The Buying Decision Process

The Buying decision process comprises of 5 steps.

Need Recognition - Information Search - Evaluation of Information - Purchase Decision - Post Purchase Decision/Evaluation.


Need Recognition is triggered by internal (person's normal need) or external stimuli such as advertisement, friends and must reach an intensity high enough to become a drive that would motivate the person to consider a purchase.

Problem Types

  • Routine Problems : Low Priced, regularly used consumer goods....low risk purchases.
  • Limited Problems : Familiar category but new brand or somewhat expensive items.....slightly higher risk.
  • Extensive Problem : unfamiliar category, infrequent purchases, high personal commitments....high risk, may lead to cognitive dissonance.
  • Impulse Purchase : where not much time, thought or  effort goes into the decision.
Information Search

  • Influenced by level of involvement (interest) in the decision.
  • Memory (internal) search is sufficient for familiar, regularly used products: this involves  the scanning of one's memory to recall previous experience or knowledge concerning the solutions to the problem.
  • External search information sources include personal,  commercial, public, experiential and may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering the information is low.
  • Word of mouth sources are most influential (credibility).
Evaluation of Alternatives

  • Evaluation process depends on the consumer and the buying situation.
  • Attributes and importance weights are chosen as criteria
  • Alternatives compared against the criteria.
  • Marketers can influence this stage.
Purchase Decision.
Tow factors intercede between purchase intention and actual decision : attitude of others and unexpected situational factors.

Post Purchase Behaviour

What the consumer thinks and does after purchasing and using the product
  • Satisfaction : relationship between consumer expectation and perceived performance - satisfied customers tend to be loyal
  • Consumer Delight : When the perceived value is definately superior to expectations - delighted consumers engage in positive word of mouth.
  • Unhappy or dissatisfied customers tell others.
  • Cognitive dissonance - post purchase doubts /tensions.
Cognitive Dissonance
  • Feeling of psychological tension or post purchase doubts after a difficult purchase decision
  • Cognitive dissonance is likely when when choices are very similar or the rejected alternative has a desirable features lacking in the chosen alterntive
  • Consumers seek reassurance, deny info not in consonance with the choice , look for info that supports the choice (advertising)
  • Dissatisfied do not re purchase.....they also generate bad Word-Of-Mouth.
  • Marketing Communication must be honest, not create unrealistic expectation
  • Follow up communication to reassure / reinforce
Buying Roles

Six types of buying roles can be distinguished:

  1. Initiator : the person who first suggest or thinks of the idea of buying the particular category
  2. Influencer: the person whose views influence other members while making the final decision
  3. Decider: the person who decides any part of the entire buying decision - whether to buy, what to buy, how to buy and where to buy
  4. Buyer : the person who  performs the physical act of buying. or does the paperwork
  5. User: the person who consumes or uses the product
  6. Gatekeeper : the person(s) who controls the information or access, or both to decision makers and influencers

Consumers Adoption Process of New Categories

This is a five stage process

Awareness - Interest - Evaluation - Trial - Adoption.

Five categories can be distinguished across geographical markets and product categories:

  • Innovators : 2.5% - cosmopolitan and networked, low risk aversion, courageous and usually well off
  • Early adopters : 13.5% - localized, opinion leaders, missionaries, role models, respected.
  • Early Majority : 34% - high interaction, deliberate, non-leaders
  • Late Majority : 34% - social / peer pressure, economic / social necessity, sceptical 
  • Laggards : 16% - past oriented, way behind, isolated, suspicious of changes




 

No comments:

Post a Comment