Question

a) Identify and discuss five factors that influence the amount of search performed by consumers in a typical decision-making process.
b) Describe the Consumer Decision-making process.

Answer 1

a) Five factors that influence the amount of search performed by consumers in a typical decision-making process -

• Perception - How a consumer is making sense of the information to make a decision
• Motivation - The consumer needs a goal / objective to fulfil his/her need.
• Learning - Processing of information in the consumer's mind leads to him/her learning new information for further processing. This way, while making a decision,the consumer has enough information
• Attitude - A positive or negative attitude towards any particular product can influence the consumer's decision process. e.g.- If a product is optimal but the consumer does not like the brand, he/she selects the 2nd best alternative
• Market conditions - A consumer would spend enough time to know about price levels and product availabilities in the market to decide his best choice.

b) Consumer decision making process :
It is a five stage process -

• Recognition of needs - realizing what the consumer wants. e.g. Travelling as a need
• Search of information - identify products that can satisfy needs. e.g.- Can be satisfied by a public transport
• Evaluating alternatives - compare and contrast different brands having the same product. e.g. - could also carpool or take the monorail  
• Decision to purchase - making the appropriate choice for purchase. e.g. Public transport is environment friendly and cost effective. Hence, taking a bus is a decent choice.
• Post purchase - analyse whether consumer has made the right buy. e.g. If the consumer reaches his destination on time with no disturbances, its a delight.