Premium Essay

The Stages of Decision-Making Process of a Shopper

In: Other Topics

Submitted By jjane95
Words 655
Pages 3
This article is the first in a series of articles about the factors and variables that influence the behavior of consumers.

The consumer is a complex individual. His purchase behavior varies greatly depending on internal and external stimuli to which he is subject. For brands, the understanding of this behavior is a major challenge in order to meet the expectations of consumers, trying to convince them to buy their products and thus, increase their sales.

Why a consumer chooses one product instead of another? What led him to prefer one brand instead of another? What are the factors that influence his choices and purchases?

Many factors come into account in consumers’ behavior and how they decide what brand or product to buy.

Today, let’s focus on the decision-making process that guide consumers in their choices of brands and products and determine their level of involvement as well as their need for information before buying a product. the decision-making process of consumers are divided into three stages

The decision-making process of consumers are divided into three stages

According to the famous model developed by John Howard and Jagdish Sheth, two famous Professors of marketing, in their “Theory of Buyer Behaviour”, the decision-making process of consumers are divided into three stages:

Extensive problem solving (EPS): It is when the consumer discovers a new product category or wants to buy a product he does not know well and / or is particularly expensive and / or which present a significant risk regarding his economical or psychological point of view. His lack of “experience” in the matter leads to his lack of decision criteria to make his choice. He has no preference for a brand or a specific product. The level of consumer involvement is high. He will invest a lot of time looking for information and benchmarks to make his choice. The…...

Similar Documents

Free Essay

Determinants of Cart Abandonment

...Abstract Despite placing items in virtual shopping carts, online shoppers frequently abandon them —an issue that perplexes online retailers and has yet to be explained by scholars. Here, we identify key drivers to online cart abandonment and suggest cognitive and behavioral reasons for this non-buyer behavior. We show that the factors influencing consumer online search, consideration, and evaluation play a larger role in cart abandonment than factors at the purchase decision stage. In particular, many customers use online carts for entertainment or as a shopping research and organizational tool, which may induce them to buy at a later session or via another channel. Our framework extends theories of online buyer and non-buyer behavior while revealing new inhibitors to buying in the Internet era. The findings offer scholars a broad explanation of consumer motivations for cart aban- donment. For retailers, the authors provide suggestions to improve purchase conversion rates and multi-channel management. Keywords Online shopping cart abandonment . Online buyer behavior theory. E-tail .E-commerce To more fully understand buyer behavior, it is crucial to also examine consumer “non-buying” behavior. Non- buying behavior is especially apparent in an online retailing context, where many shoppers place items in their virtual shopping carts yet do not complete the purchase—thereby abandoning their cart. Known as virtual or online shopping cart abandonment, we define this behavior as...

Words: 3821 - Pages: 16

Premium Essay

Consumer Decision Making

..."A consumer is a shopper who is sore about something." - Harold Coffin (1905 - 1981), American Humor Columnist for The Associated Press. Note on Consumer Decision Making Process is an Article by Ken Matsuno. In the article Ken has identified a five stage process by Source: Adopted from Kotler (1997), Schiffman and Kanuk (1997), and Solomon (1996). The steps in this model demonstrates the process in which consumer apply when seeking a product. The five steps of the model are: problem recognition, information search, evaluation and selection of alternatives decision implementation and post-purchase evaluation. "Even the once simple home mortgage now has so many flavors and styles and variations that it is difficult for people to make a decision." - Scott Cook, American Businessman, Co-Founder of Intuit, Inc. Problem Recognition is the stage in which the consumer recognizes a problem or a need. For example, a consumer may have an existing product that may be obsolete or it is unable to perform to the consumer’s individual need. Now this is where the consumer realizes there is a need for change or there is a new desired state. Information Search is the stage in the process where the consumer begins to seek information about products that may better serve their need and desires. Consumers may seek to ask their peers about the various products on the market or even those who may have already been through the process for a similar product. Another means of Information Search is......

