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BUYING
DECISION
PROCESS
WHAT IS BUYING DECISION
PROCESS?
•The buying decision process is the decision-
making process used by consumers regarding
market transactions before, during, and
after the purchase of a goods or service.
OBJECTIVES OF BUYING
DECISION PROCESS:
• There are two objectives of buying decision process. They are:
1. First objective is to examine if personal, social and
psychological characteristics have affect on consumer buying
behaviour.
2. Second objective is to gain knowledge on how the purchase
decision process is being made by individual consumer.
PROBLEM RECOGNITION
INFORMATION SEARCH
EVALUATION OF ALTERNATIVES
PURCHASE DECISION
POST PURCHASE DECISION
FIVE STAGE MODEL
1. PROBLEM/NEED
RECOGNITION
NO NEED
NO PURCHASE
If a consumer does not perceive a problem
or need, he generally will not move forward
with considering a product purchase.
 Recognize what the problem or need is and identify
the product or type of product which is required.
Need can be triggered by Internal or External
Stimuli.
a) Internal Stimuli like hunger and the thirst.
b) External stimuli like someone motivating you.
Point of importance is to identify what triggers
the need.
I haven’t eaten lunch.
I’ll buy some food at
the supermarket.
Internal Stimuli
That dish looks and
smells so good.
I’ll give it a try.
External Stimuli
2.INFORMATION SEARCH
Consumer seeks information that can help
him making purchase decision.
Interested consumer will try to seek information.
 Now, he will read newspapers and magazines, watch television,
visit showroom or dealer, contact salesman, discuss with
friends and relatives, and try all the possible sources of
information.
Mostly, the consumer can try one or more of following sources
of information:
i. Personal sources
ii. Commercial Sources
iii. Public Sources
iv. Experimental Sources
Already present in the
consumer’s memory.
How was my experience
with this camera brand last
year?
Obtain from other
consumers.
How do professional
photographers rate this
camera?
3.EVALUATION OF ALTERNATIVES
Consumers evaluates the alternative based on
the product, features, brand perception and
other attributes.
o After collecting all the information, consumer undergoes evaluation of
brands.
o Normally from all the alternatives, consumer selects the best one, the brand
that offers maximum satisfaction.
o Following criteria are consider while evaluating alternatives:
1. Benefits offered by the brands
2. Qualities, features or attributes and performance
3. Price changed by various brands
4. History of brands
5. Popularity, image or reputation of brands
6. Product related services offer
7. Availability of brand and dealer rating
This laptop is
small, light and
has long
battery life.
Perfect for
travelling.
This laptop’s
graphic card,
hard drive, and
operating
system are ideal
for coding.
Consumers
consider
different
attributes
4. PURCHASE DECISION
Consumers choose the product that
resolves the need.
This is the stage when the consumer prefers one, the most promising
brand, out of several brands.
Simply, the most attractive brand, that can offer more benefits in
relation to price paid, is selected by comparing one brand with others.
Comparison source superiority/inferiority of the brands.
However, three factors further affect whether buying intension
results into actual purchase.
1. The first factor is attitude of others.
2. The second factor unanticipated situational factors.
3. The third and the last factor is consumer’s perceived risk.
CONSUMERS BUYING DECISION INVOLVES
FOLLOWING FIVE SUB-DECISIONS:
BRAND IMAGE DEALER QUANTITY
TIMING
PAYMENT
METHOD
5. POST PURCHASE DECISION
“A customer talking about their experience with you
is worth ten times that which you write or say
about yourself.”- David J. Greer
Consumer determines if he or she made the right purchase. Satisfied consumers will
most likely share their experience and become loyal customers.
Consumer buys the product with certain expectations.
There is always possibility of variation between the expected level of satisfaction
and the actual satisfaction.
Customer’s subsequent behaviour is influenced by degree of
satisfaction/dissatisfaction.
Marketer must monitor the post purchase experience of the buyers that includes:
a) Post-purchase satisfaction
b) Post-purchase action
c) Post-purchase use and disposal
A. POST PURCHASE BEHAVIOUR: SATISFACTION
• Consumer’s satisfaction is the function of the relationship between
expected/perceived performance(expectations) and actual
performance.
• Performance less than the expectation results into the
dissatisfaction.
• Performance as per the expectation leaves satisfaction.
• Performance better than expectation leads to delighted consumer.
Point of importance is that it will affect his future decision
making process.
B. POST PURCHASE BEHAVIOUR: ACTION
• Satisfaction or dissatisfaction may influence a consumers
subsequent behaviour.
• If its favourable it may lead to a repeat purchase.
• If dissatisfaction the consumer may stop buying the
product (exit option) or warn the people around (voice
option).
C. POST PURCHASE BEHAVIOUR: USES AND
DISPOSABLE
• Its important to calculate the consumption rate, i.e.
frequency of purchase.
• Profits come from sales and key driver of sales is
consumption rate.
Based On This Buying Decision
Process, What Should
Marketers And Sales People
Remember?
1.
REINFORCE YOUR BRAND
THROUGH MARKETING
STRATEGIES.
LET CONSUMERS FEEL THE
NEED.
2.
PROVIDE ACCESSIBLE AND CONCRETE
INFORMATION ABOUT YOUR
PRODUCT OR SERVICES.
3.
MONITOR AND MANAGE THE
CUSTOMERS QUESTION AND
FEEDBACK.
4.
ENHANCE CUSTOMER
RELATIONSHIP.
