BUYING

PROCESS
 Buying process
► Consumers go through a set of sequential steps while buying a
product.
► A buying process is the sequence of steps that a consumer
takes while making a purchasing decision.
► The consumers’ decision making is a choice amongst various
alternatives that address problematic issues like:
- What to buy
- Where to buy
-When to buy
- How to buy
- How much to buy
Stages in Consumer Decision
Making Process:

1. Need recognition/Problem
recognition
2. Pre-purchase information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase outcome and
reactions
 1.NEED RECOGNITION
► This is a stage of perceiving a deficiency/need. A need
could be triggered off by an internal stimulus or an
external stimulus.

► A need or problem recognition could be simple or

Complex.
Simple: Simple problem recognition is similar to Structured
Problems; they occur frequently as a routine and can be
dealt with automatically without much effort.
Complex: Complex problem recognition is similar to
Unstructured Problems; they occur infrequently as unique
A need or problem recognition could
result when:

1 . The Actual State changes (AS type):

2 . The Desired State changing (DS type):
 2. Pre-purchase information
search:
After a need is recognized, the consumer goes for
an information search, so as to be able to make the
right purchase decision. He gathers information
about the:
1) Product category and the variations
2) Various alternatives
3) Various brands.
Factors influencing the amount
of information collection

► Consumer
► Product category
► Situation
Types of Search Activity:

(i) Specific: This type of search activity is specific

to the problem and/ immediate purchase; this can
be done only need arises, and the consumer
actively seeks information.
(ii) Ongoing: Here the search activity is a gradual
process that could span over time.
(iii) Incidental: This is a by-product of another
search activity or experiences. Consumers absorb
information from their day to day routine activities
and experiences.
 Information Sources:

(i) Internal sources: This includes the consumer and his

Self. He recalls information that is stored in his memory
(comprising information gathered and stored, as well as his
Experiences, direct and indirect).
(ii) External sources: Here the consumer seeks
information from the external environment. External sources
of information include:
1.Interpersonal communication
2. Marketing communications
3.Other public resources
 3. EVALUATION OF ALTERNATIVE
Once the consumer has gathered information and
identified the alternatives, he compares the different
alternatives available on certain criteria. This involves:

i) Generation of choice alternative:

ii) Identification of Evaluative Criteria: Attributes and Benefits:
iii) Application of Decision Rules to make a final choice amongst
alternatives:
 i) Generation of choice alternative:
This is a step in which, a consumer moves from EVOKED SET to
CHOICE SET

EVOKED SET: CHOICE SET:

A Set of alternative that a This comprises the final
customer actively consider set of one or two brands
while making a purchase from which he finally
decision. decides.
INEPT SET: INERT SET:
These are those These are those alternatives
alternatives from the from the evoked set that the
evoked set that the consumer excludes from
consumer excludes further consideration, as he is
from further indifferent towards them and
consideration, as he perceives them as ones
perceives them to be without much advantages or
inferior and benefits.
unacceptable.
ii) Identification of Evaluative
Criteria: Attributes and Benefits:
The consumer evaluates the different alternatives on one
or few or many of these features and then makes a final
choice.

The major evaluative criteria are:

Economic: Behaviour Social
Price, Value influences:
(Product al: Group
Attributes, Need/motivation influences
Brand image, , Personality, environmental
Evaluation of self-concept and issues etc.
Quality, Price, & self-image,
Features). Lifestyle etc.
iii) Application of Decision Rules to make a final choice
amongst alternatives:

Decision rules help a consumer simplify the decision process

KINDS OF DECISION RULES
a. Compensatory rules
b. Non compensatory rules
●4. Purchase decision
After the consumer has
evaluated the various
alternatives, he selects a
particular brand. Consumer
purchases may be trials/first
purchases or repeat
purchases.
●Trials/First purchase
●Repeat purchases
 Trials could be elicited
Trials/First through market testing, or
purchase through promotional tactics
such as free samples,
coupons, etc.
 •If the consumer is
Repeat satisfied, he would buy the
purchas brand again. Repeat
purchases lead to brand
es loyalty. The consumer may
further have to make
decisions on
●Where to buy from? (Place:
Real/brick and mortar or
virtual/online)
●Whom to buy from? (Which store:
Depends on reputation of seller,
past experience, etc.)
●When to buy? (Time: Emergency
or Routine; during season, off
season, sale, rebate etc.)
5. POST PURCHASE OUTCOME AND
REACTION

• The post purchase outcome and reaction

consists of 2 stages:
• Stage 1 : Post purchase Cognitive Dissonance
• Stage 2 : Product usage and Reaction
Stage I: Post purchase Cognitive Dissonance: This is a feeling of tension and
anxiety that a consumer experiences after the purchase of a product. The consumer
begins to have a feeling of uncertainty with respect the performance of the product
and begins to doubt his purchase decision “whether the decision was the right one?
He begins to ask himself the following questions:

a)Have I made the right choice?

b)Have I purchased the right brand?
c)Have I got value for money?
Situations where cognitive
dissonance occur
1.Purchase related to high involvement
products
2.Purchase activity irrevocable
3.No return
4.The various alternatives have desirable
features and are all comparable
5.Unique product
• Consumers try to reduce this dissonance by:
i) Gaining more product information
ii) Discussing with other satisfied customers who have bought
the same product/brand;
iii) Going back to the dealer and asking for reassurances.
Other methods:
-Rationalizing that the choice that they have made is the right
one.
-Refer to data (printed/audio visual) that supports and
recommends the chosen product/brand.
-Make others buy the same product/brand to reassure their
choice.

