Consumer Decision Making Process: Analysis and KFC Case Study Example

This report provides a detailed analysis of the consumer decision-making process, exploring the five-stage model: problem/need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It delves into each stage, citing relevant research and theories from various authors. The report also discusses factors influencing each stage, such as internal and external search, the role of marketing mix, and the impact of post-purchase evaluation on future consumer behavior. A case study example of KFC in Malaysia is included to illustrate how consumer decision-making process works in real-world scenario. The analysis covers how KFC strategized to improve its lunch and dinner sales by understanding consumer preferences. Overall, the report offers a comprehensive understanding of consumer behavior and its implications for businesses.

Consumer Decision Making Process: a detailed analysis
Posted on July 6, 2013 by John Dudovskiy
The consumer decision making is a complex process with involves all the stages from problem
recognition to post purchase activities. 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) highlights 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.
Contents [show]
1. Problem/Need Recognition

Recognition of need or a problem is the first stage of the model. 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
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.
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
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. Moreover, another various aspects of
the product such as size, quality, brand and price are considered at this stage. Therefore, this
stage is considered to be the most important stage during the whole consumer decision making
process. Evaluation of alternatives have to include 4 P’s Marketing mix.
If you ask What is the marketing mix? Then in summary these 4 variables comprise the
Marketing mix.
1. Product – What the company is manufacturing?
2. Price – What is the pricing strategy used by the company?
3. Place – Where is the company selling?
4. Promotions – How is the company promoting the product?
The Marketing mix is a set of four decisions which needs to be taken before launching any new
product. These variables are also known as the 4 P’s of marketing. These four variables help the
firm in making strategic decisions necessary for the smooth running of any product /
organization
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
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. 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
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.
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.

Case study example KFC
Insight
KFC is a well-known food brand in Malaysia, but it was struggling to position itself as a delicious option
for lunch and dinner. Most often while considering options of places to eat at during for lunch and
dinner, people would choose restaurants over KFC. With McDonald’s Lunch becoming a big hit with the
audiences, KFC needed to break away from the ‘snack’ image and ensure higher off-take of its lunch and
dinner treats.
Strategy
Malaysians love their food, and they love eating out. Most Malaysian professionals drive out for their
daily lunch and dinner. But that has its downside as well. During lunch and dinner times, while everyone
is on the road, traffic becomes the biggest obstacle.
Waiting at a traffic block, being hungry is one of the most worrisome things about eating in Malaysia.
Interestingly enough, most Malaysian drivers use Waze (4.5m+ users in Malaysia), an app-based smart
GPS navigator to guide them to their destination ‘traffic free’. But given the volume of traffic that
emerges on the streets, there is only so much it can do on its own.
Stuck in jams people get hungry, and they often take a pit stop before heading, this provided the best
opportunity for KFC to step-in.
Malaysians needed a way to get to their food, fast. UM would use Waze to calm the growling stomachs
of Malaysians in the right context, at the right time with Malaysia’s first GPS and location-based
advertising.
Execution
KFC became the first food chain to partner with Waze to provide ‘fast’ food to Malaysians.

Within 3km of any KFC outlet, the agency could detect any Waze user stationary for more than one
minute, and serve him a KFC Lunch/Dinner Treat message, highlighting the fact that ‘your destination is
probably far, but food at the KFC store is just a few hundred metres away’.
The user could easily click on the message and navigate to the nearest KFC outlet, to satisfy their
hunger, fast. The simple execution was strategically targeted to drivers near the KFC outlets, and time
targeted for lunch and dinner which generally witnesses high traffic movements. By coupling this with
appealing visuals of food available within metres, the impulse was created to drive to KFC instead of
spending time being stuck in traffic. Thus KFC managed to help Malaysians beat traffic with a simple
technology and bring them closer to their food, fast.
Results
People lapped up the KFC lunch and dinner treats promo with high enthusiasm. More than 9,000 clicks
were recorded on the pins within a period of 10 days. More than 3,000 navigations were made from
within Waze, resulting in a whopping 11,000+ footfall to KFC outlets. A total of 400,000+ drivers were
exposed to the brand message, making it one of the most visible campaigns on the streets of Malaysia.
The campaign resulted in incremental sales of RM 500,000 ($152,747) in just 10 days.
Answer
Most purchase decisions are initiated with the recognition of a problem. Consumers develop
needs or desires that they want to satisfy. They feel as if they are missing something, and need to
resolve it to get back to normal. Malaysians have a diverse food culture and they enjoy eating
out. So, most Malaysian restaurants sell their best items at their best prices on lunch and
dinnertime every day. And because lunch and dinner times are the busiest of the day, traffic
problems become a big obstacle factor. Therefore, a problem arises because there is a
discrepancy between the actual state of traffic and long queue lines and the desired state of being
able to find food quickly. Buying from KFC is an extended decision making process because
there is moderate involvement and room to try out new or different brands. The base need of
being hungry is a very strong one, and customers will definitely choose a restaurant to eat at,
which makes the purchase decision very relevant. There is a wide range of internal and external
information retrieval, followed by evaluation of many choices. This is consistent with the
novelty element of McGuire’s cognitive growth motivation. Cognitive growth motivation means

