In which of the five steps to consumer decision making does the consumer experience satisfaction or dissatisfaction with the purchase?
Purchase DecisionWe are interested in understanding how consumers make purchase decisions. If we understand the decision making process, we can influence the final purchase decision. Show
There are five stages that a buyer passes through in making the decision on which products/services to purchase. These stages form the purchase decision process.  Purchase Decision Process. The purchase decision process consists of five stages that include Problem Recognition, Information Search, Alternative Evaluation, Purchase Decision, and Post-purchase Behaviour. GeorgeRudy/iStock/Getty Images; Fireofheart/iStock/Getty Images Problem Recognitionskynesher/iStock/Getty Images Problem recognition is the first stage of the purchase decision process. In this stage, the consumer perceives that there is a need. When there is a difference between a person's ideal and actual situations, it leads to the realization that there is a need. Example: Your pen runs out of ink, and you realize you need to purchase pens. Stop and Think Question: What would be the implications of the problem recognition stage in marketing? Click here to reveal answer xijian/E+/Getty Images Marketers can activate consumer's problem recognition by advertisements or personal selling. When a consumer sees the advertisement for a new generation smartphone, it can trigger the need for the product by demonstrating the new features that older devices do not have. Information Searchmihailomilovanovic/E+/Getty Images Information search is the second stage of the purchase decision process. It follows the problem recognition stage. The consumer realized there is a need in the problem recognition stage. In the information search stage, the consumer seeks value. The search for information is done in two ways: Internal search: You may scan your memory for previous experiences. External search: If the internal search is not sufficient, consumers undertake an external search. This is especially needed when the purchase is sizable and the consumer is worried about making the wrong decision. There are many sources of external information:
Alternative Evaluation97/E+/Getty Images Alternative evaluation is the third stage of the purchase decision process. In this stage, consumers assess the value they would get from different brands. The information consumers collect in the information search stage allows consumers to form their awareness set in which they collect all the brands they have learned about. Consumers apply some evaluative criteria to the brands in their awareness set in order to select the brands that they consider to purchase. Evaluative criteria contain the factors that represent two types of attributes:
Consumers use these attributes to compare different products and brands in their awareness set. The brands that meet evaluation criteria become part of a new set called the consideration set: the group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware. Critical Thinking Activity: Think about a purchase for which you have completed the problem recognition stage. First, complete the information search stage and form your awareness set. Make a list of the brands in your awareness set. Second, apply your evaluative criteria to your awareness set and form your consideration set. Which brands do you have in your consideration set? khvost/iStock/Getty Images Purchase Decisiongilaxia/E+/Getty Images Purchase decision is the fourth stage of the purchase decision process. It follows the alternative evaluation stage. The consumer is ready to make the decision on which brand to buy. Other than from whom to buy the product, the consumer also thinks about when to buy. Consumers consider sellers’ characteristics in this stage, and return policy might have an impact on the final decision. For example, you might choose the second-most preferred brand from your consideration set with a good refund and return policy versus the most preferred brand with more conservative policies. Deciding when to buy is frequently determined by a number of factors:
Post-purchase BehaviourWarchi/iStock/Getty Images Post-purchase behavior is the fifth stage of the purchase decision process. It follows the purchase decision stage. Post purchase stage is as important as the other stages. After purchase, the consumer compares the performance of the product with his/her expectations. There are two outcomes: the consumer is either satisfied or dissatisfied. Dissatisfaction is an issue, and marketers must decide the reasons for dissatisfaction in order to improve the product/service. It is possible that the product was deficient. On the other hand, it is also possible that consumer’s expectations were too high. Satisfaction or dissatisfaction does affect the consumers' value perceptions. Research indicates that satisfied buyers tell three other people about their experiences. On the other hand,dissatisfied buyers complain to nine people. Marketers focus on post-purchase behaviour to maximize customer satisfaction and retention. Stop and Think Question: What type of marketing activities would be helpful to increase consumer satisfaction and retention? Think about your answer before you click reveal. Click here to reveal answer
Concept Check Questions: 1. What is the first stage in the consumer purchase decision process? Alternative evaluation Problem recognition Information search Purchase decision 2. Primary sources of external information do NOT include Marketer dominated sources Personal sources Public sources Your memory of previous experiences It is likely that consumers might have highly attractive alternative brands in their consideration set. After the consumer makes the purchase, he/she might question if their choice was the right choice. The feeling of post-purchase psychological tension or anxiety is called cognitive dissonance. Consumers feel the need to alleviate the tension. Some consumers turn to their friends to approve their choice. They ask if their friends like the new purchase. Some consumers watch the ads for alternative brands and look at the negative features to feel some relief. Firms often use ads or follow-up calls in post-purchase stage to assure buyers that they made the right decision. Hierarchy of NeedsWe have seen that the first task of marketing is to discover consumers’ needs. Individuals have physiological needs as well as learned needs. Physiological needs are basic to survival and must be satisfied first; for example, the need for food and water. The needs are hierarchical. Once physiological needs are met, people seek to satisfy their other needs. Other needs are learned needs which include esteem, achievement, and affection. The figure at right shows the hierarchy of needs. Physiological needs are at the bottom of the pyramid since these need to be satisfied first. Safety needs involve self-preservation and physical well-being. For example smoke detectors are satisfying a safety need. Social needs are concerned with love and friendship. For example, dating services and fragrance companies are satisfying social needs. Personal needs are represented by the need for achievement, status, prestige, and self-respect. For example, American Express Gold Card and Harry Rosen men’s wear appeal to these needs. Self-actualization needs involve personal fulfillment, such as completing your degree. naihei/iStock/Getty images In which of the five steps to consumer decision making does the consumer experience satisfaction or dissatisfaction with the purchase quizlet?Postpurchase behavior involves the comparison of the chosen alternative with a consumer's expectations, which leads to satisfaction or dissatisfaction and subsequent purchase behavior.
What is the 5 step 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.
What determines whether a buyer is satisfied or dissatisfied with a purchase?What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in the relationship between the consumer's expectations and the product's perceived performance.
Is the final stage the consumer assesses whether he is satisfied or dissatisfied with the purchased?Post-Purchase Evaluation. This is the last stage and is most often ignored by marketers. After buying the product, customers compare products with their expectations. There can be two outcomes: Either satisfaction or dissatisfaction.
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