essay on consumer decision making process

The Consumer Decision Making Process Essay

The Consumer Decision Making (CDM) process follows a series of steps which begins with problem recognition, followed by information search, consideration of alternatives, and eventually leads to purchase and evaluation. The presence of the Internet and the growth of e-commerce has led to a significant shift in online search and purchase behavior. Information systems content and design are more personalized and customizable, with the decision-making behavior of consumers segmented into archetypes of sources.

These are characterized by aspects such as intensity of shopping and product knowledge which ultimately affects the manner in which consumers conduct online research and purchase products. High levels of knowledge resulted in lower intensity, while low levels of product knowledge had the opposite effect (Karimi, Papamichail, & Holland, 2015).

Online shopping settings are inherently different from traditional retail, and the approach used during the CDM process depends on certain factors. For example, shopper preference indicates that the presence of sophisticated interactive tools assists shoppers in customizing their digital environment and products. The popularity of these online tools changes the way consumers perceive information about a product and makes subsequent decisions since the feature becomes an interactive decision aid.

In turn, this elicits more engagement from consumers (Dulabh, Vasquez, Ryding, & Casson, 2018). It is also important to note that online CDM processes can differ based on gender differences. Such aspects as interactivity, vividness, and perceived risk are gender-based consumer attitudes and can affect purchasing intentions. For example, the online product presentation had a greater impact on females rather than males. Marketers and designers who are attempting to establish an Internet presence for e-commerce should be gender-aware as these aspects can ultimately influence purchasing decisions (Lin, Featherman, Brooks, & Hajli, 2018).

Dulabh, M., Vazquez, D., Ryding, D., & Casson A. (2018). Measuring consumer engagement in the brain to online interactive shopping environments. In T. Jung & T. Mandy (Eds.), Augmented reality and virtual reality (pp. 145-165). Cham, Switzerland: Springer.

Karimi, S., Papamichail, K. N., & Holland, C. P. (2015). The effect of prior knowledge and decision-making style on the online purchase decision-making process: A typology of consumer shopping behaviour. Decision Support Systems, 77 , 137–147. Web.

Lin, X., Featherman, M., Brooks, S. L., & Hajli, N. (2018). Exploring gender differences in online consumer purchase decision making: An online product presentation perspective. Information Systems Frontiers , 1-15. Web.

• Jean-Michel Basquiat's Life Discussion
• Male Archetypes in Advertising
• Rationale and Interactivity Design
• Consumer Research: Causal Explanations of Change
• Consumerism: Where Does Our Stuff Come From?
• Price Influence on Energy Drink Consumption Behavior
• Customer Service: Quality and Protection
• Consumer Behaviour: New Perspectives
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2021, June 13). The Consumer Decision Making Process. https://ivypanda.com/essays/the-consumer-decision-making-process/

"The Consumer Decision Making Process." IvyPanda , 13 June 2021, ivypanda.com/essays/the-consumer-decision-making-process/.

IvyPanda . (2021) 'The Consumer Decision Making Process'. 13 June.

IvyPanda . 2021. "The Consumer Decision Making Process." June 13, 2021. https://ivypanda.com/essays/the-consumer-decision-making-process/.

1. IvyPanda . "The Consumer Decision Making Process." June 13, 2021. https://ivypanda.com/essays/the-consumer-decision-making-process/.

Bibliography

IvyPanda . "The Consumer Decision Making Process." June 13, 2021. https://ivypanda.com/essays/the-consumer-decision-making-process/.

Definition and examples of the consumer decision-making process

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What is the consumer decision making process

The consumer decision-making process involves five basic steps. This is the process by which consumers evaluate making a purchasing decision. The 5 steps are problem recognition, information search, alternatives evaluation, purchase decision and post-purchase evaluation.

5 steps of the consumer decision making process

• Problem recognition : Recognizes the need for a service or product
• Information search : Gathers information
• Alternatives evaluation : Weighs choices against comparable alternatives
• Purchase decision : Makes actual purchase
• Post-purchase evaluation : Reflects on the purchase they made

The consumer decision-making process can seem mysterious, but all consumers go through basic steps when making a purchase to determine what products and services will best fit their needs. 

Think about your own thought process when buying something—especially when it’s something big, like a car. You consider what you need, research, and compare your options before making the decision to buy. Afterward, you often wonder if you made the right call. 

If you work in sales or marketing, make more of an impact by putting yourself in the customer’s shoes and reviewing the steps in the consumer decision-making process.

Steps in the consumer decision process

Generally speaking, the consumer decision-making process involves five basic steps.

1. Problem recognition

The first step of the consumer decision-making process is recognizing the need for a service or product. Need recognition, whether prompted internally or externally, results in the same response: a want. Once consumers recognize a want, they need to gather information to understand how they can fulfill that want, which leads to step two.

But how can you influence consumers at this stage? Since internal stimulus comes from within and includes basic impulses like hunger or a change in lifestyle, focus your sales and marketing efforts on external stimulus. 

Develop a comprehensive brand campaign to build brand awareness and recognition––you want consumers to know you and trust you. Most importantly, you want them to feel like they have a problem only you can solve.

Example: Winter is coming. This particular customer has several light jackets, but she’ll need a heavy-duty winter coat if she’s going to survive the snow and lower temperatures.

2. Information search

When researching their options, consumers again rely on internal and external factors, as well as past interactions with a product or brand, both positive and negative. In the information stage, they may browse through options at a physical location or consult online resources, such as Google or customer reviews.