getting a sense of meaning through personal development. Innovation refers to various pursuit
behaviors. Therefore novelty may be measured as one of the strengths of the stimulus. Waze is
an application based GPS navigator that caters to solve the urgent need to avoid traffic as well as
the desire to attain novelty. Malaysian drivers are quickly growing accustomed to using Waze,
which is not only used for directions, but for many other things like locating food outlets. Which
is why, through KFC’s partnership with Waze, the Waze app will recommend the nearest KFC
outlet to users who are looking for restaurants. This is KFC making wisely attempting to make
customers evoked to KFC.
The next step is the search for information. Information retrieval is performed to isolate defective
solutions and help the consumer arrive at their desired purchase outcome. Extended decision-
making information retrieval consists of internal and external factors. An internal factor can be a
consumer's attitude. These factors appeal to the consumer’s direct response, one example would
be drawing out a specific action from consumers. Consumer behavior affects information
retrieval. External elements are influenced by the consumers’ friends, family, and media. Word-
of-mouth is the traditional example, but Waze’s recommendation of KFC on their platform is a
new but relevant example. The KFC adverts are strategically targeted to drivers near KFC stores,
and will display ads depending on lunch or dinnertime. Combined with the attention grabbing
signboards and other advertisement sources for the KFC brand, KFC is able to bring effectively
target specific customer markets like Waze users that are stuck in traffic.
The next step is to evaluate the alternative. The evaluation of alternatives in the process of
extended decision-making has many consequential and complex choices. The alternative
assessment consists of marketing mix consisting of product, price, location, and promotion.
Consumers search for products that can satisfy their needs and desires.
This is where brands compete for market share. It is up to strategic partnerships like the Waze-
KFC one to increase customer retention. In the case of KFC, the restaurant chain is always
making use of the brand’s strengths to target customer needs. KFC’s attractiveness comes from
their signature special blend fried chicken, low prices during lunch and dinner hours, and
attractive sides to complement their main chicken selling point. In the category of fried chicken
and value for cost, consumers are likely to immediately recall KFC. Moreover, KFC will always
have an advantage over its alternatives because they constantly serve the same great taste at a
low price. Therefore KFC can give consumers greater appeal while having a comparative
advantage over different fast-food companies.
Location is an important factor for consumers. Consumers are only willing to go so far for KFC.
Which is why KFC outlets are strategically located so that you’re never too far away from one.
Waze helps out greatly with this, as the locations of KFC stores mean that there is always a KFC
to recommend nearby. As a result, consumers will be able to find KFC more quickly and easily
than other fast-food companies. Promotion is another aspect that consumers concentrate on. If

consumers do not recognize KFC from having eaten there before, then they will at least
recognize it from the many types of KFC advertisements. Over the years, KFC has embedded
their company image and slogan into consumers’ minds. The market reaching potential of these
adverts secure the position of KFC with customers. The more exposure they can of the brand the
more likely it is for consumers to think of KFC and consider KFC for their meal. This is part of
the acceptance strategy of shifting consumers to ventilation.
The fourth step is the purchase decision. The most important aspect for purchasing is motivation.
KFC would want to do everything possible to ensure that your visit is pleasant and hopefully the
first of many more to come. KFC offers an entire package of purchase stimuli in order to get you
to come again. Even the Waze approach to getting customers, which solves the discrepancy
between actual and desired states for customers who need food in a limited timespan, is a
purchase stimuli that looks to make customers come again. According to McGuire's cognitive
growth motivation, the objective aspect is an important aspect. KFC provides convenient use and
efficiency, and can satisfy consumers' desired results. This can motivate consumers to have more
ventilation status about KFC.
The after purchase state affects how consumers will treat the brand going forward. Consumers in
a ventilated state are more likely to have a positive dissonance and satisfaction. Also, using a
marking mix, the attitude of a consumer may change to an induced state in an inactive or
inappropriate state. For example, if KFC has positive feedback, consumers have less doubt. Also,
if KFC depends on consumer expectations and hope conditions, they are more likely to have
positive dissonance.