“Customers loves certainty, make
sure you give it to them.”
Buying decision process
Buying decision process

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Buying decision process

  • 2. WHAT IS BUYING DECISION PROCESS? •The buying decision process is the decision- making process used by consumers regarding market transactions before, during, and after the purchase of a goods or service.
  • 3. OBJECTIVES OF BUYING DECISION PROCESS: • There are two objectives of buying decision process. They are: 1. First objective is to examine if personal, social and psychological characteristics have affect on consumer buying behaviour. 2. Second objective is to gain knowledge on how the purchase decision process is being made by individual consumer.
  • 4. PROBLEM RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES PURCHASE DECISION POST PURCHASE DECISION FIVE STAGE MODEL
  • 5. 1. PROBLEM/NEED RECOGNITION NO NEED NO PURCHASE If a consumer does not perceive a problem or need, he generally will not move forward with considering a product purchase.
  • 6.  Recognize what the problem or need is and identify the product or type of product which is required. Need can be triggered by Internal or External Stimuli. a) Internal Stimuli like hunger and the thirst. b) External stimuli like someone motivating you. Point of importance is to identify what triggers the need.
  • 7. I haven’t eaten lunch. I’ll buy some food at the supermarket. Internal Stimuli That dish looks and smells so good. I’ll give it a try. External Stimuli
  • 8. 2.INFORMATION SEARCH Consumer seeks information that can help him making purchase decision.
  • 9. Interested consumer will try to seek information.  Now, he will read newspapers and magazines, watch television, visit showroom or dealer, contact salesman, discuss with friends and relatives, and try all the possible sources of information. Mostly, the consumer can try one or more of following sources of information: i. Personal sources ii. Commercial Sources iii. Public Sources iv. Experimental Sources
  • 10. Already present in the consumer’s memory. How was my experience with this camera brand last year? Obtain from other consumers. How do professional photographers rate this camera?
  • 11. 3.EVALUATION OF ALTERNATIVES Consumers evaluates the alternative based on the product, features, brand perception and other attributes.
  • 12. o After collecting all the information, consumer undergoes evaluation of brands. o Normally from all the alternatives, consumer selects the best one, the brand that offers maximum satisfaction. o Following criteria are consider while evaluating alternatives: 1. Benefits offered by the brands 2. Qualities, features or attributes and performance 3. Price changed by various brands 4. History of brands 5. Popularity, image or reputation of brands 6. Product related services offer 7. Availability of brand and dealer rating
  • 13. This laptop is small, light and has long battery life. Perfect for travelling. This laptop’s graphic card, hard drive, and operating system are ideal for coding. Consumers consider different attributes
  • 14. 4. PURCHASE DECISION Consumers choose the product that resolves the need.
  • 15. This is the stage when the consumer prefers one, the most promising brand, out of several brands. Simply, the most attractive brand, that can offer more benefits in relation to price paid, is selected by comparing one brand with others. Comparison source superiority/inferiority of the brands. However, three factors further affect whether buying intension results into actual purchase. 1. The first factor is attitude of others. 2. The second factor unanticipated situational factors. 3. The third and the last factor is consumer’s perceived risk.
  • 16. CONSUMERS BUYING DECISION INVOLVES FOLLOWING FIVE SUB-DECISIONS: BRAND IMAGE DEALER QUANTITY TIMING PAYMENT METHOD
  • 17. 5. POST PURCHASE DECISION “A customer talking about their experience with you is worth ten times that which you write or say about yourself.”- David J. Greer
  • 18. Consumer determines if he or she made the right purchase. Satisfied consumers will most likely share their experience and become loyal customers. Consumer buys the product with certain expectations. There is always possibility of variation between the expected level of satisfaction and the actual satisfaction. Customer’s subsequent behaviour is influenced by degree of satisfaction/dissatisfaction. Marketer must monitor the post purchase experience of the buyers that includes: a) Post-purchase satisfaction b) Post-purchase action c) Post-purchase use and disposal
  • 19. A. POST PURCHASE BEHAVIOUR: SATISFACTION • Consumer’s satisfaction is the function of the relationship between expected/perceived performance(expectations) and actual performance. • Performance less than the expectation results into the dissatisfaction. • Performance as per the expectation leaves satisfaction. • Performance better than expectation leads to delighted consumer. Point of importance is that it will affect his future decision making process.
  • 20. B. POST PURCHASE BEHAVIOUR: ACTION • Satisfaction or dissatisfaction may influence a consumers subsequent behaviour. • If its favourable it may lead to a repeat purchase. • If dissatisfaction the consumer may stop buying the product (exit option) or warn the people around (voice option).
  • 21. C. POST PURCHASE BEHAVIOUR: USES AND DISPOSABLE • Its important to calculate the consumption rate, i.e. frequency of purchase. • Profits come from sales and key driver of sales is consumption rate.
  • 22. Based On This Buying Decision Process, What Should Marketers And Sales People Remember?
  • 23. 1. REINFORCE YOUR BRAND THROUGH MARKETING STRATEGIES. LET CONSUMERS FEEL THE NEED.
  • 24. 2. PROVIDE ACCESSIBLE AND CONCRETE INFORMATION ABOUT YOUR PRODUCT OR SERVICES.
  • 25. 3. MONITOR AND MANAGE THE CUSTOMERS QUESTION AND FEEDBACK.
  • 27. “Customers loves certainty, make sure you give it to them.”