Your job as a brand is to give the potential customer access to the information they want, with the hopes that they decide to purchase your product or service. Create a funnel and plan out the types of content that people will need. Present yourself as a trustworthy source of knowledge and information. 

Another important strategy is word of mouth—since consumers trust each other more than they do businesses, make sure to include consumer-generated content, like customer reviews or video testimonials, on your website.

Example: The customer searches “women’s winter coats” on Google to see what options are out there. When she sees someone with a cute coat, she asks them where they bought it and what they think of that brand.

3. Alternatives evaluation

At this point in the consumer decision-making process, prospective buyers have developed criteria for what they want in a product. Now they weigh their prospective choices against comparable alternatives.

Example: The customer compares a few brands that she likes. She knows that she wants a brightly colored coat that will complement the rest of her wardrobe, and though she would rather spend less money, she also wants to find a coat made from sustainable materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the purchase. Once they have gathered all the facts, including feedback from previous customers, consumers should arrive at a logical conclusion on the product or service to purchase.

If you’ve done your job correctly, the consumer will recognize that your product is the best option and decide to purchase it.

Example: The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand uses sustainable materials and asking friends for their feedback, she orders the coat online.

5. Post-purchase evaluation

This part of the consumer decision-making process involves reflection from both the consumer and the seller. As a seller, you should try to gauge the following:

• Did the purchase meet the need the consumer identified?
• Is the customer happy with the purchase?
• How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues to have a positive experience with your product. Post-purchase engagement could include follow-up emails, discount coupons, and newsletters to entice the customer to make an additional purchase. You want to gain life-long customers, and in an age where anyone can leave an online review, it’s more important than ever to keep customers happy.

Tools to better understand your customer

Putting yourself in the customer’s shoes can help you steer consumers towards your product. Here are some tools to help you analyze their decision-making process and refine your brand marketing and sales tactics.

Customer journey map

A customer journey map visualizes a hypothetical customer’s actions. Use it to empathize with your customers as they go through a specific process or try to complete a purchase. Map out the actions the customer is likely to take.

Learn how to make a customer journey map to understand the decision-making process for your product/service.

Empathy map

Empathy maps help teams understand the customer’s mindset when dealing with a product or service. They can be used for personas or specific customer types. Empathy mapping is often most helpful at the beginning of a new project. Collaborate as a team to quickly get inside the heads of your customers during every step of product development, testing, and release.

Learn how empathy maps work so you can understand your customers better and make customer-oriented decisions .

User personas

Based on user research or past user interactions, user persona cards construct fictional or composite personas that break down and organize your data into distinctive types of users. Build a more human picture of your users and understand your user base better by creating user personas for the various types of users for your product or service.

Understanding the consumer decision-making process is key if you want to attract more customers and get them to make that crucial purchase. Use this process and the tools above to tune in to consumers and genuinely understand how to reach them.

Visualize your own customer journey map.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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Five Key Stages of Consumer Decision-Making Process

Quick Summary

The buyer decision process outlines the steps consumers take from recognizing a need to post-purchase behaviour, which is crucial for effective marketing strategies. The five stages are need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour. Psychological, personal, social, and cultural factors influence consumer decisions. Marketers can use these insights to create impactful campaigns. The blog provides actionable tips and case studies for each stage.

Understanding consumer behaviour is essential for businesses aiming to influence purchase decisions. The buyer decision process provides a structured approach to deciphering how consumers move from recognizing a need to post-purchase evaluations. This knowledge is vital for marketers to tailor their strategies, ensuring they meet consumer needs at every stage.

The consumer decision-making process encompasses various stages, each offering opportunities for engagement. Recognizing these stages helps businesses create targeted campaigns and improve customer satisfaction. This blog aims to provide a detailed guide on the consumer purchase decision process, highlighting its importance and offering actionable tips for marketers to influence consumer decisions effectively. 

What is the Buyer Decision Process?

The buyer decision process is a sequence of steps consumers go through when deciding to purchase a product or service. This process is significant in marketing because it helps businesses understand and anticipate consumer needs, improving their strategies to influence buying behaviour effectively.

Understanding the consumer decision-making process allows marketers to engage consumers at each stage, enhancing their overall experience. This process is deeply rooted in consumer behaviour theories, which explain how and why consumers make purchasing decisions. The key stages include need recognition, information search, evaluation of alternatives, purchase decisions, and post-purchase behaviour.

The consumer purchase decision process involves understanding consumer needs and providing solutions that align with those needs. Marketers can leverage insights from this process to develop targeted campaigns that resonate with their audience, ultimately driving sales and fostering customer loyalty. By comprehending each stage of the consumer buying process, businesses can create more effective marketing strategies and improve customer satisfaction. 

The Five Stages of the Consumer Buying Process

1. Need Recognition

Consumers identify a need or problem that requires a solution. This can be triggered by internal stimuli like hunger or external stimuli such as advertisements. Marketers can influence this stage by understanding consumer needs through market research and creating targeted campaigns that highlight these needs. For instance, health-conscious consumers might recognize a need for nutrient-rich snacks due to fitness goals.

2. Information Search

Once a need is recognized, consumers seek information to fulfil it. They use various sources, including search engines, reviews, and personal recommendations. Marketers should ensure their content is easily accessible through SEO strategies, informative ads, and engaging social media content. For example, a consumer looking for a new smartphone might read online reviews and watch product videos.

