What is Consumer Decision Making Process - Understanding what is Consumer Decision Process and its importance

Consumer Buying Decision Process

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The Consumer Buying Decision Process is the decision-making process by the customers for the purchase which they are going to make in the future. The decision-making process takes place before purchase (pre-purchase), during the purchase and after the purchase (post-purchase). Each and every customer has to go through this process knowingly or unknowingly when they are purchasing ant product or service.

For Example: If a customer is planning to purchase a smartphone then he/she will definitely undergo the process of evaluation of a product and then he will purchase it. Every buyer will have to undergo a decision-making process.

The consumer decision-making process is a psychological process and this is an observable behavior that the decision has been made. Every Consumer Buying process has to undergo the below six stages, also we will understand this with one simple example:

1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision 
5. Purchase
6. Post Purchase Evaluation

1) Problem Recognition

Problem recognition is the first step before any purchase takes. During this stage, the customer will recognize the need for a certain product or service. This is the opportunity for the marketer to sell the product to the customer if they target the customer right. So in the problem recognition stage, we should know the need.

For Example: Consider that the consumer night recognise a need to be socially connected with family and friends through social media. Here he decides to buy a smartphone. Here the Need is being connected with family and friends. How do you fulfill it? By Deciding to buy a smartphone.

2) Information Search

Once the consumer decides to purchase the search for a product begins, information on the product which he is going to purchase. Here the consumer will search for all the possible data with respect to the purchase he is making. Here the consumer might visit the retail outlet to check the product physically or he may browse about the product through online articles. All the pros and cons of the products are evaluated in this stage. In this stage, the information about the products and services can be obtained from various sources like Ads and Campaigns, Magazines & Internet, Family & Friends, and recommendations can be taken from the people who already own the product.

3) Evaluation of Alternatives

Once the data is collected the next step is to search for alternative products. This step in all about evaluating the alternative products available in the market. Here the evaluation can be based on different factors like Brand, Quality, Perception about the product, Price of the product, and all other factors which are important to the customer. Here in this stage the customer might compare the prices of different products and read all the reviews of different products and then select the best product which satisfies their needs. A consumer may spend most of his time in this stage because every customer wants to find the best product. After comparing all the alternative products the next stage is the decision stage.

4) Purchase Decision

This is the decision stage where the consumer will finalize buying one product after evaluating the alternative products. This is the most important stage wherein the profits are made or lost for the marketer. At this stage, the pricing and payment options are decided by the consumer and they are deciding whether to make the purchase or not. At this point, the customer may still decide to walk away. At this stage, the marketer can reinforce by giving information relating to the need of the customer and he can reinforce his brand which will satisfy the need of the customer. If the customer has walked away then re-targeting or a simple short reminder on mail that communicates the need for the product can enforce the purchase decision.

5) Purchase

This is the stage at which the purchase happens. The need has been created and all the research has been made and the customer decides to purchase the product. The purchase can happen through brick and mortar store (offline store) or it may happen online after comparing the prices (Offline & Online Price). Marketing in this stage is also very important because the purchase process should not be complicated. If the purchase process is too difficult then the customer may shift to the competition which has easy and fast billing and delivery process.

6) Post Purchase Evaluation

The buying process will not end just because a purchase has been made.

Here in this stage, the customer may be satisfied by the product performance or he may be dissatisfied with the performance. If the product has matched the expectation of the customer then he will recommend and suggest the product to other people by positive word of mouth. The satisfied customer will act as a brand ambassador. Even if the customer is satisfied, sending follow-up survey emails and thanking the customers for making a purchase is critical in retaining the customers.

In case if the product has not matched the expectation of the customer then the customer will be dissatisfied and he will not recommend the product to anyone and also he will spread negative word of mouth to other potential buyers. These types of customers will spoil the brand image.

Example:

NEED - Need for smartphones to get socially connected with family and friends.

GATHER INFORMATION - Gather information about the specification, Operating system, price, and reviews. Here the consumer decides to buy Android Mobile.

ALTERNATIVE SEARCH - There are various options in the Android operating system - Brands like Samsung, OPPO, VIVO, ONE PLUS, etc. All these are compared with each other and the best one is finalized to buy ONE PLUS.

PURCHASE DECISION & PURCHASE - Here the customer will decide whether to buy Online or Offline. To purchase ONE PLUS the customer may think of TATA Croma, Reliance Digital, or through i.e. Amazon. Finally, the customer purchases the ONE PLUS mobile based on his interest in purchasing online or offline.

POST PURCHASE - The customer may be satisfied with ONE PLUS brand or he may be dissatisfied. If satisfied he will spread positive word of mouth and help in brand building. IF dissatisfied then he will spread negative word of mouth and spoil the brand image.