routine limited and extended problem solving

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Consumer Motivation and Involvement

15 Involvement Levels

Depending on a consumer’s experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The level of involvement reflects how personally important or interested you are in consuming a product and how much information you need to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product.

Low Involvement Consumer Decision Making

At some point in your life you may have considered products you want to own (e.g. luxury or novelty items), but like many of us, you probably didn’t do much more than ponder their relevance or suitability to your life. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives . As Nike would put it, you “just do it.” Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if a mistake is made in purchasing them.

Consumers often engage in routine response behaviour when they make low-involvement decisions — that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behaviour. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you’re waiting to check out at the grocery store, perhaps you see a magazine with a notable celebrity on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low involvement decisions aren’t necessarily products purchased on impulse, although they can be.

High Involvement Consumer Decision Making

By contrast, high-involvement decisions carry a higher risk to buyers if they fail. These are often more complex purchases that may carry a high price tag, such as a house, a car, or an insurance policy. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behaviour when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

High-involvement decisions can cause buyers a great deal of post-purchase dissonance, also known as cognitive dissonance which is a form of anxiety consumers experience if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that post purchase dissonance can be a problem. Frequently, marketers try to offer consumers a lot of supporting information about their products, including why they are superior to competing brands and why the consumer won’t be disappointed with their purchase afterwards. Salespeople play a critical role in answering consumer questions and providing extensive support during and after the purchasing stage.

Limited Problem Solving

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favourite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Distinguishing Between Low Involvement and High Involvement

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low-versus high-involvement decision — say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behaviour), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands (e.g. your evoke set for automobiles). For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s not foreign is “crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the manufacturers of products that are typically high-involvement decisions can’t become complacent about the value of their brands.

Ways to Increase Involvement Levels

Involvement levels – whether they are low, high, or limited – vary by consumer and less so by product. A consumer’s involvement with a particular product will depend on their experience and knowledge, as well as their general approach to gathering information before making purchasing decisions. In a highly competitive marketplace, however, brands are always vying for consumer preference, loyalty, and affirmation. For this reason, many brands will engage in marketing strategies to increase exposure, attention, and relevance; in other words, brands are constantly seeking ways to motivate consumers with the intention to increase consumer involvement with their products and services.

Some of the different ways marketers increase consumer involvement are: customization; engagement; incentives; appealing to hedonic needs; creating purpose; and, representation.

1. Customization

Person's feet, wearing two different coloured sneakers reflecting a consumer's unique personal preference.

With Share a Coke, Coca-Cola made a global mass customization implementation that worked for them. The company was able to put the labels on millions of bottles in order to get consumers to notice the changes to the coke bottle in the aisle. People also felt a kinship and moment of recognition once they spotted their names or a friend’s name. Simultaneously this personalization also worked because of the printing equipment that could make it happen and there are not that many first names to begin with. These factors lead the brand to be able to roll this out globally ( Mass Customization #12 , 2017).

2. Engagement

Have you ever heard the expression, “content is king”? Without a doubt, engaging, memorable, and unique marketing content has a lasting impact on consumers. The marketing landscape is a noisy one, polluted with an infinite number of brands advertising extensively to consumers, vying for a fraction of our attention. Savvy marketers recognize the importance of sparking just enough consumer interest so they become motivated to take notice and process their marketing messages. Marketers who create content (that isn’t just about sales and promotion) that inspires, delights, and even serves an audience’s needs are unlocking the secret to engagement. And engagement leads to loyalty.

There is no trick to content marketing, but the brands who do it well know that stepping away – far away – from the usual sales and promotion lines is critical. While content marketing is an effective way to increase sales, grow a brand, and create loyalty, authenticity is at its core.

Bodyform and Old Spice are two brands who very cleverly applied just the right amount of self-deprecating humour to their content marketing that not only engaged consumers, but had them begging for more!

Content as a Key Driver to Consumer Engagement

Engaging customers through content might involve a two-way conversation online, or an entire campaign designed around a single customer comment.

In 2012, Richard Neill posted a message to Bodyform’s Facebook page calling out the brand for lying to and deceiving its customers and audiences for years. Richard went on to say that Bodyform’s advertisements failed to truly depict any sense of reality and that in fact he felt set up by the brand to experience a huge fall. Bodyform, or as Richard addressed the company, “you crafty bugger,” is a UK company that produces and sells feminine protection products to menstruating girls and women (Bodyform, n.d.). Little did Richard know that when he posted his humorous rant to Bodyform that the company would respond by creating a video speaking directly at Richard and coming “clean” on all their deceitful attempts to make having period look like fun. When Bodyform’s video went viral, a brand that would have otherwise continued to blend into the background, captured the attention of a global audience.

Xavier Izaguirre says that, “[a]udience involvement is the process and act of actively involving your target audience in your communication mix, in order to increase their engagement with your message as well as advocacy to your brand.” Bodyform gained global recognition by turning one person’s rant into a viral publicity sensation (even though Richard was not the customer in this case).

Despite being a household name, in the years leading up to Old Spice’s infamous “The Man Your Man Should Smell Like” campaign, sales were flat and the brand had failed to strike a chord in a new generation of consumers. Ad experts at Wieden + Kennedy produced a single 30-second ad (featuring a shirtless and self-deprecating Isaiah Mustafa) that played around the time of the 2010 Super Bowl game. While the ad quickly gained notoriety on YouTube, it was the now infamous, “ Response Campaign ” that made the campaign a leader of its time in audience engagement.

3. Incentives

Person's hand, holding a wallet that contains a Starbucks card.

Customer loyalty and reward programs successfully motivate consumers in the decision making process and reinforce purchasing behaviours ( a feature of instrumental conditioning ). The rationale for loyalty and rewards programs is clear: the cost of acquiring a new customer runs five to 25 times more than selling to an existing one and existing customers spend 67 per cent more than new customers (Bernazzani, n.d.). From the customer perspective, simple and practical reward programs such as Beauty Insider – a point-accumulation model used by Sephora – provides strong incentive for customer loyalty (Bernazzani, n.d.).

4. Appealing to Hedonic Needs

Photo of exotic tropic destination in the Maldives.

A particularly strong way to motivate consumers to increase involvement levels with a product or service is to appeal to their hedonic needs. Consumers seek to satisfy their need for fun, pleasure, and enjoyment through luxurious and rare purchases. In these cases, consumers are less likely to be price sensitive (“it’s a treat”) and more likely to spend greater processing time on the marketing messages they are presented with when a brand appeals to their greatest desires instead of their basic necessities.

5. Creating Purpose

Millennial and Digital Native consumers are profoundly different than those who came before them. Brands, particularly in the consumer goods category, who demonstrate (and uphold) a commitment to sustainability grow at a faster rate (4 per cent) than those who do not (1 per cent) (“Consumer-Goods…”, 2015). In a 2015 poll, 30,000 consumers were asked how much the environment, packaging, price, marketing, and organic or health and wellness claims had on their consumer-goods’ purchase decisions, and to no surprise, 66 per cent said they would be willing to pay more for sustainable brands. (Nielsen, 2015). A rising trend and important factor to consider in evaluating consumer involvement levels and ways to increase them. So while cruelty-free, fair trade, and locally-sourced may all seem like buzz words to some, they are non-negotiable decision-making factors to a large and growing consumer market.

6. Representation

Various Vogue magazine covers featuring models such as Rianna.

Celebrity endorsement can have a profound impact on consumers’ overall attitude towards a brand. Consumers who might otherwise have a “neutral” attitude towards a brand (neither positive nor negative) may be more noticed to take notice of a brand’s messages and stimuli if a celebrity they admire is the face of the brand.

When sportswear and sneaker brand Puma signed Rihanna on to not just endorse the brand but design an entire collection, sales soared in all the regions and the brand enjoyed a new “revival” in the U.S. where Under Armour and Nike had been making significant gains (“Rihanna Designs…”, 2017). “Rihanna’s relationship with us makes the brand actual and hot again with young consumers,” said chief executive Bjorn Gulden (“Rihanna Designs…”, 2017).

Media Attributions

The image of two different coloured sneakers is by Raka Rachgo on Unsplash .
The image of a coffee card in a wallet is by Rebecca Aldama on Unsplash .
The image of an island resort in tropical destination is by Ishan @seefromthesky on Unsplash .
The image of a stack of glossy magazine covers is by Charisse Kenion on Unsplash .

Text Attributions

The introductory paragraph; sections on “Low Involvement Consumer Decision Making”, “High Involvement Consumer Decision Making”, and “Limited Problem Solving” are adapted from Principles of Marketing which is licensed under CC BY-NC-SA 3.0.

About Us . (n.d.). Body Form. Retrieved February 2, 2019, from https://www.bodyform.co.uk/about-us/.

Kalamut, A. (2010, August 18). Old Spice Video “Case Study” . YouTube [Video]. https://youtu.be/Kg0booW1uOQ.

Bernazzani, S. (n.d.). Customer Loyalty: The Ultimate Guide [Blog post]. https://blog.hubspot.com/service/customer-loyalty.

Bodyform Channel. (2012, October 16). Bodyform Responds: The Truth . YouTube [Video]. https://www.youtube.com/watch?v=Bpy75q2DDow&feature=youtu.be.

Consumer-Goods’ Brands That Demonstrate Commitment to Sustainability Outperform Those That Don’t. (2015, October 12). Nielsen [Press Release]. https://www.nielsen.com/us/en/press-room/2015/consumer-goods-brands-that-demonstrate-commitment-to-sustainability-outperform.html.

Curtin, M. (2018, March 30). 73 Per Cent of Millennials are Willing to Spend More Money on This 1 Type of Product . Inc. https://www.inc.com/melanie-curtin/73-percent-of-millennials-are-willing-to-spend-more-money-on-this-1-type-of-product.html.

Izaguirre, X. (2012, October 17). How are brands using audience involvement to increase reach and engagement? EConsultancy. https://econsultancy.com/how-are-brands-using-audience-involvement-to-increase-reach-and-engagement/.

Rihanna Designs Help Lift Puma Sportswear Sales . (2017, October 24). Reuters. https://www.businessoffashion.com/articles/news-analysis/rihanna-designs-help-lift-puma-sportswear-sales.

Tarver, E. (2018, October 20). Why the ‘Share a Coke’ Campaign Is So Successful . Investopedia. https://www.investopedia.com/articles/markets/100715/what-makes-share-coke-campaign-so-successful.asp.

Low involvement decision making typically reflects when a consumer who has a low level of interest and attachment to an item. These items may be relatively inexpensive, pose low risk (can be exchanged, returned, or replaced easily), and not require research or comparison shopping.

