FUNDAMENTALS OF MARKETING

Buyer behaviour.
Determinants of the consumer behavior
process. Stages in the consumer decision
process.

Leonardo Leiro Vidal

Fundamentals of marketing
Index
1. What is the buying process? ................................................................................................. 3
1.1 Learning and Discovery ................................................................................................. 3
1.2 Recognition of the problem .......................................................................................... 4
1.3 Evaluation of Alternatives ............................................................................................. 6
1.3.1 Election of the establishment. .............................................................................. 7
1.3.2 Brand choice .......................................................................................................... 8
1.4 Consideration of the solution........................................................................................ 8
1.5 Purchase decision .......................................................................................................... 9
1.6. Post-Purchase Evaluation ................................................................................................. 9
1.6.1 Post purchase ............................................................................................................. 10
1.6.1.1 Types of purchases .................................................................................................. 11
1.6.1.2 Types of decisions ................................................................................................... 12
2. Conclusion ........................................................................................................................... 14
3. Bibliography ........................................................................................................................ 15
 1. What is the buying process?

The buying process is the set of stages your target audience goes through before
becoming a customer. It is divided into 5 stages: learning and discovery, problem
recognition, evaluation of alternatives, solution consideration and purchase decision.

Some sources present it in 3 stages: awareness, consideration, and decision.

Let’s analise it part by part understanding each part with some examples.

1.1 Learning and Discovery

At the beginning of the process, the consumer does not know (or does not know very
well) that he has a problem or a need.

It is still arousing interest for a certain topic and the objective of your company is to
attract attention so that later it perceives that it has a problem or a business
opportunity.

Example: Joana owns a small market. Since her store needs to renew stock frequently,
she looks to the internet for help organizing her work. If your company offers stock
control software, then you could offer Joana blog posts with topics like “Tips for
organizing your company's stock”. As it is a topic that helps her in her day to day life,
she finds it through internet searches or sometimes shared on social networks and is
interested in the content.
 1.2 Recognition of the problem
Here the consumer has already dig a little deeper into the subject and perceives that
he has a problem or opportunity.

The goal here is to “generate” that need in him, or better yet: to reveal a problem that
he has, but didn't know about yet. From that, he begins to search and study the
problem more, and then look for solutions.

The act of purchase begins when the individual becomes aware, perceives, a difference
between your current state and an ideal state you think you aspire to, but it is
subjective, since the recognition that a problem exists requires, not the existence of
these two states but a difference that can be perceived as such by the individual.

Current State: Arises as a result of internal and external variables + previous

experience.

Ideal state: Arises as a result of internal and external variables + variety of needs and
known solution alternatives. (An alternative solution is variety of supply. If there were
no different proposals or, simply, there were no answers, we would not have had a
ideal state better).

To encourage that purchase we must start by knowing: what makes you want or need
a consumer solution?

The most common ways of acknowledging a problem/desire:

1. Previous decisions not satisfied (I don't like the current car).

2. Stock-out or shortage (sugar out).

3. Change of family characteristics (twins have been born).

4. Changes in cultural trends (I have become an environmentalist.)

5. Changes in the economic situation (my salary has risen).

6. Expectations, consumer sentiment (an economic crisis is coming).

7. Modification of reference group (I have new friends who buy other products and
brands).

8. Fashion and novelty (I don't have striped shirts, which are in this spring).

9. Educational increase (the greater the culture, the greater the need for books,
records and travels).

10. Availability of new products (have prepared the offer of appliances for music).

The marketing man must first identify where those wants or desires are, where there
are more problems, and how can he become aware of that desire or problem.

From marketing, we are interested in knowing: How to awaken that desire?

Stimulation of the recognition of the problem: It can be achieved through the

communication and having a coherent offer, with fashion, novelty…. Communication is
responsible for encouraging us or awakening that desire, but behind the company
must have a solid offer: a suitable product, at a reasonable Price, interesting and in an
accessible place.

