PROGRAM NAME - M.B.A.

COURSE NAME - Basics of Marketing

UNIT NO. – IV
UNIT NAME – Consumer Behavior

PRESENTED BY- Dr. Yogita Gupta.

Topics to be covered.

Five steps consumer buyer decision process

• Problem Recognition,
• Information Search,
• Evaluation of Alternatives,
• Purchase Decision,
• Post Purchase behavior.
 Consumer Decision Making Process
• The consumer decision-making process
Problem Information
involves five basic steps. This is the process Recognition, Search,
by which consumers evaluate making a
purchasing decision.
• The 5 steps are problem recognition,
Evaluation of Purchase
information search, alternatives evaluation, Alternatives, Decision,
purchase decision and post-purchase
evaluation.
Post Purchase
behavior.
 Five steps consumer buyer decision process
• 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.
 1. Problem Recognition

The first step of the consumer

decision-making process is
recognizing the need for a But how can you influence Develop a comprehensive
service or product. Need consumers at this stage? Since brand campaign to build brand Example: Winter is coming. This
recognition, whether prompted internal stimulus comes from awareness and recognition–– particular customer has several
internally or externally, results within and includes basic you want consumers to know light jackets, but she’ll need a
in the same response: a want. impulses like hunger or a you and trust you. Most heavy-duty winter coat if she’s
Once consumers recognize a change in lifestyle, focus your importantly, you want them to going to survive the snow and
want, they need to gather sales and marketing efforts on feel like they have a problem lower temperatures.
information to understand how external stimulus. only you can solve.
they can fulfill that want, which
leads to step two.
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.
Evaluation of Alternatives
Alternatives may present themselves in the
form of lower prices, additional product
benefits, product availability, or something as
At this point in the consumer decision-making
personal as color or style options. Your
process, prospective buyers have developed
marketing material should be geared towards
criteria for what they want in a product. Now
convincing consumers that your product is
they weigh their prospective choices against
superior to other alternatives. Be ready
comparable alternatives.
to overcome objections—e.g., in sales calls,
know your competitors so you can answer
questions and compare benefits.

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.
 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.
Post Purchase behavior
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.
THANK YOU