This concept describes when consumers make low-involvement decisions that are "automatic" in nature and reflect a limited amount of information the consumer has gathered in the past.

A type of purchase that is made with no previous planning or thought.

High involvement decision making typically reflects when a consumer who has a high degree of interest and attachment to an item. These items may be relatively expensive, pose a high risk to the consumer (can't be exchanged or refunded easily or at all), and require some degree of research or comparison shopping.

Also known as "consumer remorse" or "consumer guilt", this is an unsettling feeling consumers may experience post-purchase if they feel their actions are not aligned with their needs.

Consumers engage in limited problem solving when they have some information about an item, but continue to gather more information to inform their purchasing decision. This falls between "low" and "high" involvement on the involvement continuum.

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3.2 Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process

Learning objectives.

Distinguish between low-involvement and high-involvement buying decisions.
Understand what the stages of the buying process are and what happens in each stage.

As you have seen, many factors influence a consumer’s behavior. Depending on a consumer’s experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The level of involvement reflects how personally important or interested you are in consuming a product and how much information you need to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product, although some products such as purchasing a house typically require a high-involvement for all consumers. Consumers with no experience purchasing a product may have more involvement than someone who is replacing a product.

You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives. As Nike would put it, you “just do it.” Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them.

Consumers often engage in routine response behavior when they make low-involvement decisions—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you’re waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be.

By contrast, high-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving , where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

High-involvement decisions can cause buyers a great deal of postpurchase dissonance (anxiety) if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that postpurchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople may be utilized to answer questions and do a lot of customer “hand-holding.”

Allstate’s “You’re in Good Hands” advertisements are designed to convince consumers that the insurance company won’t let them down.

Mike Mozart – Allstate, – CC BY 2.0.

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the manufacturers of products that are typically high-involvement decisions can’t become complacent about the value of their brands.

1970s American Cars

(click to see video)

Today, Lexus is the automotive brand that experiences the most customer loyalty. For a humorous, tongue-in-cheek look at why the brand reputation of American carmakers suffered in the 1970s, check out this clip.

Stages in the Buying Process

Figure 3.9 “Stages in the Consumer’s Purchasing Process” outlines the buying stages consumers go through. At any given time, you’re probably in a buying stage for a product or service. You’re thinking about the different types of things you want or need to eventually buy, how you are going to find the best ones at the best price, and where and how will you buy them. Meanwhile, there are other products you have already purchased that you’re evaluating. Some might be better than others. Will you discard them, and if so, how? Then what will you buy? Where does that process start?

Figure 3.9 Stages in the Consumer’s Purchasing Process

Stage 1. Need Recognition

You plan to backpack around the country after you graduate and don’t have a particularly good backpack. You realize that you must get a new backpack. You may also be thinking about the job you’ve accepted after graduation and know that you must get a vehicle to commute. Recognizing a need may involve something as simple as running out of bread or milk or realizing that you must get a new backpack or a car after you graduate. Marketers try to show consumers how their products and services add value and help satisfy needs and wants. Do you think it’s a coincidence that Gatorade, Powerade, and other beverage makers locate their machines in gymnasiums so you see them after a long, tiring workout? Previews at movie theaters are another example. How many times have you have heard about a movie and had no interest in it—until you saw the preview? Afterward, you felt like you had to see it.

Stage 2. Search for Information

If what you already know about backpacks doesn’t provide you with enough information, you’ll probably continue to gather information from various sources. Frequently people ask friends, family, and neighbors about their experiences with products. Magazines such as Consumer Reports (considered an objective source of information on many consumer products) or Backpacker Magazine might also help you. Similar information sources are available for learning about different makes and models of cars.

Internet shopping sites such as Amazon.com have become a common source of information about products. Epinions.com is an example of consumer-generated review site. The site offers product ratings, buying tips, and price information. Amazon.com also offers product reviews written by consumers. People prefer “independent” sources such as this when they are looking for product information. However, they also often consult non-neutral sources of information, such advertisements, brochures, company Web sites, and salespeople.

Stage 3. Product Evaluation

Obviously, there are hundreds of different backpacks and cars available. It’s not possible for you to examine all of them. In fact, good salespeople and marketing professionals know that providing you with too many choices can be so overwhelming that you might not buy anything at all. Consequently, you may use choice heuristics or rules of thumb that provide mental shortcuts in the decision-making process. You may also develop evaluative criteria to help you narrow down your choices. Backpacks or cars that meet your initial criteria before the consideration will determine the set of brands you’ll consider for purchase.

Evaluative criteria are certain characteristics that are important to you such as the price of the backpack, the size, the number of compartments, and color. Some of these characteristics are more important than others. For example, the size of the backpack and the price might be more important to you than the color—unless, say, the color is hot pink and you hate pink. You must decide what criteria are most important and how well different alternatives meet the criteria.

Figure 3.10

Osprey backpacks are known for their durability. The company has a special design and quality control center, and Osprey’s salespeople annually take a “canyon testing” trip to see how well the company’s products perform.

melanie innis – break – CC BY-NC-ND 2.0.

Companies want to convince you that the evaluative criteria you are considering reflect the strengths of their products. For example, you might not have thought about the weight or durability of the backpack you want to buy. However, a backpack manufacturer such as Osprey might remind you through magazine ads, packaging information, and its Web site that you should pay attention to these features—features that happen to be key selling points of its backpacks. Automobile manufacturers may have similar models, so don’t be afraid to add criteria to help you evaluate cars in your consideration set.

Stage 4. Product Choice and Purchase

With low-involvement purchases, consumers may go from recognizing a need to purchasing the product. However, for backpacks and cars, you decide which one to purchase after you have evaluated different alternatives. In addition to which backpack or which car, you are probably also making other decisions at this stage, including where and how to purchase the backpack (or car) and on what terms. Maybe the backpack was cheaper at one store than another, but the salesperson there was rude. Or maybe you decide to order online because you’re too busy to go to the mall. Other decisions related to the purchase, particularly those related to big-ticket items, are made at this point. For example, if you’re buying a high-definition television, you might look for a store that will offer you credit or a warranty.

Stage 5. Postpurchase Use and Evaluation

At this point in the process you decide whether the backpack you purchased is everything it was cracked up to be. Hopefully it is. If it’s not, you’re likely to suffer what’s called postpurchase dissonance . You might call it buyer’s remorse . Typically, dissonance occurs when a product or service does not meet your expectations. Consumers are more likely to experience dissonance with products that are relatively expensive and that are purchased infrequently.

You want to feel good about your purchase, but you don’t. You begin to wonder whether you should have waited to get a better price, purchased something else, or gathered more information first. Consumers commonly feel this way, which is a problem for sellers. If you don’t feel good about what you’ve purchased from them, you might return the item and never purchase anything from them again. Or, worse yet, you might tell everyone you know how bad the product was.

Companies do various things to try to prevent buyer’s remorse. For smaller items, they might offer a money back guarantee or they might encourage their salespeople to tell you what a great purchase you made. How many times have you heard a salesperson say, “That outfit looks so great on you!” For larger items, companies might offer a warranty, along with instruction booklets, and a toll-free troubleshooting line to call or they might have a salesperson call you to see if you need help with product. Automobile companies may offer loaner cars when you bring your car in for service.

Companies may also try to set expectations in order to satisfy customers. Service companies such as restaurants do this frequently. Think about when the hostess tells you that your table will be ready in 30 minutes. If they seat you in 15 minutes, you are much happier than if they told you that your table would be ready in 15 minutes, but it took 30 minutes to seat you. Similarly, if a store tells you that your pants will be altered in a week and they are ready in three days, you’ll be much more satisfied than if they said your pants would be ready in three days, yet it took a week before they were ready.

Stage 6. Disposal of the Product

There was a time when neither manufacturers nor consumers thought much about how products got disposed of, so long as people bought them. But that’s changed. How products are being disposed of is becoming extremely important to consumers and society in general. Computers and batteries, which leech chemicals into landfills, are a huge problem. Consumers don’t want to degrade the environment if they don’t have to, and companies are becoming more aware of this fact.

Take for example Crystal Light, a water-based beverage that’s sold in grocery stores. You can buy it in a bottle. However, many people buy a concentrated form of it, put it in reusable pitchers or bottles, and add water. That way, they don’t have to buy and dispose of plastic bottle after plastic bottle, damaging the environment in the process. Windex has done something similar with its window cleaner. Instead of buying new bottles of it all the time, you can purchase a concentrate and add water. You have probably noticed that most grocery stores now sell cloth bags consumers can reuse instead of continually using and discarding of new plastic or paper bags.

Figure 3.11

The hike up to Mount Everest used to be pristine. Now it looks more like this. Who’s responsible? Are consumers or companies responsible, or both?

jqpubliq – Recycling Center Pile – CC BY-SA 2.0.

Other companies are less concerned about conservation than they are about planned obsolescence . Planned obsolescence is a deliberate effort by companies to make their products obsolete, or unusable, after a period of time. The goal is to improve a company’s sales by reducing the amount of time between the repeat purchases consumers make of products. When a software developer introduces a new version of product, it is usually designed to be incompatible with older versions of it. For example, not all the formatting features are the same in Microsoft Word 2007 and 2010. Sometimes documents do not translate properly when opened in the newer version. Consequently, you will be more inclined to upgrade to the new version so you can open all Word documents you receive.

Products that are disposable are another way in which firms have managed to reduce the amount of time between purchases. Disposable lighters are an example. Do you know anyone today that owns a nondisposable lighter? Believe it or not, prior to the 1960s, scarcely anyone could have imagined using a cheap disposable lighter. There are many more disposable products today than there were in years past—including everything from bottled water and individually wrapped snacks to single-use eye drops and cell phones.

Figure 3.12

Disposable lighters came into vogue in the United States in the 1960s. You probably don’t own a cool, nondisposable lighter like one of these, but you don’t have to bother refilling it with lighter fluid either.

Europeana staff photographer – A trench art lighter – public domain.

Key Takeaways

Consumer behavior looks at the many reasons why people buy things and later dispose of them. Consumers go through distinct buying phases when they purchase products: (1) realizing the need or wanting something, (2) searching for information about the item, (3) evaluating different products, (4) choosing a product and purchasing it, (5) using and evaluating the product after the purchase, and (6) disposing of the product. A consumer’s level of involvement is how interested he or she is in buying and consuming a product. Low-involvement products are usually inexpensive and pose a low risk to the buyer if he or she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.

