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Farah Atiqah binti Hassan 2020986119 HM2425Ba
Nur Diyana binti Sairan 2020985951 HM2425Ba

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What Is the Consumer Decision Making Process? 

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What Is the Consumer Decision Making Process? 

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The consumer decision making process is the process by which consumers become aware of and identify their needs; collect information on how to best solve these needs; evaluate alternative available options; make a purchasing decision; and evaluate their purchase.

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Extensive decision making – made about higher-cost products, and infrequent purchases. They require a lot of involvement, often center around unfamiliar brands or products, and need extended thought and search efforts to ensure buyer confidence. For example, purchasing properties such as house and car are the items that consumer will need longest time to make decision. These will take a lot of
process and consideration from consumer before purchasing.

Limited decision making –  made about mid-cost products, semi-frequent purchases, or purchases from a somewhat familiar brand. They require a little involvement, and perhaps some searching. For example, purchasing branded item such as shoes or gadget are items that consumer will need some time to make decision. They will search for testimonial or review about the items to make the right choice.

Routine decision making – made about low-cost products. They include frequent
purchases, purchases from a familiar brand or product, buying that requires low
involvement, or little search efforts. For example, purchasing groceries such as salt and flour will not need long time for consumer to make decision. It is a routine that consumer will not need to think too carefully.

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The first step of the consumer decision-making process is recognizing the need for a service or product.

Need recognition, whether prompted internally or externally, results in the same response: a want.

For example, during Covid-19 pandemic, mask and hand sanitizer become a must for everyone. However, it is not a necessary item before the pandemic.

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid.

From the bottom of the hierarchy upwards, the needs are: physiological (food and clothing), safety (job security), love and belonging needs (friendship), esteem, and self-actualization.

Needs lower down in the hierarchy must be satisfied before individuals can attend to needs higher up.

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When researching their options, consumers again rely on internal and external factors, as well as past interactions with a product or brand, both positive and negative.

In the information stage, they may browse through options at a physical location or consult online resources, such as Google or customer reviews.

Consumer search for information by using internal information (their previous knowledge of a product or brand) as well as external information (information about a product or brand from friends or family, reviews, endorsements, press reviews, etc.).

Another important strategy is word of mouth––since consumers trust each other more than they do businesses.

For example, when searching in Shopee or Lazada website, consumer will check the reviews and prices of the same product that they want from different sellers.

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At this stage, consumer have developed criteria for what they want in a product as they already have the information. Now they weigh their prospective choices against comparable alternatives.

Consumers make purchase decisions based on which available options best match their needs, and to minimize the risk of investing poorly, they will make sure there are no better options for them.

Alternatives may present in the form of lower prices, additional product benefits, product availability, or something as personal as color or style options.

For example, once a women know they want to buy a heels for Hari Raya, its time for them to decide the brand, colour, heel height and the style of the heel that they want.

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At this stage, customers are ready to buy, have decided where and what they want to buy, and are ready to spend their money.

As they have gathered all the facts, including feedback from previous customers, consumers should arrive at a logical conclusion on the product or service to purchase.

Once consumer recognize that the product is the best option they will decide to purchase.

For example, a customer finds a white dress that is on sale for 40% off. After confirming that the brand uses sustainable and comfortable materials and after asking feedback from friends, she orders the coat online.

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At this stage, consumers reflect on their recent purchase. They think about how they feel about it, if it was a good investment, and most importantly, if they will return to the brand for future purchases and recommend the brand to friends and family.

For seller, they need to have a post-purchase strategy to increase the likelihood that customers will engage with your brand again in the future. Seller can get feedback, sent follow-up emails, discount coupons, and newsletters to entice the customer to make an additional purchase.

For example, once customer have purchased a perfume from your online shop at Shopee, the seller can ask feedback and ask them leave review about the product. Seller can also reward customer with discount coupons after purchase. If the customer experience an excellent service and product, the possibilities of repurchase.