consumer decision making assignment

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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Consumer Decision-Making Process Explained (With Real-Life Examples & Templates)

Written by: Olujinmi Oluwatoni

Customers don't just buy. Their purchase decisions are shaped by their entire buying experience, from the initial spark of interest to the final purchase.

Each stage of the customer decision-making process is crucial. If you want to succeed in today's cutthroat market, you'll need to learn and leverage the subtleties of consumer behavior at each stage.

Understanding why, when, and how your customers make buying decisions will help you create memorable customer experiences, remove obstacles, drive more conversions and improve your business processes.

In this post, we'll examine the many phases of the consumer decision-making process and uncover secrets to win customers over at each level. We’ll also share some practical, real-life examples and templates that’ll help you along the way.

Table of Contents

What is the consumer decision-making process, 5 steps of the consumer decision-making process, 5 templates to understand your customer better.

• The consumer decision-making process is a series of steps an individual undergoes to make a purchase.
• A good knowledge of how your customers make buying decisions allows you to create more targeted marketing strategies to interact with your customer at each stage of the decision-making process.
• The five stages of the consumer decision-making process include; problem recognition, information search, alternatives evaluation, purchase decision and post-purchase evaluation.
• Visme has a vast library of beautiful, professionally designed templates to help you create visual assets to better understand your audience and streamline the sales process.

The consumer decision-making process is a series of steps an individual undergoes to make a purchase. It is also called the Buyer Decision Process and covers the five stages a buyer goes through before, during and after buying your product.

The consumer buying process begins when with the buyer recognizing their need and ends with them evaluating their purchase decision. Each step of this process allows you to make smart moves that position you properly and ensure the buyer chooses your product at the end of their decision-making journey.

Having a good knowledge of how your customers make buying decisions allows you to create more targeted marketing strategies to interact with them at each stage of the decision-making process.

Here are some more reasons you need a grasp of the consumer decision-making process.

• With this knowledge, you’re able to recognize and impact the social, psychological and external factors that influence your buyer’s decision process.
• By recognizing these factors, you can customize your messaging and create a strategy that appeals to your customer in the particular stage they are in.
• You can identify the obstacles that come up and prevent a buyer from going through with your product as a solution to their need. This, in turn, can help you make improvements to your product or customer experience along the sales cycle .
• Understanding how to influence your customers at the most important touch points will drive more sales conversion. This will ultimately increase your client base and revenue.

Throughout the buying process, your customer will inevitably consult a number of various resources for information. It is your job to make sure that information is readily accessible when they are ready to process it.

Build relationships with customers and drive sales growth

• Reach out to prospects with impressive pitch decks and proposals that convert
• Monitor clients' level of engagement to see what they are most interested in
• Build a winning sales playbook to maximize your sales team's efficiency

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 Let’s explore what’s going through a buyer’s head from the moment they identify their need to when they make a purchase.

This process isn’t always linear. Some products go through this process swiftly, while others go progressively. Buyers may quickly decide to purchase a low-cost or low-involvement product without investing much time or effort in the decision-making process.

For example, a buyer may spend little to no time comparing the prices and colors of snacks in a vending machine. What they are most interested in is satisfying their hunger.

Compare that to a B2B company interested in buying enterprise software. They would spend more time researching the features, pricing, reviews and whether it fits their needs.

Below are the 5-step processes most buyers go through when making a purchase.

Problem Recognition

The first step in the consumer decision making process is when the buyer recognizes that they have a need or a problem and require a solution.

Problem recognition may be influenced by internal factors such as new needs, interests, beliefs or external factors like learning, dissatisfaction with current products or advertising.

When people become aware of a need, they feel compelled to find a solution, and they devote more time and energy to exploring their options.

Your focus at the problem recognition stage would be to identify the core need behind customer needs and position yourself to be seen as a solution to that need.

Let’s take Native Deodorants as an example. Native identified that consumers were becoming more conscious of the ingredients used in deodorants and the health risks they posed. Thus, the core need of their customers was a deodorant that didn’t contain harmful substances like aluminum.

Native positioned itself as a solution that offered natural deodorants that were aluminum-free, paraben-free and made with recognizable ingredients, emphasizing product benefits.

They went on to create awareness using social media, influencers and advertising. They even engaged with consumers to build trust and offered incentives to encourage them to try the product. At this stage, the consumer recognized the need for a safe deodorant. Also, Native identified their customers' core needs and created awareness of their products as a solution.

Information Search

The next step the buyer will take after identifying and accepting their need or problem will be to search for a solution. Research shows that 87% of shoppers start their product searches online. In most cases, Google may be the first port of call!

At this stage, they want to know what products and services exist to fulfill their needs.

The consumer researches and gathers information by;

• Asking for recommendations
• Using their “pain point” as keywords on search engines, or
• Reading testimonials or reviews

While the consumer is actively looking for information, your goal at this stage should be to put out as much information as needed about your product or service. You may want to optimize your website and content for search engines or leverage social media.

The goal is to be present when your target audience comes searching. In other words, make it easy for your target customer to find you or find information about your product or service.

You can also take advantage of paid advertising to target buyers who are searching for products you offer. Actively encouraging satisfied customers to leave positive reviews for your products will also let prospects perceive you as a trusted solution.

Warby Parker established a strong online presence with an e-commerce website showcasing prescription glasses and providing detailed product information. They optimized their website for search engines and shared valuable content related to eyewear and fashion.

In a competitive market like New York, Warby Parker utilized smart sales skills and strategies like geotargeting, paid ads and promotions. This put them on the radar of consumers in the area who were in the information search stage.

Warby Parker made it easy for customers to find them and positioned themselves as a trusted source of information. This ultimately increased their chances of being considered and chosen by consumers needing prescription glasses.

Alternatives Evaluation

Now the consumer has gathered information on potential products that may solve their needs. Yours is one of them. In this stage, they compare and contrast the various options and alternatives they have at their disposal.

Depending on the complexity of the products, a few factors your target audience may be looking out for include, but are not limited to:

• Specific features of the product
• Brand reputation
• Quality of the product
• Availability and Warranty
• Personal preference (color, style, etc.)