3. Evaluation of Alternatives

Consumers compare different products or services to make a decision. They consider factors like price, quality, and reviews. Marketers can influence this stage by providing detailed product information, positive customer testimonials, and competitive pricing. For example, when choosing a laptop, consumers might compare specs, prices, and user reviews.

4. Purchase Decision

At this stage, the consumer decides to purchase. Influencing factors include promotions, convenience, and previous experiences. To reduce cart abandonment, marketers should focus on optimizing the purchasing process, offering incentives, and ensuring a smooth checkout experience. An online store with an easy checkout process and promotional discounts can encourage purchases.

5. Post-Purchase Behavior

After the purchase, consumers evaluate their satisfaction with the product or service. Positive experiences can lead to repeat purchases and brand loyalty, while negative experiences may result in returns or negative reviews. Marketers can enhance post-purchase satisfaction through follow-up emails, loyalty programs, and responsive customer service. A company can send a thank-you email with a discount code for future purchases, encouraging repeat business.

Understanding these five stages of the consumer decision-making process allows businesses to engage with consumers at each step effectively. By tailoring strategies to the consumer purchase decision process, marketers can better meet consumer needs and drive sales. 

Factors Influencing the Consumer Decision-Making Process

1. Psychological Factors

Psychological factors play a significant role in the buyer decision process. These include motivation, perception, beliefs, and attitudes. For instance, a consumer’s motivation to buy a healthy snack could stem from a desire for better health. Marketers can create messages that resonate with these psychological triggers, making their products more appealing.

2. Personal Factors

Personal factors such as age, occupation, lifestyle, and economic status influence the consumer buying process. Younger consumers might prioritize trendy, tech-savvy products, while older consumers may focus on practicality and reliability. Tailoring marketing efforts to these personal factors can improve relevance and effectiveness.

3. Social Factors

Social factors like family, roles, and social status impact buying decisions. A consumer might choose a brand because it’s popular among their peers or family. Marketers should consider these influences when developing campaigns, ensuring they appeal to the target audience’s social dynamics.

4. Cultural Factors

Cultural factors, including culture, subculture, and social class, shape consumer preferences and behaviours. Understanding cultural nuances can help marketers create more targeted and appealing messages. For example, a product marketed in a culturally diverse area should reflect the values and traditions of the local population.

By understanding these factors, businesses can tailor their strategies to align with the consumer purchase decision process. This alignment enhances their ability to influence consumer decisions, driving sales and fostering loyalty. 

The Role of Digital Marketing in the Buyer Decision Process

1. Impact of Online Reviews and Social Media

Online reviews and social media significantly influence the buyer decision process. Consumers often rely on reviews and social media feedback to make informed choices. Positive reviews and social proof can enhance a brand’s credibility, while negative reviews can deter potential buyers. Marketers should actively manage online reviews and engage with customers on social media to build a trustworthy reputation.

2. Importance of a Strong Online Presence

A strong online presence is crucial in the consumer buying process. Consumers search for information online before making a purchase. Having a well-optimized website and active social media profiles can ensure that consumers find relevant information about your products. SEO strategies and engaging content can attract potential customers during the information search stage.

3. Strategies for Engaging Consumers at Each Stage

Marketers can use various strategies to engage consumers at each stage of the consumer decision-making process:

• Need Recognition: Create awareness through targeted ads and social media campaigns.
• Information Search: Provide detailed product information, blog posts, and FAQs on your website.
• Evaluation of Alternatives: Offer comparisons, customer testimonials, and product demos.
• Purchase Decision: Simplify the checkout process and offer promotions.
• Post-Purchase Behavior: Follow up with emails, request feedback, and offer loyalty programs.

By effectively using digital marketing, businesses can influence the consumer purchase decision process and drive higher engagement and conversions. 

Tips for Marketers to Influence the Buyer Decision Process

1. Creating Compelling Content for Need Recognition

Develop content that addresses consumer needs and pain points. Use targeted ads and informative blog posts to create awareness. By highlighting your product’s benefits, you can trigger potential customers’ need for recognition.

2. Providing Valuable Information During the Search Phase

Ensure that your website is optimized for SEO and contains detailed product information. Offer blog posts, FAQs, and how-to guides. Engaging content helps consumers during the information search stage of the consumer buying process.

3. Highlighting Unique Selling Points and Benefits

During the evaluation stage of the consumer decision-making process, emphasize what sets your product apart. Use comparisons, customer testimonials, and product demos to showcase your unique selling points. This can help consumers see the value in choosing your product over competitors.

4. Offering Incentives and Promotions to Drive Purchases

Use promotions, discounts, and limited-time offers to encourage purchases. Simplify the checkout process to reduce cart abandonment. Incentives can be a strong motivator in the purchase decision stage of the consumer purchase decision process.

5. Ensuring Excellent Customer Service for Post-Purchase Satisfaction

Provide outstanding customer service to enhance post-purchase satisfaction. Follow up with emails, request feedback, and offer loyalty programs. Positive post-purchase experiences can lead to repeat business and brand loyalty, completing the buyer decision process successfully.

By implementing these tips, marketers can effectively influence each stage of the consumer buying process and drive better business results.

Case Studies: Brands Successfully Navigating the Buyer Decision Process

1. Warby Parker

Warby Parker, an eyewear brand, excels at understanding the buyer decision process. It engages consumers from need recognition to post-purchase behavior. The brand identified a gap in the market for affordable, stylish eyewear. 

