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CONSUMER
DECISION MAKING



            katherine chin
CONSUMER DECISION MAKING
 Behind the visible act of making a purchase
  lies a decision process that must be
  investigated.

 The integration process by which
 knowledge is combined to evaluate two or
 more alternative behaviors and select one.

 The end product of the integration is
 called a choice.
                                        katherine chin
 The purchase decision process is the
 stages a buyer passes through in making
 choices about which products and services
 to buy.
 Two aspects such as affect and cognition
 are used to interpret products from the
 marketing environment and are processed
 in consumer decision making.

                                     katherine chin
Consumers are exposure to over 250
 advertisement messages per day

                         Notices only
                         11 to 20 ads




                                 katherine chin
LEVELS OF CONSUMER
DECISION MAKING

       Routine    Limited    Extensive
       Response   Decision   Decision
       Behavior   Making     Making




Less                                            More
Involvement                              Involvement
                                           katherine chin
EXTENSIVE DECISION MAKING

This first level requires the consumer
 extensive information to create a set of
 criteria to decide what specific brand and
 extensive value of information about each
 of the brands to be chosen.




                                      katherine chin
LIMITED PROBLEM SOLVING
The second level of decision making with
 which consumer has established the basic
 criteria for evaluating the product
 category and various brands in the
 category.

Additional information is more like “fine-
 tuning” to differentiate among the various
 brands.

                                      katherine chin
ROUTINARY RESPONSE
BEHAVIOR

The third or last level of decision making,
 that consumer already had previous
 information about the product category.

There is a well set of established criteria as
 basis for evaluation. A minimal amount of
 additional information is needed.

                                         katherine chin
CONSUMER DECISION
MAKING MODEL

Input Stage
Process Stage
Output stage



                    katherine chin
INPUT STAGE
 Also called as the External Influence

 The consumers’ identification of a product
  need.

 Two major sources of information comes
  from    firms’    marketing effort and
  sociocultural environment.

 Can be as simple as noticing an empty milk
  carton or it can be activated by marketing
  efforts.
                                          katherine chin
PROCESS STAGE
 The consumer decision making stage
 Need recognition
 Prepurchase search
 Evaluation of alternatives
 Decisions are based on psychological
  factors which are inherent in his
  motivation,       perception,  learning,
  personality and attitude

                                     katherine chin
OUTPUT STAGE
Refers to as post-decision activities.

Purchase Behavior: A trial purchase is
 dependent on consumers’ satisfaction; he
 may repeat the purchase.

Post Purchase Evaluation: the consumer is
 experiencing the product in the process
 stage. Being loyal to a certain brand or
 product.
                                          katherine chin
These insights into Filipino consumer purchase habits were culled from the annual
      Philippines Shopper Trend Report by global information company Nielsen.

The Nielsen study, conducted between October 8 and November 23, 2011, interviewed
at least 1,500 respondents who were both "main grocery buyers and key influencers" in
                             urban locations nationwide.

    http://www.rappler.com/business/9647-what-type-of-filipino-consumer-are-you       katherine chin
DIFFERENT FILIPINO
CONSUMERS

Impulsive Buyer
Sale Seekers
Loyal to Brand
Green-minded
Buy Less More Often

                       katherine chin
katherine chin
katherine chin
katherine chin
katherine chin
katherine chin
THANK YOU
            katherine chin

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Consumer Decision Making

  • 1. CONSUMER DECISION MAKING katherine chin
  • 2. CONSUMER DECISION MAKING  Behind the visible act of making a purchase lies a decision process that must be investigated.  The integration process by which knowledge is combined to evaluate two or more alternative behaviors and select one.  The end product of the integration is called a choice. katherine chin
  • 3.  The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.  Two aspects such as affect and cognition are used to interpret products from the marketing environment and are processed in consumer decision making. katherine chin
  • 4. Consumers are exposure to over 250 advertisement messages per day Notices only 11 to 20 ads katherine chin
  • 5. LEVELS OF CONSUMER DECISION MAKING Routine Limited Extensive Response Decision Decision Behavior Making Making Less More Involvement Involvement katherine chin
  • 6. EXTENSIVE DECISION MAKING This first level requires the consumer extensive information to create a set of criteria to decide what specific brand and extensive value of information about each of the brands to be chosen. katherine chin
  • 7. LIMITED PROBLEM SOLVING The second level of decision making with which consumer has established the basic criteria for evaluating the product category and various brands in the category. Additional information is more like “fine- tuning” to differentiate among the various brands. katherine chin
  • 8. ROUTINARY RESPONSE BEHAVIOR The third or last level of decision making, that consumer already had previous information about the product category. There is a well set of established criteria as basis for evaluation. A minimal amount of additional information is needed. katherine chin
  • 9. CONSUMER DECISION MAKING MODEL Input Stage Process Stage Output stage katherine chin
  • 10. INPUT STAGE  Also called as the External Influence  The consumers’ identification of a product need.  Two major sources of information comes from firms’ marketing effort and sociocultural environment.  Can be as simple as noticing an empty milk carton or it can be activated by marketing efforts. katherine chin
  • 11. PROCESS STAGE  The consumer decision making stage  Need recognition  Prepurchase search  Evaluation of alternatives  Decisions are based on psychological factors which are inherent in his motivation, perception, learning, personality and attitude katherine chin
  • 12. OUTPUT STAGE Refers to as post-decision activities. Purchase Behavior: A trial purchase is dependent on consumers’ satisfaction; he may repeat the purchase. Post Purchase Evaluation: the consumer is experiencing the product in the process stage. Being loyal to a certain brand or product. katherine chin
  • 13. These insights into Filipino consumer purchase habits were culled from the annual Philippines Shopper Trend Report by global information company Nielsen. The Nielsen study, conducted between October 8 and November 23, 2011, interviewed at least 1,500 respondents who were both "main grocery buyers and key influencers" in urban locations nationwide. http://www.rappler.com/business/9647-what-type-of-filipino-consumer-are-you katherine chin
  • 14. DIFFERENT FILIPINO CONSUMERS Impulsive Buyer Sale Seekers Loyal to Brand Green-minded Buy Less More Often katherine chin
  • 20. THANK YOU katherine chin