At this stage, you can take advantage of sales collateral to showcase the value of your products. Examples of sales collateral you could use are sales battle cards, product demos, product sell sheets, videos, case studies and more.

You can share deal-closing insights with your team using this sales battle card template below:

There's also a case study template you can use to showcase your brand's performance:

This product sell sheet is a valuable asset for highlighting your product’s key features and benefits:

Purchase Decision

Hurray! The buyer has gone through three buying stages of the consumer decision-making process and has now selected a product they believe will solve their problem best.

If this product is yours, your customer will head over to your online store, purchase page, or retail store to buy the product. While this is an exciting moment, you must remain aware of some obstacles that may arise at this stage.

These obstacles may hinder a smooth sale, so information must be put out to handle them before the need arises. Some obstacles that may occur are:

• Payment issues
• Shipping or delivery challenges
• Purchase price
• Organizational hierarchy, etc

Knowing this step can help you prepare and provide content, materials, or strategies to combat these hindrances and ensure a smooth sale.

A good example is the sportswear company Nike . Nike offers a seamless checkout process and allows its customers to make up to four interest-free payments for products. This immediately eases the stress on their customers, who may not have had an initial budget for the product.

Nike also offers free shipping and free 60-day returns for its members. During the purchase decision, this can encourage customers to go ahead with Nike instead of alternatives, as they would feel secure with their purchase.

A great step you can take for consumers at this stage is to project the various obstacles that may hinder a good sale and provide solutions ahead of time. This will make your customer more comfortable and secure with your product.

Using this modern infographic, you can detail the specific features your customers gain with each pricing plan.

Post-purchase Evaluation

This last step in the consumer decision-making process is the post-purchase evaluation. This step is very important in the buyer's decision-making process because it determines whether or not they’ll move forward with your brand.

In this step, your customer will probably ask these questions:

• Am I happy with my purchase decision?
• Does it meet or surpass my expectation?
• Am I disappointed or satisfied?

Your customer is evaluating the use of your product to assess if they made the right choice or not. This evaluation can influence their loyalty to your brand, future buying decisions, or even recommendations.

But you don’t have to leave it all to chance. You can provide post-sale services that keep your customers happy and satisfied with their purchases.

A brand that understood this consumer decision process model and effectively applied it is Bombas . Their help center offers a ton of information that guides their customers even after a purchase. Customers can get answers to questions like “How do I wash my socks?” or “How can I recycle my Bombas?”

They also have a section to keep customers happy called “ Happiness Guarantee ”

According to Bombass, the happiness guarantee is dedicated to ensuring that every Bombas customer is satisfied through generous replacement programs.

Understanding what sort of value or services your customers will appreciate and implementing them post-sale will boost your customer loyalty, referrals and revenue.

You can create engaging customer feedback forms with Visme Forms to evaluate purchase satisfaction.

Visme has some professionally designed templates to help you better understand your audience and refine your sales strategy . We'll take a look at them.

But first, hear what the Polly, a creative director at IBM  has to say about her team's experience with Visme.

““Visme is something that I would highly recommend. It made us look a lot better in our clients’ eyes because it's something that's visually effective as a marketing tool. It’s a great tool to facilitate sharing that information in a much more visually-friendly and user-friendly method.”  - Polly Brewster | Creative Director of IBM's Talent Acquisition Optimization & Recruitment Team

If you're short on time, use Visme's AI Designer to generator a document for you. This AI Document Generator  is designed to create personalized templates in a matter of minutes.

Here are some of Visme's templates that'll help you understand your customers better:

1. Project Management Software Customer Persona Template

Capture essential information and requirements about your ideal users and visualize their common characteristics and traits with the help of this template. It has a visually appealing design layout, complete with high-resolution images, icons and dynamic content blocks provided by Visme. Automatically customize this template with your brand assets using Visme's brand wizard .

2. User Journey Map

When it comes to gaining valuable insights into how your customers interact with your product, a user journey map is an invaluable tool. This helps to outline your ICPs business buying decision and more.

Our template is designed with visually appealing graphics, arrows, icons and layouts that make it effortless to translate insights from your user journey into actionable information.

With simple customization options such as color and font editing, you can easily tailor the template to align with your brand. You can also add Visme’s icons , stock photos and videos to make your design more appealing.

If you have trouble finding the perfect image use the AI Image Generator . Simply enter a detailed prompt and let the AI share several output styles: photos, paintings, pencil drawings, 3D graphics, and more for you to choose from.

3. Executive User Persona

With this whiteboard template, you can create and visualize realistic user personas for the key decision-makers involved in purchasing your product or service.

Dive deep into their needs, behaviors and motivations to craft targeted marketing messages that resonate with your audience. Featuring beautiful colors and stunning fonts, this fully customizable template can be tailored to reflect your brand's unique aesthetic, helping you create compelling marketing campaigns.

It's important to create a user persona that closely portrays your buyer or user. This could mean collaborating with internal stakeholders by sharing this template with them to contribute their input.

If it's solely on you to create one and you're struggling to fully capture what to say about your user persona, you can use the AI Writer . This AI-powered tool will help you create detailed personas effortlessly, ensuring your marketing messages are always engaging and precisely tailored to your audience.

Lastly, Use Visme's Dynamic Fields to easily update information on this template and throughout your projects.

4. Customer Journey Map Infographic Timeline

Use this template to provide a clear visual representation of how your customers navigate through your business.

With its sleek and intuitive design, this infographic is perfect for business and marketing presentations by professionals who want to effortlessly interpret and illustrate crucial touchpoints and areas that require improvement in a customer's journey with your business.

Whether you're fine-tuning your business strategies or highlighting key moments in your marketing campaigns, this infographic template is a great tool to convey your message with impact.

5. Step Ladder Brainstorming WhiteBoard

Use this brainstorming template with your team to collaborate with your team as you discuss insights about your customer decision-making process. This template will aid collaborative learning and visual thinking. You can include charts, graphs, maps, widgets and other data visualization tools to showcase data.

Use Visme to Understand & Attract Your Audience with Ease

You can better serve your customers, remove roadblocks, increase conversions, and fine-tune your operations if you have a firm grasp of the factors that influence their purchasing decisions.

