The Buying Decision Process: Consumer Behavior

THE BUYING DECISION PROCESS CONSUMER BEHAVIOR

DECISION PROCESS BEHAVIOR A. BUYING ROLES B. TYPES OF BUYING BEHAVIOR C. STAGES IN THE BUYING DECISION PROCESS

BUYING ROLES Initiator :A person who first suggests the idea of buying the particular product or service. Influencer : A person whose view or advice influences the decision Decider : A person who decides on any component of a buying decision : whether to buy , what to buy , How to buy, or where to buy. Buyer : The person who make the actual purchases. User : A person who consumes or uses the product or service

TYPES OF BUYING BEHAVIOR Complex Buying behavior Dissonance – reducing buying behavior Habitual Buying behavior Varity – seeking buying behavior

Complex Buying behavior - Highly Involved - Aware of significant differences among Brands Nature of products: Expensive, Bought Infrequently , Risky & Highly self expressive. Marketers : Strategies assist the buyer in learning about the attributes of the product class, importance and the high standing of the company’s brand on the more important attributes.

Dissonance – Reducing buying behavior - Highly involved - Little difference in the Brand - Good Price or to purchase convenience Nature of Product: expensive , Infrequent & Risky. Marketers : Communicate aim to supply beliefs and evaluations that help the consumer feel good about his or her brand choice.

Habitual Buying behavior Low Consumer involvement Absence of significant brand differences Nature of products : Little involvement in products, Low involvement with low –cost frequently purchased products. Marketers : Ad repetition, Short duration messages, T.V. More effective, identify certain product by symbol, strategy at best raise consumer involvement from low to a moderate level.

Varity – seeking buying behavior -Low involvement -Significant brand differences -Lot of Brand switching # Brand switching occurs for the sake of verity rather then dissatisfaction. Products: verity, Low cost, Frequently Purchase Marketers: Leader Brand – encourage habitual buying behavior by dominating the shelf space, avoiding out of stock condition, sponsoring frequent reminder advertising. Minor Brand – Varity at low cost, deals, coupons, free samples & reason for trying something new

STAGES IN THE BUYING DECISION PROCESS

Need Recognisation Search Pre Purchase Alternative Evaluation Purchase Consumption Divestment

Best way to understand how this process works is to think in terms of an actual purchase situation

STAGES IN THE BUYING DECISION PROCESS Need Recognition – Case : “The Chosen Channel” Information Search Evaluation of Alternatives – Case : “ Twist in the sale “ Purchase Decision : case : “ The Crimson Credo “ Post purchase behavior

Need Recognition This occurs when an individual senses a difference between what he or she perceives to be the ideal state of affairs compared the actual state of affairs at any point of time. In other wards, it is a stage of desire that initiates a desire on process that in turn occurs through the interaction of individual difference such on values and needs and environmental influences especially social interaction. A major source of problem reorganization is need arousal when that need is related to selfimage. Motives represent enduring predispositions to behave towards certain goals.

Need Recognition process center Desired Stage

Below Threshol

No Need Recognition

Actual stage

Degree of Discrepanvy

At or Above Threshold

Need Recognition

Case Study “The Chosen Channel”

Information Search Once need recognition has occurred the consumer may then engage in a search for potential need satisfiers. Search can be define as “ motivated activation of knowledge stored in memory or acquisition of information from the environment This suggest that search can be either internal or external in nature

Internal search Internal search is nothing then a memory scan for decision reverent knowledge stored in way term memory.If this scan reverent sufficient information to provides a satisfactions course of action, external search is obviously unnecessary.

Internal search : Need Recognition Determinants of Internal Search Existing knowledge Ability to retrieve Stored knowledge

Internal Search Successful YES Proceed with Decision

NO Undertake External Search

External Search : Pre purchase search : External search that is driven by an upcoming purchase decision. Primary motive behind this search is the desire to make better consumption choice. On-going search : In this search , information acquisition occurs on a relatively regular bases regardless of sporadic purchase needs. This may be motivated by desires to develop a knowledge base that can be used in future decision making.

Evaluation of Alternatives Define as the process by which a choice alternative is evaluated and selected to meet continues needs. Decision must be made initially about which choice alternatives to consider and the evaluative criteria is dimensions or attributes to use in judging the alternatives.

Case Study “ Twist in the sale “

Basic component of Process Determine Evaluation Criteria

Determine Choice Alternatives

Assess Preference of Alternatives

Apply Deision Rule

Purchase Decision Purchase requires a decision making process of its own. Whether to Buy When to buy What to Buy Where to buy When to buy How to Pay

Case Study “ The Crimson Credo “

Post purchase behavior There are several reasons for the priority placed on Consumer satisfaction or Dissatisfaction. Emergence of customer retention as a dominant marketing objective in view of formidable experience and difficulty of attracting new projects. The undisputed fact that customer satisfaction is the key to customer retention. Central competitive role of product and service quality in forming the CS/D response