Consumer Decision-Making Process (Case: high involvement purchases)

Chapter 1

Introduction

In this paper we will discuss about the consumer decision-making process especially for high involvement purchases  

Key words : Consumer decision-making process, high involvement purchases.

Answer:

Chapter 1

Introduction: Consumer Decision-Making Process

Businesses can improve their marketing strategies by understanding why and how customers react in specific ways while making purchases. Comprehending consumer purchasing behavior provides insight into how customers weigh the advantages and disadvantages of many options (such as brands, products, and retailers) and make decisions, as well as how the consumer's surroundings (such as culture, family, and the media) affect that consumer. Additionally, it makes clear how different items affect consumer decision-making and motivation. All of this enables us to improve our marketing campaigns and strengthen consumer connections.

This is particularly true when we're planning to develop an integrated marketing communication program. Our capacity to address customer needs during the decision-making process will have a significant impact on how we choose the appropriate and efficient marketing message mix. 

The type of decision-making that consumer use to purchase a product does not necessarily remain constant rather it varies in accordance with the product’s characteristics (Carl, Lamp, & Hair, 2010). That is why, in the theory of consumer behavior, we know a variety of consumer decision-making models or consumer behavior models. In the decision-making process, we know three categories in the decision-making process: Cognitive, Habitual, and affective (Solomon, 2018). 

Picture 1. The Tree Buckets of Consumer Decision Making

Source: (Solomon, 2018)

Decision making which focuses on the process of cognition is a rational decision-making process by involving a process of comparing several products that can be his choice. In the process, consumers will look for the information needed, be it internal (memory, etc.) or external (advertising, website, etc.).  “Cognition is a process of learning through and by the help of which an individual becomes aware of his internal and external reality and gets to know it better. It encompasses a series of psychological processes such as perception, remembrance, learning, imagination, discovering, thinking, making judgments, using language, etc. The cognitive theory refers to the process of learning and developing knowledge and comprehension” (Trandafilović, Pašić, & Perunović, 2013)

The habitual decision-making process does not require an intense consideration process and is more based on the habits carried out. Usually, repeated purchases of products and consumers already have a strong preference for a particular product or brand. A loyal fan of the Indomie brand of instant noodles, for example, routinely buys back the product when the stock at home is out without thinking any more about what product to buy. Once he felt that he needed it and wanted it, he would come to the store and immediately buy the product. That's an example of a habitual decision-making process.

Meanwhile, effective decision-making is more impulsive and emotional. The key features of impulsive or affective customer behavior which differentiate it from cognitive or rational or cautious are the following (Trandafilović, Pašić, & Perunović, 2013):

·       a sudden, spontaneous urge to buy the product;

·       temporary loss of self-control;

·       emotional conflict and tensions;

·       reducing logic and rational evaluations;

·        spending regardless of the consequences.

The consumer decision-making process can be described as follows. The following below is the decision-making process developed by (Solomon, 2018). 

Picture 2. Stages in Consumer Decision-Making

Source: (Solomon, 2018)

1.  Problem Recognition. The consumer decision-making process begins at the stage of problem recognition.  At this stage, consumers realize that there is a gap between the desired condition and the actual condition faced. This is the stage in which consumer recognizes or identifies a problem or need that requires a solution. They are aware of the problem but may not be aware of the solution.

2.    Information Search. In the next stage, the consumer begins to look for information in order to get some alternative products that can meet his needs. In search of information, consumers can go through the main line or the peripheral line (see elaborate likelihood model). They can do this by researching online, asking friends or family, reading reviews or visiting stores.

3.  Evaluation of Alternatives. After getting information, consumers then begin to evaluate each alternative product that exists. At this stage consumers compare one product against another. The consumer would evaluate different alternatives based on prices, benefits, features, quality, and other factors. They consider both internal and external factors while making decision.

4.   Product Choice. The next stage is the decision-making stage. At this stage, the consumer takes one choice from several alternative options.

5.    Outcomes. And then the outcome stage or action plan. At this stage, the consumer makes a purchase of the product and enjoys the product he purchased.

Chapter 2

How is the decision-making process on high involvement purchases?