Words: 649 - Pages: 3

Premium Essay

Functional Modeling

...Kudler Fine Foods Shopper Program Name(s) University of Phoenix BSA/375 Fundamentals of Business Systems Development Faculty Date Introduction Kudler Fine Food is a local upscale specialty food store. Kudler fine food opened their doors in 1998 and was profitable within the first year. In 2000 the second store opened in De Mar and three years later their third shop opened in Encinitas (Kudler Fine Foods. 2005, 2007). Each store is similarly sized at 8,000 square feet, all in fashionable shopping centers. Their menu includes bakery and pastry products, fresh produce, fresh meat and seafood, condiments and packaged food, and cheese and specialty dairy products. Kudler Fine Foods has experienced success in its stores and now wants to expand on its business processes to include a Frequent Shopper Program. According to the press release located on Kudler’s website, the program will include several benefits for customers. Scope and Goals Customers who elect to participate in the frequent shopper program will receive event notifications, featured product notifications, sale notifications, exclusive offers on different merchandise, and discounts on the cooking and wine classes held by Kudler. Benefits for Kudler will include a better overall pictures of products their most frequent customers are interested in as well as increased revenue because they will have inventory more customized to their customers. Kudler’s overall goal......

Words: 4154 - Pages: 17

Premium Essay

Kudler Fine Foods Service Request Sr-Kf-013

...Kudler Fine Foods Service Request SR-kf-013 BSA375 Business Systems Development Abstract Kudler Fine Foods, an upscale specialty gourmet foods shop with three locations (La Jolla, Del Mar and Encinitas), has an expressed interest in the development of a Frequent Shopper Program to enable enhanced information management by tracking customer-purchasing practices. The information collected regarding customer purchase behaviors through the Frequent Shopper Program will improve the quality of Kudler Fine Foods’ product lines and reduce the quantities of perishables discarded. To increase revenue and customer loyalty, and as an alternative to providing discounts, Kudler Fine Foods has partnered with a loyalty points program to offer incentives for customer loyalty in the form of high-end rewards for shopping at Kudler Fine Foods. Customers will earn points with every purchase, redeemable for high-value gift items such as first-class airline upgrades, and other specialty items (Apollo Group, Inc., 2007). Facilitating this effort will require systems planning and selection as well as current and proposed systems analysis and design, in conjunction with systems implementation and integration, training, operations, and maintenance. Kudler Fine Foods Service Request SR-kf-013 Initiatives Outline Kathy Kudler, the founder of Kudler Fine Foods, opened her first gourmet food shop in 2003. Since that time, two additional stores have opened, and other locations in......

Words: 7143 - Pages: 29

Premium Essay

Kudler Fine Foods Service Request Sr-Kf-013

...Kudler Fine Foods Service Request SR-kf-013 BSA375 Business Systems Development Abstract Kudler Fine Foods, an upscale specialty gourmet foods shop with three locations (La Jolla, Del Mar and Encinitas), has an expressed interest in the development of a Frequent Shopper Program to enable enhanced information management by tracking customer-purchasing practices. The information collected regarding customer purchase behaviors through the Frequent Shopper Program will improve the quality of Kudler Fine Foods’ product lines and reduce the quantities of perishables discarded. To increase revenue and customer loyalty, and as an alternative to providing discounts, Kudler Fine Foods has partnered with a loyalty points program to offer incentives for customer loyalty in the form of high-end rewards for shopping at Kudler Fine Foods. Customers will earn points with every purchase, redeemable for high-value gift items such as first-class airline upgrades, and other specialty items (Apollo Group, Inc., 2007). Facilitating this effort will require systems planning and selection as well as current and proposed systems analysis and design, in conjunction with systems implementation and integration, training, operations, and maintenance. Kudler Fine Foods Service Request SR-kf-013 Initiatives Outline Kathy Kudler, the founder of Kudler Fine Foods, opened her first gourmet food shop in 2003. Since that time, two additional stores have opened, and other locations in......

