the buyer decision process

7/29/2019 The Buyer Decision Process

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THE BUYER DECISION PROCESS

A consumer goes through a series of rational steps in the buying decision

process. These include:

1. Need Recognition: At this decision stage, the buyer recognizes a

problem or need. The buyer senses a difference between his actual state and

some desired state. A need can be triggered by internal stimuli when one of

the persons needs e.g. hunger, thirst, desire etc. rises to a level high enough

to become a drive. The need can also be triggered by external stimuli like an

advert or a sales person talking of the product.The marketer at this stage

should carry out market research to understand consumer needs and looks

for ways of satisfying them.

2. Information Search: The stage in which the consumer is aroused to

search for more information. The consumer may move from a state of

active information search to a state of heightened attention where the

consumer actively seeks information from:

(a) Personal sources (family, friends, neighbors)

(b) Commercial sources (advertising, salespeople, dealers)

(c) Public sources (mass media, consumer awareness org.)

(d) Experimental sources (handling, examining, using theproduct)

Companies have realized that people who ask others (word of mouth

sources) end up in buying. It is convincing and a more cost effective

strategy.

3. Evaluation of Alternatives: At this stage, the consumer uses

information to evaluate alternative brands in the choice set. Consumers

sometimes make careful calculations and logical thinking of the product

benefits and features (complex buying behaviour). At other times, consumers

do little or no evaluation, instead they buy on impulse and rely on intuition.

Some other times consumers make buying decisions on their own,

sometimes they turn to friends, consumer guides or salespeople.Marketers


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should study buyers to find out how they actually evaluate brand

alternatives.

4. Purchase Decisions: At this stage, the buyer makes a decision of

which brand to buy. Two factors may influence the buyers decision at this

stage:

(a) Others attitude over the product i.e. view of

friends/relatives

(b) Unexpected situational changes e.g. change in product

price, change in buyers income etc.

5. Post-purchase Behaviour: At this stage, the consumers take further

action after purchasing the product based on their satisfaction or

dissatisfaction.

- If the product falls short of expectations, the consumer is

disappointed (cognitive dissonance). If it meets expectations,

the consumer is satisfied, if it exceeds expectations, the

consumer is delighted.

- Marketers must at all times strive to satisfy the consumer in

order to retain the existing customers and get new customers.THE BUYING DECISION PROCESS FOR A NEW PRODUCT

A new product is a good or service or idea that is perceived by some

potential customers as new. New products take some time before they are

finally adopted for use by the consumers. The process through which a new

idea or product is received and consequently accepted is referred to as the

adoption process.

Adoption Process

This is the mental process through which an individual passes from first

hearing about an innovation to final acceptance of the product.

Stages in the Adoption Process

Consumers go through five stages in the process of adopting a new product:


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(i) Awareness The consumer gets to know of the new product, but

lacks information about it.

(ii) Interest The consumer seeks information about the new product.

(iii) Evaluation On receiving additional information on the product,

the potential consumer make a consideration as to whether trying out

the new product makes sense.

(iv) Trial The consumer makes a trial of the new product on a small

scale. This is to help in estimation of the products value.

(v) Adoption On receiving full satisfaction after the trial, the

consumer decides to make full use and adoption of the new product.

Adoption Rate of a New Product

According to Rogers theory of innovation, people differ greatly in their

readiness to try new products. There are five groups of people based on

their adoption rate.

(i) Innovators Are venturesome. They try new ideas as soon as they

get to know of it irrespective of the risk.(ii) Early adopters They are guided by respect. They are opinion

leaders in their communities and adopt new ideas early but carefully.

(iii) Early majority They are rarely leaders but they adopt new ideas

before the average person.

(iv) The late majority Are skeptical individuals. They adopt an

innovation only after a majority of people have tried it.

(v) Laggards Are traditions bound They are suspicious of changes

and adopt the innovation only when it has become something of a

tradition itself.

Rogers classified these grioupings as shown below:


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In general, innovators and early adopters are relatively younger, better

educated, and higher income than late adopters and non adopters.Marketers with new innovations should research the characteristics of

innovators and early adopters and should direct marketing efforts towards

them.

34%

Late

Majority

34%

Early

Majority 16%

Laggards

14%

Early

Adopters

3%

Innovators

the buyer decision process

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