Consumer Decision-Making Process and its Stages
Consumer Decision-Making Process and its Stages
Most consumers go through a decision-making process before they purchase a product or service. A purchase decision is not as straightforward as it may seem. It involves many factors, such as how much of an item one needs, how much money one is willing to spend on it, where to find the best deal and the positive or negative feelings an individual has about the item.
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This article examines the decision-making process in detail to help consumers make more informed choices. If you are having any challenges, feel free to use our authentic and perfect accounting homework writing service. Our expert team is available 24/7 to provide to ensure that you get the best service.
What is the consumer decision-making process?
The consumer decision-making process involves several stages that influence the buyer’s choices. These stages include:
The consumer has a problem to solve. They first recognize that they have a problem that needs to be addressed. This stage is usually triggered by an event or situation, such as the receipt of unwanted products from a supplier, a change in personal circumstances, or the sudden decline in their finances due to certain recurring costs. Read on high context culture.
The consumer seeks information to help them decide what action should be taken.
The consumer searches for information about the problem and its options. This can include asking friends or associates for information or advice, searching the Internet, reading an article in a magazine or newspaper, or watching television.
Information can also be obtained from the company that sold them the unwanted products that prompted them to start looking for a solution. More recently, companies have begun advertising on social media sites such as Facebook and Twitter to reach consumers with whom they already spend time daily.
Perception is a critical part of the decision process. It is important that the consumer considers their perceptions and how they may affect their choices. It can help them understand their choices’ effect on others and allow them to decide what they think is fair.
The final stage is realizing that a purchase decision has been made, and the consumer buys the item. This involves many factors, including product availability at a good price, how well they like the product and its maker, how much they will use it or have it for, and personal attachment to the item.
Once the purchase is complete, the consumer evaluates their decision. They may regret their decision or be happy with it and go on to use the product or service.
They may also review the information they received before purchasing, such as product reviews, company awards, or test results. This information can help them decide how well their purchase meets their needs and how likely they will buy from that seller again in the future.
Factors that influence the consumer decision-making process
Many factors affect the way consumers decide on a purchase. Examples include:
The Economic Factor is first and foremost on this list. Any purchasing decision must start with this as its main pillar. People purchase items they cannot afford, which happens when they make uninformed decisions. Decisions are also influenced by their occupation, such as if they work in a field that requires specific items, such as a carpenter or a medical doctor. They will buy the tools of the trade to do their job well and receive promotions or pay raises.
A consumer’s lifestyle can affect their purchasing decisions, as it may dictate how much time they have to make a purchase. For example, young adults with little-to-no income cannot afford many of the luxuries that a middle-aged professional who earns over $100,000 per year can. Someone unemployed or retired may have more time to research which products are best for them.
Several personality traits influence a consumer’s buying decisions. Some of these include:
a. Materialism – This refers to the consumer’s attitude toward material possessions.
b. Extroversion – This refers to how outgoing a consumer is and can be very useful in understanding how well they will deal with salespeople and other buyers when making purchases.
4. Familiarity with a product
A consumer may have experience with the product and be familiar with its qualities. This can either help or hurt their purchasing decision. They often will be aware of what they can expect from a particular brand, which can steer them towards one product over another. The challenge is when the brand’s quality changes for better or worse.
Young adults tend to have less money than older consumers, so they may be more likely to purchase a product on a whim. They also believe they cannot compare one item’s price with another. However, older consumers can take advantage of special offers when buying products, which can help them get what they want for a lower price.
Importance of consumer decision-making process
1. It helps organizations increase sales
Consumer decision-making is important because it can affect organizations’ sales by helping them understand how consumers choose products or services. These insights help them create marketing campaigns and design new products that appeal to their target market.
2. It helps organizations reduce expenses
Organizations can also use consumer research for cost-cutting opportunities. For example, a company may discover that consumers do not buy from them because they believe the price is too high. The organization can then use this insight to lower its prices to appeal to the broadest market consumers possible.
3. It can yield better marketing results
Companies can use their marketing efforts to reach consumers in ways that were not planned. For example, retailers may notice their customers’ favorite color is red. They can then create advertisements to inform consumers of the product’s availability in this color and thus encourage them to buy.
4. It increases product quality
Consumer decision-making research allows organizations to review and improve their products, meaning they will last longer and be more durable than before the research took place.