Words: 7121 - Pages: 29

Premium Essay

Bsa 375 Team Project

...Requirements for Kudler’s Fine Foods Frequent Shopper Program Daniel W. Burgess, Richard Rives, Darrell Crosson, Warren Johnson, and Antoin Jenkins Axia College University of Phoenix Requirements for Kudler’s Find Foods Frequent Shopper Program Introduction In an effort to maintain a competitive edge in the gourmet food industry, Kudler Find Foods will implement changes to the company’s infrastructure and overall networking capabilities to create a shopping program for our dedicated customers. A system analysis team has been created to meet this challenge led by Daniel W. Burgess, Vice President of Operations, Richard Rives, Director of Information Technology, Darrell Crosson, Director of Human Resources, Warren Johnson, IT Specialist, and Antoin Jenkins, Program Coordinator. The goal of the project is to provide our customers with the best processing methodology to complete error free transactions; generate feedback from users; and address any issues from customers by upgrading our customer service operations. The scope of the Frequent Flyer Program (Service Request Form, SR-kf-013) will entail low-level processes that focus on the business aspects of our IT department and the processes that involve a RAD (Rapid Application Development) system. The program will be able to operate on a global scale with operations in Asia, China, Japan, and South America. Upgrades to our systems will represent different approaches that streamline and improve the......

Words: 5209 - Pages: 21

Premium Essay

Dissertation

...Factors Affecting Purchase Decision of Online Shopping Mall in Hong Kong Background and Overall Research Aim According to the global transaction service provider, PayPal (2015), predicted that the online expenditure of Hong Kong will reach 25 Billion US Dollars by 2015. The main cause of this significant growth is drive by the rise of online shopping malls. However, a report which conducted by Hong Kong Trade Development Council (Hong-kong-economy-research.hktdc.com, 2015) states that the proportion of sales through online shopping platforms are only share 7.7% of the whole e-Commerce industry, which means the online shopping phenomenon is just at the early stage, with the growing of social media, such as Facebook, Twitter and Weibo (Castronovo and Lei, 2012), there is a plenty of room to grow. In order to understanding the e-commerce industry in Hong Kong, Go-Globe Hong Kong conduct a research about the e-commerce environment in Hong Kong. The main group of online shoppers are 25 to 34 years old (76.4%), while 40.5% aged between 50 to 64 years old. In 2013, there are 8.5% increase of Hong Kong residents shopping online in compare with 2011. Four out of five Hong Kong consumers use the internet to research what they want before purchasing or even purchase it online. And 49% of them are willing to spend more money on online shopping mall in the near future. With the smartphone are become more and more popular, 89% of smartphone users search a product which they desired in......

Words: 2648 - Pages: 11

Premium Essay

Shopper Marketing

... by Jia Chen Peapod: The e-version of shopper marketing Overview In Sorensen’s “Inside the Mind of the Shopper” book, I explored some of the key features from the shopper purchase behavior, the quick trip, three moments of truth for the shopper, in-store “migration” patterns, and how to put products in the path of customers through anticipatory retailing. I also looked at how manufacturers and retailers could collaborate better in shaping flow and adjacency to sell more products in stores. With the development of new digital technology, the penetration of the online browsing, and the conveniences to compare products, more and more customers begin to choose to do the grocery shopping by click-through internet on their personal computers or smartphones. Peapod is one of the online retailer that allows us to study the click-click-click shopper behavior resemblance to what we studied on the physical store. Founded in 1989 by brothers Andrew and Thomas Parkinson, Peapod has grown from a small family-run shopping and delivery service in Illinois to America's leading Internet grocer, delivering more than 23 million orders across 24 U.S. markets. Sorensen’s key concepts application 1. Shopper kinds In Sorensen’s book, we has learned about the three kinds of shoppers: Quick trips-These shoppers spend a short time in a small area, with a relatively slow walking speed but high spending speed. A third of......