Review Questions

How do low-involvement decisions differ from high-involvement decisions in terms of relevance, price, frequency, and the risks their buyers face? Name some products in each category that you’ve recently purchased.
What stages do people go through in the buying process for high-involvement decisions? How do the stages vary for low-involvement decisions?
What is postpurchase dissonance and what can companies do to reduce it?

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Marketing, Advertising, Sales & PR
Principles of Marketing

Types of Consumer Decision - Explained

What types of decisions do Consumers Make?

Written by Jason Gordon

Updated at April 17th, 2024

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What are the types of Consumer Decisions?

Consumer decisions can be categorized into three primary types:

Routinized Response - This is the kind of decision where you don't really have to think much about it.
Limited Problem Solving - This type of purchase decision involves a little more thinking or a little more consideration.
Extensive Problem Solving - This is when we're making a decision to purchase and we are really going to labor over that decision.

Each of these is discussed further below.

What is a Routinized Response?

This is the kind of decision where you don't really have to think much about it. That is, it's a routine. In the context of making a purchase, this is when we make the decision to purchase without going through the consumer decision-making process. Generally, it means we simply follow or repeat a previous course of action. Think of going to the store and buying the same type or brand of grocery item that you buy every week. You do this as a routine, rather than identifying alternatives and comparing them.

What is Limited Problem Solving?

This type of purchase decision involves a little more thinking or a little more consideration. Maybe we consider different products in making our purchase. Maybe we consider how much to buy. Whatever our considerations, we're going to spend more time and effort making this decision or making this purchase.

What is Extensive Problem Solving?

This is when we're making a decision to purchase and we are really going to labor over that decision. That is, we are really going to consider it thoroughly. We may do a great deal of research. We may consult friends or look at customer reviews. We generally use this approach when it is something that we have never bought before, its very technical in nature, or when it is a very expensive item (like a car). Generally, this type of decision involves the most time, information, and effort in the evaluation of alternatives.

Marketing Mix - Explained
Captive Pricing - Explained
Marketing Ethics - Explained
Publicity - Explained

Four Modes of Consumer Decision Making

Extended problem solving

Extended problem solving customer decision – making mode relates to a situation where customers lack experience in a specific consumption setting, nevertheless, the setting is perceived by them as a highly involving. The products are usually of a high value and they also contribute to an individual’s social status, however, their purchase is often associated with significant amount of risk in terms of making improper purchase decision. Purchasing the first car or the first house can be mentioned as instances for extended problem solving.

Limited problem solving

Customer decision – making mode of limited problem solving , relates to a situation where both, customer experience, as well as, the level of their involvement are low. Considered to be the most common mode of decision – making, it lacks systematic approach in terms of decision – making. Examples for this mode of decision – making might include searching for and purchasing products and services associated with pest control within private properties.

In other words, as Perrey and Spillecke (2011) confirm, limited problem – solving customer decision – making mode relate to situations where customers are attempting to find appropriate solutions to their unpleasant issues. Retailers often attempt to attract such type of customers by employing a range of marketing techniques that include introducing discount vouchers, offering free samples etc.

Habit or variety seeking

Habit or variety seeking is the customer decision – making mode where a decision is not involving, however, there are high amount of repeated purchases from a specific brand. For example, the purchase of a specific brand of a dishwasher gel can be repeated over a long period of time in a habitual manner, without re-considering the value associated with the brand even when there are more valuable alternatives have emerged in the market.

Variety seeking relates to instances where customer moves to another brand within a given product category. At the same time, interestingly, “from one purchase occasion to the next, the individual will switch brands from within this set, just for the sake of variety” (O’Guinn et al, 2011, p.175).

Brand loyalty

Customers with a decision – making mode of brand loyalty practice high level of involvement in decision – making and they also possess high level of experience with a particular brand. Instances of brand loyalty customer decision – making mode include using specific brand of cigarettes for a long period of time.

According to Cant et al (2009), factors effecting customer brand loyalty in retail setting include brand name, the quality of products and services, price and style of products, environment of the store, the level and nature of promotion offered, and the quality of customer services provided. Considerable amount of financial resources are usually invested by leading retailers in order to enhance their brand image and therefore increase their long-term growth prospects.

Cant, M.C., Strydom, J.W. & Jooste, C.J. (2009) “Marketing Management” Juta Publications
O’Guinn, T.C., Allen, C.T. & Semenik, R.J. (2011) “Advertising and Integrated Brand Promotion” Cengage Learning
Perrey, J & Spillecke, D. (2011) “Retail Marketing and Branding: A Definitive Guide to Maximising ROI” John Wiley & Sons

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Individual Consumer Decision Making

29 Consumer Decision Making Process

An organization that wants to be successful must consider buyer behavior when developing the marketing mix. Buyer behavior is the actions people take with regard to buying and using products. Marketers must understand buyer behavior, such as how raising or lowering a price will affect the buyer’s perception of the product and therefore create a fluctuation in sales, or how a specific review on social media can create an entirely new direction for the marketing mix based on the comments (buyer behavior/input) of the target market.

The Consumer Decision Making Process

Once the process is started, a potential buyer can withdraw at any stage of making the actual purchase. The tendency for a person to go through all six stages is likely only in certain buying situations—a first time purchase of a product, for instance, or when buying high priced, long-lasting, infrequently purchased articles. This is referred to as complex decision making .

For many products, the purchasing behavior is a routine affair in which the aroused need is satisfied in a habitual manner by repurchasing the same brand. That is, past reinforcement in learning experiences leads directly to buying, and thus the second and third stages are bypassed. This is called simple decision making .

However, if something changes appreciably (price, product, availability, services), the buyer may re-enter the full decision process and consider alternative brands. Whether complex or simple, the first step is need identification (Assael, 1987).

A comparison between the "simple" and "complex" decision making process a consumer would experience depending on involvement and purchase.

When Inertia Takes Over

Need Recognition

Whether we act to resolve a particular problem depends upon two factors: (1) the magnitude of the discrepancy between what we have and what we need, and (2) the importance of the problem. A consumer may desire a new Cadillac and own a five-year-old Chevrolet. The discrepancy may be fairly large but relatively unimportant compared to the other problems they face. Conversely, an individual may own a car that is two years old and running very well. Yet, for various reasons, they may consider it extremely important to purchase a car this year. People must resolve these types of conflicts before they can proceed. Otherwise, the buying process for a given product stops at this point, probably in frustration.

Once the problem is recognized it must be defined in such a way that the consumer can actually initiate the action that will bring about a relevant problem solution. Note that, in many cases, problem recognition and problem definition occur simultaneously, such as a consumer running out of toothpaste. Consider the more complicated problem involved with status and image–how we want others to see us. For example, you may know that you are not satisfied with your appearance, but you may not be able to define it any more precisely than that. Consumers will not know where to begin solving their problem until the problem is adequately defined.

Marketers can become involved in the need recognition stage in three ways. First they need to know what problems consumers are facing in order to develop a marketing mix to help solve these problems. This requires that they measure problem recognition. Second, on occasion, marketers want to activate problem recognition. Public service announcements espousing the dangers of cigarette smoking is an example. Weekend and night shop hours are a response of retailers to the consumer problem of limited weekday shopping opportunities. This problem has become particularly important to families with two working adults. Finally, marketers can also shape the definition of the need or problem. If a consumer needs a new coat, do they define the problem as a need for inexpensive covering, a way to stay warm on the coldest days, a garment that will last several years, warm cover that will not attract odd looks from their peers, or an article of clothing that will express their personal sense of style? A salesperson or an ad may shape their answers

Information Search

After a need is recognized, the prospective consumer may seek information to help identify and evaluate alternative products, services, and outlets that will meet that need. Such information can come from family, friends, personal observation, or other sources, such as Consumer Reports, salespeople, or mass media. The promotional component of the marketers offering is aimed at providing information to assist the consumer in their problem solving process. In some cases, the consumer already has the needed information based on past purchasing and consumption experience. Bad experiences and lack of satisfaction can destroy repeat purchases. The consumer with a need for tires may look for information in the local newspaper or ask friends for recommendation. If they have bought tires before and was satisfied, they may go to the same dealer and buy the same brand.

Information search can also identify new needs. As a tire shopper looks for information, they may decide that the tires are not the real problem, that the need is for a new car. At this point, the perceived need may change triggering a new informational search. Information search involves mental as well as the physical activities that consumers must perform in order to make decisions and accomplish desired goals in the marketplace. It takes time, energy, money, and can often involve foregoing more desirable activities. The benefits of information search, however, can outweigh the costs. For example, engaging in a thorough information search may save money, improve quality of selection, or reduce risks. The Internet is a valuable information source.

Evaluation of Alternatives

After information is secured and processed, alternative products, services, and outlets are identified as viable options. The consumer evaluates these alternatives , and, if financially and psychologically able, makes a choice. The criteria used in evaluation varies from consumer to consumer just as the needs and information sources vary. One consumer may consider price most important while another puts more weight (importance) upon quality or convenience.

Using the ‘Rule of Thumb’

Consumers don’t have the time or desire to ponder endlessly about every purchase! Fortunately for us, heuristics , also described as shortcuts or mental “rules of thumb”, help us make decisions quickly and painlessly. Heuristics are especially important to draw on when we are faced with choosing among products in a category where we don’t see huge differences or if the outcome isn’t ‘do or die’.

Heuristics are helpful sets of rules that simplify the decision-making process by making it quick and easy for consumers.

Common Heuristics in Consumer Decision Making

Save the most money: Many people follow a rule like, “I’ll buy the lowest-priced choice so that I spend the least money right now.” Using this heuristic means you don’t need to look beyond the price tag to make a decision. Wal-Mart built a retailing empire by pleasing consumers who follow this rule.
You get what you pay for: Some consumers might use the opposite heuristic of saving the most money and instead follow a rule such as: “I’ll buy the more expensive product because higher price means better quality.” These consumers are influenced by advertisements alluding to exclusivity, quality, and uncompromising performance.
Stich to the tried and true: Brand loyalty also simplifies the decision-making process because we buy the brand that we’ve always bought before. therefore, we don’t need to spend more time and effort on the decision. Advertising plays a critical role in creating brand loyalty. In a study of the market leaders in thirty product categories, 27 of the brands that were #1 in 1930 were still at the top over 50 years later (Stevesnson, 1988)! A well known brand name is a powerful heuristic .
National pride: Consumers who select brands because they represent their own culture and country of origin are making decision based on ethnocentrism . Ethnocentric consumers are said to perceive their own culture or country’s goods as being superior to others’. Ethnocentrism can behave as both a stereotype and a type of heuristic for consumers who are quick to generalize and judge brands based on their country of origin.
Visual cues: Consumers may also rely on visual cues represented in product and packaging design. Visual cues may include the colour of the brand or product or deeper beliefs that they have developed about the brand. For example, if brands claim to support sustainability and climate activism, consumers want to believe these to be true. Visual cues such as green design and neutral-coloured packaging that appears to be made of recycled materials play into consumers’ heuristics .

