3.3 The Consumer Behavior Process

1. Problem Recognition

   • The buyer realizes they have a need or want

   • Example: You notice your phone battery dies too fast—time to upgrade.

2. Information Search

   • Looking for solutions: online reviews, word-of-mouth, ads

   • Example: Googling “best smartphones 2025” or asking friends for advice

3. Evaluation of Alternatives

   • Comparing options based on features, price, convenience, or brand loyalty

   • Example: Debating between the new iPhone, Samsung Galaxy, or a budget-friendly model

4. Purchase Decision

   • Choosing what to buy (or deciding to delay or cancel)

   • Example: Picking the phone that offers the best balance of features and price

5. Post-Purchase Evaluation

   • Assessing if the purchase met expectations

   • Example: Loving your new phone or regretting not getting more storage

Amazon has streamlined the five stages of decision-making to make shopping almost effortless.

• Problem Recognition: “Customers like you also bought…” alerts trigger needs customers didn’t even realize they had.

• Information Search: Millions of product reviews provide trusted guidance.

• Evaluation of Alternatives: Comparison tools and filtering options help narrow choices.

• Purchase Decision: One-click ordering reduces friction.

• Post-Purchase Evaluation: Easy returns and personalized follow-up suggestions keep customers satisfied.

By optimizing every stage, Amazon shortens the buying process and boosts customer satisfaction, which is why the average Amazon Prime member now spends over $1,400 per year.

Customers don’t make decisions in a vacuum. A mix of cultural, social, personal, and psychological factors influences what they buy and why.

Figure 3.2 below shows how all these forces interact with the stages of the consumer decision-making process—from recognizing a need to evaluating the purchase afterward.

Let’s break down each factor.

• Cultural Factors

  • Values, beliefs, customs, and social norms

  • Example: In many Asian markets, collective family decision-making impacts purchases like cars and electronics.

• Social Factors

  • Family, reference groups, opinion leaders, and influencers

  • Example: Titleist dominates the golf ball market partly because top players and coaches consistently recommend the brand.

  • Example: TikTok influencers drive beauty trends and create viral product demand.

• Psychological Factors

  • Perception, motivation, learning, beliefs, and attitudes

  • Example: Tesla buyers often cite environmental values (motivation) and positive past experiences (learning) as reasons for purchase.

• Individual Factors

  • Age, gender, life stage, personality, income

  • Example: Gen Z consumers prioritize social responsibility and digital convenience when choosing brands.

• Situational Factors

  • The buying context, including physical setting, time pressure, or purchase purpose

  • Example: Consumers may splurge on premium snacks at an airport but buy budget options for everyday use.

A single viral TikTok video can turn an unknown product into a bestseller overnight. CeraVe and e.l.f. Cosmetics both saw massive surges in sales after influencers showcased their products in short, relatable videos.

What’s driving these impulse purchases?

• Social Factors: Peer influence and validation from trusted creators

• Psychological Factors: FOMO and instant gratification

• Situational Factors: Easy purchase links directly in the app

This new buying behavior shows how social media has accelerated the decision-making process, especially for younger consumers.