Consumer Decision-Making Process: A Detailed Report

This report provides a comprehensive analysis of consumer behavior, exploring the intricate factors that influence purchasing decisions. It examines the impact of social class, reference groups, needs, and motivations on consumer choices. The report delves into the decision-making process, including the stages of need recognition, information search, and evaluation of alternatives. It also discusses the influence of personality, consumer perception, and involvement levels on purchase decisions. The analysis includes discussions on utilitarian, hedonic, and social values in shopping, as well as the role of both private and public reference groups, such as family, friends, celebrities, and influencers. Furthermore, the report highlights the importance of marketing orientations and the significance of consumer satisfaction. Ultimately, the study aims to provide marketers with insights into the consumer's mind and decision-making process.

1. Social Class and Consumer Behavior:
The decision-making process of consumer is complex and is very important to determine their
purchase behavior. Marketers and researchers study these fields to understand their customer’s
purchasing decision. Every customer has their own specific pattern of purchase in today’s multi
brands market. Many researcher’s studies consumers behavior to understand the reason why
consumer buy and what are the factors that influence their purchasing decisions (Durmaz, 2014).
As per the research done by Rossiter and Foxall in 2008, the main causes of purchase behavior
consumers are:
a. drive level or momentary motivation,
b. initiating stimuli,
c. habits that include attitudes, values and belief,
d. external incentive
Social class of consumer is also one of the main cause of difference in consumer purchase as it
has a big influence on their behavior.
In order to provide effective service, it is important to identify what kind of products and benefits
consumer seeks. It is important to understand for companies about what they buy, how much
they buy, why they buy and where they buy (Kashyap & Iyer, 2007).
There are several characteristics of social classes like people of same social class have similar
habit that include preferences for housing, clothing, furniture, leisure service etc.
From a global perspective marketer focuses on social class. In many countries there is a great
class differences in people, where they live, types of clothes they wear, the cars they drive etc.
are determining the social class. Social class has high impact on the behavior of consumer.
Young people from high social class greater preference an awareness of consumer stimuli in the
consumer environment. They have strong brand preference and mostly seek information before
making decision of purchase in compare to lower class people. social class influences how and
where people go for hopping. Lower class people usually shop in local markets where as upper-
class consumer will venture different new places to shop.

2. Reference groups in purchase intention of shoppers
The study and research has proved tat reference groups have significant impact on the purchase
intention of different types of customer. It is common to see customer using their reference
groups in making their purchasing decisions. For example: the customer may ask their friends or
family before making any kind of purchase (Pentine & Zhang, 2015). It is also seen that,
sometimes consumer purchase products just on the basis of the endorsement being done by the
celebrity or the influencer. As reference groups affects the intention of the shopper to purchase, it
is evident that the previous studies which focused on the impact of reference groups on
purchasing habit were true. The reference groups do not only affect the purchasing habit but
there are other factors as well like types of customer, types of products involved had also
relevant consequences (ADíaza & Mar, 2017). The shopper has been classified into there types
which are utilitarian, hedonic value and social vale. Different customer has diverse behavior
while shopping and it reflects in their purchasing decisions. When it comes to product
involvement, the customer purchase products on the basis of product involvement. The different
types of reference groups affect the shopper purchasing decision differently. The involvement of
family, friends etc. can change in individual norm and attitude through interaction. But, the
celebrities and influences often have significant impact on their purchasing decision. The
customers are more attracted towards the celebrities or influencers because of their success story,
life style, opinions etc.
Hence, the impact of reference group on the purchasing habit is diverse and depend upon the
different source of information the customer is using for making their decision. Thus, the type of
reference group is classified into: a. private group which includes family members and friends,
celebrities and influencers b. public groups which includes celebrates and influencers.
Some of the consumers also tend to build a respectable or impression on their friends. For
example: it has been found that, men make more purchases when they are with their friend then
when they do their shopping alone.
3. Needs and motivation of Consumer satisfaction
Motivation is the force which drive or compels the individual to perform certain action. This type
of force is produced when an individual is in a state of uncomfortable tension which arises due to
unfulfilled wish. Every individual has need, want and desire (Wilton & Tse, 1988).
Consumer need is the basis of marketing. As we all know, the need is the essence of marketing.
For any company to succeed or survive and earn profit, it needs to identify and satisfy the
unfulfilled needs of the consumer sooner and better than its rival companies. The markets do not
rush in order to create need, though in some cases they make customer to realize their unfelt
needs (Bearden, 1983). The successful markets analyses their success in terms of need they
satisfied instead of focusing on number of products to be sold. This is known market oriented
rather than product-oriented approach to marketing. The marketing orientation approach mainly
focuses on the needs of the buyer. While a product orientation focuses on the need of the seller.
Consumer behavior is a complex relationship which is based on several factors. The market