The search for alternatives and the methods used in the search are influenced by such factors as: (a) time and money costs; (b) how much information the consumer already has; (c) the amount of the perceived risk if a wrong selection is made; and (d) the consumer’s predisposition toward particular choices as influenced by the attitude of the individual toward choice behaviour. That is, there are individuals who find the selection process to be difficult and disturbing. For these people there is a tendency to keep the number of alternatives to a minimum, even if they have not gone through an extensive information search to find that their alternatives appear to be the very best. On the other hand, there are individuals who feel it necessary to collect a long list of alternatives. This tendency can appreciably slow down the decision-making function.

Consumer Evaluations Made Easier

The evaluation of alternatives often involves consumers drawing on their evoke, inept, and insert sets to help them in the decision making process.

The brands and products that consumers compare—their evoked set – represent the alternatives being considered by consumers during the problem-solving process. Sometimes known as a “consideration” set, the evoked set tends to be small relative to the total number of options available. When a consumer commits significant time to the comparative process and reviews price, warranties, terms and condition of sale and other features it is said that they are involved in extended problem solving. Unlike routine problem solving, extended or extensive problem solving comprises external research and the evaluation of alternatives. Whereas, routine problem solving is low-involvement, inexpensive, and has limited risk if purchased, extended problem solving justifies the additional effort with a high-priced or scarce product, service, or benefit (e.g., the purchase of a car). Likewise, consumers use extensive problem solving for infrequently purchased, expensive, high-risk, or new goods or services.

As opposed to the evoked set, a consumer’s inept set represent those brands that they would not given any consideration too. For a consumer who is shopping around for an electric vehicle, for example, they would not even remotely consider gas-guzzling vehicles like large SUVs.

The inert set represents those brands or products a consumer is aware of, but is indifferent to and doesn’t consider them either desirable or relevant enough to be among the evoke set. Marketers have an opportunity here to position their brands appropriately so consumers move these items from their insert to evoke set when evaluation alternatives.

The selection of an alternative, in many cases, will require additional evaluation. For example, a consumer may select a favorite brand and go to a convenient outlet to make a purchase. Upon arrival at the dealer, the consumer finds that the desired brand is out-of-stock. At this point, additional evaluation is needed to decide whether to wait until the product comes in, accept a substitute, or go to another outlet. The selection and evaluation phases of consumer problem solving are closely related and often run sequentially, with outlet selection influencing product evaluation, or product selection influencing outlet evaluation.

While many consumers would agree that choice is a good thing, there is such a thing as “too much choice” that inhibits the consumer decision making process. Consumer hyperchoice is a term used to describe purchasing situations that involve an excess of choice thus making selection for difficult for consumers. Dr. Sheena Iyengar studies consumer choice and collects data that supports the concept of consumer hyperchoice. In one of her studies, she put out jars of jam in a grocery store for shoppers to sample, with the intention to influence purchases. Dr. Iyengar discovered that when a fewer number of jam samples were provided to shoppers, more purchases were made. But when a large number of jam samples were set out, fewer purchases were made (Green, 2010). As it turns out, “more is less” when it comes to the selection process.

The Purchase Decision

After much searching and evaluating, or perhaps very little, consumers at some point have to decide whether they are going to buy.

Anything marketers can do to simplify purchasing will be attractive to buyers. This may include minimal clicks to online checkout; short wait times in line; and simplified payment options. When it comes to advertising marketers could also suggest the best size for a particular use, or the right wine to drink with a particular food. Sometimes several decision situations can be combined and marketed as one package. For example, travel agents often package travel tours with flight and hotel reservations.

To do a better marketing job at this stage of the buying process, a seller needs to know answers to many questions about consumers’ shopping behaviour. For instance, how much effort is the consumer willing to spend in shopping for the product? What factors influence when the consumer will actually purchase? Are there any conditions that would prohibit or delay purchase? Providing basic product, price, and location information through labels, advertising, personal selling, and public relations is an obvious starting point. Product sampling, coupons, and rebates may also provide an extra incentive to buy.

Actually determining how a consumer goes through the decision-making process is a difficult research task.

Post-Purchase Behaviour

All the behaviour determinants and the steps of the buying process up to this point are operative before or during the time a purchase is made. However, a consumer’s feelings and evaluations after the sale are also significant to a marketer, because they can influence repeat sales and also influence what the customer tells others about the product or brand.

Keeping the customer happy is what marketing is all about. Nevertheless, consumers typically experience some post-purchase anxiety after all but the most routine and inexpensive purchases. This anxiety reflects a phenomenon called cognitive dissonance . According to this theory, people strive for consistency among their cognitions (knowledge, attitudes, beliefs, values). When there are inconsistencies, dissonance exists, which people will try to eliminate. In some cases, the consumer makes the decision to buy a particular brand already aware of dissonant elements. In other instances, dissonance is aroused by disturbing information that is received after the purchase. The marketer may take specific steps to reduce post-purchase dissonance. Advertising that stresses the many positive attributes or confirms the popularity of the product can be helpful. Providing personal reinforcement has proven effective with big-ticket items such as automobiles and major appliances. Salespeople in these areas may send cards or may even make personal calls in order to reassure customers about their purchase.

Media Attributions

The graphic of the “Consumer Decision Making Process” by Niosi, A. (2021) is licensed under CC BY-NC-SA and is adapted from Introduction to Business by Rice University.

Text Attributions

The sections under the “Consumer Decision Making Process,” “Need Recognition” (edited), “Information Search,” “Evaluation of Alternatives”; the first paragraph under the section “Selection”; the section under “Purchase Decision”; and, the section under “Post-Purchase Behaviour” are adapted from Introducing Marketing [PDF] by John Burnett which is licensed under CC BY 3.0 .
The opening paragraph and the image of the Consumer Decision Making Process is adapted from Introduction to Business by Rice University which is licensed under a Creative Commons Attribution 4.0 International License .
The section under “Using the ‘Rule of Thumb'” is adapted (and edited) from Launch! Advertising and Promotion in Real Time [PDF] by Saylor Academy which is licensed under CC BY-NC-SA 3.0 .

Assael, H. (1987). Consumer Behavior and Marketing Action (3rd ed.), 84. Boston: Kent Publishing.

Green, P. (2010, March 17). An Expert on Choice Chooses. The New York Times. https://www.nytimes.com/2010/03/18/garden/18choice.html.

Consumer purchases made when a (new) need is identified and a consumer engages in a more rigorous evaluation, research, and alternative assessment process before satisfying the unmet need.

Consumer purchases made when a need is identified and a habitual ("routine") purchase is made to satisfy that need.

Purchasing decisions made out of habit.

The first stage of the Consumer Decision Making Process, need recognition takes place when a consumer identifies an unmet need.

The second stage of the Consumer Decision Making Process, information search takes place when a consumer seeks relative information that will help them identify and evaluate alternatives before deciding on the final purchase decision.

The third stage of the Consumer Decision Making Process, the evaluation of alternatives takes place when a consumer establishes criteria to evaluate the most viable purchasing option.

Also known as "mental shortcuts" or "rules of thumb", heuristics help consumers by simplifying the decision-making process.

A small set of "go-to" brands that consumers will consider as they evaluate the alternatives available to them before making a purchasing decision.

The brands a consumer would not pay any attention to during the evaluation of alternatives process.

The brands a consumer is aware of but indifferent to, when evaluating alternatives in the consumer decision making process. The consumer may deem these brands irrelevant and will therefore exclude them from any extensive evaluation or consideration.

A term that describes a purchasing situation in which a consumer is faced with an excess of choice that makes decision making difficult or nearly impossible.

A type of cognitive inconsistency, this term describes the discomfort consumers may feel when their beliefs, values, attitudes, or perceptions are inconsistent or contradictory to their original belief or understanding. Consumers with cognitive dissonance related to a purchasing decision will often seek to resolve this internal turmoil they are experiencing by returning the product or finding a way to justify it and minimizing their sense of buyer's remorse.

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routine limited and extended problem solving

Module 4: Consumer Behavior

Low-involvement versus high-involvement buying decisions, learning objectives.

Distinguish between low-involvement and high-involvement buying decisions.
Understand what the stages of the buying process are and what happens in each stage.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you’re waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be.

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

Stages in the Buying Process

The figure below outlines the buying stages consumers go through. At any given time, you’re probably in a buying stage for a product or service. You’re thinking about the different types of things you want or need to eventually buy, how you are going to find the best ones at the best price, and where and how will you buy them. Meanwhile, there are other products you have already purchased that you’re evaluating. Some might be better than others. Will you discard them, and if so, how? Then what will you buy? Where does that process start?

Stage 1. Need Recognition

Stage 2. Search for Information

Stage 3. Product Evaluation

Stage 4. Product Choice and Purchase

Stage 5. Post-purchase Use and Evaluation

At this point in the process you decide whether the backpack you purchased is everything it was cracked up to be. Hopefully it is. If it’s not, you’re likely to suffer what’s called post-purchase dissonance . You might call it buyer’s remorse . Typically, dissonance occurs when a product or service does not meet your expectations. Consumers are more likely to experience dissonance with products that are relatively expensive and that are purchased infrequently.

Stage 6. Disposal of the Product

Key Takeaways

Review Questions

How do low-involvement decisions differ from high-involvement decisions in terms of relevance, price, frequency, and the risks their buyers face? Name some products in each category that you’ve recently purchased.
What stages do people go through in the buying process for high-involvement decisions? How do the stages vary for low-involvement decisions?
What is postpurchase dissonance and what can companies do to reduce it?
Provided by : Lumen Learning. Located at : http://lumenlearning.com . License : CC BY: Attribution
Marketing Principles. Authored by : Anonymous. Located at : http://2012books.lardbucket.org/books/marketing-principles-v2.0/ . License : CC BY-NC-SA: Attribution-NonCommercial-ShareAlike
1970s American Cars Damning Review. Authored by : Top Gear. Located at : http://youtu.be/pjzpx_jUUA0 . License : All Rights Reserved . License Terms : Standard YouTube License

Understanding the 3 Types of Consumer Buying Decisions

To successfully reach their target market, and improve interactions with customers, marketers need to understand just how much effort and time consumers put into decision-making. Decision-making is both an art, and a science, which has been studied by experts across generations. Most of the time, the secret of marketing lies in learning exactly what the customer wants, and how their decisions can be influenced to purchase one product over its competition.

