Models of Consumer decision making

Consumer decision-making is a complex process influenced by various factors. Several models have been developed to understand and explain the stages and factors involved in consumer decision-making.

Three prominent models:

1. The Consumer Decision-Making Process Model:

Stages:

• Problem Recognition:

The consumer perceives a need or problem that can be satisfied by making a purchase.

• Information Search:

The consumer gathers information about potential solutions or products that can fulfill their need.

• Evaluation of Alternatives:

The consumer assesses the available options based on criteria such as price, features, and brand reputation.

• Purchase Decision:

The consumer makes the final decision to buy a specific product or service.

• Post-Purchase Evaluation:

After the purchase, the consumer evaluates their satisfaction and whether the product met their expectations.

Factors Influencing Decision-Making:

• Internal Factors:

Personal motivations, perceptions, attitudes, and individual characteristics.

• External Factors:

Social influences, cultural factors, family, friends, and marketing stimuli.

Marketing Implications:

• Marketers must understand each stage and influence consumers throughout the decision-making process.
• Communication strategies should address consumer needs, provide relevant information, and build post-purchase satisfaction.

2. The Howard-Sheth Model:

Components:

• Input:

The model begins with various inputs, including external influences (marketing, culture, social class) and internal influences (perception, learning, motivation).

• Process:

The inputs undergo psychological processes such as perception, learning, and motivation, which lead to decision outcomes.

• Output:

The decision outcomes include product choice, brand choice, dealer choice, and the intensity of brand loyalty.

Variables:

• Extensive Problem Solving:

Occurs when consumers have little knowledge about a product category and face a high level of perceived risk.

• Limited Problem Solving:

Involves moderate levels of consumer knowledge and perceived risk.

• Routine Problem Solving:

Applies to routine, low-risk decisions where consumers are already familiar with the product category.

Marketing Implications:

• Marketers need to understand the level of consumer involvement and tailor marketing strategies accordingly.
• Communication should align with the level of consumer involvement and address specific decision-making processes.

3. The Engel-Blackwell-Miniard Model:

Components:

• Problem Recognition:

The process starts with the consumer recognizing a problem or need.

• Information Search:

The consumer seeks information to solve the identified problem.

• Evaluation of Alternatives:

Various alternatives are considered based on criteria such as quality, price, and brand reputation.

• Purchase Decision:

The consumer makes a purchase decision.

• Post-Purchase Evaluation:

After the purchase, the consumer assesses their satisfaction with the decision.

Individual Differences:

• Consumer Motivation:

The level of motivation influences the extent of information search and the evaluation of alternatives.

• Consumer Perception:

How consumers perceive information and interpret the available alternatives.

• Consumer Learning:

How consumers acquire knowledge and experiences that affect decision-making.

Marketing Implications:

• Marketers should focus on influencing consumer perceptions, providing relevant information, and ensuring positive post-purchase experiences.
• Understanding individual differences helps in tailoring marketing strategies to diverse consumer needs.