What things affect the desire to want to buy step? What things should we work on to
awaken that desire?

Strength of that desire: Measure of recognition of the problem: they apply purchase
intention and purchase probability scales.

Time between desire and purchase: temporary knowledge and formulation of

strategies; length of the decision period.

• Identification of market segments. Does the recognition of the problema is it a

criteria segmentation?

(Example: Joana begins to notice that she has difficulties controlling the stock in her
store and needs to find a solution to make her life easier. Then she starts looking for
information on how to improve his work. A post that your company could do would be
“How to calculate the ideal stock for your company”. You could also do a webinar on
the topic or even a sample spreadsheet to help her with her homework.)

1.3 Evaluation of Alternatives

This stage varies in intensity depending on the type of purchase: It involves selecting
and working those sources: place, content, actuality, language, time. (On-off
marketing.) It is also different according to internal variables (experience...) and
external variables (easiness in find information) and the search is performed on
internal and external sources.

The search for information depends on the decision type, the interest in knowing
alternative solutions, which characteristics or attributes will the consumer take into
account in their decisions, the evaluation criteria and suitability of the existing offer.

Generally we will find two scenarios of information gathering, which are previous
investigation and continuous investigation.

Previous Investigation and Continuous Investigation

Previous Investigation Continuous Investigation

Determinants Involvement with the Involvement with the

purchase product

Reasons Make better purchasing Creation of an information

decisions bank for the future

Results Better purchase decisions Increase in compulsive

shopping
When the consumer has already got enough information about the kind of product
that will help with his problem, he will evaluate some other products to choose one
among them.

This is a private process, which depends of the product and the person. It goes from
the detailed calculations to the intuition or ímpetus, that can be individual or colective.

Generally, consumers will evaluate different alternatives based on the attributes of the
products. The attributes that the customer will look for are durability, quality, price,
service, popularity, brand and social media reviews are some of the factors that
consumers consider.

Hence the consumer has to make a choice after evaluating the available alternatives.

From marketing point of view, we have to know which variables we should focus in. It’s
necessary to use different themes depending on the type of product that it’s been
bought. As well we should work with the information given to us and work on the
purchase decisión and place as well.

The evaluation of alternatives consists in the election of the establishment, choice of

the brand and any other option that can influence our primal idea or criteria.

1.3.1 Election of the establishment.

At the time we are under this unknown there are variety of decisive factors, but we are
going to talk about just two of them: Choice of the shop and brand.

An establishment is any source of assets and services where the buyer can make his
purchases.

The establishment have to catch and hold its customers, so it’s basic to understand
how individuals select the establishments.

Every establishment tries to reflect how it is in an attractive way, for this, it’s necesary
to work on the projection of the image, decoration, situation arround, the assortment,
etc… Anyway, this is not enough, we should focus on what use the customer wants to
give to the product, or in another way, work with the selection criteria, which feed the
preferences at the purchasing time.

The selection criteria would be: Product( quality, assortment, security), price(prices
and offers), time-location(quickness, proximity) and service( Schedule, attention,
diligence, ancillary services).

Customers will value the intensity and quality and will constitute the perception of the
brand in relation with the others.

1.3.2 Brand choice

At the time of selecting the brand we have generally three variables.

First, it depends on the type of purchase that we want to make. It’s not the same if we
want to buy a football shirt or a fridge, the brands will be totally different, because we
would select a brand that is focused on the specifically type of product we want.

Till the consumer doesnt’t purchase the ítem, it is an open process and the buyer can
change his opinion.

The establishment has influence in the brand choice.

1.4 Consideration of the solution

After searching further, the buyer already has some possible solutions mapped out and
begins to evaluate them.

Here it is necessary for him to identify the product or service as a (good) solution.

It is interesting to create a sense of urgency so that the buyer advances in the process
and does not leave to solve the problem later (or has time to go after other solutions).

