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Consumer Behaviour

Notes 13.1 Steps in Consumer Decision-making Process

Figure 13.1: Stages in Consumer Decision Process

13.1.1 Problem Recognition

Purchase decision-making process begins when a buyer becomes aware of an unsatisfied need
or a problem. Problem recognition is a critical stage in consumer decision-making process
because without it, there is no deliberate search for information. Rarely is there a day when we
do not face multiple problems which individuals resolve by consuming products or services.
We commonly face problems such as the need to replenish items of everyday consumption. For
example, the consumer who runs out of milk, or cooking oil has a clear definition of the problem.
Such problems are quickly recognised, defined and resolved. As another example of a routine
problem, we can think of an individual who notices that the fuel meter of her/his auto is
indicating very low level of fuel and goes to the first petrol pump on her/his way and gets the
tank filled with petrol. Unplanned problem occurs when, for example, the refrigerator or some
other major appliance breaks down. Recognition of a problem such as the need for a notebook
computer may take much longer as it may evolve slowly over time.

The process of problem recognition combines some highly relevant consumer behaviour concepts
such as information processing and the motivation process. First of all, consumers must become
aware of the problem through information processing arising as a result of internal or external
stimuli. This leads to motivating consumers; they are aroused and activated to engage in some
goal directed activity (purchase decision-making). This kind of action in response to recognising
problems and finding solutions to problems depends on the magnitude of the discrepancy
between the current state and the desired or ideal state and secondly, the importance of the
problem for the concerned consumer. The discrepancy and/or importance should be of sufficient
magnitude to start the purchase process. Without perception of a problem by the consumer,
there is no recognition of an existing problem and hence there is actually no need to engage in
the process of decision-making. Since the consumer does not perceive any discrepancy between
her/his current state and the desired state, the current state for the concerned consumer is
apparently quite satisfactory and does not need decision-making. It is important to appreciate

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