The Consumer Buying Decision Process Looks at How Consumers Make Buying Decisions

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Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and

dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

The Consumer Buying Decision Process


The consumer buying decision process looks at how consumers make buying decisions. (Kotler and Armstrong)
The consumer buying decision process is a systematic way of looking at how a consumer makes the decision to purchase a product (any product) in a product category. Marketers need to focus on the entire buying process rather than just the purchase decision (Kotler and Armstrong). The purchase decision is not even the first step. This is the process that an organization uses to determine that they have a need for a new person (e.g. the decision to search for a candidate, the decision to promote a new partner, the decision to admit a new member.) Five Step Process Problem Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Evaluation

Problem Recognition
Problem recognition occurs when a buyer becomes aware of a difference between a desired state and an actual condition. (Pride and Ferrell)

Problem recognition, called need recognition by some, is the point where a potential buyer determines that they have an unfulfilled need want or desire. The recognition may result from internal stimuli (e.g. hunger, tired, the need for additional help, etc.). The recognition may result from external stimuli (e.g. an external requirement, an ad, a suggestion from a someone, the creation of a new position, the retirement of a key individual). The recognition may result from a combination of stimuli. Speed of awareness varies - sometimes never happens (Latent need)

Information Search
If the potential consumer continues beyond the problem recognition stage, they will begin an information search.
Information search is the stage in the buyer decision process in which the consumer is aroused to search for more information (Kotler and Armstrong). The consumer is engaged in problem solving behavior. The information search stage is the stage where the organization seeks candidates for a position. In the information search stage candidates will be identified through various efforts to produce applications, resumes may be collected, references may be checked, credit histories may be reviewed, and candidates may be interviewed. Internal versus external search Internal Search - An information search in which buyers search their memories for information about products that might solve their problem. (Pride and Ferrell). These may include internal job listings, human resources, internal promotions, etc. External Search - An information search in which buyers seek information from outside sources. (Pride and Ferrell) These may include advertisements, campus recruiting, use of headhunters, etc. The consumer may simply have heightened attention or may go into active information search. Heightened Attention is a passive search. Active Information Search is an active search. The information may be used to eliminate some brands or products from consideration to arrive at a limited choice set.

Evaluation of Alternatives
A successful information search yields a group of brands (products) that a buyer views as possible alternatives. (Pride and Ferrell)
This is the stage in the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. A consideration set is a group of brands that a buyer views as alternatives for possible purchase. (Pride and Ferrell) A consideration set is also called an evoked set. Development of Evaluation Criteria Evaluation criteria are objective and subjective characteristics that are important to the buyer. This stage will often include the development of specific screening criteria. All applicants and application materials are subjected to a screening in an effort to determine the extent to which any given candidate will meet the organization's objective. Narrowing to a Consideration Set This is the process of eliminating most of the possible choices. Buyers may rate and rank alternatives. There may be no acceptable alternative. The first choice may not be selected. Candidates in the choice set may be subjected to additional interviews and follow ups.

Purchase
In this stage the consumer chooses the product or brand to be bought. (Pride and Ferrell)
This is the point where an offer is extended to one or more candidates. Two factors can come between the purchase intention and the purchase decision. (Kotler and Armstrong) Attitudes of others Unexpected situational factors Marketers can influence the purchase decision.

Postpurchase Evaluation
The marketer's job does not end when the product is bought. (Kotler and Armstrong)
After the purchase, buyers undergo an evaluation of the purchase decision. Does the product meet expectations with regard to performance? Postpurchase behavior refers to all behavior, positive and negative, that is generated from the purchase. The outcome of the evaluation is either satisfaction or dissatisfaction. Marketer's aim is typically beyond mere satisfaction and meeting expectations. Cognitive dissonance is a buyer's thought shortly after a purchase about whether the decision was the right one. (Pride and Ferrell) Some researchers contend that there is at least some level of cognitive dissonance associated with every purchase. Cognitive dissonance can result in feelings of guilt, anger and disappointment.

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