By offering home try-ons, they address the need for recognition and information search stages. Their strong online presence and customer testimonials aid in the evaluation of alternatives. Simplified checkout processes and promotions drive purchase decisions. Post-purchase, Warby Parker ensures satisfaction through follow-up emails and excellent customer service, fostering brand loyalty.

2. Native Deodorant

Native Deodorant is another brand that effectively leverages the consumer decision-making process. It tapped into the rising demand for natural personal care products. By highlighting its aluminium-free deodorants, it addresses consumer needs for safe, effective options. 

Native uses influencer marketing and social media to enhance the information search stage. They provide detailed product information and comparisons to help consumers evaluate alternatives. Native’s straightforward purchasing process and promotional offers encourage purchases. Post-purchase, they engage customers through follow-up communications and loyalty programs, ensuring high satisfaction and repeat business.

Amazon excels at leveraging the buyer decision process to drive sales and enhance customer satisfaction. The company focuses on need recognition by offering a wide range of products and personalized recommendations based on previous purchases and browsing history. 

During the information search stage, Amazon provides detailed product descriptions, customer reviews, and Q&A sections. The evaluation of alternatives is facilitated by comparison features and extensive reviews. 

Amazon’s streamlined checkout process and one-click purchasing option simplify the purchase decision. Post-purchase, Amazon follows up with order confirmations, delivery tracking, and easy return policies to ensure customer satisfaction and loyalty.

4. Starbucks

Starbucks has mastered the consumer decision-making process by creating a strong brand identity and engaging customer experience. They recognize the need for a convenient, quality coffee experience and fulfill this need with accessible store locations and mobile ordering. 

Information about their products is readily available through their website and app, which also highlight customer reviews and nutritional information. Starbucks encourages the evaluation of alternatives by offering a diverse menu and seasonal promotions. 

The purchase decision is made seamless through a user-friendly app that allows for easy payments and loyalty rewards. Post-purchase, Starbucks engages customers with personalized offers and updates via their app and email newsletters, fostering loyalty and repeat business.

Apple effectively uses the consumer purchase decision process to build strong customer loyalty and drive sales. The company excels in need recognition by constantly innovating and creating products that meet evolving consumer demands. 

Apple’s comprehensive website, in-store experiences, and product demonstrations support information search. Apple also facilitates the evaluation of alternatives by showcasing product features, specifications, and customer testimonials. 

Apple makes the purchase decision easy through streamlined online and in-store purchasing processes and financing options. Post-purchase, Apple ensures customer satisfaction with exceptional customer service, support, and robust warranty programs, encouraging repeat purchases and brand advocacy.

Understanding the buyer decision process is essential for marketers who want to influence consumer behaviour effectively. By recognizing the stages of the consumer buying process, businesses can create targeted strategies that meet consumer needs at each step. This leads to improved engagement, higher conversion rates, and stronger customer loyalty.

Implementing strategies that align with the consumer decision-making process helps businesses stay competitive. It is important to continually adapt to changing consumer preferences and leverage digital tools to enhance marketing efforts. Encouraging marketers to apply these insights can drive better results and foster long-term customer relationships.

For further engagement or consultation services, reach out to us to enhance your marketing strategies based on the consumer purchase decision process.

What is the most important stage in the consumer buying process?

The most important stage can vary, but recognition is often critical. This stage initiates the entire buyer decision process. By identifying and understanding the consumer’s needs, businesses can tailor their marketing strategies to address and fulfill these needs effectively.

How do psychological factors affect consumer decision-making?

Psychological factors such as motivation, perception, beliefs, and attitudes significantly impact the consumer decision-making process. These factors shape how consumers recognize needs, search for information, evaluate options, and make purchase decisions. Marketers can create campaigns that resonate with these psychological triggers to influence consumer behavior.

What role does social media play in the buyer decision process?

Social media plays a vital role in every stage of the consumer buying process. It helps in need recognition through targeted ads and influencer endorsements. It aids in information search by providing reviews and recommendations. Social media also influences the evaluation of alternatives and can drive purchase decisions through promotions and social proof.

How can businesses improve post-purchase customer satisfaction?

Businesses can improve post-purchase satisfaction by offering excellent customer service, implementing loyalty programs, and actively seeking and addressing customer feedback. These actions ensure a positive post-purchase experience, fostering repeat business and loyalty within the consumer purchase decision process.

What are some common mistakes marketers make during the buyer decision process?

Common mistakes include neglecting the need recognition stage, providing insufficient information, ignoring customer feedback, and failing to optimize the purchasing experience. By understanding the consumer decision-making process and addressing these areas, marketers can improve their strategies and better meet consumer needs. 

I am currently pursuing my Masters in Communication and Journalism from University of Mumbai. I am the author of four self published books. I am interested inv writing for films and TV. I run a blog where I write about film reviews.

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Consumer Decision-Making Process: Case Study

Introduction, steps of consumer decision-making process, the influence of cultural norms and values on purchasing, environmental advocacy influence, price prioritization.

At different points in life, people make expensive purchases, which necessitate rational decision-making. My most recent big-ticket purchase was a smartphone, Samsung Galaxy s20 Plus 5g. As a low-income African American single mother of two children, I had many factors influencing my decision when making this purchase. The combination of price, convenience, social and cultural relevance, and brand reliability were the key impactful determinants. In this case study, I will analyze my recent purchase based on a consumer decision-making model to evaluate certain factors’ scope and level of impact.