Marketers also employ strategies to reduce this dissonance by

providing guarantees and warranties, membership to company
 • Stage II: Product usage and reaction:
After the purchase, theconsumer uses the product and re-
evaluates the chosen alternative in light of its performance
viz. a viz. the expectations. This phase is significant as it

(i) acts as an experience and gets stored in the memory;

(ii) affects future purchase decisions;

(iii) Acts as a feedback.

 There could be three situations that can arise:
Performance meets expectations: This leads to a neutral
feeling; Customer may think of more suitable alternatives
next time.
Performance exceeds expectations: The customer is
satisfied and this leads to a positive feeling. He would tend
to repeat purchase and it would lead to brand loyalty. He
would also spread positive word of mouth.
Performance falls short of expectations: Here, the
customer is dissatisfied and this leads to a negative
feeling. The customer would search for other alternatives,
express grievances, spread negative word of mouth and
may even resort to legal action.
 Consumer buying process some time
does not follow same order because
1) The nature of the product (high and low
involvement);
2) The purchase situation (emergency or planned
or routine);
3) The personal characteristics of the consumer;
and
4) The type of problem solving
Buying Process and Implication to the
Marketer
• An understanding of the consumer decision making process can help
a marketer formulate appropriate marketing strategies.

1. Need recognition/Problem recognition

2. Pre-purchase information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase outcome and reactions
1. Need/Problem recognition

• a) A marketer can create an imbalance between the actual and

desired state;
• b) He can launch newer models; marketing communication has a big
role to play.
• c) He can focus on both functional (utilitarian) and emotional
(hedonic) benefits that the product purchases could offer.
• d) He can activate a need through communicationit would trigger of
the purchase decision process.
2. Pre purchase information search
a) Marketing communication has an important role at this stage
b) Identify the sources of information to present about his product and service
offering.
c) Identify the functional or hedonic utility and use appeals accordingly.
d) This would help create the right kind of cognitive and emotional touch point so as
to elicit a favourable behaviour (purchase).
e) Provide the right kind of information at the right place and at the right time.
f) Make sure that his product and service offering forms a part of the
evoked/consideration set.
For high involvement products: the marketer should ensure that information is
available.
For low involvement products: he should use emotional appeals, POP stimuli etc..
 3. Evaluation of alternatives:
a. The marketer should be careful that his product is
1. positioned and promoted well
2. is readily available and displayed well
3. The product features prominently in the evoked /consideration set
4. The highlights those attributes and benefits that are regarded as
most important to the consumers, and which they are most likely to
evaluate while selecting an alternative.
b. The marketer should inform and educate the customer about the
various criteria to use for evaluation of alternatives.
c. While doing so an intelligent marketer should focus on those
attributes, where his product is better and/superior.
 4. Purchase Decision
a) The marketer should be careful to stock the product at the right place at the
right time so that the consumer who has made a decision in favour of the brand
can have access to the product; else the consumer may have to change his
decision at the last moment.

b) As far as trial and first time purchases are concerned, the marketer should
encourage trials through market testing, or through promotional tactics such as
free samples, coupons, etc.
c) For repeat purchases:
i) The marketer should make sure that he has satisfied the customer at the
first time.
ii) That his offering is a part of the evoked/consideration set.
iii) He should aim towards creation of brand loyalty.
5.POST PURCHASE OUTCOME AND REACTIONS
• The market can Communicate with the customer about the various
attributes/features and benefits that the product has to offer in
comparison with other alternatives.
• He can follow up the customer and address queries and concerns if any
(eg.follow up calls)
• Marketers assurances with respect to warranties, guarantees and
exchange can also pacify the cognitive dissonance state.
• Company websites with FAQs (frequently asked questions); satisfied
customers comments and blogs and customer care information (eg.toll
free number etc.) can also prove to be helpful.
What is Post Purchase Behaviour?
◤

behavior is defined as: The way a

▪ Post-purchase
person thinks, feels, and acts after they make a
purchase
▪ The modern customers have lot of options to express
their post purchase feelings and reactions.
Customers can use social media,reviews and other
means to immediately recommend or complain about
 ◤ Importance of Post Purchase Behaviour

▪ Understanding the customer behaviour after a sale has

been made is very important. Many organizations tend to
ignore the post purchase behaviour of a customer .
▪ Increase repeat business

▪ Reduce post purchase dissonance

▪ Increase in sales

▪ Sustainability of business for long term

 ◤
Post purchase dissonance

▪ Post-purchase dissonance refers to the customer’s

level of dissatisfaction after buying a product or
service from your online store.
Eg:If the customer feels the quality of the product fails
to meet expectations, they may become regretful.
 ◤
Dissonance can be due to:

▪ Large number of alternative

▪ The other alternative have better features
▪ Low durability of a product
▪ Performance of a product
▪ High financial commitment but derived value is
less
 ◤
Steps to improve the post purchase
behavior

1. Proper customer service and support channels

2. User manual and knowledge portal
3. Returns management
4. Understand the customer feedback