Behind apparently simple decisions, there are a range of thought processes which impact decision-making. For instance, a buyer may decide at the “spur of the moment”, based on emotion , or he may make a researched, and well-thought out decisions. Based on this observation, we can see that different processes exist for decision-making.

There are three types of consumer decisions to consider:

Understanding the way that your consumers make decisions, is what informed marketing is all about.

Let’s examine it in more detail.

1. Nominal Decision-Making

Nominal decisions are often 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.

If you’ve been using the same laundry detergent for twelve years, you’re unlikely to spend much time researching different brands unless you notice a problem with your existing purchase. In other words, you’ll keep picking up the same bottle without thinking about it.

Nominal decision-making doesn’t always start off as nominal. Initially, you may have spent weeks searching for a laundry detergent that was within your budget, smelled great, and kept your clothes soft. However, your purchase becomes nominal over time because of your loyalty to the brand you ended up choosing.

The important thing to remember about nominal decision-making, is that too much marketing effort can have a negative impact on your customers. If someone is already happy to buy an item on impulse, or because of brand loyalty, they don’t need constant interaction with the brand asking them what they like about the substance, or whether they want to change anything. Too much marketing is not only debilitating to your budget, but it can get on your customer’s nerves – which is a dangerous thing for brands in this highly competitive era.

When purchasing your product is a nominal decision, marketers simply need to perform brand maintenance. In other words:

Make sure the product is available where your customers are shopping
Maintain the right pricing structure and introduce new concepts when interest drops
Create advertisements that ensure memorability for your brand.

2. Limited Decision-Making

Limited decision-making is a little more involved than nominal decision-making, but it’s still not a process that requires in-depth research . Limited decisions are made about mid-cost products, semi-frequent purchases, or purchases from a somewhat familiar brand. They require a little involvement, and perhaps some searching.

When customers make limited decisions, they take a small amount of time to ponder over their purchase, but they might not go online to look for testimonials and reviews. Instead, they could consider their memory of their product, and make decisions based on logical inferences.

For instance, you might go to a store with every intention to pick up a particular brand of juice, but when you arrive you notice that another juice is on offer. Your memory tells you that you enjoyed this juice before, but found it too expensive for your regular shopping habits, so you decide to make a change for a limited time, and purchase the alternative juice instead. While the argument could be made that limited decisions come from a lack of brand loyalty, the truth is that they can be attributed to anything from the novelty of a new product, to a feeling of boredom with an existing shopping habit.

When it comes to addressing limited decision-making, it’s important for marketers and brands to examine their customer data, and understand the factors that influenced decision-making, such as:

Product quality
Product availability
Packaging style

After carefully examining this information, brands can change their promotional activities and product development that will accentuate the benefits of the product, and make it less likely that people will choose something else.

3. Extended Decision-Making

Finally, extended decisions are 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 instance, we don’t buy a huge flat-screen television every day, so when the time comes to make this kind of investment, we want to know for sure that we’re making the right choice in everything from brand to picture quality.

Major purchases come with more risk for the customer, and that means that there’s more cause to consider things from a deeper perspective. Rather than grabbing the first television you see, or buying one just because it’s on sale, you’d generally ask for advice from friends and family, find out as much as you can about different specifications, and spend a substantial amount of time looking up product reviews and testimonials.

When it comes to influencing extended decision-making, the best thing that any brand can do is work on building their positive online presence:

Make sure that you have a social presence where people can share their opinions and thoughts about your products, and ensure that you reply and respond positively to negative comments
Give people plenty of spaces to review your product and post testimonials so that people can find opinions online in a hurry
Provide extensive product details on listing pages, and make sure that your staff members are well-equipped to answer any questions customers might have.
Offer interactive guides and other tools that will help them through the decision-making process

Digital advice and Guided Selling are particularly useful with extended decision-making. It helps to inform the customer at the point of decision and makes it easier for them to make a confident purchase decision. In other words, it helps to provide instant access to guidance that simplifies the complexity of the decision by either explaining the product, outlining the reliability of the brand, or reducing the need to search for reviews and information. Digital advice reduces the apparent risk that customers encounter when making extended decisions, so that those choices appear more like “limited decisions” instead.

Influencing Buyer Decisions

Influencing buyer decisions as a marketer or business can be an extremely difficult process, but it’s one that’s crucial to enhancing your bottom line. The important thing to remember is that the more you understand about who your customers are, and what prompts them to purchase your products, the more of an impact you can have on their buying journey, reducing the friction between product discovery, and purchase.

Customer Journey

The customer journey maps the complete lifecycle of a customer’s interactions with a brand, from initial awareness through to loyalty and advocacy. Understanding and optimizing this journey is crucial for delivering a seamless customer experience:

Interactive Shopping Experiences for Ecommerce [+Examples]

Awareness : The stage where potential customers first come into contact with a brand or product. Effective SEO and content marketing, as highlighted in ecommerce strategies, play key roles here.
Consideration : Customers gather information and evaluate alternatives. Tools like Zoovu can streamline this phase by offering interactive guides and digital advice, simplifying the decision-making process.
Purchase : The decision-making stage culminates in the purchase action. Here, ensuring detailed product information and positive customer reviews can significantly influence the final decision.
Retention : After purchasing, the focus shifts to keeping the customer satisfied and engaged. Managing customer reviews effectively and using feedback for continuous improvement are critical.
Advocacy : Satisfied customers become brand advocates. Encouraging customers to share their positive experiences online can lead to more organic growth and brand loyalty.

Integrating Zoovu’s functionalities can enhance each stage of the customer journey:

Interactive Product Finders : At the consideration stage, Zoovu’s product finders help narrow down choices based on user preferences, making it easier for customers to find products that meet their needs without extensive research.
AI-Driven Digital Assistants : These tools engage customers by providing personalized advice and recommendations, enhancing the user experience during the information search and evaluation stages.
Analytics Tools : By analyzing user interactions and behavior, Zoovu can help businesses understand pain points and preferences, which is vital for optimizing the customer journey and improving targeted marketing campaigns.

This comprehensive view of the customer journey, enriched with digital tools, underscores the importance of each interaction point and the role of technology in enhancing customer engagement and satisfaction. Integrating these insights helps businesses create a more effective and cohesive strategy that aligns with consumer behavior and decision-making processes.

Consumer Decision-making Process

The consumer decision-making process is critical for marketers to understand as it defines how consumers choose products and services. This process can be broken down into several key stages:

Need Recognition : Identifying a need or problem that requires a solution.
Information Search : Gathering information about products or services that can meet the need.
Evaluation of Alternatives : Comparing different products or services to find the best fit.
Purchase Decision : Deciding on and buying a product or service.
Post-purchase Evaluation : Reflecting on the purchase decision and the satisfaction derived from the product.

Understanding these steps helps marketers design effective strategies to influence consumers at each point, with adjustments made based on the level of involvement required and the type of decision-making involved (nominal, limited, or extended).

Consumer Behavior

Consumer behavior studies how individuals make decisions to use and dispose of various products and services. This includes:

Internal Stimuli : Psychological factors that drive behavior.
External Stimuli : Social and environmental cues that influence decisions.
Buying Behaviors : Includes habitual buying behavior, variety-seeking behavior, and more.

Insights into consumer behavior enable marketers to effectively segment their market, position their products, and cultivate customer loyalty through targeted marketing campaigns.

Ecommerce Marketing Strategies

Effective ecommerce marketing strategies are essential for digital market success and include:

SEO and Content Marketing : Improving visibility and engaging customers.
Social Media and Email Campaigns : Building relationships and maintaining communication.
Product Availability and Information : Ensuring detailed product descriptions are available to aid decision-making.
Customer Reviews and Testimonials : Using feedback to build trust and influence future buyers.
Digital Advice Tools : Providing interactive guides and tools to assist in the decision-making process, especially for high-involvement purchases.

These strategies help reduce purchase anxiety and guide consumers through their buying journey, enhancing the overall customer experience.

Customer Reviews

Customer reviews play a vital role in the consumer decision-making process, especially during the post-purchase evaluation phase:

Feedback Mechanism : Reviews provide insights for both potential customers and businesses.
Influence on Buying Behavior : Reviews can significantly impact future buying decisions by offering reassurance and reducing post-purchase dissonance.
Enhancement of Brand Loyalty : Effective management of customer reviews can lead to repeat purchases and improved customer loyalty.

By addressing customer reviews positively and constructively, companies can improve their product offerings, customer service, and overall customer satisfaction.

Conversational Commerce: How Technology & Shoppers Have Changed E-Commerce

How To Boost Your E-Commerce Holiday Sales with Gift Finders

FOBO, the fear of better options, causes consumers to fall into indecision.

Why FOBO Impacts Consumer Confidence & Behavior

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Extended versus limited problem-solving in purchase decisions

Elements of Extended versus limited problem-solving in purchase decisions:

The extended and limited purchase process in relation to different product types.

Principle :

The purchase decision will range on a continuum from low to high level risk (financial, social or psychological) and will vary in terms of the amount of time devoted to the information search and the number of brand alternatives considered.

Primarily concerned with understanding how we make purchase decisions

In order to choose between alternatives the buyer must search for relevant information and then evaluate and compare the various options in order to reach the best decision.

Applications :

To analyse or illustrate the problem-solving continuum facing consumers

Source of Extended versus limited problem-solving in purchase decisions :

Blackwell (2005)

Purpose – the heart of business, entrepreneurship vs intrapreneurship, business model canvas.

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Low-Involvement versus High-Involvement Buying Decisions

Consumers don’t necessarily go through all the buying stages when they’re considering purchasing product. You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. At yet other times, you skip stages 1 through 3 and buy products on impulse. As Nike would put, you “just do it.” Perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. Purchasing a product with no planning or forethought is called impulse buying .

Impulse buying brings up a concept called level of involvement —that is, how personally important or interested you are in consuming a product. For example, you might see a roll of tape at a check-out stand and remember you need one. Or you might see a bag of chips and realize you’re hungry. These are items you need, but they are low-involvement products. Low-involvement products aren’t necessarily purchased on impulse, although they can be. Low-involvement products are, however, inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them.

Consumers often engage in routine response behavior when they buy low-involvement products—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. If you’re served a Diet Coke at lunchtime, and it’s flat, oh well. It’s not the end of the world.

