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
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.
- 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
Six types of buying roles can be distinguished:
- Initiator : the person who first suggest or thinks of the idea of buying the particular category
- Influencer: the person whose views influence other members while making the final decision
- 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
- Buyer : the person who performs the physical act of buying. or does the paperwork
- User: the person who consumes or uses the product
- 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
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