Words: 1842 - Pages: 8

Premium Essay

Ebay - Marketing Case

...Case studY chapter  6 EBAY © iStockphoto.com/Bill Noll / © iStockphoto.com/OSTILL Creating Customers on the Move The advent of mobile commerce (m-commerce) has begun to create significant changes in the way consumers make purchasing decisions. The introduction of online shopping first began to draw customers away from brickand-mortar retailers, changing the location of where they made their purchases. The use of mobile devices has expanded the location of purchase decisions even further, so now consumers can make purchases from almost anywhere, so long as they have a mobile device with them. It also has leveled the playing field for consumers in many cases, as it allows them to comparison shop on prices of products that they might find in stores. In 2009, the mobile commerce market generated $18.3 billion in total revenue. By 2015 it’s projected to reach over $119 billion. When it comes to m-commerce, eBay has jumped in with both feet. It is estimated to hold about 3.3 percent of m-commerce, compared to online retailer Amazon’s 1.5 percent. It also was estimated to sell $1.5 billion in goods via m-commerce in 2010, compared to $600 million in 2009. eBay launched its first mobile application for the iPhone in July 2008 and has since produced 14 apps, including eBay Selling, StubHub, Deals, and Fashion. eBay’s core iPhone application has been downloaded 14 million times, and its entire stable of apps has seen over 30 million downloads worldwide...

Words: 970 - Pages: 4

Premium Essay

Why We Buy

...to search high and low to find the product they need. A big mistake retail companies make is stacking products to make it easier for the employees rather than making it easier on the customers. A large part of the book described the need for speed. Customers don’t appreciate long wait times, especially at the checkout counter. The checkout counter should be efficient and quick. It’s been proven that customers get frustrated with long wait times and chaos at the checkout counter which could result in customers walking out altogether without buying anything. Waiting times will cause customer satisfaction to plummet dramatically. There were some other key elements to marketing success that the book laid out. The book went into detail on how general advertising works in the modern age. Advertising as a whole is a lot less effective than it used to be. There is so much advertising that people tend to put blinders on during the day making all advertising ineffective. Advertising may get people into a store, but won’t necessarily mean that customers will actually buy anything. The important thing to note is that many purchasing decisions a customer will make is heavily influenced by what happens in the store itself. It’s important to make sure that the store is laid out to help customers make their decisions faster and more efficiently. The key elements of advertising and informing customers take place inside the store. It’s important to have all signs, shelves,......

Words: 3384 - Pages: 14

Premium Essay

Albertson S Ditches Self-Checkout in Favour of Human Contact

...17 Purchasing Process and Outlet Selection Customer satisfaction is affordable and profitable because the customer becomes your salesman forever. The selection of outlet is given due importance by the customer. The reader must understand: • The importance and dimensions of the outlet • Customer characteristics and risks involved • Influences altering brand choice • Store atmospherics CHAPTER 17 Purchasing Process and Outlet Selection 17.1 Introduction As the number of products and brands are increasing in the market, so are the retail outlets, and it becomes very confusing for the customer to choose the retail stores. The selecting of a retail store also involves almost the same process as selecting a brand. A retail outlet relates to a service or a product which caters to the consumer. The retail trade occurs from the stores, but it also occurs from catalogues, direct mail via print media, television and radio. Retailing is also done in weekly markets which are put up in different areas of a city on different days. It is also done from consumer to consumer, by means of various media. It has become very challenging and exciting, both for consumers and marketeers. The consumer may give first preference to the store or the product or, he may give equal importance to both. Sometimes, one prefers a store first, where he can get friendly and logical advice to buy the product, and prefers to buy a product/brand of second priority, if he is assured of......

Words: 2881 - Pages: 12

Premium Essay

Ecommerce and Internet Shopping

... ECOMMERCE AND SHOPPING ON THE INTERNET ABSTRACT With businesses seeking to seize the momentum of social media and social networking, technology-enabled social commerce has emerged to combine the power of online social networking with shopping. This study examines an emerging area in E-commerce, i.e., social commerce. Extending the online consumer behavior typology, this study categorizes online consumer behaviors into three types: transactional, informational, and social. While traditional E-commerce supports the transactional and informational aspects of online shopping, social commerce fulfils the social aspects of shopping, and potentially enhances the informational aspect as well. This research examines the online shopper as a prospective user of an emerging social commerce platform, the social shopping website, which are sites designed specifically to support social interactions while online consumers shop. The study augments the Technology Acceptance Model with constructs that enhance the specificity of the model to the social shopping application of social commerce. The model was empirically tested and supported. The results provide empirical evidence to support the importance of distinguishing the social aspect of shopping from the information and transactional aspects, as well as the potential advantage to using technology to promote social interactions on E-commerce sites. Implications and future research are discussed. Keywords:......