By contrast, high-involvement products carry a high risk to buyers if they fail, are complex, or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving , where they spend a lot of time comparing the features of the products, prices, warrantees, and so forth.

High-involvement products can cause buyers a great deal of postpurchase dissonance if they are unsure about their purchases. Companies that sell high-involvement products are aware of that postpurchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople are typically utilized to do a lot of customer “hand-holding.”

Limited problem solving falls somewhere in the middle. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a bit more information. The backpack you’re looking to buy is an example. You’re going to spend at least some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or, you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten the decision-making process.

Brand names can be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement product—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brands or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality, buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the makers of high-involvement products can’t become complacent about the value of their brands.

KEY TAKEAWAY

Consumer behavior looks at the many reasons why people buy things and later dispose of them. Consumers go through distinct buying phases when they purchases products: (1) realizing the need or want something, (2) searching for information about the item, (3) evaluating different products, (4) choosing a product and purchasing it, (5) using and evaluating the product after the purchase, and (6) disposing of the product. A consumer’s level of involvement is how interested he or she is in buying and consuming a product. Low-involvement products are usually inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.

REVIEW QUESTIONS

What is consumer behavior? Why do companies study it?
What stages do people go through in the buying process?
How do low-involvement products differ from high-involvement products in terms of the risks their buyers face? Name some products in each category that you’ve recently purchased.
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Creating Offerings That Have Value
Communicating Offerings
Delivering Offerings
Exchanging Offerings KEY TAKEAWAY REVIEW QUESTIONS
For-Profit Companies
Nonprofit Organizations
Individuals KEY TAKEAWAY REVIEW QUESTIONS
Marketing Enables Profitable Transactions to Occur
Marketing Delivers Value
Marketing Benefits Society
Marketing Costs Money
Marketing Offers People Career Opportunities KEY TAKEAWAY REVIEW QUESTIONS
Marketing’s Role in the Organization
The Marketing Plan
The Changing Marketing Environment KEY TAKEAWAY REVIEW QUESTIONS
Discussion Questions and Activities DISCUSSION QUESTIONS ACTIVITIES
What Is a Value Proposition? KEY TAKEAWAY REVIEW QUESTIONS
Where Strategic Planning Occurs within Firms LEARNING OBJECTIVES KEY TAKEAWAY REVIEW QUESTIONS
Conducting a Situation Analysis
Conducting a SWOT Analysis
Assessing the Internal Environment
The Competitive Environment
Competitive Analysis
The Political and Legal Environment
The Economic Environment
Natural Resources
The Mission Statement KEY TAKEAWAY REVIEW QUESTIONS
Developing Objectives
Formulating Strategies KEY TAKEAWAY REVIEW QUESTIONS
Questions Marks or Problem Children
The General Electric Approach KEY TAKEAWAY REVIEW QUESTIONS
Stage 1. Need Recognition
Stage 2. Search for Information
Stage 3. Product Evaluation
Stage 4. Product Choice and Purchase
Stage 5. Postpurchase Use and Evaluation
Stage 6. Disposal of the Product
Low-Involvement versus High-Involvement Buying Decisions KEY TAKEAWAY REVIEW QUESTIONS
The Consumer’s Physical Situation
The Consumer’s Social Situation
The Consumer’s Time Situation
The Reason for the Consumer’s Purchase
The Consumer’s Mood KEY TAKEAWAY REVIEW QUESTIONS
The Consumer’s Personality
The Consumer’s Self-Concept
The Consumer’s Gender
The Consumer’s Age and Stage of Life
The Consumer’s Lifestyle
Audio Clip KEY TAKEAWAY REVIEW QUESTIONS
The Consumer’s Perception
Consumer’s Attitude KEY TAKEAWAY REVIEW QUESTIONS
The Consumer’s Culture
The Consumer’s Subculture(s)
The Consumer’s Social Class
Reference Groups and Opinion Leaders
The Consumer’s Family KEY TAKEAWAY REVIEW QUESTIONS
The Demand for B2B Products KEY TAKEAWAY REVIEW QUESTIONS
Governments
Institutions
Who Makes the Purchasing Decisions in Business Markets? KEY TAKEAWAY REVIEW QUESTIONS
Influencers
Gatekeepers
The Interpersonal and Personal Dynamics of B2B Marketing KEY TAKEAWAY REVIEW QUESTIONS
Stages in the B2B Buying Process
Types of B2B Buying Situations KEY TAKEAWAY REVIEW QUESTIONS
International B2B Markets
Types of B2B Web Sites
Pricing in E-commerce Markets KEY TAKEAWAY REVIEW QUESTIONS
Ethics in B2B Markets LEARNING OBJECTIVES KEY TAKEAWAY REVIEW QUESTIONS
Benefits of Segmenting and Targeting Markets
Segmenting and Targeting a Firm’s Current Customers Steps in One-to-One Marketing
Types of Segmentation Bases
Segmenting by Behavior
Age Burger King Advergame
Family Life Cycle
Segmenting by Geography
Segmenting by Psychographics
Segmentation in B2B Markets KEY TAKEAWAY REVIEW QUESTIONS
Selecting Target Markets
Target-Market Strategies: Choosing the Number of Markets to Target
Multisegment Marketing
Concentrated Marketing
Targeting Global Markets KEY TAKEAWAY REVIEW QUESTIONS
Product, Price, and Service
The Product-Dominant Approach to Marketing
The Service-Dominant Approach to Marketing
Product Levels and Product Lines KEY TAKEAWAY REVIEW QUESTIONS
Convenience Offerings
Shopping Offerings
Specialty Offerings
Unsought Offerings KEY TAKEAWAY REVIEW QUESTIONS
Capital Equipment Offerings
Raw Materials Offerings
OEM Offerings or Components
MRO Offerings
Facilitating Offerings KEY TAKEAWAY REVIEW QUESTIONS
Packaging Decisions KEY TAKEAWAY REVIEW QUESTIONS
Managing the Offering LEARNING OBJECTIVES KEY TAKEAWAY REVIEW QUESTIONS
Idea Generation
Idea Screening
Feature Specification
Development
Launch or Commercialization
Evaluation KEY TAKEAWAY REVIEW QUESTIONS
The Introduction Stage
The Growth Stage
The Maturity Stage
The Decline Stage KEY TAKEAWAY REVIEW QUESTIONS
Wholesalers
Merchant Wholesalers
Manufacturers’ Sales Offices or Branches
Retailers KEY TAKEAWAY REVIEW QUESTIONS
Disintermediation
Multiple Channels and Alternate Channels
International Marketing Channels KEY TAKEAWAY REVIEW QUESTIONS
Disseminate Marketing Communications and Promote Brands
Sorting and Regrouping Products
Storing and Managing Inventory
Distributing Products
Assume Ownership Risk and Extend Credit
Share Marketing and Other Information KEY TAKEAWAY REVIEW QUESTIONS
Type of Customer
Type of Product
Channel Partner Capabilities
The Business Environment and Technology
Competing Products’ Marketing Channels
Factors That Affect a Product’s Intensity of Distribution KEY TAKEAWAY REVIEW QUESTIONS
Channel Power
Vertical versus Horizontal Conflict
Achieving Channel Cooperation Ethically
Channel Integration: Vertical and Horizontal Marketing Systems KEY TAKEAWAY REVIEW QUESTIONS
Marketing Channels versus Supply Chains LEARNING OBJECTIVES KEY TAKEAWAY REVIEW QUESTION
Some of the Ins and Outs of Outsourcing
Matching a Company’s Sourcing Strategies with the Needs of Its Customers KEY TAKEAWAY REVIEW QUESTIONS
Demand Planning
Inventory Control
Just-in-Time Inventory Systems
Product Tracking KEY TAKEAWAY REVIEW QUESTIONS
How Warehouses and Distribution Centers Function
Pipelines KEY TAKEAWAY REVIEW QUESTIONS
Track and Trace Systems
Reverse Logistics KEY TAKEAWAY REVIEW QUESTIONS
Internally Generated Data and Reports
Search Engines and Corporate Web Sites
Publications
Trade Shows and Associations
Salespeople
Suppliers and Industry Experts
Can Market Intelligence Be Taken Too Far?
Is Marketing Research Always Correct? KEY TAKEAWAY REVIEW QUESTIONS
Step 1: Define the Problem (or Opportunity)
Sources of Secondary Data
Gauging the Quality of Secondary Data Gauging the Credibility of Secondary Data: Questions to Ask
Types of Research Design The Basic Steps of Conducting a Focus Group
Descriptive Research
Causal Research
Questionnaire Design
Testing the Questionnaire
Step 4: Specify the Sample
Collecting International Marketing Research Data
Step 6: Analyze the Data
Stage 7: Write the Research Report and Present Its Findings KEY TAKEAWAY REVIEW QUESTIONS
Integrated Marketing Communications (IMC) and New Media LEARNING OBJECTIVES KEY TAKEAWAY REVIEW QUESTIONS
The Promotion (Communication) Mix LEARNING OBJECTIVES KEY TAKEAWAY REVIEW QUESTIONS
The Promotion Mix
The Communication Process
Perceptual Processes KEY TAKEAWAY REVIEW QUESTIONS
Utilizing a Product’s Unique Selling Proposition (USP)
The Organization’s Promotion Objectives
Message Characteristics KEY TAKEAWAY REVIEW QUESTIONS
The Promotion Budget LEARNING OBJECTIVES KEY TAKEAWAY REVIEW QUESTIONS
Press Releases An Example of a Press Release to Introduce a New Product An Example of a Press Release to Show How a Company Helps Feed the Hungry and Restock Food Banks around the Country
Sponsorships
Product Placements KEY TAKEAWAY REVIEW QUESTIONS
Types of Consumer Sales Promotions
Types of Trade Promotions KEY TAKEAWAY REVIEW QUESTIONS
What Salespeople Do
Creating Value
Managing Relationships
Gathering Information
Missionary Salespeople
Trade Salespeople
Prospectors
Account Managers KEY TAKEAWAY REVIEW QUESTIONS
Customer Relationships
Types of Sales Relationships
Script-Based Selling
Needs-Satisfaction Selling
Consultative Selling
Strategic-Partner Selling
Choosing the Right Sales Strategy for the Relationship Type and Selling Stage KEY TAKEAWAY REVIEW QUESTIONS
The Sales Cycle
Metrics Used by Salespeople
Metrics Used by Sales Managers KEY TAKEAWAY REVIEW QUESTIONS
Common Ethical Issues for Salespeople
Company Safeguards
Challenges Facing Sales Managers KEY TAKEAWAY REVIEW QUESTIONS
Marketing Shortens the Sales Cycle
Marketing Improves Conversion Ratios by Scoring Leads
Salespeople Communicate Market Feedback
Salespeople Monitor the Competition KEY TAKEAWAY REVIEW QUESTIONS
Types of Outsourced Salespeople
Advantages and Disadvantages of Outsourcing KEY TAKEAWAY REVIEW QUESTIONS
Influencer Panels
Organizing and Managing Influencer Panels
Social Networking Sites and Other Social Media KEY TAKEAWAY REVIEW QUESTIONS
Behavioral Loyalty
Attitudinal Loyalty
The Positive Effects of Loyalty Programs
The Longevity Effect
The Blocker Effect
The Spreader Effect
The Accelerator Effect
Criteria for Successful Loyalty Programs
Good Performance by a Company
Responsiveness by a Company
Shared Identity among Participants
Clear Benefits
Community Development KEY TAKEAWAY REVIEW QUESTIONS
Customer Satisfaction Defined
Customer Satisfaction Strategies
Measuring Customer Satisfaction
Handling the Complaint Process KEY TAKEAWAY REVIEW QUESTIONS
Privacy Laws
Warranties and Promises
Protecting Your Company KEY TAKEAWAY REVIEW QUESTIONS
The Pricing Framework
Earning a Targeted Return on Investment (ROI)
Maximizing Profits
Maximizing Sales
Maximizing Market Share
Maintaining the Status Quo KEY TAKEAWAY REVIEW QUESTIONS
Competitors
The Economy and Government Laws and Regulations
Product Costs KEY TAKEAWAY REVIEW QUESTIONS
Introductory Pricing Strategies
Pricing Approaches
Price Adjustments KEY TAKEAWAY REVIEW QUESTIONS
Marketing Planning Roles LEARNING OBJECTIVE KEY TAKEAWAY REVIEW QUESTIONS
The Marketing Plan’s Outline
The Executive Summary
The Business Challenge
Company Analysis
Collaborators
Business Climate
The Offering
The Communication Plan
Distribution
Conclusion KEY TAKEAWAY REVIEW QUESTIONS
Judgment and Survey Techniques
Customer and Channel Surveys
Sales Force Composite
Executive Opinion
Expert Opinion
Time Series Techniques
Correlates and Other Models
Response Models
Market Tests
Pick the Right Method(s) for Your Business and Your Decision
Use Multiple Methods
Use Many Variables
Use Scenario-Based Forecasts
Track Actual Results and Adjust KEY TAKEAWAY REVIEW QUESTIONS
The Marketing Audit
Back Matter