oriented should produce according to the need of the buyer so that the customer is satisfied. A
satisfied customer influences other to purchase those products, thus creating a win-win situation
for both buyer and seller.
4. Influence of personality on consumer buying behavior
The purchase, search, usage, disposal of services and goods by consumer are highly influenced
by cultural, environment, psychological factor and personal. There is a huge impact of
personality of consumer on their buying behavior. There are several theories of personality that
have been applied to study consumer buying behavior. The theories like Psychoanalytic theory,
the trait theory and Neo-Freudian theory are the most relevant to analyses consumer behavior
(Parmer & Dillard, 2015).
Trait theory shows a quantitative approach to study personality of people. The researchers of trait
theory found that it is realistic to expect personality to link with consumer decision making and
choices of product purchase and consumption. Non- Freudian theory focuses on social
relationships as the believe that they are the basic to the development and formation of
personality.
Personality is a result of environmental and social influences on the individual concentrates. It
reflects individual differences. It is important concepts as it enables to categorize buyer into
several groups on the basis of several traits. Marketers focuses on consumer personality as if they
know that personality characteristics influence particular responses they can appeal to the
suitable traits inherent in the group of customers (Sarker, Bose, Palit, & Haque, 2013). The
personality difference is directly related with differences in products bought by customers. The
type of clothes, appliances, automobiles etc. individual buy, shows their personalities. People of
upper class tend to buy expensive products. Therefore, marketers produce their product s
promotional campaigns and advertisement focusing on the personality types of their target
consumer. Marketers should not only focus on conscious rational aspect of goods in developing
appeal, but also customers unconscious motives.
Personality is also a key factor that influence purchasing behavior of consumer. So, marketers
should always focus on the service related issues that directly affects consumers attitudes
measuring personality in product and service industry is very important.

5. Consumer perception and Decision-making process
The perception of consumer has direct influence on the decision-making process of consumer
while purchasing any product. That is why marketers and researches stud the factors that
influence consumer buying behavior. Companies spends huge amount of money on marketing, to
improve the consumer service and doing things that can influence the perception of target
customer (Ladhari, Souiden, & Béatrice, 2017).
There are five stages in decision making process of customers to obtain product or services. It
includes need recognition, information search, evaluation of alternative products buying decision
and post purchase behavior.
There are several decision-making models on consumer. Behavioral decision theorists identified
several situations in which consumers make irrational choices.
The traditional model of consumer decision making process i.e. five staged mode of customer
buying process consists of 5 stages. There model serves as a modern base concept for
McKinsey’s model which has four primary phases of decision making that are: initial
consideration, active evaluation, closure when consumer buy brands and lastly the post purchase,
when customer experience them (Stankevich, 2017).
With proper panning and execution, companies can influence consumer perception and
encourage profitable consumer behavior. Consumer synthesizes every information about a
company to make decision about the company whether it offers value or not. Their perceptions
are approximation of reality and business tries to influences their perception of reality by
presenting themselves in best and attractive way. So, perception of consumers can be changed as
it has great influence on decision making process.
6. Consumer Involvement and Purchase Decision
Consumer involvement can be defined as a state of mind which motivates customer to buy
product or the importance that customer places on any service or product. There are many levels
of consumer involvement that helps in the decision-making process and several factors that
influences their involvement (Laurent & Kapferer, 1985).
The theory of involvement is based such that there exist both high and low involvement and high
and low purchases. As per this theory, the involvement of consumer depends upon the degree of
relevance of purchase. For example: If a customer wishes to buy a packet of bread or butter, tea
or food then he may not feel very much involved as these products have short life and once it is
consumed, it ceases to exist. Also, if a customer is not having pleasant experience with the
product then he may change the brand next time.
Although this case does not hold true in case of consumer durables and
other services. If a consumer buys a refrigerator, air conditioner, furniture, house, automobile,
etc. he is bound to use it for longer period of time as disposal of such products can incur heavy
loss. Thus, in these types of products, the degree of involvement is high, therefore, the consumer

takes a lot thinking before making any final decision. Insurance policy once taken, one has to
live with it (Varki & Wong, 2003).
If a patient gets admitted to a hospital for an operation then he cannot leave the operation theatre
until the operation is complete or even if one is not satisfied. This kind of product and services
have high risk involvement and have long term consequences. Thus, a customer should make
enough inquiries before taking final decision so that they may not have to suffer later on.
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