Worked example 1
Jamal needs a laptop for university with a budget of £800. He considers two options: Laptop A (£799) with a faster processor, and Laptop B (£650) with a slightly slower one. After two weeks of research, he buys Laptop A. Afterwards, he feels anxious, wondering if he made the right choice. Meanwhile, he grabs a £1.50 branded snack at the checkout without comparing prices. Outline the decision processes for both purchases, including a relevant calculation, and evaluate the five-stage model.
Show solution outline
Laptop — high involvement:
- Problem recognition — University requirement triggers need.
- Information search — Extensive external search (reviews, shop visits) due to high cost and performance risk.
- Evaluation of alternatives — Systematic comparison on specs (processor) vs. price (£799 vs. £650).
- Purchase decision — Chooses the more expensive Laptop A for better performance.
- Post-purchase evaluation — Experiences cognitive dissonance. He calculates the opportunity cost: Calculation: £799 (Laptop A) - £650 (Laptop B) = £149 This £149 difference makes him anxious about whether the extra performance was worth the cost, so he seeks reassurance by re-reading positive reviews.
Snack — low involvement:
- Problem recognition — Hunger at checkout. 2–3. Minimal search/evaluation — Relies on brand familiarity (heuristic), no comparison of the £1.50 price.
- Impulse purchase at Point of Sale.
- Post-purchase evaluation — Minimal; he either eats it or doesn't, with little thought.
Evaluation of the Five-Stage Model:
- Strengths: The model clearly explains the difference in process based on involvement level, as seen with the laptop vs. the snack.
- Limitations: It doesn't fully account for impulse buys (snack) which skip stages, and it over-emphasises rationality, whereas Jamal's post-purchase anxiety shows the role of emotion.