In marketing, a significant level of attention is paid to analyzing how consumers make their decisions when shopping for goods. Despite various consumer decision-making models, a traditional five-stage model of consumer purchasing behavior is most illustrative of the essential steps in this process (Stankevich, 2017). These steps include needing recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior.

Firstly, at the stage of need recognition, I analyzed why my old smartphone did not serve its purpose to the fullest of my expectations. I understood that it lacked the latest software, it did not support some of the newest technological features, which limited my app use, and it was out of order occasionally, thus blocking my communication opportunities. Therefore, I needed a reliable and up-to-date device that would have the latest software and process online data fast for internet browsing and social media use.

Secondly, at the information search stage, I referred to my friends and social media platforms where bloggers shared their reviews of some phones available in the market. In addition, I browsed the internet websites to read feedback about the best options in the market, as well as visited the online stores to see the specifications and prices. Thirdly, when evaluating alternatives, I was considering iPhone 11 and Samsung Galaxy Note 10+ alongside Samsung Galaxy s20 Plus 5g. I compared and contrasted their prices, features, namely processors, camera quality, design, convenience, memory, and reviews on long-term use.

The alternative that fitted my needs and buying capabilities best was Samsung Galaxy s20 Plus 5g. Thus, in the fourth stage, when I decided to purchase the chosen smartphone, I faced two choices, which were buying it online or at a brick-and-mortar store. I decided to go to a physical store to reduce the waiting time, test the device, and ensure that the item is original and of the promised quality. Finally, during postpurchase, I shared my review online based on the experiences I had when using the smartphone.

The cultural environment, especially the US society and culture, produces consumerism in purchasing behavior; people think about how their social status would be affected by the purchase. Although consumers commonly adhere to rational thinking when making a big-ticket purchase, they are implicitly and explicitly exposed to cultural and social influence (Shabrin et al., 2017). When making my decision, I depended on the types of phones my friends and peers owned, as well as the way in which my daily life would become better when using a high-quality device. The cultural norms of convenience and satisfaction with daily life significantly influenced my decision-making process when purchasing a smartphone. Although it was slightly over my anticipated price range, I was aiming at long-term use, which validated this investment.

Environmental issues have not been a decisive factor in my purchasing decision-making. The Samsung company might address the environmental protection in their production and marketing, but for me, it was one of the least significant determinants. Commonly, sustainability in production adds value to the product and makes it more costly, which was an undesirable issue for me. However, at some point in my decision-making process, I validated my inclination toward more pricy and reliable devices by their long-term use, which will ensure less waste in the long-term perspective. Thus, my personal environmental concern but not the company advocacy played a pivotal role.

Since I represent a low-income population, prince considerations were of significant relevance when evaluating alternatives and making a final purchasing decision. When considering the cultural and environmental issues, the price would supersede them at the point where the cost of purchase would equal or exceed my monthly income. Since I am a single mother, I need to balance my expenses to provide for my children. Therefore, price plays a decisive role in my consumer behavior.

The modern consumerist world presents buyers with an abundance of products. When making a decision on a purchase, especially an expensive one, consumers take into consideration many factors. The process of purchasing decision-making consists of such steps as need identification, a search of information, alternative analysis, purchase, and postpurchase. At each of these stages, social, cultural, and environmental considerations influence one’s decision. As the analyzed case study demonstrates, while cultural norms and values impact purchasing, socio-economic status plays a decisive role.

Shabrin, N., Khandaker, S., Kashem, S. B. A., Hie, C. K., & Susila, T. (2017). Factors affecting smartphone purchase decisions of generation-Y. Journal of Contemporary Issues in Business and Government, 23 (1), 47-65.

Stankevich, A. (2017). Explaining the consumer decision-making process: Critical literature review. Journal of International Business Research and Marketing, 2 (6), 7-14.

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Stages of the Consumer Decision-Making Process

Checked : Aakanksha M. , Iris E.

Latest Update 21 Jan, 2024

Table of content

Need or problem

Search for solutions, alternative solutions, time of purchase, post-purchase.

The consumer buying process is made up of various phases, and it is by studying and analyzing these phases that the managers of the companies' marketing sector shape their communication strategies towards potential buyers. Over the years, marketing experts have traced all stages of the   consumer buying process , which are also called touchpoints in technical jargon. Whoever studies and exploits the main phases of the user's purchase process, has as objective to oversee all possible touchpoints to ensure that in the fundamental phase of interaction, i.e., that of the purchase, the user has clear in mind towards which brand or product to direct its own purchase choice.

Today, marketing is the most difficult challenge both for very high competition in every sector and for the disenchanted consumer, who loves to inquire and analyze the various offers on the market before making purchases. The consumer buying process should not be analyzed and exploited only to sell a product in the first instance. But, this analysis is very important to push the consumer to buy back and keep the level of loyalty high. The most useful but even more difficult part of the sales job is precisely this of the repurchase. After having had almost virtual contact points with the company, the consumer after the first purchase can perceive its real value, remaining more or less satisfied after having touched the product that has arrived at home; and concretely evaluated every detail of the shipment.

The purchasing process is identified as the customer journey, or all the steps that the consumer from the arising of need or desire to the moment of purchase. Here are all the stages of this consumer "journey."

