Buying decision process

If anyone has any query am always there to solve their grievances. you can ask your question below without any hesitation.

1. 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. 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 . Internal Stimuli like hunger and the thirst. External stimuli like someone motivating you. Point of importance is to identify what triggers the need .

7. 2.INFORMATION SEARCH Consumer seeks information that can help him making purchase decision.

8. 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: Personal sources Commercial Sources Public Sources Experimental Sources

9. 3.Evaluation of alternatives Consumers evaluates the alternative based on the product, features, brand perception and other attributes.

10. After collecting all the information, consumer undergoes evaluation of brands . Normally from all the alternatives, consumer selects the best one, the brand that offers maximum satisfaction . Following criteria are consider while evaluating alternatives: Benefits offered by the brands Qualities, features or attributes and performance Price changed by various brands History of brands Popularity, image or reputation of brands Product related services offer Availability of brand and dealer rating

11. 4. Purchase decision Consumers choose the product that resolves the need.

12. 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. The first factor is attitude of others. The second factor unanticipated situational factors. The third and the last factor is consumer’s perceived risk.

13. Consumers buying decision involves following five sub-decisions:

14. 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

15. 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: Post-purchase satisfaction Post-purchase action Post-purchase use and disposal

16. 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.

17. 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).

18. 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.

19. Based On This Buying Decision Process, What Should Marketers And Sales People Remember?

20. 1. Reinforce your brand through marketing strategies. Let consumers feel the need.

21. 2. Provide accessible and concrete information about your product or services.

22. 3. Monitor and manage the customers question and feedback.

23. 4. Enhance customer relationship.

24. “Customers loves certainty, make sure you give it to them.”