Buying Decision Model

The consumer decision process model

The model is a road map of consumers minds that marketers and managers can use to help guide product mix, communication and sales strategies Need Recognition Search for information Pre-purchase evaluation of alternatives purchase CONSUMPTION post consumption evaluation - divestment

Need Recognition
Environmental E Influences: n v Culture, Social iClass ,Family rSituation o n
Individual Differences Consumer resources, Motivation, Knowledge, personality

Memory

Need Recognition

Information Processing: Stimuli

Exposure Stimuli Market dominated Non-market dominated
Attention

Comprehension

m Memory e m m

Acceptance

Retention

Pre-Purchase evaluation of alternatives

Evaluative Criteria the standards and specifications used to compare different products and brands Salient attributes- ie. price, reliability and factors that vary little between similar types of products Determinant attributes ie. Style ,finish, quality, quality, price etc

A framework for consumer information search

Pre purchase Search
1.

Ongoing Search
1.

2.

3.

Determinants-involvement in the purchase, market environment, situational factors Motives making better purchase decisions Outcomes increased product and market knowledge, better purchase decisions, increased satisfaction with the purchase outcome

2.

3.

Motives Building a bank of information for future use & experiencing fun and pleasure Increased product and market knowledge leading to future buying efficiencies Increased satisfaction from search and other outcomes

Purchase / Consumption

Choosing one retailer over another Influence by salespersons, product displays, electronic media and POP advertising\
Consumption occurs when the consumer uses the product This leads to the next stage of evaluation satisfaction or dissatisfaction

How organizations use the CDP Model

1.

2. 3.

Identify relationships between variables that affect consumer decision making Identify topics for additional research Develop and implement marketing mix strategies

Consumer decision process continuum

For an initial purchase extended problem solving, limited problem solving and midrange problem solving For repeated or habitual decision making brand or company loyalty and inertia Impulse buying unplanned, spur of the moment action triggered by product display or point of sale promotion

5 types of Perceived Risk

1. 2.

3.

4.

5.

Monetary Risk- related to money and property. Those with little income and wealth most vulnerable Functional risk- alternative means of performing the function or meeting the need. Practical consumers are most sensitive Physical Risk consists of physical vigor, health and vitality. The elderly, frail or in ill health are most vulnerable. Social risk consists of self esteem and self confidence. Those who are insecure and uncertain are most sensitive. Psychological Risk Consists of affiliations and status. Those lacking in self respect or attractiveness to peers are most sensitive