Types Of Decision Making Processes In Buying

The success of ‘Indica' car and its variants is because Tata Motors was able to understand the importance of the decision-making process undertaken by compact car buyers who were looking out for quality at reasonable prices. But consumer decision-making is not a single process. Deciding to purchase a car will be different from deciding to buy a bathing soap. The consumer decision making processes can be examined at two levels:

• By examining the extent of decision-making

• By understanding the consumer's degree of involvement in the purchase.

A look at above figure will indicate that while examining the extent of decision-making, it can be said that consumer's take their decisions after undergoing a cognitive (thought) process of information search and evaluating the brand alternatives. However, little or no decision- making may take place if the consumer is satisfied with a particular brand which is purchased consistently (say the same band of toothpaste or Talcum powder is purchased everytime). Here consumer decision-making can be seen in the form of a continuum from decision making to Habit.

The second angle of examining consumer decision-making is by looking at the degree of involvement. The level of involvement can be in the form of all continuum from high-to-low involvement purchases. High involvement purchases are very important for the consumer. This means it can be closely connected to his or her ego and self image and probably involving some financial, social or personal risk. For instance, the consumer is planning to purchase a new mobile phone, say. Now the consumer will channalise his time and energy to weigh the product alternatives before settling on a particular model which will suit his ego and self image.

When the consumer has to undergo low involvement purchases, the financial, social and psychological risks may not be very high. So the consumer may not feel it is worth spending considerable time and effort in searching for information, about the various brands or range  of alternatives.

Decision-making versus Habit and Low versus High Involvement

If one were to consider decision making versus habit and low versus high involvement. there can be four types of consumer purchase processes.

a) The Complex decision-making takes place when involvement is high. Say the consumer has decided to purchase a LCD T.V. Since this purchase is important to the consumer he will be engaged in taking time to search for information and process it in more detail. He will evaluate various brands by using specific criteria such as brand name, look, specific functions, price etc. before taking a final decision.

(b) When the consumer makes decision through low involvement, it is said to be a limited decision-making process. Sometimes, the consumer goes through a decision-making process, even if he is not highly involved probably because he does'nt have much experience with the product. For example, a consumer may on seeing a new line of snacks that can be prepared in the microwave oven, will read the package and purchase a smaller pack of the same on a trial basis. Since the consumer was not involved or aware of the product category, she may purchase a small pack to compare it with the regular snacks. In this case, the information search processing is limited and only a few brands are evaluated.

At times, limited decision-making may take place when low involvement is there and the consumer is also seeking variety, out of being bored using the same brand. For example, the consumer may decide to purchase Sunfeast Cashew Biscuits as she is bored with the continuous consumption of "Britania's GoodDay Cashew biscuits. Such decisions may not be preplanned and could easily be taken inside the shop.

(c) Limited decision-making or even complex decision making may not take place everytime the consumer purchases a brand. When the consumer makes the same choice repeatedly, he or she learns from past experience and with little or no decision-making may purchase the brand which is most satisfactory. Take for instance, the purchase of Reebok jogger shoes or Complan. In both the cases, the purchase was important to the consumer (Reebok are Comfortable Jogging shoes because he is health conscious; and he has Complan because of its nutritional value).

In the above instances of the decision-making processes, it is seen that they are all consumer oriented. That is, the degree of involvement and decision making is more dependent on the consumer's attitude towards the product than on the product's characteristics. One particular consumer may be involved in the purchase of Complan because of its nutritional value while another consumer may find all brands (Bornvita, Boost, Horlics etc.) to be the same and switch brands in a search of variety.

(d) The fourth choice in figure 10.2 is referred to as inertia or the stage where there is low involvement with the product and no decision-making. Here the consumer is only looking to the convenience factor. He is purchasing the same brand not because he is brand loyal but *because he feels it is not worth the time and trouble taken to search for an alternative. Examples could be the purchase of vegetables or tissue paper.

Thus the various decision-making processes which may be of interest to the marketer can be categorised into three namely:

• Limited problem solving or Dissonance reducing buying behaviour.