(Example: Joana notices that calculating stock can be complex and time-consuming
and she has other activities to work on. It's time to show the solutions that are ready in
the market that can help her.
 1.5 Purchase decision

At the end of the process, the consumer analyzes the options that he takes, in short,
his decision.

It is the moment of purchase. It is time to show the differentials of your company in

relation to the competition and convince them that your product is the right decision.

(Example: Joana is interested in your software and investigates a little more. A blog
post comparing it to the competition can help understand that your solution is the
best option. She can still do a free test (trial) for a certain time to test the tool. At the
end of that time, she liked the experience and decided to buy.)

1.6. Post-Purchase Evaluation

This is the last stage and most often ignored by marketers.

After buying the product, customers compare products with their expectations. There
can be two outcomes: Either satisfied or dissatisfied(dissonance). Consumers will be
happy after buying the product if it has satisfied their needs. But in case the product
was not up to his expectations, the consumer will be dissatisfied. A consumer can be
lost even at this stage.

A dissatisfied customer might feel as though he took an incorrect decision. This will
result in returns. Offering an exchange will be a straightforward action. However, even
when a customer is satisfied, there is no guarantee that the customer might be a
repeat customer.

Customers, either satisfied or dissatisfied, can take actions to distribute their

experience in the form of customer reviews. This may be done through reviews on
customer forums, website, social media conversations or word of mouth.
A marketer has to make sure that the consumer will be satisfied with the product so
that his experience will lead to repeat customers. Brands need to be careful to create
positive post-purchase experience.

At the time we analize the data about the post purchase moment, we should have
clear that it’s not the same the post purchase than the post consume.

From the perspective of marketing we develop direct communication and loyalty tools.
In the dissatisfaction work the management of complaints. The purchase decision
process by the consumer does not end with the act of purchase. In a conscious and
careful way, individuals carry out a evaluation of our decisions.

Post-purchase evaluation serves to increase learning and knowledge, it allows us to

contrast our selection criteria and can modify our attitudes. That is, it improves our
future decisions.

1.6.1 Post purchase

Complementary information is sought, decisions are ratified and share information and
illusions (they raise expectations). We have to remember that the purchasing process
is not compact, but with phases, not linear but that skip and alter the phases, not
isolated but continuously influenced and heterogeneous.

There are many types of purchase. In summary, we can say that this purchase process
is not compact, but it presents phases and each one of them is necessary to be resolve
positively so that the purchase takes place. A nonlinear process. Although we speak of
phases, these do not occur in an orderly and sequential but can present alterations in
the order. That is, each stage must be approached in the theoretical order that we
have exposed.

For example, many tourists are motivated to buy when they see an offer (example:
flights to zero euros) when the theory tells us that motivation comes first and then the
search of information phase overlaps. Several options can be addressed by the buyer.

A purchasing process can be very different: rational, group, impulsive...

1.6.1.1 Types of purchases
The purchase is a decision, generally speaking, a decision that you make by choosing
one option between two or more available. Options are part of the scenario of a
consumer society, not only do reference to brands, but also: to the generic product,
changes in habits, substitute products, purchase channel, form of payment, quantity,
etc.

There may be a lack of options (hobson choice: when you have no more remedy of
consuming the product).

Planned purchase:
It is that type of purchase that is executed in a thoughtful way, with time and in which
give all the phases. They are presented with products with strong linkage or high risk
perceived

Implications for marketing: Technical quality; after-sales service; delivery times;

informative advertising.

Unplanned purchase:
The consumer goes shopping with the idea of a general product (need) in the head but
ends up deciding at the place of purchase.

Much more interesting for the marketing man, and there is more influence from the
environmental variables.

Implications for marketing: Merchandising, mass distribution, persuasive advertising,

promotion, packaging...

Impulsive buy:
These purchases are whims, small pleasures that we give ourselves and we don't even
have thought. They are highly influenced by personal variables and moods, so that
marketing has less game.

