Consumer Buying Process

Janet Itliong
There’s an old saying in Spain:
“To be a bullfighter, you must
first learn to be a bull.”
Objectives

 To Learn About the Level of Involvement and Types

of Consumer Problem-Solving Processes
 To Recognize the Stages of the Consumer Buying
Decision Process
 To Explore the different factors that may Affect the
Consumer Buying Decision Process
 To Examine the Social Influences That Affect the
Consumer Buying Decision Process
Consumer Buying Behavior

• Refers to the buying behavior of people

who buy goods and services for personal
use.
• These people make up the consumer
market.
• The central question for marketers is:
– “How do consumers respond to various
marketing efforts the company might use?”
Model of Customer Buyer Behavior
Consumer Purchase Decision Process

Marketers Must Identify and Understand:

Who Makes the Buying Decision

Types of Buying Decisions

Stages in the Buying Process

Who makes the buying Decision?

• Initiator
• Influencer
• Decider
• Buyer
• User
Types of Buying Decisions

High Low
Involvement Involvement

Significant Complex buying Variety seeking

Differences behavior buying behavior

Few Differences Dissonance Habitual buying

reducing buying behavior
behavior
Consumer Purchase Decision
Process

Postpurchase Evaluation

Purchase Decision

Evaluation of Alternatives

Information Search

Problem Recognition
Consumer Purchase Decision
Process

Problem Recognition
Consumer Purchase Decision Process

Information Search

Problem Recognition
Sources of Information

-
Most effective source
Personal - Family, friends, neighbors
-
Advertising, salespeople
Commercial - Receives the most information
from these sources

- Mass Media
Public - Consumer-rating groups

-
Experiential Handling the product
- Examining the product
- Using the product
Consumer Purchase Decision Process

Consumers May Use Careful Calculations & Logical Thinking

Consumers May Buy on Impulse and Rely on Intuition

Consumers May Make Buying Decisions on Their Own

Consumer May Make Decisions After Talking With Others

Depends on Purchase Experience/Knowledge, Ease of Obtaining

Information, Purchase Risk, Level of Purchase Involvement, and
other Cultural, Social, Personal, & Personality Factors
Consumer Purchase Decision Process

Evaluation of Alternatives

Information Search

Problem Recognition
Consumer Purchase Decision Process

 Evaluative Criteria

 Evoked Set

Evaluation of Alternatives

Information Search

Problem Recognition
Consumer Purchase Decision Process

Purchase Decision

Evaluation of Alternatives

Information Search

Problem Recognition
Consumer Purchase Decision Process

Postpurchase Evaluation

Purchase Decision

Evaluation of Alternatives

Information Search

Problem Recognition
Buying Decision Process

• Consumer satisfaction is a function of

consumer expectations and perceived
product performance.

• Performance < Expectations -----

Disappointment

• Performance = Expectations ----- Satisfaction

• Performance > Expectations ----- Delight

Consumer Purchase Decision Process

Cognitive Dissonance Postpurchase Evaluation

Purchase Decision

Evaluation of Alternatives

Information Search

Problem Recognition
Buying Decision Process

• Cognitive dissonance: a buyer’s doubts shortly

after a purchase about whether it was the right
decision.
Business Markets & Business Buyer
Behavior

• The business market is vast and

involves far more dollars and items
than do consumer markets.
• Business buyer behavior refers to
the buying behavior of the
organizations that buy goods and
services for use in the production of
other products and services that are
sold, rented, or supplied to others.
 Business Markets

• Market Structure and • Nature of the Buying

Demand: Unit:
– Contains far fewer but  Business purchases
larger buyers. involve more decision
– Customers are more participants.
geographically
concentrated.  Business buying
– Business demand is involves a more
derived from consumer professional purchasing
demand. effort.
 Types of Decisions and the Decision
Process

• Business buyers usually face more

complex buying decisions.
• Business buying process tends to be
more formalized.
• Buyers and sellers are much more
dependent on each other.
Major Types of Buying Situations

The buyer routinely reorders

Straight Rebuy something without any
modifications.

The buyer wants to modify

Modified Rebuy product specifications,
prices, terms, or suppliers.

The buyer purchases a

New Task product or service for the
first time.
Stages in the Adoption Process

1. Awareness: Consumer becomes aware of the

new product, but lacks information about it.
2. Interest: Consumer seeks information about
new product.
3. Evaluation: Consumer considers whether
trying the new product makes sense.
4. Trial: Consumer tries new product on a small
scale to improve his or her estimate of its value.
5. Adoption: Consumer decides to make full and
regular use of the new product.
Influence of Product Characteristics on Rate of
Adoption

• Relative Advantage: Is the innovation

superior to existing products?
• Compatibility: Does the innovation fit the
values and experience of the target market?
• Complexity: Is the innovation difficult to
understand or use?
• Divisibility: Can the innovation be used on a
limited basis?
• Communicability: Can results be easily
observed or described to others?
Participants in the Business Buying Process
• Decision-making unit of • Buying Center
a buying organization is Members:
called its buying center.  Users
• Not a fixed and formally  Influencers
identified unit.  Deciders
• Membership will vary  Approvers
for different products  Buyers
and buying situations.
 Gatekeepers
e-Procurement

• Advantages for buyers:

– Access to new suppliers
– Lowers purchasing costs
– Hastens order processing and delivery
• Advantages for vendors:
– Share information with customers
– Sell products and services
– Provide customer support services
– Maintain ongoing customer
relationships