• Complex buying behaviour or Extensive problem solving.

• Habitual buying behaviour or Routinised response behaviour.

Consumer Information processing

When we talk of consumer information processing it will have to be linked with the nature of consumer involvement. This is because it is seen that higher the level of involvement, greater the search for information and visa versa. There are various theories explaining consumers low involvement decisions. When low involvement decisions are taken, consumer may not cognitively evaluate advertising messages. (Krugman's Theory of Passive Learing) or though consumers are willing to consider many brands, they are likely to consider only a few attributes while evaluating them (Sherif's Theory of Social Judgement) or uninvolved consumers more likely to react to message stimuli in communications rather than the message itself (Petty and Cacioppo's Elaboration Likelihood Model). (Source: Consumer Behavior, Hentry Assael, 6 Edn., 2001, pp. 153) th

For instance, let us take the example of the purchase of table salt by a consumer. We assume that the housewife felt the need to purchase table salt as she realised that the amount of salt in the house is running low. In this case it is unlikely that the consumer will undertake a process of information search to determine the brand characteristics. Nor will she evaluate brands to identify the most favoured one.

Instead of searching for information, the consumer will receive information. The consumer will buy Tata Salt because of the familiarity with the brand Say, the consumer is sitting in front of the television and sees the advertisement of Tata Salt, which emphasises on the technological tests carried out to ensure that the best quality of Tata Salt is made available. The consumer sees the brand on the store shelf, associates it with the advertising theme and immediately purchases it. She does not form an attitude or evaluate brands before purchasing Tata Salt. The consumer is not involved in an active information search and processing in such low involvement purchases.

Decision-making in Low Involvement Product Purchase

If brand evaluation is minimal in low involvement conditions, then how do consumers make decisions? It is said that in such instances, the consumer follows the principles of cognitive economy i.e., they minimise the time involved and effort taken in shopping and decision-making. For, in the Tata Salt example, the consumer may behave in any of the following ways:

• She may see Tata Salt on the stores shelf, recognise the name, associate it with the advertisement and pick it up.

• She may purchase Tata Salt as she had purchased it the last time and found it adequate. 

• If, say, the consumer has few prior associations with the brands, she may pick up the least expensive brand.

Inertia

The above Tata Salt example can also be based on inertia. When such low involvement occurs, consumers form beliefs passively, make decisions with little information processing and then evaluate the brand after the purchase. During inertia, consumers go for repetitive buying of the same brand to avoid making a decision. Only after the first few purchases will the consumer think of brand evaluation. Moreover, if the brand achieves a certain minimum level of satisfaction, the consumer will repurchase it on a routinsed basis. That is why, sometimes this process is referred to as spurious loyalty. The repetitive nature of purchases will make it seem that the consumer is loyal to the brand when in reality such loyalty does not exist.

Studies have indicated that repetitive viewing of the advertising message can result in more favourable brand attitudes towards low involvement purchases (Rajeev Batra, Micheal Ray, Journal of Marketing Research, March 1986).

Limited Decision-making

Occasionally, low involvement purchases may involve some decision-making. For example, the introduction of a new product, a change in the existing brand or a desire for variety may prompt the consumer to switch from a routinised to limited decision-making. For instance, say a consumer has been consistently buying Amul cheese slices. Britania introduces the 33% less

fat content variant of cheese slices. The consumer happens to see this product at a supermarket. Involvement with the category is low but introduction of the new improved version of Britania cheese slices is enough for the consumer's interest and curiosity to be aroused. This decision- making has low involvement as there is little information seeking and brand evaluation done by the consumer.

The marketer needs to remember that in limited decision-making, since many low involvement products are ordinary, it is due to boredom that the consumer seeks variety although he (or she) may be having a favourable attitude towards their existing brands. Marketers must work at creating and displaying advertising messages which will help in passive learning and ensure brand familiarity. Even for high involvement cases, advertising can be used to create awareness and continuity. The other elements that need to be focused on are:

Product Positioning

The marketer should aim for 'product positioning' of low involvement products such that it highlights minimisation of the problem. Zip pouch is positioned by highlighting the benefits of keeping the food fresh and intact; or say, the Lizol disinfectant liquid suggests the minimisation of the problem that could occur such as catching infections due to dirty floors usage etc. Even a product, such as the aluminium foil wrap can be positioned to emphasise on benefits i.e., the protection it offers to food.