The decision-making   process for purchasing on the web consists of five stages: the perception of need, the search for information; the evaluation of alternatives; the purchase decision, and post-purchase behavior. According to current theory (Kotler, 2007), the model assumes that consumers go through the five stages of the process for each purchase made:

The birth of a need, the appearance of a problem to be solved by buying a product, is the beginning of the process, which foresees the emergence of a need or a problem in the consumer's mind. It can be a primary need, such as eating and drinking, for example, or coming from the external environment. In past years, advertising focused heavily on this first phase of the purchasing process, or on the attempt to stimulate the need or desire in the consumer by leveraging latent needs.

Based on business objectives, many companies choose to start interacting with the end-user mind right from this stage. Because at this stage of the process, the consumer is much more sensitive and attentive to the messages that come to him precisely. Because he is looking for the right solution for the satisfaction of a need, he already feels. It is at this moment that communication must capture what the consumer is looking for; it is very important to send the message to the appropriate targets. At this stage, the consumer inquires and looks for useful elements for the choice, both online and offline.

An interested consumer does not necessarily look for information online. If the stimulus is strong and the product or service is immediately available, he is likely to purchase at the same time. Otherwise, the consumer may feel the need to search for more information on the web. The quantity of information sought by the consumer depends on the size of the stimulus, on the quantity of the starting information, and on the simplicity of searching for it. The consumer can obtain information from different sources: the starting point is generally a search engine, but also sites or portals to which he is accustomed to contacting.

In this third phase, the consumer begins to select the solutions identified and tries to make a skimming, excluding those that do not help him solve the problem or do not give full satisfaction to his need/desire.

The consumer uses the information collected to narrow his choice among a limited number of alternatives. There are many evaluation processes: each consumer considers the product or service as a set of attributes, and these have different priorities for each. The consumer assigns different degrees of importance to each attribute according to their needs and desires. This phase is supported by comparison services on the web: these websites allow not only to compare the price of the alternatives but also to compare the services and the quality of the same.

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This is the most important phase when consumption makes the final purchase choice; that is, it chooses one product over another, one brand over another. At this time of the purchase decision, communication can no longer influence the consumer who has already made the sorting and selection of the solutions suitable for him. At this delicate moment, however, the external opinions of colleagues, the distance of the Store, the absence of a payment method can influence the final choice. All these phases can be completely canceled if it is a small purchase, which the user often makes automatically as an impulse purchase. The consumer will purchase the absolute preferred alternative, but between the intention and the purchase decision. Two factors can intervene: the attitude of the others gives the first; furthermore, the purchase intention is influenced by exogenous situations not foreseen a priori.

After making a good or service purchase, the user will once again activate the evaluation process of the purchased product. In this evaluation, the consumer will decide whether the product fully, partially, or not fully meets his expectations. If the outcome is positive for brands and companies, it will be a return of far-reaching image given the word of mouth generation and the loyalty of the consumer who will repeat the purchase and recommend it to acquaintances. On the other hand, if the outcome is negative, the assessments will become image damage for the company. There is precisely one branch of marketing, Customer Relationship Management that takes care of the post-sales phase to detect customer opinions and possibly provide assistance.

Following the purchase, the consumer will be satisfied or not. If the product or service meets its expectations, the consumer will be satisfied; otherwise, it will remain unsatisfied. Modern consumers can put in place several online and offline measures to communicate their dissatisfaction. The online reviews sites are tools in the hands of consumers and use them to express their feedback on the structure or destination visited.

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Apple Inc Decision Making Process

1. introduction.

Apple is a successful and innovative multinational retail-focused consumer product design company and technology. Apple Inc. has expertise in creating technically advanced consumer electronics for its clients, quality software platforms, and has created the perfect example of a strong global brand. The key company objectives have been achieved by top management decision-making through incorporating stakeholder impact into strategic guidance, addressing various key social and moral themes in the business, and by establishing a company that is robust with sound teamwork built on strong and strong inner organizational support. The very different methods of inter-dependent departmental operating sections in Apple Inc. and working as cross-functional squads have contributed efficiently to key decision-making procedures that have generated all relevant strategic results and thereof. Over the years, a wide variety of perspectives have emerged on the decision-making process, which suggests that a solid decision-making procedure is a major factor in obtaining the competitive edge. This paper will concentrate on Apple Inc.'s Decision Making Procedure. The first part of this study is to explain the procedures for making decisions in the organization. The history of Apple Inc. will be annotated and referenced to aid in examining the importance of the brand protection problem as well as the decision-making process involved within the organization. This acknowledgment will therefore include an organizational structure of how Apple Inc. handles its handling of crucial decision-making mechanism process for stakeholders such as employees, customers, providers, investors, and the general society. The Decision Making Process at Apple Inc.

1.1. Background of Apple Inc

As a human resource professional, I am responsible for training and development in my organization. I will be selecting the Smart IQ school, of which the Apple system will be discussed in particular context. It is therefore crucial that I understand the internal decision-making processes of the company to gain an understanding of the reasons for the specific requests for training programs. I can then group these requests into a logical sequence while still maintaining the overall strategy as determined by upper management. Apple Inc. is known for its revolutionary technology and superior product quality. Apple Inc. is considered unique for its branded products, including the Mac family of products, the iPod, the iPhone, the iPad, and the iWatch. The Mac family of products includes the desktop, notebook, and servers. On a company level, the organization spends large amounts on innovation in both product design and software development. As a result, the brand products are known to be each a feat of innovation on their own. Despite innovation, there are still areas where employees do not have the technical skills required to perform their jobs effectively due to their current training methods. There are basic principles for training an employee, and not meeting these basic training needs may result in the following problems: a) Employee inefficiency, b) Low-quality products or services, c) Low morale (from failing to achieve peak efficiency), d) High turnover, e) Lack of continuity in producing high-quality products or services, f) High internal overhead, g) Employees' disinterest in helping to meet objectives.

