seller (Chisnall, 2001 p. 67). The decisive factors that the customer uses in making the decision to purchase the commodity again apply in this stage. They help in the determination of whether the product satisfies the initial problem. The customer analyzes the follow-up of the sellers in order to verify that the information that he provided is reliable. A difference in opinion may arise after making a purchase. At times they may regret having purchased a commodity, after analyzing the missed alternatives. It can be influenced by the difficulties encountered in making decisions regarding purchasing due to the availability of numerous alternatives. It is mainly attributed to the level of contentment in the consumer, and may lead to exchanging the product with another one or returning it to the vendor. Return policies help the seller to maintain a good relationship with the consumers so that they can gain confidence in the seller’s products, and they can still purchase more from the same seller (Gabriel, and Lang, 1995 pp. 16-17). Changes in Consumer Decision Making Process Advancing Technology As consumers’ consumption patterns evolve, the decision making process changes. For example with advancement in technology, consumers can easily identify the sellers, brands available, prices as well as accessibility of the seller and means of delivery, all in a short period of time. The internet technology has facilitated the decision making process especially where purchases can be done online. In such a case, the customer and the seller do not have to meet physically, but the transaction is completed normally. The process of information search for example consulting friends is eliminated. Other forms of technology have also had an impact in the decision making process such as electronic banking. There is a tendency for consumers to generally accept the modern forms of banking taking them to be swift and also the fact that they give immediate feed back (Slater, 1997 p. 91). Socio-economic and Cultural Factors Consumer behavior is largely influenced by family issues. This mainly occurs due to the changing family status. For example, unmarried consumers tend to make purchasing decisions that are different from the married adults. As consumers advance in age they tend to make different buying decisions. The economic status of the family also influences the purchasing decisions in that the more well up the family is, the greater the need for particular items, and the greater their purchasing power (Chisnall, 2001 p. 81). For example a family will mostly prefer to purchase commodities that can be shared amongst them rather than focusing on individual interests. The decision making process must therefore be inclusive of the majority of the family members. The more the people involved, the longer it takes to reach a conclusion. Attitude Shifts The purchasing decisions of customers largely depend on attitude towards particular commodities. These are affected by external factors such as influence by competitors in a particular market segment who try to credibility of their products compared to those of similar producers. The method of advertisement can influence the customers purchasing decision through a change of attitude. They tend to purchase products from the suppliers who are perceived to offer reliable products. Interactions with other consumers of the same products may also lead to a change in attitude. The consumers are always trying to find the best way through which they can satisfy their needs (Churchill, 2005 p. 78). Their attitudes towards a particular product therefore change once they feel that they are not getting the desired benefits. This creates a change in the decision making process, whereby the consumers are compelled to spend more time in information search in order to acquire the most appropriate information in regard to the alternative products. At times, it may result in a decision of not buying at all. Globalization Globalization of trade has led to a mixture of cultures and consumption patterns. There are some cultures that are perceived to be superior to others, especially the western cultures. The decision making process of consumers in the developing countries has adversely been affected by the purchasing patterns of the west (Clarke, 2003 p. 36). Customers have gradually changed in their purchasing behavior, for example purchasing goods through the internet is a new phenomenon in less developed countries, but consumers are gradually adopting it. Some have stopped purchasing locally manufactured goods believing that the imported goods are more superior. These perceptions have created a difference between the past and the contemporary consumer decision making processes. Conclusion Decision making is an ongoing activity amongst consumers. Some times consumers are usually not aware that they have undergone the decision making process, but in reality, they do. They make their decisions in a rational manner all in a bid to satisfy their desires. This process is important in order for them to make the right choice and to derive the maximum utility for their money. It can be rapid or slow depending on the need for the commodities. It is usually regrettable when they make the wrong decisions and this can determine the decision of whether to buy or not to buy in future. The decision making process is flexible in that it has changed over time as customers’ consumption patterns evolve. Bibliography 1. Assael, H. 1995. Consumer Behavior and Marketing Action. Cincinnati, Ohio: South-Western College Publications. 2. Batra, K., & Kazmi, S. 2004. Consumer behaviour. New Dehli: Excel Books. 3. Bauber, M. 2004. Applying Qualitative Methods to Marketing and Management Research. London; Macmillan. 4. Belk, R. & Askegaard, S. 2003. The Fire of Desire: A Multisited Inquiry into Consumer Passion. Journal of Consumer Research, 30(3), 78-91. 5. Chisnall, P.M.2001. Marketing Research. London: McGraw-Hill. 6. Churchill, G. A. 2005. Marketing Research: Methodological Foundations, 9th Edition, Mason: Thomson. 7. Clarke, D.B. 2003. Consumer Society and the Postmodern City. London: Routledge 8. Gabriel, Y. and Lang, T. 1995. The Unmanageable Consumer: Contemporary Consumption and its Fragmentation. London: Sage 9. Michael R. S. 2006. Consumer Behavior, 7th edition, Prentice Hall. 10. Slater, D. 1997. Consumer Culture and Modernity. Polity: Cambridge. Read More