Consumer+Decision+Making

==Consider the most recent product or service that you purchased. How did you decide when and where to make the purchase? What information did you gather? What or who influenced your choice of product and brand? Did you take a long time to reach a decision, or did you make up your mind quickly? Was it a product or service you purchase frequently, infrequently, or once in a lifetime? Consumers follow a consistent five-step sequence when making a purchase decision. ==

= **Steps in the Consumer Decision-Making Process: ** =

= 1. **Need Recognition**: People do not actively look to purchase products or services until they recognize a need for them. You may view many advertisements and not be influenced to make a purchase if the advertised products or services are of no use to you. Yet if the fuel gauge on your car is nearing empty or if you don’t have an appropriate outfit to wear to a job interview, you will begin searching for products to meet that need. The importance of the need will determine whether you will immediately begin or delay the search. = = = =2. **Information Search**: Once a need is recognized, you will want to find a product or service that meets the need. Information regarding possible choices is necessary. You must determine the sources to use for gathering the needed information. If this need occurs regularly, memory of previous purchases may be all that is required. For a new or significant need, you may look at several sources. You may seek advice from friends and family, review advertisements, and search the Internet. The goal at this stage is to identify possible choices and determine which choices will likely satisfy your need. = = = =3. **Alternative Analysis**: Information regarding alternative choices is compared to determine which product or service best meets your need. You will compare features, benefits, availability, cost, and other factors. The evaluation period may take moments, days, or even weeks. = = = =4. **Purchase Decision**: Once you are satisfied with the information and evaluation, you will make a choice. You will then complete the steps to purchase your choice if it available. It is possible that your decision will be to refrain from buying if a good choice or adequate resources are not available. = = = =5. **Post-purchase Evaluation**: Once the purchase is made, the decision-making process does not stop. You will continue to evaluate the product or service while it is being used. Does it satisfy your need? If you are satisfied, it is likely that you will purchase the same product or service the next time the need arises. If the purchase isn’t as satisfying as expected, it is likely that you will make a different choice the next time. You will also question the information sources and the evaluation process that led to the poor purchase decision. =

= **TYPES OF DECSION MAKING ** = = = =The consumer decision-making process is followed for all purchase decisions. People will spend different amounts of time moving through each step. Those differences result from the importance of the need and the availability of product choices and information. The costs of the choices and the risk felt by the consumer in making the decision are also factors. Decisions may be divided into three types – routine, limited, and extensive. = = = =**Routine Decisions **: For products that are purchased frequently and require little information, consumers move through the decision-making steps quickly and with little thought. The consumer will often choose the same brand again and again. Likewise, the consumer may find several brands satisfying and pick the one that is readily available. Examples of routine purchases are groceries, gasoline, fast food, and newspapers. = = = =**Limited Decisions **: If a product is more expensive or complex, the consumer may take additional time and be more thoughtful in reaching a decision. An extensive information search and evaluation will occur. Products that require limited decision making are those purchased infrequently or those unfamiliar to the consumer. Examples of products requiring limited decision making are jewelry, cellular telephones, Internet service providers, and meals at expensive restaurants. = = = =**Extensive Decisions **: When an important of first-time purchase is made, extensive decision making will usually occur. The consumer will carefully go through each step of the decision-making process. The consumer may gather information. The consumer may then discuss alternatives with others or seek expert advice. Much time may be spent considering the final choices before making a purchase decision. Post-purchase evaluation will be important as the consumer decides if the correct decision was made. People use extensive decision making when buying a home, selecting a college, or purchasing an expensive automobile. =