Consumers in the decision (part 1)

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Consumer decision-making is defined as the behavior patterns of consumers that precede, determine and follow the decision making process for the acquisition of need satisfying products, ideas or services (Du Plessis & Rousseau, 1999). During the consumer decision-making process, not only do consumers make decisions regarding which brand options to choose but they also decide what quantity of the good to purchase. Consumers make decisions in order to reach their goals, which include making the best choice among alternative possibilities, reducing the effort in making the decision, minimizing negative emotions, and maximizing the ability to justify the decision. In summary, consumer decision-making is a constructive process (Mowen & Minor, 2000).

Some of the best-known consumer decision-making models were developed in the 1960s and 1970s. Howard developed the first consumer decision-making model in 1963. Others included the Howard model (1969) and the Engel, Blackwell, and Miniard model (1990). Those consumer decision-making models that are still used today reflect consumer decision process in terms of the interrelationship of concepts and the flow of activities.

The most widely used consumer decision-making theory includes these five steps as defined by Mowen and Minor (2000): recognizing problems, searching for solutions, evaluating alternatives, choosing among options, and evaluating the outcomes of the choice.

In addition to the five steps in the consumer decision-making process, some researchers prefer to add one or more stages to place importance on certain activities. Take as an example, Engel, Blackwell, and Miniard (1 995) who discussed a different model for the consumer decision-making process, the Consumer Decision Process (CDP) model. The CDP model represents a roadmap of consumers' minds that marketers can use to help guide product mix, communication, and sales strategies. The seven stages in the consumers' decision-making process according to the CDP model include: need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation, and divestment. The model places more emphasis on the cognitive aspects of buying behavior than before. The CDP model shows how people solve the everyday problems in life that cause them to buy and use products of all kinds.

Later, the Engel, Blackwell, and Miniard (2001) CDP model was renamed the (EBM) model to acknowledge the work of Professor Paul Miniard. The EBM Model was one of the most important consumer decision-making process models. The EBM model was an attempt to show that consumers will make a purchase decision based upon seven steps. These steps were need recognition, information searching, pre-purchase alternative evaluation, purchase, consumption, post-purchase alternative evaluation, and divestment. Today, consumer behavior and consumer decision-making have become prominent research topics in various fields of consumer science. The advantages offered by decision-making models include the possibility to grasp visually what happens as variables and circumstances change. Moreover, consumer decision-making models also provide conceptual frames of reference that logically indicate the interrelationship of variables for research purposes and the possibility to understand different consumer decision processes and marketing strategies (Engel, Blackwell, & Miniard, 1995).

Generic decision-making model. Many marketing textbooks and consumer researchers employ a slightly different terminology for each of the stages of what we call a generic decision-making model. This model has been widely used by researchers and marketers (Mowen & Minor, 2000). In this model, five distinctive stages have been identified. According to Mowen and Minor (2000) consumers go through the following five stages when making decisions to buy something: (a) problem recognition, (b) information search, (c) alternative evaluation, (d) choice, and (e) post acquisition evaluation.

