Summary: Consumer Decision Process

In today’s market economy, a vast number of decision options are available for the customer. These
options may be broadly categorised into following five main categories, namely, what to buy, how
much to buy, where to buy, when to buy and how to buy. Most decisions the consumers are required to
make are simple ones such as the purchase of groceries or staple foods. However, consumers also make
decisions that are comparatively complicated, such as when buying durable goods, or highly complex
such as buying something very expensive like home.
The range of consumer problem solving approaches can be classified as following,
 Routine Problem Solving (RPS): It usually involves little or no information seeking and is
performed quickly. Such a situation occurs when a customer buys a brand that they have used
before.

 Limited Problem Solving (LPS): When a consumer buys a new brand in a familiar product
category, it usually involves a moderate amount of information seeking and time in choosing.

 Extensive Problem Solving (EPS): When a consumer buys in an unfamiliar brand category, it
involves obtaining substantial information and a longer time to choose.

A typical consumer problem-solving model consist of four steps, namely, problem recognition,
information search and evaluation, purchase decision and post-purchase behaviour. However, for
certain purchase situations some consumers don not engage in a pre-purchase decision process.

Problem Recognition: It results when a consumer recognizes a difference of sufficient magnitude

between what is perceived as the desired state of affairs and what is the actual state of affairs, enough
to arouse and activate the decision process. Customer must become aware of the problem or need
through processing of information arising internally or externally. They then become motivated. Thus,
the process of problem recognition means that the customer becomes aroused and activated to engage
in some purposeful purchase-decision activity.

Research on Problem Recognition: It is viewed as being a function of the congruity between the
positive and negative valence values of some perceptual stimulus and the
respective positive/negative values of some evoked reference. The types of problem recognition are;
 Routine: Problems in which the difference between actual and desired states is expected to occur
and an immediate solution is required.

 Emergency: Problem that are unexpected and in which immediate solution is necessary.

 Planning: When the problem occurrence is expected but an immediate solution is not necessary.

 Evolving: When the problem is unexpected, but no immediate solution is required.

There are numerous situations that may cause consumer problem recognition to occur. The most
significant ones are;
 Depleting or Inadequate Stock of Goods: In this situation, the customer uses up the assortment
of goods he/she has and must repurchase in order to resupply his/her needs.

 Discontentment with the Stock of Goods: Frequently, consumers become discontented with
products they own, and leads to problem recognition.

 Changing Environment Circumstances: Consumer sometimes encounter changes in their

environmental circumstances which lead to problem recognition. One of the most significant of
these situations is the family’s changing characteristics.

 Changing Financial Circumstances: The financial status of a customer has a very important
relationship to problem recognition. The present or anticipated financial picture may trigger
problem recognition.

 Marketing Activities: The marketer frequently attempts to precipitate problem recognition

through promotional efforts aimed at the customer.