Purchase Decision-making Process

Study Notes

Stages of Purchase Decision-making:
1. Problem recognition: Identifying a need or want
2. Information search: Gathering information about products or services
3. Evaluation of alternatives: Comparing options
4. Purchase decision: Making a final decision
5. Post-purchase behaviour: Evaluating the purchase and forming attitudes towards the product or service
Influencing factors:
- Personal (e.g. demographics, lifestyle)
- Psychological (e.g. motivation, perception)
- Social (e.g. social norms, family influence)
- Cultural (e.g. cultural values, traditions)

Types of consumer behaviour:
- Complex buying behaviour: High-involvement, high-interest purchases (e.g. cars, electronics)
- Dissonance-reducing buying behaviour: High-involvement, low-interest purchases (e.g. insurance, appliances)
- Habitual buying behaviour: Low-involvement, low-interest purchases (e.g. groceries, personal care)
Consumer characteristics:
- Demographics: Age, gender, income, occupation, education
- Psychographics: Lifestyle, personality, values, attitudes
- Behavioral characteristics: Purchasing habits, usage rates, loyalty

Growth of e-commerce:
- Increased convenience and accessibility
- Rise of mobile shopping
- Increased use of social media for shopping
Online shopping motivations:
- Convenience and time-saving
- Wider product range and availability
- Price comparison and savings
- Reviews and ratings from other customers
Online shopping concerns:
- Security and privacy
- Product quality and authenticity
- Returns and refunds
- Lack of personal interaction

Problem recognition is the first stage of purchase decision-making, where a need or want is identified.
Information search is the second stage, where consumers gather information about products or services.
Evaluation of alternatives is the third stage, where consumers compare options.
Purchase decision is the fourth stage, where a final decision is made.
Post-purchase behaviour is the fifth stage, where consumers evaluate the purchase and form attitudes towards the product or service.

Personal factors influence purchase decisions, including demographics and lifestyle.
Psychological factors, such as motivation and perception, also influence purchase decisions.
Social factors, including social norms and family influence, play a role in purchase decisions.
Cultural factors, such as cultural values and traditions, influence purchase decisions.

Complex buying behaviour involves high-involvement and high-interest purchases, such as cars and electronics.
Dissonance-reducing buying behaviour involves high-involvement and low-interest purchases, such as insurance and appliances.
Habitual buying behaviour involves low-involvement and low-interest purchases, such as groceries and personal care.

Demographics, including age, gender, income, occupation, and education, influence consumer behaviour.
Psychographics, including lifestyle, personality, values, and attitudes, influence consumer behaviour.
Behavioural characteristics, including purchasing habits, usage rates, and loyalty, also influence consumer behaviour.

The growth of e-commerce has led to increased convenience and accessibility for consumers.
Mobile shopping has risen in popularity, allowing consumers to shop on-the-go.
Social media has become a platform for online shopping, with many consumers using it to discover products and make purchases.
Online shopping is motivated by convenience, wider product range, price comparison, and reviews from other customers.
However, concerns about security, product quality, returns, and lack of personal interaction exist among online shoppers.