How consumer make decision in making transaction

1. Prepared by:
Nor Izzuddin Bin Norrahman
Lecturer of Management, Banking and Islamic Finance
Astin College

2.  Marketers must be EXTREMELY careful in
analyzing consumer behavior.
 In this chapter, we look at how consumers make
buying decisions.
 We will focus on:
 Consumer buying roles & types of decisions
 Main steps in the buyer decision process
 Process which consumers learn about and buy new
products

3.  The marketer needs to know which PEOPLE are
INVOLVED in the BUYING DECISION.
 Husband?
 Wife?
 Children?
 Friend?
 Man?
 Woman?
 Cuttlefish?

4. Consumer
Buying
Roles
Initiator
Influencer
DeciderBuyer
User

5.  Initiator
 The person who first suggests or thinks of the idea of buying a
particular product or services.
 Influencer
 A person whose views or advise carries some weight in
making the final buying decision.
 Decider
 The person who ultimately makes a buying decision or any
part of it – buy or no? what to buy? Where to buy? How?
 Buyer
 The person who makes an actual purchase
 User
 The person who consumes or uses a product or service

6. Source: Kotler, Philip and Armstrong, Gary, PRINCIPLES OF MARKETING 9th .ED. (New Jersey: Prentice-Hall, Inc., 2001) p.191
Complex
buying
behavior
Dissonance -
Reducing buying
behavior
Variety – Seeking
Buying Behavior
Habitual
buying
behavior
High
Low
High Low
DifferencesBetweenBrands
Involvement

7.  Highly involved in a purchase and perceive significant
differences among brands.
 Highly involved because the product is expensive,
risky, purchase infrequently, and highly self-
expressive.
 Have much to learn about the product category.
 The buyer have to pass trough a learning process.
 Examples?

8.  Occurs when consumers are highly involved with an
expensive, infrequent, or risky purchased, BUT SEE
LITTLE DIFFERENCE AMONG BRANDS.
 Example?
 Because of the little difference, the buyer may
experience post-purchase dissonance when they notice
certain advantages.
 How to fix it?
 After-sale communications should provide evidence and
support to help consumers feel good about the brand.

9.  Occurs under conditions of low consumer involvement
and little significant brand different.
 Examples? – Sugar
 Consumers do not search extensively for information
about brands, evaluate brand characteristics, and
make weighty decisions about which brands to buy.
 Instead, they passively receive information as they
watch TV or read magazines.
 Ads repetition creates brand familiarity rather than
brand conviction.

10.  Low consumers involvement but significant perceived
brand differences.
 Consumers do a lot of brands switching
 Example?

11. Buyer Decision Process

12. Problem awareness
Information search
Evaluation of alternatives
Purchase
Post purchase behavior

13. Buyer-Decision process for new products
 How do buyers approach the purchase of NEW
PRODUCTS?
 How consumers learn about the new products and
make decision whether to ADOPT them or not?
 Adoption process – “the mental process through which
an individual passes from first hearing about an
innovation to final adoption”

14. Stages in adoption process
 Awareness
 The consumer becomes aware of the new product but lacks
information about it.
 Interest
 The consumer is stimulated to seek information about the
new product.
 Evaluation
 The consumers considers whether trying the new product
makes sense.
 Trial
 The consumer tries the new products on small scale to
improve his or her estimate of its value.
 Adoption
 The consumer decides to make full and regular use of the new
product.

15. Individual differences in innovativeness

16. Tutorial
 Please specify who is involve (the buying role) in your
purchase over smartphone.
 What level are you in the differences of
innovativeness?

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