2. Decision Making Models

2.1 Apple Inc. Decision Making Models. Managerial economics involves decision-making. Apple Inc. business strategies require effective decision making to allow the firm to embrace its competitive advantages in the high technology industry. Apple Inc. is engaged in four primary brands: iPhones, iPads, Macintosh computers, and iPods. The company should embrace proper reasoning in order to facilitate the creation of management policies such as operations management as Apple Inc., services, and quality performance requirements for a strategic, efficient, and instrumental vision. Broyce Apple Inc. decision-making guide will provide a roadmap for Apple Inc. decision-making researchers and knowledge professionals to make the company a mirror in which various reflecting economic knowledge can enable others to see new meanings and values. The complications of natural language and the lack of standardized business terminology may influence how the judgment, decision, choice, and supportive systems impact the process of specific issues. Developing a decision theory is important because several factors relevant to the decision-making process are helpful in Apple Inc. economics. Factors that should be taken into account include: strategic foresight, strategic language order, levels of abstraction, basic constructs, quality requirements, and judgments applied to judgment guidelines. The outlined decision principles and guidelines provide a useful foundation for improving intellectual standards, solving business problems, and improving business methods. They also suggest that the process provides a viable framework for learning more about individuals and how to help them make better decisions, choices, and improve overall results.

2.1. Rational Decision Making Model

This is an iterative decision model that results in a single choice. An initial consideration of preferences among individuals within an organization is when department managers send in their recommendations to the CEO, Steve Jobs. If their recommendations are thought to be satisfactory, no further action is necessary. If not, all or some of the alternatives need further consideration at the second stage meeting within the CEO and the vice presidents. During this second meeting, there is still a single decision-focused process, but here, in order to ensure efficient communication and decision making, the content reflects input from the whole group. When possible, members who send in unacceptable alternatives support those proposals and decisions which are made during group meetings. Three elements in this phase are that debates about the technical quality of the issue under consideration are not allowed; herein participation in the meetings is low; and thirdly, only a limited amount of screen time ensures little or even no consideration of each new alternative. This quick screening procedure results in a selection of a few alternatives that are thoroughly reviewed in round three of the decision model.

2.2. Intuitive Decision Making Model

2.2.1. Background of Intuitive Decision Making Model In 1974, Israel Kirzner introduced the concept of intuition into research on the decisions made by entrepreneurs. The school of practice guided intuition, activated by a well-communicated objective and a balance of skills, is a source of good decision making. Hoepfl stated that intuition is seen as a subliminal cognitive behavior developed through experiences accumulated by the brain and fear towards repeated events. The unrecognized sum of feelings, beliefs, impressions, and sensations are transferred to consciousness in the blink of an eye. In addition, Wortman explained that the use of intuition to make decisions is a basic activity of all human beings. Whewell explained intuition as the sum of experiences gained from the individual's unconscious mind, not through deliberate reason or logic. Therefore, it shows the ability to decide quickly. Neumann et al. believe that intuition is a concept that people use to make open judgments. According to these definitions, this study defines intuitive decision making as attaining correct solutions by considering all variables in the framework used through the logic of tactical advantage when solving a problem. Due to the ambiguity of information in the cooperative decision situation, subconscious feelings raised as feelings, intuitions, and open judgments to which people are pushed play an effective role in decision making. Leader intuition is unconscious and a capacity built through cumulative experience. Intuition immediately guides the intuitive leader who decides to make a strategic decision. Apple's top leader, especially that person's intuition, is a significant factor in the successful management of this firm.

3. Key Factors Influencing Decisions

Let’s now look at some of the factors Apple Inc.’s management considers in making corporate decisions about the firm. The discussion that follows is guided by the thinking represented in a document titled “Designed by Apple in California,” which shows the firm’s vision of its ideal company. Each factor is explained, and representative text is given from the document that provides specific examples of key decisions Apple has made to illustrate the influences of the factors. The major decisions made by a firm are typically related to its stakeholders: these are the company’s customers, employees, entities found in its external environment, and owners and investors. The first group of factors discussed affects decisions made by a firm about its customers. The decisions directly affecting a firm’s customers often shape its products. Customers expect nothing less than being perceived and guided to make the best decisions in their entire experience in dealing with a product. Two important factors for understanding the customer buying experience are features and benefits. The first, features, direct company and customer attention to a product’s look and feel. The second, benefits, are what customers gain from using the product. They represent features that are difficult for competitors to replicate. The features customers use to justify decisions to purchase a product differentiate what firms offer and contribute to raising buying criteria. Both determinant factors directly stem from the concept of utility that guided product design in the past.