Visme can assist you in increasing sales, fostering relationships and streamlining the sales process with appealing and professionally designed visual content.

Create visual presentations, training materials, graphics and other print and digital materials for sales support, marketing, human resources and other uses with Visme. Our easy-to-use software allows people of varying design skills to create professional work that’s engaging and within brand guidelines. So, you don't have to worry if you're not a professional designer.

Utilize tools for collaboration, live sharing, presenting and more to understand your audience, unite your team and produce outstanding sales content.

If you're looking for tools to help your team sell more effectively, you can also browse through these unique sales templates and learn more about selling with Visme here.

Streamline your sales and marketing process with Visme

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About the Author

Olujinmi is a Content writer for Visme who creates human-first SEO content. She loves helping businesses smash their ROI goals with strategic content development and optimization. When she’s not writing, you’ll find her composing songs.

3.3 The Consumer Purchasing Decision Process

Learning outcomes.

By the end of this section, you will be able to:

• 1 Explain the first stage in the consumer purchasing decision process.
• 2 Summarize the second stage in the consumer purchasing decision process.
• 3 Describe the third stage in the consumer purchasing decision process.
• 4 Discuss the fourth stage in the consumer purchasing decision process.
• 5 Explain the fifth and final stage in the consumer purchasing decision process.

Consumer Decision Process

This chapter has examined many of the factors that influence consumer buying behavior, but behind the visible act of making a purchase lies an important decision process that takes place before, during, and after the purchase of a product or service. Figure 3.12 shows the five stages of the consumer decision process .

A buyer passes through five stages of the consumer decision process when making choices about which products or services to buy. Let’s examine each, starting at the beginning.

Stage 1: Need Recognition

The buying process starts when you sense a difference between your actual state and your desired state. This is referred to as problem awareness or need recognition. You might become aware of a need through internal stimuli (such as feeling hungry or thirsty when you’re on a long road trip) or external stimuli (such as passing a bakery and smelling the wonderful aroma of cookies baking).

Sometimes recognizing the problem or need is easy. You’ve run out of toilet paper or milk. But other times recognizing the problem or issue is more complicated. For example, think about this first stage in terms of your decision to enroll in college. What was the stimulus that triggered your interest in attending college? Are you a working adult who has recognized that upward advancement in your company won’t happen without possessing a college degree? Have you long aspired to be an entrepreneur, and you wanted to get some business and marketing courses under your belt so that you’re better prepared for the challenges of entrepreneurship? Perhaps a career in marketing has been on your internal radar since high school, and you’ve decided to take the plunge and get your degree in marketing. Or perhaps, after graduating from high school, your parents gave you an ultimatum—either find a job or enroll in college.

Stage 2: Information Search

Now that you’ve identified the problem or need, you’ll be inclined to search for more information. There are two different search states. The milder search state is called “heightened attention,” in which you become more receptive to information about the product or service. The stronger search state is called “active information search,” in which you might do some research about the product or service on the Internet (referred to as an internal search), ask friends and/or family members their opinions (what’s known as an external search), or even visit stores to view and touch the product (called an experiential search).

Keep in mind, of course, that not all needs/problems identified in Stage 1 will require this second stage. If you’ve run out of bread or toilet paper, you’re probably not going to do an information search; rather, you’ll just go to the store to buy what you need, and your information search may be as simple as checking prices at the grocery store to see if your favorite brand is available or another brand is on sale. However, purchase decisions of more consequence will usually trigger an information search of some type.

Again, consider the process you went through in deciding which college to attend. What sources of information did you use to find out about the colleges or universities you considered attending? Did you look at their websites, talk with friends or family who attended that school, or perhaps even visit the campus and meet with an admissions counselor?

Stage 3: Evaluation of Alternatives

Consumers are said to view a product or service as a “bundle of product attributes,” and you evaluate several attributes of a product or service in reaching your purchase decision. For example, if you’re buying a smartphone, you’ll consider factors such as battery life, speed, storage capacity, or price. If you’re booking a hotel, you’ll probably consider its location, cleanliness, free Wi-Fi, whether it has a free breakfast in the morning or a pool, and of course price.

What bundle of attributes did you use when evaluating your college alternatives? You may have considered factors such as location, size of the campus, whether the school had the program of study you wanted, if it had online learning, and cost.

Stage 4: Purchase Decision

This stage involves actually reaching a decision on the purchase of the product or service. One way people navigate all the information, evaluations, and choices in their purchase decision is to use heuristics —mental shortcuts or “rules of thumb.” Heuristics are types of preexisting value judgments that people use to make decisions.

For example, do you believe that the more expensive product is always of higher quality than the lower-priced product? That’s known as the price = quality heuristic. Brand loyalty is another heuristic people use in reaching their purchase decisions. For example, do you eat cereal? Do you always buy the same brand, or do you buy whatever’s on sale or a brand for which you have a coupon? Country of origin is still another heuristic. Given a choice, do you prefer to buy products made in the United States versus products made in other countries?

How did you make your purchase decision to enroll in your college or university? What heuristics did you use?

Stage 5: Post-Purchase Evaluation

After purchasing the product or service, you’ll experience either satisfaction or dissatisfaction. You may have second thoughts after making a purchase decision, and these doubts lead to cognitive dissonance , or buyer’s remorse—tension caused by uncertainty about the correctness of your decision. This may lead you to search for additional information to confirm the wisdom of your decision in order to reduce that tension.

What determines if a consumer is very satisfied, somewhat satisfied, or dissatisfied with his or her purchase? Satisfaction is a function of the closeness between the buyer’s expectations and the product’s perceived performance. If the product’s performance falls short of expectations, you’ll be dissatisfied. If the product’s performance meets your expectations, you’ll be satisfied, and if the product’s performance exceeds your expectations, you’ll be very satisfied.

Think about the purchase decision you made when you decided to enroll in your college or university. Are you very satisfied, satisfied, or dissatisfied with your decision? Refer to Table 3.1 for a summary of the five stages of the consumer decision process.

Careers In Marketing

You are also a consumer.

Learn about the five stages of the consumer decision process in this video from Open Up (Upatras) Entrepreneurship and this article from Business Study Notes .