Implications for marketing: Merchandising; advertising aimed at seduce; price (playing

with offers and sales); brand (and product image).
1.6.1.2 Types of decisions
There are 3 principal and basic types of decisions that every customer can do, which
are:

Usual decision: Common. Purchase routine keeps the same, loyalty exists.

Limited decision: Simple. Change in shopping routine due to boredom or news. There
are clear selection criteria and the evoked set. I know they give the phases but brief
and to refine the decision.

Complex decision: Complex. It is the rational purchase. High perceived risk.

But if we dig a bit more on the information given from various economist like Paola
Assael and Felipe Larraín, we can look at 4 different types of decisions:1

Decisions with complex behavior.

It occurs when the buyer is very involved in the purchase and sees significant
differences between brands as for example, the global decision of a trip or, within it,
the vacation destination. Suppose the general case that we have studied previously. In
this case the buyer perceives that your decision is risky because of the money involved,
that it means playing with your time on vacation etc. And, at the same time, it detects
that Cancun is not the same as Rivera Maya or the Fiji Islands or Polynesia.

In these cases we are dealing with a rational purchase where the information is key
code.

Decisions with a dissonance reduction behavior.

It is produced when the products do have a high implication but the consumer does
not observe noticeable differences between brands. This type of decision is given, for

1
Took from “The Political-economic Cycle: Theory, Evidence and Extension for an Open Economy”
https://www.cepchile.cl/cep/site/docs/20160303/20160303184300/rev46_larrain.pdf
example, to the time to choose between different offers of cruises or tour packages
standardized. Or are they a type of habitual decisions when selecting the place of
purchase (travel agency and which, Internet, directly, etc.)

In this case decisions are made by elimination. Trying to minimize the disadvantages of
each offer rather than its advantages. That is, they are discarded possibilities attending
to their negative information to reduce the risk since the positive aspects are similar.

Varied search behavior decisions.

These types of situations we find it with low-involvement products and where the
buyer detects few differences between the offer. For example, most decisions related
to leisure on a Saturday afternoon.

In this case, the buyer develops an unplanned purchase. got the idea of what you want
and your preferences but the decision ends in front of the product, without spending
too much time and thought. Consider your own past experience in similar cases. It is a
behavior that usually implies little fidelity, sometimes not because of dissatisfaction
but because of the very diversity of experiences that they are looking for.

These purchase decisions are of the type of unplanned purchases. That is to say, those
in which the buyer has in his head an idea of the generic product that searches but
ends the process of decision and selection of the specific product and brand on the go,
in front of the product at the same time of purchase.

Repetitive purchasing behavior decisions.

This type of purchase occurs in routine decisions or about those well-known brands or
about those that we have appreciation (routine or real loyalty). So we identify many
differences between brands for us, so much so that decisions are almost taken. On
many occasions without any rational reflection.
 2. Conclusion
Thanks to the analysis of the buyer’s behaviour we can identify how customers get
their senses and believes affected by their environment, perceptions, personalities and
rumours, whose are going to influence their comercial behaviour.

Obviusly there are more than one type or genre of customers, but nowadays, all of
them get influence by the same bubble of advertising and missinformation about the
products that big companys and markets show them, on TV, advertise, radio…

So it is easy to expect their behaviours and act from it. In the end, in this society build
by capitalism everyone of them will sucumb to the comercial system.
 3. Bibliography

http://www.economia.uc.cl/docs/092assaa.pdf

https://clootrack.com/knowledge_base/stages-of-consumer-buying-behavior/

https://kpu.pressbooks.pub/introconsumerbehaviour/chapter/consumer-decision-
making-process/

https://www.jotform.com/blog/types-of-purchase-order/

https://courses.lumenlearning.com/boundless-marketing/chapter/the-consumer-
decision-process/

https://repository.up.ac.za/bitstream/handle/2263/29162/03chapter3-
1.pdf?sequence=4

http://www.ijcrar.com/vol-2-9/Pinki%20Rani.pdf