• Problem recognition stage-in the problem recognition stage, consumers discern that a certain need exists. If sufficiently strong, the need may motivate the person to enter the second stage, the search for information.
• Search for information-this may be either extensive or limited, depending upon the involvement level of the consumer.
• Evaluation of the alternative-the consumer evaluates on the alternative that is identified for solving the perceived problem. Alternative evaluation is synonymous with the formation of beliefs and attitudes regarding the alternative options (Mowen & Minor, 2000; Schiffman & Kanuk, 1994).
• Choice-this involves deciding which alternative option (product) to select. 5. Post acquisition evaluation-in the post acquisition stage, buyers consume and use the acquisition. In addition, they can evaluate the outcomes of the consequences of their behavior and engage in the disposal of the waste resulting from the purchase (Mowen & Minor, 2000; Schiffman & Kanuk, 1994).
As we have seen, the generic decision-making process describes the steps in the making of choices employed by businesses and organizations, as well as by consumers. From the traditional consumer behavior researchers' viewpoint, people move linearly through the generic decision-making process as mentioned above. However, today's researchers began to question the concept that all consumer purchases result from a careful, analytical process. Some authors suggest that in many instances consumers might not engage in any decision making at all prior to making a purchase. Moreover, these researchers also stated that consumers not only purchase goods, but also purchase experiences in the form of service.
Due to the limitations of the traditional consumer decision process, researchers in the consumer behavior field proposed alternative decision-making models that placed different levels of emphasis on each of the stages identified in the generic flowchart. Mowen and Minor (2000) described the consumer decision-making process from different perspectives. They identified the following three perspectives on consumer behavior, the traditional decision-making perspective, the experiential perspective and the behavioral influence perspective. Each perspective defines a different type of decision-making process.
• Traditional decision-making perspective-emphasizes the rational, information processing approach to consumer purchase behavior. It is closely related to the high-involvement and low-involvement hierarchy of the effects approach to attitude formation. In the high-involvement hierarchy, consumers increase their problem-solving activities and search extensively for information about alternative products. In the low-involvement hierarch situation, consumers are not motivated to engage in extensive problem solving. Instead, consumers move through a limited decision-making process in which only a few alternatives are considered in a superficial manner. In sum, the decision-making perspective includes both the high-involvement and low-involvement routes to making decisions. The decision-making perspective regarding buying some product, results from consumers first perceiving that a problem (need) exists and then moving through a series of steps in a rational problem-solving process to satisfy the need (Reibstein 1985; Mowen & Minor 2000).
• Experiential perspective-the experiential perspective on consumer buying behavior proposes that in some instances, consumers do not make their purchases according to a strictly rational decision-making process. Instead, people sometimes buy products and services in order to have fun, create fantasies, and obtain certain emotions. In other words, the experiential perspective recognizes that products carry a subjective symbolic meaning for consumers; they consume many types of products for the sensations, feelings, images, and emotions that the products generate (Reibstein, 1985; Mowen & Minor, 2000). Systematically, from an experiential perspective, problem recognition results from the realization that a difference exists between actual and desired affective states. Similarly, the search process involves seeking information concerning the affective impact of choice options (Mowen & Minor, 2000). In the alternative evaluation stage, the options are evaluated based on their affective quality. Choice is based on affective criteria. Finally, post-acquisition evaluation is based on whether the outcome meets the emotional expectations of the consumer (Reibstein, 1985).
Behavioral influence perspective-from this perspective, researchers focus on the behaviors of consumers and the contingencies of the environment that influence such behaviors. Behavioral influences occur when strong environmental forces propel consumers to make purchases without necessarily first developing strong feelings or beliefs about the product. In these instances, the consumer does not necessarily go through a rational decision-making process or rely on feelings to purchase a product or service. Instead, the action results from the direct influence of behavior by environmental forces, such as sales promotion devices and cultural norms (Mowen & Minor, 2000).
Marketing managerial implication. The marketing managerial implication of consumer decision-making is that, in order to develop an effective marketing strategy, managers must know the factors that influence the acquisition, consumption, and disposition of goods, services, and ideas. There are five areas for the managerial application of consumer behavior concepts. They are product positioning, environmental analysis, market research, mixed-marketing strategy, and segmentation (PERMS). These five managerial application areas are those to which consumer behavior concepts can be applied, and marketing strategy is also derived from them. Moreover, PERMS are also a widely used method within the market and research fields.
• Product positioning--entails the attempt to influence product demand by developing and promoting a product with specific characteristics that differentiate it from competitors. (Mowen & Minor, 2000, p. 20).
• Environmental analysis-the assessment of the external forces that act upon the firm and its customers and that create threats and opportunities (Mowen & Minor, 2000, p. 22).
• Market research-involves applied consumer research designed to provide management with information of those factors that affect the disposition of goods, services, and ideas (Mowen & Minor, 2000, p. 23).
• Mixed-marketing strategy-is the coordination of marketing activities involving product development and the promotion, pricing and distribution of the product (Mowen & Minor, 2000, p. 25).
• Segmentation-is the division of the marketplace into distinct subsets of customers with similar needs and wants whereby each subset can be reached with a different marketing mix (Mowen & Minor, 2000, p. 29).

The concept of consumer decision-making is important because of its managerial implications. Based upon consumer decision-making concepts, Reibstein (1 985) and Kotler and Armstrong (1997) discussed why the concepts are important for managerial application. For example, viewed for the application of product positioning, the analysis of problem recognition has direct relevance for positioning and differentiation strategies. Problem recognition and need recognition processes both result from a perceived discrepancy between an actual and the desired state (Hawkins, Best, & Coney, 1995). These desired states represent benefits that consumers seek. Thus, products can be positioned to fulfill these benefits.

Related to the environme ntal analysis, the nature of the consumer environment may have a large effect on consumer search behavior. As a result, managers should evaluate the number of competing stores in a region (Moven & Minor, 2000). Moreover, managers should also evaluate the impact of the consumer environment from a behavioral influence perspective and carefully assess the effects of the physical environment (Reibstein, 1985). Furthermore, viewing from the market research perspective, it is important to conduct appropriate research studies to identify the extent of the external search in which consumers engage for the purchase of brands in a product class. This will have important implications for distribution strategies (Kotler & Armstrong, 1997). In addition, it is even more important to determine the type of choice processes employed by the target market.
The concept of mixed-marketing is similar to market research. An understanding of the type of the decision-making process employed by the target market will influence both the product and promotional strategy (Kotler & Armstrong, 1997). Finally, with regard to the segmentation section, the extent of the external search and the type of decision-making model employed by consumers can act as segmentation variables (Moven & Minor, 2000).

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