 

A high involvement purchase exists when a consumer has to buy a product or service that is expensive or that poses the risk of significant emotional consequences if a mistake is made. (Kokemuller, 2018). Because there are large risk factors that consumers may bear if they make the wrong decision, the decision-making process is more careful, involves more rational considerations, and requires a lot of information as a supporting tool for decision-makers. If you refer to the decision-making categories I mentioned above, high involvement purchases are more towards the cognitive decision-making process.

I take an example of a high involvement purchase that I do when I decide to determine what institution I will choose to take a master's program in communication in marketing communications. This decision I took involved a rational decision-making process.  In the first stage, Problem Recognition, I'm trying to recognize what my needs are regarding post-graduate education. At this stage, I carried out the process of identifying my needs. And until finally I accepted that I did feel that I needed an S-2 level education. After I realized and accepted that there was a need and desire for me to take the communication master's program then I tried to find as much information as possible about the communication master's program that exists throughout the campus in Indonesia.

At the information search stage, high involvement purchase requires information both internal and external. In internal sources, I try to recall and understand what I understand and know about the educational institutions of post-graduate program providers based on my memory, my knowledge, and my experiences.  For external sources of information, I try to get information from many sources such as the internet (websites, social media, google, YouTube), and opinions from friends, advertising, etc. I collected so many references and made sure I had enough, complete information for me to then do comparisons from various alternatives.

Some institutions became alternatives that I considered. Among others, are the University of Indonesia, Gadjah Mada University, Pelita Harapan University, Bunda Mulia University, Sahid University, and LSPR Communication and Business Institute.

The next stage is the stage we evaluate all the alternatives we have. From the names of these colleges I had to do a comparison, assessing which one best suited my needs and desires. In this process, there are 3 variables that can influence individuals in evaluating their choices. First, is Evoked set, the brands of a particular product that a customer considers when choosing to buy the product (dictionary.cambridge, 2022), emerging brands can be sourced from an individual's internal memory according to their experience. Usually, when we are looking for products, there appear brands that we associate with the product according to our knowledge and experience so far. If we are loyal to a brand, then it is likely that those brands are the preference.  The second is multi-attribute. This means that individuals will evaluate the attributes inherent in all options and compare them with each other. In the case I experienced, I will measure the important attributes that each choice has such as academic reputation, tuition fees, study programs offered, the form of lectures, the location of the campus, and others. And lastly, there's affect referral. This means that in deciding on choices, people would go for the product or brand they like best or with which they have strong emotional ties.

Below is a model described as a method in evaluating alternatives submitted by (Solomon, 2018)

Picture 3.Methods of Evaluating Alternatives

 

Source: (Solomon, 2018)

 

In the next stage, the consumer chooses his choice and takes action (purchase) to meet his needs or desires.

Chapter 3

Conclusion

The nature of decision making for high involvement  purchase decisions is more complicated, and the process may take longer than low involvement purchases. High involvement purchase decisions often involve high-risk, high-cost, and infrequently purchased products. Therefore, consumer are more cautious and decisions area more carefully analyzed and evaluated. In High involvement purchase decision-making, decision-making is more rational and involves a process of cognition.  The time used in choosing an alternative will be directly proportional to the high number of factors such as high motivation, high engagement, consideration of large costs and benefits, and the ability to conduct research. 

References

Carl, M., Lamp, C., & Hair, J. (2010). Introduction to Marketing (10th ed). China:Cengage Learning Company.

dictionary.cambridge. (2022, September 30). dictionary.cambridge. Retrieved from https://dictionary.cambridge: https://dictionary.cambridge.org/us/dictionary/english/evoked-set

Hawkins, D., Mothersbauch, D., & Best, R. (2007). Consumer Behavior: Building Marketing Strategy 10th Ed. MGraw-Hill/Irwin.

Kokemuller, N. (2018, November 21). PocketSense. Retrieved from Pocketsense.com: https://pocketsense.com

Merriam-Webster. (2021, November 12). Merriam-Webster.com Dictionary. Retrieved from www.merriam-webster.com: https://www.merriam-webster.com/dictionary/gadge

Oxford Dictionary. (n.d.).

Solomon, R. M. (2018). Consumer Behavior. Buying, Having, Being. Pearson Education Limited 2018.

Trandafilović, I., Pašić, V., & Perunović, S. (2013). THE RESEARCH OF COGNITIVE AND AFFECTIVE BEHAVIOUR DURING SHOPPING. FACTA UNIVERSITATIS.: Economics and Organization Vol. 10, 147-164.