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Unit 13: Consumer Decision-making Process

13.1.4 Purchase Decision Notes

Making a purchase is often a simple, routine matter of going to a retail outlet where the consumer
looks around and quickly picks out something needed. All consumers like to view themselves
as intelligent shoppers and make decisions regarding the retail outlet choice in which they will
shop. Generally, consumers decide about the make of the computer first then choose the dealer
to buy it from. Frequently, it happens that consumers choose the retail outlet first and this
influences their choice of the brand. For example, when consumers shop for clothes, they generally
decide about a retail outlet first, or go to a market area where several such stores exist. Similarly,
they often make a brand decision in the retail store when they shop for appliances.
Increasingly, consumers are exposed to product introductions and their descriptions in direct-
mail pieces and catalogues, in various print media vehicles, on television and on the Internet
and buy them through mail, telephone, or computer orders. In case of some product categories,
Internet offers greater selection, convenience and lower prices than other distribution outlets
for at least some consumers. So far, this in-home shopping is not so common in India but is on
the increase. A large number of companies with websites are encouraging consumers to buy
products through computer orders.

Retail outlet image and location has an obvious impact on store patronage and consumers’
outlet choice often depends on its location. Consumers generally will choose the store that is
closest. Similarly, the size of the store is also an important factor that influences consumers’
outlet choice. For minor shopping goods or convenience items, consumers are unwilling to
travel very far. However, for high-involvement purchases, consumers do not mind travelling to
distant shopping areas. Retail outlets are also perceived as having varying degrees of risk.
Consumers perceive less risk with traditional retail outlets compared to more innovative outlets
such as the Internet.
Once the consumer has chosen a brand and selected a retail outlet, she/he takes the final step of
completing the transaction. Traditionally, this would involve offering the cash to acquire the
rights to the product. In developed and many developing countries, credit often plays an
important role in completing the purchase transaction. Credit cards are popular in developed
economies and are increasingly becoming popular in India and many other developing countries,
as a convenient way of financing many purchases.
Many retail outlets overlook the fact that the purchase action is generally the termination of last
contact that the customer will have with the store on that shopping trip. This presents the
business an opportunity to create a lasting impression on the customer.

Marketing Strategy

The company has undertaken several marketing activities to enable consumers reach to this
stage. However at this stage, the atmosphere of the outlet, the ambience, the Point of Purchase
Sale, the sales personnel, availability of the products would matter a lot. Special care should be
taken in keeping all these things in place and under control.

13.1.5 Post-purchase Evaluation

Consumers’ favourable post-purchase evaluation leads to satisfaction. Consumers choose a
particular brand, or retail outlet because they perceive it as a better overall choice than other
alternatives that were evaluated while making the purchase decision. They expect a level of
performance from their selected item that can range from quite low to quite high. Expectations
and perceived performance are not independent and consumers tend to perceive performance in
line with their expectations. After using the product, service, or retail outlet, the consumer will

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