Words: 1872 - Pages: 8

Premium Essay

Kudler Fine Foods

...discussing the frequent shopper program. By implementing the new program we will need to make sure that it is going to work with the point of sale systems Kudler has in place right now. The frequent shopper program will reward customers that shop at Kudlers Fine Foods. KFF will issue the customers that sign up for the program a card that will track their transactions, and accrue points as they spend more money. The frequent shopper program expectations are that they focus on quality products that people are interested in. The program will also target new customers. One big focus as we progress with this system is making sure that we keep customer information confident. We must find a way to ensure that our customer’s information isn’t leaving our system in any way. The goal with the new system is to increase profit. By allowing customers rewards when they shop with Kudler it should add more incentive for them to shop more to build more point, and receive those rewards. The goal is to increase profit by rewarding those customers that choose to sign up for the rewards program every time they shop with us. With the new program we will not have to completely rebuild the system. This is good because it will cost less, and will not require employees to be retrained on a completely new system. Kudler Fine Foods will also be participating in a customer survey program which will allow us to maintain customer satisfaction while profiting more due to the frequent shopper program.......

Words: 2317 - Pages: 10

Premium Essay

Shopper Marketing

..."Shopper Marketing at traditional retail: An inevitable journey" 90% of the Indian retail is built on the strong bricks of traditional trade. The just next door 'kirana store' is still a significant part of the shoppers’ life. This makes Point-of-Purchase venture into knowing what role does shopper marketing play at the foray of traditional trade, is shopper marketing seeking its relevance here. Experts introspect, answer and help us gain a definite ground on this issue. By Reena Mehta An Inevitable Journey Traditional retail amounts for 90% of Indian retail surely sounds a cliché statistic, but for brands it’s a journey that must be taken. The reason to embark on this journey is the fact that shopper behavior is well established and fairly mature within the traditional trade. Over generations the traditional trade has been able to establish and build a relationship, rapport and trust which are nearly impossible to replicate. Added to this is the proximity to the shopper - which by far is its biggest USP and this makes traditional retail the building block of Indian retail. Shopper marketing no doubts has gained its momentum at the modern retail but modern trade only contributes in single digit %s to the overall sales of many brands and will continue to do so for years to come. Kirana outlets will be the main stay of Indian Marketing. Unless shopper marketing programs cater to the kirana stores, shopper marketing as a practice will not able to make any real impact......

Words: 4841 - Pages: 20

Free Essay

Volvo. Consumer Behaviour

...Question 1 (a) In today’s competitive world, every company has to study consumer’s purchasing power and behaviour prior to develop a marketing plan for their product. This enables the marketer to understand who constitute the market, what and why the market buys, who participates in and influences the buying process, and how, when and where consumer buy (Marketing Teacher, 2014). The car market, in the same manner as other markets, has entered an aggressive period in which, despite the fact that volume sales have expanded, business sector qualities are declining as a consequence of high capacity, abnormal amounts of imports and business immersion. Ladies are still much more probable than men to live in family units with no car, despite the fact that the example is much more equivalent among more youthful men and ladies. Ladies' increased earning power and rising their financial, thus make them one of the developing significance in growing car producers' debilitated deals targets. (Kaplan, 2015) For Volvo company, they have done a research indicates that in the United states, women purchase about 65 percent of cars and influence 80 percent of all car sales (Walter, 2012). Therefore, Volvo find out the woman preferred car by forming a group of all female team project manager and automobile designer, thus they found out that female customer in the premium segment demand for everything that men wanted in term of the performance, prestige and style. (Carscoops, 2015) ...

Words: 2666 - Pages: 11