Price

Consumers purchasing low involvement products are likely to be highly price sensitive. So marketers can induce customers to purchase more by reducing the price or offering coupons.

Distribution

In-store Stimuli and Product trial. In case of low involvement products, marketers have to ensure its wide in-store availability. They could also use in-store stimuli in the form of coupons, displays or price deals and small packs (or samples) to induce product trial amongst its users.

High Involvement Decision-making

During complex decision-making, consumers evaluate brands in a detailed and comprehensive manner. They seek more information about the brands and are more involved with the product. Such decision-making takes place for:

• High priced products.

• Products associated with performance risks (consumer durables, automobiles) Complex products (ipod, personal computers)

• Products associated with one's ego (clothing, cosmetics etc.)

In case of complex decision-making, the consumer will be involved in an extensive search for information to evaluate brands.

Henry Assael has suggested that consumer information processing involves the exposure to and perception of information and how it is retained in memory.

He says the consumer information processing starts with the need arousal. Once the need is recognised, consumers are more likely to search for and process information relevant to their need. Although they are exposed to many stimuli, it will be selective in nature. This selective stimuli exposure is driven by the need to reinforce existing brand attitudes and perceptions and seek additional information. Consumers will seek ads which will reinforce consumer beliefs and experiences. By selectively perceiving stimuli, consumers are striving to reach a state of psychological equilibrium i.e. a state that lacks conflict and avoids contradictory

Past information and experiences are stored in consumers' memory so that it can be recalled for future use. (in the figure this is indicated by double arrows).

Search for "additional information takes place when consumers feel that they do not have sufficient information, (say, alternative brands are considered to be inadequate, have insufficient information about the brands under consideration or receive conflicting information from other sources etc.).

Of course, studies reveal that consumers do not engage in an entensive information search unless they feel that the value of any additional information collected is worth the cost of obtaining it. As shown in the figure 10.3, the search for additional information can go back as feedback to stimulus exposure and can stimulate further search.

We will try to understand the above terms using an example. Assume Vinit and Nanda are a couple in their 30s with two school going children. They live in a middle class locality of a metro city. Vinit works as a software engineer in a private company, while recently Nanda has taken to work in a BPO. They have been using a Maruti 800 car since the past 10 years. They have been using the car primarily on weekends and for shopping needs, and have been satisfied as it had served this benefit criterion.

Now, after becoming a dual income household, they feel or recognise the need to go for an additional car. The rise in income and status has prompted them or motivated them to develop a set of expectations regarding the new car. They have come to expect good service, a car that performs consistently (service dependability and performance) and comfort, in that order.

We have seen that Vinit and Nanda's (consumers) past experiences (with the existing Maruti Car), consumer characteristics their demographics, lifestyles and personalities will all play a role in influencing the benefits consumers seek and in their brand attitudes. Keeping all these aspects we assume that this family may think of cars such as Indigo, Baleno, Ford or Accent. The motivational drive will directly affect the specific benefit criteria Vinit and Nanda use to evaluate the various brands of cars. The benefit criteria in this case are a mix of size and style and economy (petrol mileage and service costs). The environmental influences could be the individual family members (since it is a family decision-making unit), neighbours, friends and peers could also act as important sources of information. And finally, past marketing stimuli will be the information consumers seek about brand characteristics and prices from various sources such as advertising, in-store stimuli and the sales staff at the outlet. Thus, it was when the couple (Vinit and Nanda) recognised the need due to the disparity between their current need and the desired end state, they got involved in the information processing and brand evaluation stages. So need recognition and consumer characteristics can play an important role in the marketing strategy. Maruti and Hyundai have been using selective stimuli exposure to influence consumer's perception and memory and evaluation to make a positive decision in favour of Alto and Santro Xing as the small family's car.