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Consumer Buying Decision Process

Here are some ways the Internet has impacted post-purchase behavior: - Online reviews and social media allow consumers to easily share feedback and recommendations, influencing others' purchase decisions. This gives marketers a way to monitor satisfaction. - Product support forums give consumers a place to ask questions and get help from companies or other users. This can improve the ownership experience. - Some products have apps that allow automatic updates or integration with other online services, changing how the product is used over time after purchase. - Online marketplaces make reselling used products more convenient, impacting how consumers dispose of items they no longer want or need. Some companies even facilitate returns or trade-ins. - Digital products like media or

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62 views26 pages

Consumer Buying Decision Process

Here are some ways the Internet has impacted post-purchase behavior: - Online reviews and social media allow consumers to easily share feedback and recommendations, influencing others' purchase decisions. This gives marketers a way to monitor satisfaction. - Product support forums give consumers a place to ask questions and get help from companies or other users. This can improve the ownership experience. - Some products have apps that allow automatic updates or integration with other online services, changing how the product is used over time after purchase. - Online marketplaces make reselling used products more convenient, impacting how consumers dispose of items they no longer want or need. Some companies even facilitate returns or trade-ins. - Digital products like media or

Uploaded by

untold stories
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Consumer buying decision process

Consumer Buying Decision Process

Marketers Must Identify and Understand:

Who Makes the Buying Decision

Types of Buying Decisions

Stages in the Buying Process


Consumer Buying Decision Process

Understand • Initiator
• Influencer
• Decider
• Buying roles • Buyer
• Buying behavior • User
• Buying decision process
Consumer Buying Decision Process

• Complex buying behavior


Understand
• Dissonance-reducing
buying behavior
• Buying roles • Habitual buying behavior
• Buying behavior • Variety-seeking buying
• Buying decision behavior
process
Consumer Buying Decision Process

Understand • Five stages in the


consumer buying
• Buying roles process
• Buying behavior • The amount of time
• Buying decision spent in each stage
process varies according to
several factors
Consumer Buying Decision Process

Figure 6-2:
Five-Stage Model of the Consumer Buying Process
Consumer Buying Decision Process

Figure 6-3:
Successive Sets Involved in Consumer Decision Making
Need Recognition
• When a current product isn’t
Marketing helps
consumers recognize performing properly
(or create) an imbalance
between present status • When the consumer is running
and preferred state out of an product

• When another product seems State


Preferred
superior to the one currently used
The information search stage

• Search refers to mental as well as physical information


seeking and processing activities that one engages in to
facilitate decision making regarding some goal object in
the market place
search

Purpose of Source of
search search

Pre Ongoing
purchase search internal external
search
• Pre purchase search
– Takes place when the consumer has
recognized the problem.
• Ongoing search
– Search activities which are independent of
specific needs and problems.
– Problem has not been recognized.
– Searching with interest, no demand of
product.
The information search
stage

An internal search Personal sources


(friends and family)
Occurs when consumer recognizes
problem
involves the scanning of one's memory to Public sources (rating
recall previous experiences or knowledge services like Consumer
concerning solutions to the problem-- Reports)
often sufficient for frequently purchased
products.

An external search may be necessary


when past experience or knowledge is Marketer-dominated
insufficient, the risk of making a wrong sources (advertising
purchase decision is high, and/or the cost of or sales people)
gathering information is low.

The evoked set: a group of


brands evaluated positive for
purchase and consumption
Factors influencing the external
search
a. Market conditions
• Availability of information
• alternatives to consider
• Location of outlets
• External search is greater when
• Prices are higher and the price differences
between brands are greater
• Perception that there exists substantial
differences among product alternatives
• Individual factors-
– Greater market experience with a product is
associated with lower degree of external search.
– Socio economic characteristics e.g. high
educational level
– Level of stimulation from environment
• Situational factors-
– Search may be reduced if
• There is urgency
• Time available is less
• Special opportunities, special prices
• Perceived risk-
– Uncertainty regarding the most appropriate
purchase decision influences the information
gathered
Information evaluation process
• The alternatives found out in the previous
process are compared to find out the best
solution
Information evaluation process
• Evaluative or choice criteria
– There may be a number of
choice criteria
– These are the standards and
specifications the consumer
uses in evaluating the
products and brands.
– No. and type of criteria may
vary by product e.g.
evaluation of grocery items &
of property or durables.
Subsets of brands for evaluation of
alternatives
a. Evoked set-
• Those brands (few select
brands) evaluated positively for
purchase and consumption
b. Inert set –
– Consists of those brands that
the consumers have failed to
perceive of any advantage of
buying ( neither –ve nor +ve)
c. Inept set-
– Brands that have been
rejected from purchase
consideration because of
unpleasant experience
Evaluating the alternatives
• 2 broad approaches- Evaluation of
alternatives

Brand processing Attribute processing

Choice by processing Choice for processing


brands attributes

Buyer assesses one Consumer examines


brand and Examine specific Attribute and
several attributes and compares several
Compares them with other brands on that
other brands attribute
Consumers use compensatory/ non compensatory rules for this decision
making
NON COMPENSATORY DECISION RULES

• Good performance on one evaluative


criteria doesn’t offset/ compensate the for
the poor performance of another
evaluative criteria of a brand.
1.Disjunctive Rule
Consumer establishes the minimum acceptable
performance standards which each brand
must meet
Any brand will be acceptable if it exceeds the
minimum standard/ criterion.
2. Conjunctive rule

• Requires the customers to establish


minimum levels of acceptability on
different attributes of each brand
• Then for each criteria a cut off point will be
set below which the brand will not be
considered.
3. Lexicographic Rule

• Allows additional evaluative criteria to be


incorporated in addition if necessary
• This happens when choice can’t be made
by evaluating the important criterion
COMPENSATORY DECISION
RULE
• Allows perceived favorable brand
attributes or evaluative criterion to offset
unfavorable evaluations
• Brand strengths can compensate for brand
weakness.

Finally , after evaluation the decision has to be made regarding buying or non
buying of the product or brand
• Post-purchase Behavior:
– Consumers’ expectations are compared to
performance
– Post-purchase satisfaction influences future
behavior
• Purchasing behavior
• Word-of-mouth communications
Consumer Buying Decision Process

• Marketers should attempt to influence and


monitor post-purchase behavior
– Post-purchase communications reduce dissonance,
returns, and order cancellations
– Talk with customers to discover new uses for
existing products
– Investigate methods of product disposal
Consumer Buying Decision Process

Figure 6-4: How Consumers Use or Dispose


of Products
Discussion Scenario

Think about the Internet . . .


How can marketers capitalize on the Internet to
influence or monitor post-purchase behavior?
Identify and discuss the different means by
which the Internet has impacted how consumers
use or dispose of products.

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