Case study 1 Star Cruises
Star Cruises was incorporated in September 1993, representing a bold initiative to tap Asia-Pacific’s
potential as an international cruise destination.
Today, Star Cruises epitomises the fulfilment of regional aspirations to establish the cruise industry in
the Asia-Pacific region, bringing increased tourism traffic into the countries around Asia-Pacific. Asian
holiday makers now see cruising as an exciting and value-for-money vacation. Simultaneously, it also
started the influx of travellers from North America, Europe and Australia, who joined Star Cruises
holidays for a glimpse of the various sights and sounds of Asia-Pacific.
The Fleet
Star Cruises is the third largest cruise operator in the world and a global cruise brand with a combined
fleet of 21 ships with about 32,300 lower berths in service with an additional 2 ships and some 8,400
lower berths due to be delivered by 2010. It cruises to destinations and islands in Asia-Pacific, North and
South America, Hawaii, Caribbean, Alaska, Europe, Mediterranean, Bermuda and the Antarctica under
the Star Cruises, Norwegian Cruise Line, NCL America, Orient Lines and Cruise Ferries brands.
Vessels operated under the Star Cruises' brand in Asia-Pacific are SuperStar Virgo, SuperStar Gemini,
SuperStar Libra, SuperStar Aquarius, Star Pisces, MegaStar Aries and MegaStar Taurus.
The NCL group has a fleet of fifteen ships in service and due to be delivered under three brands:
Norwegian Cruise Line, NCL America and Orient Lines.
The NCL fleet includes the Norwegian Gem, Norwegian Dream, Norwegian Majesty, (delete Norwegian
Wind) Norwegian Sun, Norwegian Dawn, Norwegian Star, Norwegian Spirit, Norwegian Jewel and
Norwegian Pearl. NCL America currently operates the Pride of Aloha, the Pride of America and the Pride
of Hawai’i. Orient Lines is an award-winning single ship line with the Marco Polo offering niche
destination-focused cruises.

Both NCL and Orient Lines market primarily in North America but also extensively in the United
Kingdom, Europe, South America and Asia whilst NCL America offers inter island cruises in Hawaii.
The Cruise Ferries brand, which was launched in 2001 presently, comprises the m.v. Wasa Queen.
A World-Class Brand
Since its inception in 1993, Star Cruises has achieved global recognition. Today, it is the leading cruise
line in Asia-Pacific and has quickly become one of the three largest cruise operators in the world.
Star Cruises has played the leading role in shaping the cruise industry in Asia-Pacific by offering new and
luxurious megaships and exciting itineraries. The company also made important investments in
marketing, operations, information technology, reservations system, safety and infrastructure.
Star Cruises won the award for Best Cruise Operator in Asia-Pacific for a record tenth time at the TTG
Travel awards 2007. The award is testimony to the international recognition of Star Cruises’ high
standards of service excellence and its contribution towards tourism development in various countries.
New and enhanced products and services provided by Star Cruises have set new standards of cruising in
Asia-Pacific. Ships like SuperStar Virgo now represent the best and most exciting vacation experience
option to both the Asian holiday maker and experienced cruiser from America, Europe and Australia.
Star Cruises is also committed to developing the growing meetings and incentive segment of the cruise
MICE market in Asia-Pacific. SuperStar Virgo is able to cater to meeting and incentive groups of various
sizes with their world-class food and beverage, entertainment and recreation facilities.
Fly cruise programmes will be intensified to capture the medium to long haul markets, and provide
wider marketing opportunities. Currently, Star Cruises is developing its fly cruise hubs located in
Singapore and Hong Kong.