The Five-Stage Decision-Making Process PDF

ALES RETAIL INDUSTRY OVERVIEW The Five-Stage Decision-Making Process fo nple, eat Even though the steps may be lengthy or may be completed in an instant, customers usually progress through each of the following 5 phases during the decision to purchase. 1. Reco9r1ize a need: An internal or ext...

ALES RETAIL INDUSTRY OVERVIEW The Five-Stage Decision-Making Process fo nple, eat Even though the steps may be lengthy or may be completed in an instant, customers usually progress through each of the following 5 phases during the decision to purchase. 1. Reco9r1ize a need: An internal or external cue often results in the recognition that a product or service may be needed. "I just saw that dress Miley Cyrus was wearing on lnstagram, I want that!" or "The washing machine is very old, maybe I should get a new one." At this point, it's just a consideration and may go no further. 2. Search for information: As the motivation to purchase the item increases, the person begins to consider ways that their wants and needs could be satisfied. "Let me look online for the performance where the lnstagram pie was taken. It may have the dress designer's name," or "I could check out Best Buy and The Home Depot for a new washer; let me look online to see what they have available." cess. 3. Evaluate alternatives: The customer has done their research and is ready to compare options to prepare for purchase. "Miley's dress is from a designer that is very expensive, but an online search shows that Urban Outfitters and Zara have similar styles that are much less expensive. I want to try it on though," or "Both Best Buy and The Home Depot have the washer I want, both offer a price match guarantee and free delivery, but the service was so much better at ..." 4. Purchase: Criteria such as retailer reputation, quality of customer service, price, product availability, the proximity of the store to the customer's home and other factors figure into the customer's decision to buy at one location versus another. 5. Review decision and experience: After the purchase is complete, the customer reflects on whether the product or service met their expectations and about the quality of the customer service provided by the retailer. If they are happy with these things, they are more likely to repeat the purchase behavior and recommend the retailer to others. If they did not have a positive experience, the next time they need to make a similar purchase, they will reevaluate the alternatives and choose a different option. In addition, they may tell others to avoid the product or service and the retailer. ©2019 NRF FOUNDATION. ALL RIGHTS RESERVED.