GWI , a company that researches global consumer thinking, published its 2022 consumer trends report , which showed that consumers’ needs and priorities have shifted. Read the report and see if you find the same results for yourself. Have your priorities and needs changed since the pandemic hit? What are the other factors influencing your needs assessment?

Several tools can help you with a personal needs assessment. Practice your marketing skills on yourself by trying this needs assessment worksheet . This personal awareness will help you in many ways, including finding the right job that best fits your interests and abilities. Also take a few assessments and compare your results to better identify jobs worth learning more about. There are several free career aptitude tests to try:

• 123 Career Test
• Interest Assessment
• Work Values Matcher
• A Personality Color Test

In addition to career aptitude tests, personality tests assess your skill level and your ability to succeed in a career. Try a few of these:

• Typology Central Jung Personality Test
• Myers-Briggs Type Indicator

The Balance Careers site also provides a wealth of resources on additional aptitude, personality, talent, and preemployment tests. It’s worth your time to dive into this information to help you identify which career might be your best fit.

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• Need recognition
• Information search
• Evaluation of alternatives
• Purchase decision
• Problem identification
• Post-purchase evaluation
• It is the mental conflict that occurs when a person’s behaviors and beliefs do not align.
• It is a mental shortcut that allows people to solve problems and make judgments more quickly and efficiently.
• It is a function of the closeness between your expectations of a product or service and its actual performance.
• It is the process of assigning the cause of behavior to either internal or external characteristics.

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Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

• Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
• Publisher/website: OpenStax
• Book title: Principles of Marketing
• Publication date: Jan 25, 2023
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
• Section URL: https://openstax.org/books/principles-marketing/pages/3-3-the-consumer-purchasing-decision-process

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Consumer Decision Making Process: a detailed analysis

The consumer decision making process is complex and involves all the stages from problem recognition to post purchase activities. It has been noted that “the childhood and the human’s development has a crucial impact on personal decision making process” (Sokolowski, 2011, p.1) and the framework of consumer decision making process is found to be addressed by the majority of authors who have addressed the topic of consumer behaviour .

All the consumers have their own needs in their daily lives and these needs make them make different decisions. These decisions can be complex depending on the consumer’s opinion about a particular product, evaluating and comparing, selecting and purchasing among the different types of product. Therefore, understanding and realizing the core issue of the process of consumer decision making and utilize the theories in practice is becoming a common view point by many companies and people.

There is a common consensus among many researchers and academics that consumer purchasing theory involves a number of different stages. Depending on the different factors and findings, numerous researchers and academics developed their own theories and models over the past years. However, according to Tyagi and Kumar (2004), although these theories vary slightly from each other, they all lead to almost the same theory about the consumer purchasing theory which states that it involves the stages of search and purchase of product or service and the process of evaluation the product or service in the post-purchase product.

Five Stage Model initially proposed by Cox et al. (1983) is considered to be one of the most common models of consumer decision making process and it involves five various stages. These stages are: recognition of need or problem, information search, comparing the alternatives, purchase and post-purchase evaluation. This simple model clearly illustrates and explains how the consumers make a purchasing decision.

Furthermore, Blackwell et al (2006) highlight the argument why this model is more precise and clear compared to the other similar models is that because this model’s core focus is on motivational factors which helps the user to understand the reasons behind the purchasing decision easier.       

 1. Problem/Need Recognition in Consumer Decision Making Process

Recognition of need or a problem is the first stage of the model. Arnould et al. (2002) specify need as the difference between an actual state and the desired state. According to Agwaral (2006) a need may be recognised due to internal or external stimuli. Hunger, thirst or other basic human needs can be specified as internal stimuli, whereas external stimuli may be caused by various formats of advertisement.

According to Bruner (1993) recognition of a problem arises in the situation where an individual realizes the difference between the actual state of affairs and desired state of affairs. Neal and Quester (2006) further state that the recognition of a problem or need depend on different situations and circumstances such as personal or professional and this recognition results in creation of a purchasing idea. For instance, consumer may recognize the need to buy a laptop when there is need to carry it use it in different places which is convenient compared to a desktop computer.

Solomon et al (2006) classifies the human needs into two different categories depending on their nature. The following categories are mentioned: psychological and functional or physical needs. The authors state that the psychological needs are the outcome of emotional feeling of consumers whereas functional or physical needs are usually the results of necessity.

According to Tyagi (2004) need recognition at various levels often occurs during the process of encountering with the product at various circumstances. In other words, Tyagi (2004) convincingly argues that an individual might not be aware of the need for a specific product until he or she encounters with the product as a result of engaging in ‘window-shopping’, media advertisements, or in a range of other circumstances.

The human need has no limit therefore; the problem recognition is a repetitive in nature. According to Maslow theory, human being is always dissatisfied, when an individual’s one need is satisfied another one will come out and this trend continues repetitively.

2. Information Search in Consumer Decision Making Process

The next stage of the model is information search. Once the need is recognized, the consumer is likely to search more product-related information before directly making a purchase decision. However, different individuals are involved in search process differently depending on their knowledge about the product, their previous experience or purchases or on some external information such as feedback from others.

Majumdar (2010) divides sources of information into four categories: personal, commercial, public and experiential sources. Members of family, friends, colleagues and others can be specified as personal sources of information. The level of influence of personal source of information is greater compared to other sources.

Commercial sources of information refer to marketing communication messages in various formats. Consumers are usually subjected to commercial sources of information via media advertisement, direct marketing, viral marketing, commercial events etc. Public sources of information refer to mass media in print, television, radio and digital formats. According to Batra and Kazmi (2008), consumer rating groups represent can be specified as another important public source. Experiential sources of information related to products and services relate to the possibilities of examining and using products and services for a specific duration of time.

Search of information process itself can be divided into two parts as stated by Oliver (2011): the internal search and external search. In internal search, the consumers compare the alternatives from their own experiences and memories depending on their own past experiences and knowledge. For example, searching for fast food can be an example for internal search because customers often use their knowledge and tastes to choose the right product they need rather than asking someone for an advice. On the other hand, external search ends to be for bigger purchases such as home appliances or gadgets. For instance, consumers who wish to buy new furniture or a mobile phone tend to ask friends’ opinion and advices or search in the magazines and media before making a purchasing decision.

