What are the types of Consumer Decision Making?

Consumer decision making involves buying a product to satisfy needs and wants. There are different factors which determine if the consumer will do information search and evaluate the options available to satisfy the needs and wants. For example, for buying a pencil there isn’t much research done about the product and its price, whereas for buying a car extensive research is mostly done, and the decision process is a bit lengthy.

There are four types of decision making processes based on the product and it usage–

1) High utility value (significance) and less familiarity –
Product is expensive, has brand significance in society, less frequently bought, less or no knowledge about the product

This involves Very High Decision Making as the significance of the product to the buyer is high, and the information on the product and its brand is low. A person does extensive search and seeks opinions of others before buying the product. For example – buying a house, investing in firms (financial products), fashion clothing, jewellery, etc. where buyer has no experience or less experience buying such products.

2) High utility value (significance) and high familiarity –
Product is expensive, has brand significance in society, less frequently bought but familiarity factor high.

In this case the significance of the product is high but the buyer is aware of the product characteristics and its manufacturers. Here we can say that the person is knowledgeable about the product, and either he or his closed ones have first-hand experience of the product. In this scenario Limited Decision Making takes place. For example, buying a house, automobile, etc. wherein buyer is familiar with the product and quite knowledgeable.

3) Low utility value (significance) and low familiarity –
Product is inexpensive and buyer ready to experiment the products.

This scenario has very Limited Decision Making involved. According to his need person may just walk into a store, check the different brands, and may buy whatever is on display or available. The buyer is experimenting and will create some belief about the brand. Here the price of the product is low, and there is less risk of loss. For example, buying a chewing gum, candy bar, balloons, salt, etc. from a different brand. For buying an ice-cream, a buyer will just check the price, band and buy it without much evaluation.

4) Low utility value (significance) and high familiarity –
Product is inexpensive and buyer habitually buys the product to satisfy need from same brand.

Here the buyer will reach out to the product from the same brand and doesn’t wants to try a different brand. The buyer buys the product without any evaluation or search. Some thinkers believe that consumers show this behaviour out of habit, hence it is known as Habit Decision Making. For example, a buyer feeling an urge to have something sweet while shopping, he/she may buy the candy bar bought in the past. They may just check if there has been a price change, etc.

A lot depends on the economic condition of the buyer. For an upper class person buying a football will require limited decision making, whereas for a lower or middle class buyer buying a football for training to qualify for selection process, will fall into Very high decision making or Limited decision making. The main difference between high decision making and low decision making is the process of evaluation of alternatives and information search.

Influencing buyers with Low Decision Making process is a big challenge for marketers. Buyers hardly evaluate the product or search for the benefits, qualities and characteristics of the products.

Some of the strategies opted to influence such customers include, free trials, samples, display in large quantities in stores, freebies, lower price, some health benefit highlighted prominently on the packaging, attractive packaging, etc.