3.1. Company Culture

The Apple Inc. organizes team meetings even if not all team leaders have worked well together in the past. Neither will the team leader's direct boss attend the meeting. In the daily or weekly briefing to his superior, the team leader reports on his group's progress. Organization and coordination difficulties are also openly addressed to allow feedback and help solve the problems. This and other typical Apple Inc. organizational coordination processes and routines do not guarantee success in the marketplace, but rather enhance the chances of moving the organization smoothly. Each team must assess the individual members and get to know one another in order to create the right synergy for Apple Inc. to come up with their next game-changing idea. Apple Inc.'s organizational culture is a critical factor in the company's success. A company's organizational or corporate culture determines how employees interact, succeed, and develop in the organization. A business's organizational culture also has consequences for the corporation. For example, Apple Inc.'s organizational culture affects management's ability to optimize the business's human resources capabilities, support corporate achievements, and implement successful policies and strategies for products. The corporation's organizational tradition also guides employees to optimize their contribution to Apple's long-term lifelines and success. The corporate culture of Apple Inc. attracts, motivates, and retains quality employees who succeed in tough business circumstances. An instance of Apple Inc.'s organizational or corporate culture is the devotion of the business to product quality and marketing and brand to customer satisfaction.

3.2. Market Trends and Competition

A. Designing and Building Products The innovation and diversity taking place in computer and mobile device markets mean that Apple is involved in many technologies to some degree. The company operates an active analysis of industry trends to help make decisions on long-term adjustments of their product line. One point of comparison that the technology company gives another company is examining its research and development activities. Research and development is a guarded part of Apple, but what we do know is Apple spends billions on research and development according to their annual report, and they have more than 5000 patents. This means Apple’s position, product line, and future financial health are valid issues. These areas are closely tied to consumer trends in the technology business, and the reliance on heavy research and development activities has both passion and market value.

4. Case Studies

In Apple's decision-making process, Tim Cook is cautious when it comes to investments, as the company conditions its operational decisions and investments on a series of expected results. Some of these expected results include positive return on investment, exploration of new business models, and having products and technology near the cutting edge. Tim Cook states that one of Apple's biggest mistakes was not betting on the rapid development of mobile applications. Another mistake was not betting on any type of market research to understand consumer behavior and preferences for new product development. On the other hand, Cook is aware of the company's need to understand consumer behavior in order to better target the audience. In the face of all these requirements, Cook usually makes decisions slowly, avoiding making important decisions quickly and without thinking properly about the consequences. In Apple Inc.'s usual product decision-making process, it is innovation-driven and varies from product development to product launch on the market. Apple Inc. allocates a portion of its financial surplus to the development of prototypes, then selects a set to be tested in real-life situations. During the testing period, it will kill a large part of these projects. The profitability and market attractiveness analysis, as well as customer acceptance tests, are important in the decision to launch a new product on the market. When these criteria are not reached, the project is canceled. The company seeks out-of-the-box thinking employees with the capacity to translate thousands of ideas coming from these employees into innovative and intuitive product design. The decision analysis is based on users' experience with innovative market applications tested during the decision process of system launch.

4.1. Launch of the iPhone

The iPhone was launched in June 2007 by Apple Inc., becoming a revolutionary device that was a phone, but much more than that. The iPhone was also a web browser, a media player, a camera that took photos and videos, an email device, and a handheld organizer. The numbers of the success are very impressive. The sales of the iPhone reached ten million units only in the first year after it was launched. After only five years of being sold, the product achieved sales of 73.5 billion dollars at a worldwide level. But it was not only the sale of the product that was successful, also the apps that people downloaded to the iPhone. According to different sources, seven billion apps were downloaded in a period of 40 months, at an average of 51.2 million apps per day. These apps, many of which were made by an external software company and sold to the customers by Apple Inc., generated a profit of 2.6 billion for Apple. How did this product come to the market? What process was Apple Inc. following to launch this new product? These are the questions we are going to answer. Apple had several strengths when they launched the iPhone. First, existing capabilities in terms of technological know-how. The iPhone was the combination of an Apple-designed phone with a tablet computer that already existed, built-in web support, and multi-touch technology. While these capabilities are not unique, Apple had the knowledge to put them together effectively. Besides, their experience on customer behavior was critical. Smartphones became quite popular during the beginning of the twenty-first century. Then Apple had to innovate not only on the product development process but also in terms of generating demand. Apple had another advantage in its supply chain. The company developed a model based on three foundations: an integrated-managed business model; a physically-parallel import and cross-border operations model; and a supply chain operations reference (S.C.O.R. model). These three models had technology as the most critical condition, tightly integrated to business requirements, and were operating in a customer-driven supply chain. All of them have the capability of launching handheld customers' devices much faster and cheaper than the company's minor extensions.

5. Conclusion

It is clear that Apple Inc. places a great deal of value on both planning and decision-making. For a company to be as successful and profitable as Apple, planning and decision making is clearly of the utmost importance. The creation of the team and committee management structure indicates the value of participation and cooperation in the organization. When there are so many high-level executives reviewing various stages of a project or proposal, decisions are obviously made with as much forethought as possible. The decision is the culmination of management. It is a process from which decisions are managed. They are not created randomly by the individual, but are managed by the organization for achieving goals in a predetermined direction. The decision-making process at Apple involves a team concept, which is unique and quite different from other companies who usually have one person in charge. It is also very interesting to note the effects of the cultural differences at Apple, especially when striving to make the final decision. At present, however, using a combined style most of the time is beneficial for them, which seems to be working quite well. With all the planning and decision-making that goes into supporting their products, it is no wonder why Apple Inc. is as successful as it has been.

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