Winer (2009) argues that with the enhancing role of internet in professional and personal lives of people, increasing numbers of individuals are turning to various resources in internet when searching for information about product categories or specific brands. The author specifically highlights the role of online user reviews and forums in terms of their significant impact upon information search stage of consumer decision making process among internet users.

Colleagues, peers, friends and family members are highlighted as another important source of information by Kahle and Close (2006). Moreover, according to Kahle and Close (2006) the nature of influence of peers, friends and family members upon information search and consumer decision making process in general depends on a range of factors such as the nature of relationships, the level of personal influence, the extent of ‘opinion leadership’ associated with specific individuals etc.

3. Evaluation of Alternatives in Consumer Decision Making Process

After gathering enough information at the first stage the consumer gets into comparing and evaluating that information in order to make the right choice. In this stage the consumer analyzes all the information obtained through the search and considers various alternative products and services compares them according to the needs and wants.

Evaluation of alternatives is usually conducted with the application of a set of criteria depending on consumer value preferences. Specifically, consumer value preferences might be oriented towards price, quality or additional features and capabilities of products and services (Blythe, 1997). Neal and Quester (2007) discuss this issue with a greater level of clarity by specifying quality, price and features as product attributes specifies the degree of importance of each attribute as the most important factor impacting the outcome of evaluation of alternatives.

Furthermore, according to Ha et al (2010), the process of evaluation of alternatives can sometimes be difficult, time consuming and full of pressure for a consumer. This is because it is quite hard to find an ideal product or service that satisfies the needs of the customer as there are numerous factors that hinder the consumer purchasing decision making process. For instance, when it comes to online hotel reservation or furniture purchasing evaluation process, it can be quite complex. Several factors and aspects need to be considered before making a purchasing decision. Factors such as age, culture, taste and budget have all impact on the evaluation process by the consumer. For example, when purchasing a furniture, the young people consider the factors such as convenience and price where as the old people are likely to consider the quality and design.

Moreover, celebrity endorsement is seen as another factor with great potential impact on evaluation of alternatives stages of consumer decision making process. Cant et al. (2010) explain the effectiveness of celebrity endorsements with perceived greatness people associate with their idols and the willingness and desire to become like their idols.

 4. Purchase Decision in Consumer Decision Making Process

Once the information search and evaluation process is over, the consumer makes the purchasing decision and this stage is considered to be the most important stage throughout the whole process. In this stage, the consumer makes decision to make a final purchase as he or she has already reviewed all the alternatives and came to a final decision point.

Importantly, purchase decision may result from evaluation of alternatives or such a decision might be made due to a set of situational factors such as effective point of sales marketing technique, and other aspects of environment in the point of sales. Evans et al. (2009) draw attention to impact of other people in the purchase decision. Specifically, according to Evans et al. (2009) the outcome of evaluation of alternatives may change even in last minutes before the purchase due to the impact of attitude of other people or a set of other factors.

Purchased further can be classified into three different types: planned purchase, partially purchase and impulse purchase (Kacen, 2002). Kacen’s view is further supported by Hoyer and Macinnis (2008) stating that there are a number of factors that can affect the purchasing process. For example, the desired product may not be available at the stock. In this case the purchase process is delayed and consumer may consider buying the product through online stores rather than visiting traditional physical stores.

According to Wiedmann et al. (2007) department store sales assistants play in integral role in terms of impacting consumer purchase decision in a positive way from a business point of view. At the same time Wiedmann et al. (2007) warn that this impact must not be done in a pushy manner, in which case it can prove to be counter-productive.

 5. Post-Purchase Evaluation in Consumer Decision Making Process

The final stage in the consumer decision making process is post-purchase evaluation stage. Many companies tend to ignore this stage as this takes place after the transaction has been done. However, this stage can be the most important one as it directly affects the future decision making processes by the consumer for the same product. Therefore this stage reflects the consumer’s experience of purchasing a product or service. This view is further supported by Ofir (2005) mentioning that the consumer decision making process is a repetitive action and a good experience is vital in reducing the uncertainty when the decision to purchase the same product or service is considered the ext time.

According to Webb (2009), product’s perceived performance in customers’ viewpoint can result in customer satisfaction and dissatisfaction, with direct and immense implications on the level of customer loyalty. The opinions of peers, friends and family regarding the purchases made is specified as one of the most important factors affecting the outcome of post-purchase evaluation by Perrey and Spillecke (2011). This point is further expanded by Trehan and Trehan (2011), according to whom peer opinions regarding product evaluations tend to impact customer level of satisfaction regardless of their level of objectivity.

Brink and Berndt (2009) also highlights the importance of the post-purchase evaluation stage. According to the authors, the consumer may either get satisfaction or dissatisfaction depending on the evaluation of the purchase and comparison of their own expectations. The outcome forms the experience of the customer and it this experience is believed to have a direct impact on the next decision of the consumer to purchase the same product from the same seller.

Simply, if the consumer is satisfies with the purchase it is likely that the purchase may be repeated while if they have a negative experience from the purchase it is unlikely that the consumer may make the decision to buy the same product from the same seller or even may not buy the product at all.

Agwaral, M. (2006) “Consumer Behaviour and Consumer Protection in India” New Century

Arnould, E., Zinkhan, G. & Price, L. (2002) “Consumers” McGraw-Hill International

Brink, A. & Berndt, A. (2009) “Relationship Marketing and Customer Relationship Management” Juta Publications

Cant, M.C., Strydom, J.W. & Jooste, C.J. (2009) “Marketing Management” Juta Publications

Ha, H., Janda. S. and Muthaly, S., (2010). “Development of brand equity: evaluation of four alternative models”, Service Industries Journal , 30(6), pp. 911-928

Hoyer, W.D. & Macinnis, D.J. (2008) “Consumer Behaviour”, 5 th edition, Cengage Learning

Evans, M.M., Foxall, G. & Jamal, A. (2009) “Consumer Behaviour” John Wiley & Sons

Kacen. J. J. and Lee. J. A., (2002) “The influence of culture on consumer impulsive buying behaviour”, Journal of consumer psychology. 12(2), pp. 163-174.