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BUS602: Marketing Management

The Consumer's Decision Making Process

Read these sections on the consumer purchase decision process. Consider the degree of involvement in a purchase, and how this would apply to some, but not all purchasing decisions.

Low-Involvement Versus High-Involvement Buying Decisions and the Consumer's Decision-Making Process

Learning objectives.

Distinguish between low-involvement and high-involvement buying decisions.
Understand what the stages of the buying process are and what happens in each stage.

As you have seen, many factors influence a consumer's behavior. Depending on a consumer's experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The level of involvement reflects how personally important or interested you are in consuming a product and how much information you need to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product, although some products such as purchasing a house typically require a high-involvement for all consumers. Consumers with no experience purchasing a product may have more involvement than someone who is replacing a product. You have probably thought about many products you want or need but never did much more than that. At other times, you've probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives. As Nike would put it, you "just do it". Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if she makes a mistake by purchasing them. Consumers often engage in routine response behavior when they make low-involvement decisions - that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you're engaging in routine response behavior. You may not even think about other drink options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search. Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you're waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you're hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren't necessarily products purchased on impulse, although they can be. By contrast, high-involvement decisions carry a higher risk to buyers if they fail, are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don't engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what's called extended problem solving , where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties. High-involvement decisions can cause buyers a great deal of postpurchase dissonance (anxiety) if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that postpurchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won't let the consumer down. Salespeople may be utilized to answer questions and do a lot of customer "hand-holding". Figure 3.8

Allstate's "You're in Good Hands" advertisements are designed to convince consumers that the insurance company won't let them down. Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You're going to spend some time looking for one that's decent because you don't want it to fall apart while you're traveling and dump everything you've packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who's knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process. Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers' questions. Brand names can also be very important regardless of the consumer's level of purchasing involvement. Consider a low- versus high-involvement decision - say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you "search time" and eliminates the evaluation period because you know what you're getting. When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that's "not Jap [Japanese made] is crap". The quality of American cars is very good today, but you get the picture. If it's a high-involvement product you're purchasing, a good brand name is probably going to be very important to you. That's why the manufacturers of products that are typically high-involvement decisions can't become complacent about the value of their brands.

1970s American Cars

Stages in the Buying Process

Figure 3.9 "Stages in the Consumer's Purchasing Process" outlines the buying stages consumers go through. At any given time, you're probably in a buying stage for a product or service. You're thinking about the different types of things you want or need to eventually buy, how you are going to find the best ones at the best price, and where and how you will buy them. Meanwhile, there are other products you have already purchased that you're evaluating. Some might be better than others. Will you discard them, and if so, how? Then what will you buy? Where does that process start? Figure 3.9 Stages in the Consumer's Purchasing Process

Stage 1. Need Recognition

You plan to backpack around the country after you graduate and don't have a particularly good backpack. You realize that you must get a new backpack. You may also be thinking about the job you've accepted after graduation and know that you must get a vehicle to commute. Recognizing a need may involve something as simple as running out of bread or milk or realizing that you must get a new backpack or a car after you graduate. Marketers try to show consumers how their products and services add value and help satisfy needs and wants. Do you think it's a coincidence that Gatorade, Powerade, and other beverage makers locate their machines in gymnasiums so you see them after a long, tiring workout? Previews at movie theaters are another example. How many times have you heard about a movie and had no interest in it - until you saw the preview? Afterward, you felt like you had to see it.

Stage 2. Search for Information

For products such as milk and bread, you may simply recognize the need, go to the store, and buy more. However, if you are purchasing a car for the first time or need a particular type of backpack, you may need to get information on different alternatives. Maybe you have owned several backpacks and know what you like and don't like about them. Or there might be a particular brand that you've purchased in the past that you liked and want to purchase in the future. This is a great position for the company that owns the brand to be in - something firms strive for. Why? Because it often means you will limit your search and simply buy their brand again. If what you already know about backpacks doesn't provide you with enough information, you'll probably continue to gather information from various sources. Frequently people ask friends, family, and neighbors about their experiences with products. Magazines such as Consumer Reports (considered an objective source of information on many consumer products) or Backpacker Magazine might also help you. Similar information sources are available for learning about different makes and models of cars. Internet shopping sites such as Amazon.com have become a common source of information about products. Epinions.com is an example of a consumer-generated review site. The site offers product ratings, buying tips, and price information. Amazon.com also offers product reviews written by consumers. People prefer "independent" sources such as this when they are looking for product information. However, they also often consult non-neutral sources of information, such advertisements, brochures, company websites, and salespeople.

Stage 3. Product Evaluation

Obviously, there are hundreds of different backpacks and cars available. It's not possible for you to examine all of them. In fact, good salespeople and marketing professionals know that providing you with too many choices can be so overwhelming that you might not buy anything at all. Consequently, you may use choice heuristics or rules of thumb that provide mental shortcuts in the decision-making process. You may also develop evaluative criteria to help you narrow down your choices. Backpacks or cars that meet your initial criteria before the consideration will determine the set of brands you'll consider for purchase. Evaluative criteria are certain characteristics that are important to you such as the price of the backpack, the size, the number of compartments, and color. Some of these characteristics are more important than others. For example, the size of the backpack and the price might be more important to you than the color - unless, say, the color is hot pink and you hate pink. You must decide what criteria are most important and how well different alternatives meet the criteria. Figure 3.10

Osprey backpacks are known for their durability. The company has a special design and quality control center, and Osprey's salespeople annually take a "canyon testing" trip to see how well the company's products perform. Companies want to convince you that the evaluative criteria you are considering reflect the strengths of their products. For example, you might not have thought about the weight or durability of the backpack you want to buy. However, a backpack manufacturer such as Osprey might remind you through magazine ads, packaging information, and its Web site that you should pay attention to these features - features that happen to be key selling points of its backpacks. Automobile manufacturers may have similar models, so don't be afraid to add criteria to help you evaluate cars in your consideration set.

Stage 4. Product Choice and Purchase

With low-involvement purchases, consumers may go from recognizing a need to purchasing the product. However, for backpacks and cars, you decide which one to purchase after you have evaluated different alternatives. In addition to which backpack or which car, you are probably also making other decisions at this stage, including where and how to purchase the backpack (or car) and on what terms. Maybe the backpack was cheaper at one store than another, but the salesperson there was rude. Or maybe you decide to order online because you're too busy to go to the mall. Other decisions related to the purchase, particularly those related to big-ticket items, are made at this point. For example, if you're buying a high-definition television, you might look for a store that will offer you credit or a warranty.

Stage 5. Postpurchase Use and Evaluation

At this point in the process you decide whether the backpack you purchased is everything it was cracked up to be. Hopefully it is. If it's not, you're likely to suffer what's called postpurchase dissonance . You might call it buyer's remorse. Typically, dissonance occurs when a product or service does not meet your expectations. Consumers are more likely to experience dissonance with products that are relatively expensive and that are purchased infrequently. You want to feel good about your purchase, but you don't. You begin to wonder whether you should have waited to get a better price, purchased something else, or gathered more information first. Consumers commonly feel this way, which is a problem for sellers. If you don't feel good about what you've purchased from them, you might return the item and never purchase anything from them again. Or, worse yet, you might tell everyone you know how bad the product was. Companies do various things to try to prevent buyer's remorse. For smaller items, they might offer a money back guarantee or they might encourage their salespeople to tell you what a great purchase you made. How many times have you heard a salesperson say, "That outfit looks so great on you!" For larger items, companies might offer a warranty, along with instruction booklets, and a toll-free troubleshooting line to call or they might have a salesperson call you to see if you need help with product. Automobile companies may offer loaner cars when you bring your car in for service. Companies may also try to set expectations in order to satisfy customers. Service companies such as restaurants do this frequently. Think about when the hostess tells you that your table will be ready in 30 minutes. If they seat you in 15 minutes, you are much happier than if they told you that your table would be ready in 15 minutes, but it took 30 minutes to seat you. Similarly, if a store tells you that your pants will be altered in a week and they are ready in three days, you'll be much more satisfied than if they said your pants would be ready in three days, yet it took a week before they were ready.

