Types of buying decision behavior

This presentations covers the topic of buying decision behavior.

1. Types of buying decision behavior Presented by: Sandeep Kumar

2. What is buying behavior? Buying Behavior is the decision processes and acts of people involved in buying and using products.

3. Four types of buying decision behavior

4. Complex buying behavior When the consumers are highly involved in a purchase and observe significant differences between the brands then the consumers undertake complex buying behavior. In complex buying behavior the commodity displays many features and characteristics like; Expensive, a lot of money must be paid by the purchaser to acquire the product. Purchase is made once in a while i.e a lot of time passes before the consumer buys the commodity again. Very risky because of the high price tag involved. If the item fails to function or serve its intended purpose, the buyer incurs losses. Examples of Products that Exhibit Complex Buying Behavior Shopping for a computer or laptop Buying of a television set Purchase of a microwave Purchasing a fridge

5. Variety seeking buying behavior It can be described as the buying tendencies of those consumers that do not have a high involvement with a product when there is a significant difference between brands . Brand switching is common Attract consumer by offering free samples, low prices and special discount. Brand switching occur for the sake of variety rather than dis-satisfaction. Examples: chips, soap, shampoo, ice-cream etc.

6. Dissonance reducing buying behavior Dissonance-reducing buying behavior occurs when customers are highly involved with a rather expensive, infrequent or risky purchase but see little difference among brands In  dissonance reducing buying behavior consumer involvement is very high due to high price and  infrequent purchase  with less significance differences among brands.  In this case buyer purchases the  product which is  easily  available.  After  the product purchase, consumers may face dissonance  post purchase behavior. Post purchase dissonance occurs when consumer notices certain dis-advantages of the purchased product or hear favorable things about a product that is not purchased. Example: laptop, buying carpet, paint, curtain etc.

7. Habitual buying behavior It refers to situations where a consumer has low involvement in a purchase, and is perceiving very few significant differences between brands in a given product category . This may also be due to fact that customer finds the product best fit for his use and keeps on buying it without looking for alternative. Purchase are frequent. Example: salt, milk, bread, match box or lighter,

8. The buyer decision process

9. Need recognition First and most important step. Without the recognition of the need, a purchase can not take place. The need can be triggered by: Internal stimuli: such as hunger, thirst etc. External stimuli: such as advertisement, magazine ads, environment etc. Maslow held that needs are arranged in hierarchy. According to Maslow hierarchy, only when a person has fulfilled the needs at a certain stage, can he or she move to next stage. Importance: Reveal barriers to success Provide a starting point for a new business.

10. Information search It is second stage in which consumer searches for internal and external information. Sources of Information: Personal sources —family and friends Commercial sources —advertising, Internet Public sources —mass media, consumer organizations Experiential sources —handling, examining, using the product

11. Evaluation of alternative Evaluation procedure depends on the consumer and the buying situation . How the consumer processes information to arrive at brand choices Most buyers evaluate multiple attributes, each of which is weighted differently. At the end of the evaluation stage, purchase intentions are formed.

12. Purchase decision The buying decision process is the decision -making process used by consumers regarding market transactions before, during, and after the purchase of a good or service . Two factors intercede between purchase intentions and the actual decision: Attitudes of others Unexpected situational factors Three possibilities of purchase decision: From whom to buy(policy, sales, past experience) When to buy(time, atmosphere) Don’t buy

13. Post purchase behavior Post - Purchase Behavior is the stage of the Buyer Decision Process when a consumer will take additional action, based purely on their satisfaction or dissatisfaction . The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction Satisfaction is important: Delighted consumers engage in positive word-of-mouth. Unhappy customers tell on average 11 other people. It costs more to attract a new customer than it does to retain an existing customer .

14. Buyer Decision Process for New Products Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Stages in the process include :