Kahle L.R. and Close, A. (2006) “Consumer Behaviour Knowledge for Effective Sports and Event Marketing”, Taylor & Francis, New York, USA

Ofir, C. and Simonson, I. (2005) “The Effect of Stating Expectations on Customer Satisfaction and Shopping Experience”, Stanford Graduate School of Business 44p

Perrey, J & Spillecke, D. (2011) “Retail Marketing and Branding: A Definitive Guide to Maximising ROI” John Wiley & Sons

Sokolowski, O. (2011) “Influences and Attitudes within Consumer Behaviour Process” GRIN Verlag

Trehan, M. & Trehan, R. (2011) “Advertising and Sales Management” FK Publications

Tyagi, C. and Kumar, A. (2004) “Consumer Behaviour”, Atlantic Publishers, US

Wiedmann, K., Hennigs, N. and Siebels, A. (2007) “Measuring Luxury consumer perception: A cross-culture framework”, Academy of Marketing Science review , 2007(7)

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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).

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.

Introduction to Consumer Behaviour Copyright © 2021 by Andrea Niosi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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• Customer Marketing

Consumer Decision-Making Process: The 5 Key Stages

Mar 26, 2024 | 10 minute read

• Megan Wenzl

Content Marketing Manager

Quick Takeaways

Uncover the psychology of customer decision-making. Learn about the stages and factors that shape consumer choices in this guide.

After a customer makes a purchase and you finish celebrating another conversion, the questions begin. What had the biggest influence on the consumer’s decision-making process? How much research and comparison was involved? Was it a specific campaign or a combination?

These types of questions regarding the consumer decision-making process often plague marketers. While data and analysis can provide plenty of insights into your customer journey, the full scope and lead-up to a customer clicking “buy now” remains a bit of a mystery.

This is where an analysis of the stages of your consumer decision-making process comes into play. Understanding it from end-to-end is critical for your brand to effectively cater to your customer needs and preferences. 

This guide will dive into each of the five key steps of the consumer decision-making process including understanding consumer needs, the customer experience, information search, purchase decision, and post-purchase decision.

What Is the Consumer Decision-Making Process?

The consumer decision-making process involves a multi-step journey through which potential customers identify a need, research solutions, compare alternatives, move forward with a purchase, and reflect on their decision.

While consumers generally follow the stages in this order, remember that the consumer decision-making process is dynamic and can vary for each individual. This means you have to constantly adapt to your customers’ evolving preferences and feedback cycles.

When you thoroughly comprehend each stage, you can better improve your customer journey, intervene at friction points, identify opportunities for cross-sells or upsells, and ultimately increase the frequency of customers clicking “buy now.”

5 Stages in the Consumer Decision-Making Process

The stages in the consumer decision-making process can be summarized into five key steps, each of which plays an important role:

• Need Recognition : This is when a consumer becomes aware of a need or desire. This recognition can be prompted by internal triggers (e.g., hunger, discomfort) or external stimuli (e.g., advertising, recommendations).
• Information Search : Gripped by their newly discovered need, customers start to look for more information. 
• Evaluation of Alternatives : Becoming increasingly knowledgeable on the subject area, customers start to compare the different options available.
• Purchase Decision : During this stage, a customer finally decides to buy! 
• Post-Purchase Evaluation : After buying, customers contemplate whether the purchase was worth it, whether to recommend it to others and if they want to buy from you again. 

Now that we’ve covered the basic steps, let’s explore each stage in more detail. 

1. Need Recognition

Every customer journey or decision-making process starts with a need. Without a need of some sort, no purchase would ever occur. Needs can be real needs , like food or water, or needs can be wants. A need encompasses a range of desires, preferences, and requirements that influence the decision-making process. Needs can be:

• Psychological

Identifying Customer Needs

Successful marketing campaigns understand the different types of needs and effectively tailor the experience to meet those needs all while serving the target customer through each stage of the process. You can build customer-centric marketing campaigns by identifying needs through:

• Market research
• Customer feedback and reviews
• Thorough data analysis

As a brand, keeping abreast of changing customer patterns and continuously making adjustments is fundamental to ensuring you provide a positive customer experience. When the customer base needs change, your processes and experience should evolve in harmony with new shopping behaviors and demands. 

Identifying Your Target Audience

A target audience is a group of individuals or demographics that a brand aims to reach (or “target”) and engage with its products or services. When evaluating the decision-making process, you must first identify your target audience to better understand the specific nuances that should transpire in the customer journey. 

This allows you to tailor your messaging, positioning, and promotions to resonate with the preferences and interests of your intended consumers.

2. Information Search

A fundamental part of the overarching customer journey is the information search stage. During this stage, customers begin researching solutions to their needs and actively compare brands before ultimately making a selection.

Customers gather information from a variety of sources, including reviews and Google, and use the information to narrow down their options. This explains why it’s important to have a presence on a variety of platforms and touchpoints so that you remain top of mind and have influence over the information being gathered. 

A customer could be influenced to make a decision through word-of-mouth, past experiences, or online research before making a final decision.

Improve Online Presence with SEO

Word-of-mouth and past experiences are more difficult for brands to control, but search engine optimization (SEO) is a channel in which brands can ensure they are represented and have a strong presence. 

Marketers should strive for a comprehensive SEO strategy that focuses on relevant keywords for the specific needs and target audiences that your brand fulfills. This is a subtle way to feed information directly to the customer and insert your brand into the customer’s list of alternatives for consideration. 

Factors Influencing Information Search

Depending on the product or service, several factors can influence a consumer’s information search, including: 

• Perceived Risk : The perceived risk of a high-ticket item, for example, might extend the length of the information search stage as customers diligently search for information and conduct research to mitigate the perceived risk. 
• Past Experiences : Both positive and negative past experiences might shorten the length of this stage since consumers have carried over information from a previous decision-making process. 

Learn How Real Brands Drive Fast and Sustainable Growth

3. Evaluation of Alternatives

During the third stage of the decision-making process, customers use the information search and identification of potential solutions to compare and evaluate alternatives. At this stage, you are in direct competition with other brands and are vying for customers’ recognition that your brand is the best option based on the customer’s set of criteria.

