Consumer Decision Making

BMW: The Consumer Decision Making Process

 According to Kotler et al. (2009, p. 247), the consumer decision making process incorporates five stages: problem (need) recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

In the case of a car, the problem recognition means that people realize their need for a comfortable personal vehicle. After the need is identified, a person starts to collect information about the kinds of cars available. Kotler et al. distinguish four groups of information sources to which customers might turn: personal (family, friends), commercial (advertising, corporate websites), public (mass media, consumer-rating organizations), and experiential (handling, examining, using the product) (2009, p.248).

BMW uses all of them to facilitate customer purchasing behavior. Firstly, 83-85% of BMW customers in the US would definitely recommend their vehicle to a friend (BMW Group, 2012). Secondly, advertising campaigns and official website are used to highlight all the advantages of BMW cars. Thirdly, in 2009-2010, BMW cars were granted first places in such reputable customer satisfaction ratings as J.D. Power and ADAC (BMW, 2012). Fourthly, visitors in BMW distribution centers can have a test drive.

At the next stage, the customer evaluates alternative proposals, which means comparing automobiles by their performance, fuel efficiency, design, and price. In addition, modern customers tend to be concerned with the environmental footstep of their cars. BMW respond to this challenge by reducing CO2 emissions significantly in all their new vehicles and developing alternative drive technologies. In 2013, everyone will be able to purchase an environmentally friendly BMW vehicle.

If the customer concludes a BMW car to be the best alternative, then the decision to purchase is made. However, it can be affected by some unexpected circumstances. Customers might get information about a less priced competitor car and prefer that one; or their personal financial situation might deteriorate, and they would be forced to postpone or deny the purchase. Such situations are beyond the company’s direct control, but their aftermaths can be mitigated, e. g. by granting the right to purchase on credit.

Finally, after the car is purchased, the customer starts using it and finds out whether it meets his/her expectations or not. The post-purchasing dissonance is especially likely to be experienced by consumers who do not feel confident to evaluate the product quality (Nadeem, 2007), e. g. those who have little driving experience. Salespeople in BMW address this issue by informing their customers fully and honestly about the car characteristics in order to reduce the perceived high risk associated with a car purchase, build customer confidence, and reduce the probability of post-purchase dissonance.