Stage 6. Disposal of the Product

There was a time when neither manufacturers nor consumers thought much about how products got disposed of, so long as people bought them. But that's changed. How products are being disposed of is becoming extremely important to consumers and society in general. Computers and batteries, which leech chemicals into landfills, are a huge problem. Consumers don't want to degrade the environment if they don't have to, and companies are becoming more aware of this fact. Take for example Crystal Light, a water-based beverage that's sold in grocery stores. You can buy it in a bottle. However, many people buy a concentrated form of it, put it in reusable pitchers or bottles, and add water. That way, they don't have to buy and dispose of plastic bottle after plastic bottle, damaging the environment in the process. Windex has done something similar with its window cleaner. Instead of buying new bottles of it all the time, you can purchase a concentrate and add water. You have probably noticed that most grocery stores now sell cloth bags consumers can reuse instead of continually using and discarding of new plastic or paper bags. Figure 3.11

The hike up to Mount Everest used to be pristine. Now it looks more like this. Who's responsible? Are consumers or companies responsible, or both? Other companies are less concerned about conservation than they are about planned obsolescence. Planned obsolescence is a deliberate effort by companies to make their products obsolete, or unusable, after a period of time. The goal is to improve a company's sales by reducing the amount of time between the repeat purchases consumers make of products. When a software developer introduces a new version of product, it is usually designed to be incompatible with older versions of it. For example, not all the formatting features are the same in Microsoft Word 2007 and 2010. Sometimes documents do not translate properly when opened in the newer version. Consequently, you will be more inclined to upgrade to the new version so you can open all Word documents you receive. Products that are disposable are another way in which firms have managed to reduce the amount of time between purchases. Disposable lighters are an example. Do you know anyone today that owns a nondisposable lighter? Believe it or not, prior to the 1960s, scarcely anyone could have imagined using a cheap disposable lighter. There are many more disposable products today than there were in years past - including everything from bottled water and individually wrapped snacks to single-use eye drops and cell phones. Figure 3.12

Disposable lighters came into vogue in the United States in the 1960s. You probably don't own a cool, nondisposable lighter like one of these, but you don't have to bother refilling it with lighter fluid either.

Key Takeaways

Consumer behavior looks at the many reasons why people buy things and later dispose of them. Consumers go through distinct buying phases when they purchase products: (1) realizing the need or wanting something, (2) searching for information about the item, (3) evaluating different products, (4) choosing a product and purchasing it, (5) using and evaluating the product after the purchase, and (6) disposing of the product. A consumer's level of involvement is how interested he or she is in buying and consuming a product. Low-involvement products are usually inexpensive and pose a low risk to the buyer if he or she makes a mistake by purchasing them. High-involvement products carry a high risk to the buyer if they fail, are complex, or have high price tags. Limited-involvement products fall somewhere in between.

Review Questions

How do low-involvement decisions differ from high-involvement decisions in terms of relevance, price, frequency, and the risks their buyers face? Name some products in each category that you've recently purchased.
What stages do people go through in the buying process for high-involvement decisions? How do the stages vary for low-involvement decisions?
What is postpurchase dissonance and what can companies do to reduce it?

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3.2 Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process

Learning objectives.

Distinguish between low-involvement and high-involvement buying decisions.
Understand what the stages of the buying process are and what happens in each stage.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying . While you’re waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be.

Allstate’s “You’re in Good Hands” advertisements are designed to convince consumers that the insurance company won’t let them down.

Mike Mozart – Allstate, – CC BY 2.0.

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

1970s American Cars

<a target=”_blank” href=”http://www.youtube.com/watch?v=pjzpx_jUUA0″(Link to American Cars video)

Stages in the Buying Process

Figure 3.9 Stages in the Consumer’s Purchasing Process

Stage 1. Need Recognition

Stage 2. Search for Information

Stage 3. Product Evaluation

Figure 3.10

melanie innis – break – CC BY-NC-ND 2.0.

Stage 4. Product Choice and Purchase

Stage 5. Postpurchase Use and Evaluation

Stage 6. Disposal of the Product

Figure 3.11

The hike up to Mount Everest used to be pristine. Now it looks more like this. Who’s responsible? Are consumers or companies responsible, or both?

jqpubliq – Recycling Center Pile – CC BY-SA 2.0.

Figure 3.12

Europeana staff photographer – A trench art lighter – public domain.

Key Takeaways

Review Questions

How do low-involvement decisions differ from high-involvement decisions in terms of relevance, price, frequency, and the risks their buyers face? Name some products in each category that you’ve recently purchased.
What stages do people go through in the buying process for high-involvement decisions? How do the stages vary for low-involvement decisions?
What is postpurchase dissonance and what can companies do to reduce it?

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COMMENTS

Involvement Levels
Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.
3.2 Low-Involvement Versus High-Involvement Buying Decisions and the
Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.
Types of Consumer Decision
Consumer decisions can be categorized into three primary types: Routinized Response - This is the kind of decision where you don't really have to think much about it. Limited Problem Solving - This type of purchase decision involves a little more thinking or a little more consideration. Extensive Problem Solving - This is when we're making a ...
Consumer Behavior: Low-Involvement Versus High-Involvement Buying
Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.
Four Modes of Consumer Decision Making
Extended problem solving. Extended problem solving customer decision - making mode relates to a situation where customers lack experience in a specific consumption setting, nevertheless, the setting is perceived by them as a highly involving. The products are usually of a high value and they also contribute to an individual's social status, however, their purchase is often associated with ...
29 Consumer Decision Making Process
Unlike routine problem solving, extended or extensive problem solving comprises external research and the evaluation of alternatives. Whereas, routine problem solving is low-involvement, inexpensive, and has limited risk if purchased, extended problem solving justifies the additional effort with a high-priced or scarce product, service, or ...
Principles of Marketing: Buyer Behavior
A marketer's goal with routine problem solving is to reinforce the purchase habits of existing customers and change the habits of non-existing customers. Limited problem-solving— In a limited problem-solving situation, a consumer is familiar with the product class and the major brands in the product class and knows the attributes and ...
Understanding Consumer Behavior
Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving. LO3 . Identify the major psychological influences on consumer behavior. LO4 . Identify the major sociocultural influences on consumer behavior.
Understanding Consumer Behavior
After reading this chapter you should be able to: Describe the stages in the consumer purchase decision process. Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.
Low-Involvement versus High-Involvement Buying Decisions
Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.
Understanding the 3 Types of Consumer Buying Decisions
There are three types of consumer decisions to consider: Nominal. Limited. Extended. Understanding the way that your consumers make decisions, is what informed marketing is all about. Let's examine it in more detail. 1. Nominal Decision-Making. Nominal decisions are often made about low-cost products.
Learning Objectives Review
LO2 Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving. Consumers don't always engage in the five-stage purchase decision process. Instead, they skip or minimize one or more stages depending on the level of involvement—the personal, social, and economic significance of ...
Extended versus limited problem-solving in purchase decisions
Principle: The purchase decision will range on a continuum from low to high level risk (financial, social or psychological) and will vary in terms of the amount of time devoted to the information search and the number of brand alternatives considered.
Low-Involvement versus High-Involvement Buying Decisions
These items are not purchased often. Buyers don't engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what's called extended problem solving, where they spend a lot of time comparing the features of the products, prices, warrantees, and so forth.
Marketing Chapter 5 Homework
1) Explain the differences between routine problem solving, limited problem solving, and extended problem solving. Give an example of when each might be used. Routine problem solving describes a habitual process in which a consumer recognizes a problem, makes a decision, and spends little effort in seeking external information.
Chapter 3
Study with Quizlet and memorize flashcards containing terms like Describe the stages in the consumer purchase decision process., Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem-solving., Routine-problem-solving and more.
BUS602: Marketing Management
Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.
Mktg. Ch.4 Quiz Flashcards
Study with Quizlet and memorize flashcards containing terms like A consumer will use one of three general problem solving variations- extended, limited, or routine- based on product knowledge and, Comparison of a product's performance with one's expectations to determine a level of satisfaction is most likely to occur in which stage of the purchase decision process?, For the purchase of a ...
3.2 Low-Involvement Versus High-Involvement Buying Decisions and the
Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip.

15 Involvement Levels

Low Involvement Consumer Decision Making

High Involvement Consumer Decision Making

Limited Problem Solving

Ways to Increase Involvement Levels

1. Customization

2. Engagement

3. Incentives

4. Appealing to Hedonic Needs

5. Creating Purpose

6. Representation

Media Attributions

Text Attributions

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3.2 Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process

Stages in the Buying Process

Stage 1. Need Recognition

Stage 2. Search for Information

Stage 3. Product Evaluation

Stage 4. Product Choice and Purchase

Stage 5. Postpurchase Use and Evaluation

Stage 6. Disposal of the Product

Key Takeaways

Review Questions

Share This Book

Types of Consumer Decision - Explained

What are the types of Consumer Decisions?

What is a Routinized Response?

What is Limited Problem Solving?

What is Extensive Problem Solving?

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Four Modes of Consumer Decision Making

Extended problem solving

Limited problem solving

Habit or variety seeking

Brand loyalty

29 Consumer Decision Making Process

The Consumer Decision Making Process

Need Recognition

Information Search

Evaluation of Alternatives

The Purchase Decision

Post-Purchase Behaviour

Media Attributions

Text Attributions

Share This Book

Module 4: Consumer Behavior

Stages in the Buying Process

Stage 1. Need Recognition

Stage 2. Search for Information

Stage 3. Product Evaluation

Stage 4. Product Choice and Purchase

Stage 5. Post-purchase Use and Evaluation

Stage 6. Disposal of the Product

Key Takeaways

Review Questions

Understanding the 3 Types of Consumer Buying Decisions

1. Nominal Decision-Making

2. Limited Decision-Making

3. Extended Decision-Making

Influencing Buyer Decisions

Customer Journey

Interactive Shopping Experiences for Ecommerce [+Examples]

Consumer Decision-making Process

Consumer Behavior

Ecommerce Marketing Strategies

Customer Reviews

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How To Boost Your E-Commerce Holiday Sales with Gift Finders

Why FOBO Impacts Consumer Confidence & Behavior

Convert High-Intent e-commerce Shoppers With Conversations

Extended versus limited problem-solving in purchase decisions

Elements of Extended versus limited problem-solving in purchase decisions:

Principle :

Applications :

Source of Extended versus limited problem-solving in purchase decisions :

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Low-Involvement versus High-Involvement Buying Decisions

KEY TAKEAWAY