The customer could be evaluating alternatives based on a variety of criteria. Some criteria include:

• Quality : Durability, performance, longevity, or luxuriousness of your product
• Price or Value : The price paid and the perceived value
• Compatibility : How well your product suits the customer’s lifestyle or preferences
• Customer Service : Level of service received or needed for a successful purchase

Customers may choose to prioritize one or several of these criteria over another when evaluating alternatives. You must conduct thorough market research in order to understand which customer incentives will sway the decision-making process for your target audience the most.

Similarly, brands may choose to prioritize one of these criteria over another to secure a competitive advantage. For example, an apparel brand might forgo price or discount-based marketing and instead pursue improving their quality and customer service.

Ultimately, your strategy should align with your brand’s values and vision.

4. Purchase Decision

This stage might be the most exciting but the work is not quite done after a customer clicks “buy now.” The purchase decision stage is a critical point in the consumer decision-making process when all the marketing efforts leading up to the decision come to a head.

The purchase decision stage is when customers have selected a brand or product to fulfill their needs and begin to proceed through the checkout experience.

In ecommerce, accessibility, convenience, and trust are critical factors to serve customers through the purchase decision stage. With online retail being highly competitive and customers perceiving greater risks in buying online, it’s essential for your customers to have easy access to information, convenient fulfillment options, and overall trust in the legitimacy of your brand . 

Optimizing the Checkout Experience

Marketing efforts are necessary in all stages of the customer journey but are especially important during checkout . Considerable time and resources are invested to get the customer to the checkout flow, but a friction-filled or inconvenient checkout experience can disrupt the entire journey and even dissuade a customer from purchasing. Checkout flows should be as seamless as possible with technologies that require very little customer input. 

Some ways you can improve checkout flows include:

• Offering a variety of payment options, including financing
• Having strong security and fraud-prevention measures
• Enabling detailed and accessible order tracking

The customer journey might start with problem recognition, but each leg of the journey needs to be consistent to guide the customer to make a purchase. You should continuously evaluate your efforts and adjust accordingly when new patterns, trends, or customer segments arise.

5. Post-Purchase Evaluation

It’s easy to forget that the customer journey continues beyond when a customer clicks “buy now.” The post-purchase journey can be just as important as the pre-purchase journey and can even create customer loyalty and fuel referrals.

It is in the time following transactions that customers pay attention to your brand’s behavior. After all, they are no longer potential customers but rather previous customers.

Factors Affecting Post-Purchase Evaluation

While there are countless factors that influence a customer’s post-purchase evaluation, some of the most important include: 

• Quality : Most notably, the quality of your product or service leaves a lasting impression and is a determinant of whether a customer would recommend your brand to a friend. 
• Checkout Experience : The ease of the purchasing process is likely to attract convenience-focused customers after they are assured you can deliver a convenient and seamless experience during a time crunch. 
• Customer Service : Customers for high-ticket products (housewares or furniture for example) are likely to be influenced by a high level of customer service received.
• Delivery Time : A brand can completely ruin a customer experience with sluggish delivery times or poor operations and logistics. In the age of convenience, it’s essential for your brand to consider and ensure a high level of operational efficiency.

Gathering Customer Feedback

Once the product or service is delivered, you still have the opportunity to build rapport and re-engage with customers with post-purchase surveys , feedback mechanisms, and reviews for gathering valuable insights during the post-purchase evaluation. 

Since this feedback is gathered from customers who experienced the full journey from end to end, you can use this information to actively improve every touchpoint of the journey, make adjustments to marketing strategies, and create an excellent experience for future or repeat customers.

This will also entice customers to interact with your brand again. With the majority of customers only making one purchase with brands, one-time purchasers represent a low-hanging fruit for you to target in the hopes of creating more customer loyalty , a higher repeat purchase rate, and higher customer lifetime value for sustainable growth and profitability.

How to Improve Your Customer Journey

Once a need prompts a customer to be in the market for a specific product or service, the customer journey begins. The customer journey is a series of interactions and touchpoints that a customer experiences through interactions with your brand and it should be a constant focus for improvement.

During each of the stages, your brand has the opportunity to guide shoppers through each stage and influence their decision-making process using tactics that maximize sales growth and create positive customer experiences. Here are some additional tips to make this process as smooth as possible.

Create a Customer Journey Map

A customer journey map serves as a visual tool to help you understand each touchpoint, pain point, and interaction that influences the decision-making process of your buyers. Mapping out the interactions can help you identify areas for improvement and highlight areas of success with significant impacts on the overall experience.

When customers have thoughtful guidance along every step of the decision-making process and a friction-free experience, they are much more likely to recommend your brand to a friend, make repeat purchases, and potentially become loyal customers or brand advocates .

Provide an Exceptional Customer Experience

With the goal being to achieve customer loyalty, your brand should strive to deliver exceptional customer experiences at every touchpoint. This can be achieved by using satisfaction-enhancing tactics such as:

• Personalized interactions
• Proactive customer support
• Seamless omnichannel experiences

Each of these tactics requires consistent marketing efforts across all major channels and platforms including branding, social media, and loyalty programs . 

These touchpoints often give customers a window into your brand’s values and reputation and inspire customers to choose you as they make their purchase decisions.

Final Thoughts

The consumer decision-making process is a complex web of influences, stages, and elements that impact results. Your brand must constantly evaluate the full customer journey and monitor consumer behavior to create and adapt effective marketing strategies for continued success.

If you’re interested in improving the customer journey along each touchpoint of the consumer decision-making process, book a demo with Okendo to explore how you can enhance customer relationships, increase conversions, and build customer loyalty to grow faster and succeed long-term. 

Megan Wenzl is the Content Marketing Manager at Okendo. Megan has more than two years of ecommerce experience and has worked in various content marketing roles over the course of eight years. With a foundation in journalism, she is passionate about creating useful, educational content to help brands succeed. When not working, Megan enjoys being outside and spending time with her family.

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Consumer Behavior main assignment (1)

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5 Stages of the Consumer Purchase Decision Process

Every customer goes through a journey as they decide whether to make a purchase from your store. Learn how to guide the purchase decision process.

What inspires customers to buy a particular product or service? One of the ways merchants can explore this question is by identifying the distinct stages a customer goes through when making a purchase decision, starting with the recognition of a need. 

Use the consumer decision-making framework to learn more about how customers make purchase decisions and how you can influence them toward sales conversions.

✂️ Shortcuts

What is a purchase decision?

What is the consumer decision-making process, 5 stages of the purchase decision process, tips for influencing purchase decisions, purchase decision faq.

A purchase decision is the stage in the consumer buying process where a customer chooses to buy a specific product or service. To influence this decision, businesses can highlight unique selling points, offer limited-time discounts, or provide customer testimonials to build trust and urgency.

The consumer decision-making process is a series of stages that customers go through when purchasing a product or service. The consumer decision-making process is also known as the buying decision process, the consumer decision process, the buying process, and the consumer purchase decision process.

The consumer decision-making process covers a customer’s entire buying journey , from identifying an initial need to evaluating a product, service, or experience, and then making a final purchase decision. Brands use intuitive tools and marketing strategies to streamline their company’s purchase process and influence consumer behavior.

• Customer need recognition
• Initial information search
• Evaluation of alternatives
• Post-purchase appraisal

There are five stages of the consumer decision-making process, starting with a need and ending with an evaluation of a purchase:

1. Customer need recognition

The first step of the customer journey involves consumers identifying problems they need to solve. A customer’s need for a product or service arises from factors like physical needs and emotions, often influenced by advertisements and recommendations. For example, a customer might want to purchase healthy snacks because they’re hungry or because they started a workout routine that requires more nutrient-dense food on the go—or both.

Brands can influence consumer behavior during this stage by focusing marketing efforts on particular needs related to their offerings. One of the best ways that brands can engage with this stage is by learning as much as possible about their target audience’s needs. Surveys, customer interviews, focus groups, and market research are all ways that merchants can learn more about the needs of their loyal customer base.

2. Initial information search

The second stage of the consumer decision-making process involves customers searching for information about products or services related to their needs. Customers engage with this information search stage by making search engine queries, reading online reviews, engaging with informative ads, talking with friends, or visiting a store in person.

Some of the ways that brands influence the buying process at this stage include creating compelling social media content that offers information about their products or services, as well as developing an SEO strategy with content designed to rank highly on search engine results pages (SERPs).

3. Evaluation of alternatives

The evaluation of alternatives stage involves customers weighing which product, service, or brand to choose. Consumers use the information they gathered in the previous stage to compare options and make a choice based on a variety of factors, including availability, pricing, positive and negative reviews, and brand loyalty.

Brands can influence the evaluation process by generating quality social proof with positive customer testimonials and endorsements. Other marketing strategies that brands can use during this stage include product demonstrations, promotional discounts, and advertisements focused on how a particular product or service stands apart from its competitors.

4. Purchase

The fourth stage of the consumer decision-making process is the actual purchase of the product or service. Once customers gather enough information and evaluate their options, they make a final decision about what to purchase.

Brands can interact with this purchase decision stage by optimizing the customer checkout experience. By improving this experience both in stores with an easy point-of-sale system and online using an intuitive ecommerce platform , brands can avoid shopping cart abandonment and earn more sales conversions.

5. Post-purchase appraisal

The post-purchase stage involves customers evaluating their experience with a brand’s product or service after purchasing it. During this post-purchase evaluation, customers reflect on how a particular product or service met their needs and whether they’d purchase it again or recommend it to others. 

Brands can influence post-purchase behavior with strategies like customer loyalty programs , customer surveys, follow-up emails with discount codes for new products, and effective retargeting campaigns focused specifically on previous customers.

Gather social proof

Understand your target audience, build a valuable brand, optimize your ecommerce store, choose the right pricing model.

Consumers make purchase decisions based on a variety of factors. Here are a few ways that brands can influence consumer behavior and help customers make a final purchase decision:

Collect as much user-generated content from past customers as possible, including positive reviews, testimonials, and social media posts. This type of content acts as social proof , a psychological phenomenon where people rely on the opinions or actions of others to inform their decisions. Brands can use social proof to influence consumer choice by validating their products or services with positive feedback.

Optimizing your brand to influence customers toward making a purchase requires a comprehensive understanding of your target audience . Brands can learn about their target audience by analyzing the customer base of their competition and conducting market research through surveys or focus groups.

Creating a brand image that customers recognize and respect takes time, money, and energy. However, if you create a positive customer experience throughout the decision-making process, you can inspire brand loyalty over time and earn repeat purchases from previous customers.

Create compelling brand assets and determine brand guidelines for your brand’s voice, tone, and visual style. By defining a clear brand identity that aligns with your target audience, you can increase your brand equity , or the perceived value of your brand.

Create a purchasing experience in your ecommerce store that makes it as easy as possible for potential customers to choose products or services and make a purchase. Use attractive product images, clear call-to-action buttons, and mobile-friendly designs. Ecommerce platforms like Shopify help merchants create online stores that bring customers seamlessly through the decision-making process with features like secure checkouts, customizable themes, and automated email sequences.

One of the best ways that brands can move potential buyers through the consumer decision-making process toward a sale is by choosing a pricing strategy that works for their products and services. Companies choose pricing strategies for a variety of reasons, including production costs, profit margins, market demand, competitor pricing, and revenue goals.

Whichever pricing strategy you choose, remember to keep pricing transparent upfront and include an estimate of taxes, shipping costs, and any other additional costs. Holding back on the full price of your products or services until the final purchase stage of the decision-making process can hurt your reputation and increase shopping cart abandonment .

What is purchase intention?

Purchase intention, also known as buying intent, is the likelihood that a customer will purchase a product or service. Marketers use previous sales data and predictive modeling to anticipate future purchases and inform strategic decisions about pricing, product development , and product launches .

What are the main factors that influence purchase decisions?

Some of the main factors that influence purchase decisions include customer needs, social proof for a product or service, pricing, and brand loyalty.

What is the most important stage of the purchase decision process?

All five stages of the consumer decision-making process are important, but the first stage is particularly important, as final purchase decisions start with customers recognizing they have a need to fulfill or a problem to solve.

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