Showing posts with label Buyer behavior. Show all posts
Showing posts with label Buyer behavior. Show all posts

Consumer Buying Process | High Involvement Purchase and Low Involvement Purchase | Consumer Purchasing Process / Stages

Consumer Buying Process           


Consumer buying process may be little different according to time and situation because people have to decide buying every day. Some buying decisions become complicated with high involvement and other with low involvement / simple. So, buying decisions are divided into two categories. They are (1) High involvement (2) Low involvement.

1. High Involvement Purchase


The purchase that takes more time and effort is called high involvement purchase. The goods to be purchased in this way are of special brand. They are more risky than others and have more prices. Information as well as knowledge about such goods is needed. So, it takes long time to purchase such goods. Car, other vehicles, land, house, machines etc. are included in high involvement purchase category. These goods serve for long time and increase social dignity. Such decision is taken occasionally.

2. Low Involvement Purchase


The purchase that takes comparatively short time and little effort is called low involvement purchase. Such purchase becomes behavior oriented. This purchase becomes of several brands and less risky. This has less price and takes little time. For instance, purchase of soap, shoes, clothes, toothpaste, matches etc. are included in this category. Such goods are of the nature of daily need and are short lasting.

The consumer adopts certain process with care in buying goods. While taking decision to purchase any such goods, the consumers go through five stages as shown in the following figure. They are need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior.

Consumers' purchase decision process

The above figure shows whatever goods the purchasers purchase and whatever times pass by five stages as shown in the figure. But in regular purchase, they may jump or miss any of the stages. For example, a customer recognizes his / her necessity to purchase regular brand of tea and decides to buy. He does not need seek information and analyze or evaluate alternatives. But the above figure shows the stages to be adopted for high involvement purchase.

1. Need recognition

Purchasing process starts from need recognition. In order to recognize consumers’ need, their internal and external sources of creating needs should be recognized. Hunger, thirst, sex, homes etc. are internal sources and personal influence, advertisement, exhibition etc. are external sources. At this stage of purchasing process, by considering these sources, a marketing manager should study and analyze them to find out their needs and problems. Not any person becomes ready to buy any goods or services without realizing need. So, purchasing process starts from recognition of unfulfilled need and problem. If a person feels hungry, she/he needs food. If toothpaste is finished, she/he needs to buy toothpaste. If a neighbor buys a quality television, we feel need to buy quality television. If some goods are advertised on television, we like to buy them being influenced by the advertisement. A consumer realizes need in many ways before buying any goods. So, this is called first stage of purchasing process.

2. Information searching


The second stage of purchasing process is searching for information. After the recognition of needs, the consumers try to find goods for satisfying such needs. They may or may not search information about such goods. If the consumers have unavoidable need and intense desire for any goods, they buy them promptly. If it is not so, they search information about the goods they want. While searching information, they may decide to buy by watching advertisement, looking goods being used by neighbors, friend etc. They may get information from friends through telephone, fax and e-mail, Internet or through other information sources. Consumers can get information about goods from different sources.

  • Personal sources: Personal source is important as well as confidential information. Such source of information about goods or services becomes very impressive to the consumers. This includes family, friends, neighbors, acquaintance etc.
  • Commercial source: The other important source to get information about goods or service is commercial source. Such source also provides ample information about goods and services. Some consumers get much influenced by commercial source. This includes advertising, sales people, dealers, packaging, display etc.
  • Public sources: Public sources are the other important sources to get information about goods and services. This includes mass media, consumer rating organizations etc. They also become confidential to provide information.
  • Experimental sources: Experimental source is also an important source of information about goods and services. This includes handling, examining, using etc. Such information becomes decisive and confidential.


3. Evaluation of alternatives


Evaluation of alternatives is the third stage of buying process. Various points of information collected from different sources are used in evaluating different alternatives and their attractiveness. While evaluating goods and services, different consumers use different bases. Generally, the consumers evaluate the alternatives on the basis of attributes of product, degree of importance, belief in brand, satisfaction etc. to choose correctly.
  • Product attribute: Products are of different attributes. For example, quality, simplicity in use, size, price, service, warranty, packaging, labeling etc. Consumers become eager to know the attributes of product at this stage of evaluation and make these attributes the base of selection.
  • Degree of importance: Products have different attributes. Generally, the consumers do not concern with all attributes. They become interested only in some important attributes. They evaluate the important attributes of the goods which they want to buy. So, they evaluate the products on the basis of the degree of importance.
  • Brand belief: Consumers have belief in attribute of certain brand of goods. They set belief in certain brand being influenced by own experience, suggestions, family neighbor and friends etc. Such belief may or may not be the actual features of the products.
  • Satisfaction: Total satisfaction becomes different according to the attributes of any products. This means that satisfaction depends on the attribute of the goods. So, the consumers evaluate the goods on the basis of the degree of satisfaction and select more satisfactory goods while selecting alternatives.

All the consumers do not base their evaluation on the same thing. They evaluate alternatives by focusing their attention on their satisfaction and priority. Consumers’ income level, experience, thought, perception, information abundance, information analyzing ability etc. influence the evaluation of alternatives.

4. Purchase decision


After the alternatives have been evaluated, consumers take decision to purchase products and services. While taking purchasing decision, the consumers select certain brand of goods and distribution channel. They decide to buy the best brand. But their decision is influenced by others’ attitude and situational factors.
  • Others’ attitude: After evaluating alternatives, the consumers like to buy certain products and product line. But their want / liking is affected by others’ attitude. Suppose a house wife made final decision to buy a costly and big refrigerator, but her husband suggested her to buy cheap and small one. Hence her possibility to buy costly and big refrigerator diminishes.
  • Situational factors: Even if costumers have decided to buy certain goods of certain quality and certain brand, situational factors affect them whether to buy or not. For example, they are income level, price, expected benefit, availability, dealer’s condition etc. If unexpected change takes place in such things, it also affects the purchasing decision.


5. Post purchase behavior


After taking decision, the consumers purchase goods. They may or may not be satisfied with the goods while using them. If the goods give satisfaction as expected, they become satisfied with and if more satisfied than expected, they become more satisfied with the goods. But, if the goods do not give satisfaction as expected, they become unsatisfied. If the customers are satisfied with the goods, they buy the same brand and quality regularly, otherwise they form negative attitude towards such goods and start searching other brands. So, the marketing manager should study and analyze the consumers’ behavior closely after the goods and services have been sold to them.

After buying any brand of goods, the consumers evaluate the quality, utility and benefit of the goods and take decision whether to buy the same regularly, stop buying temporarily or permanently.

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Meaning and Importance of Buyer Behavior | Consumer Behavior

Meaning of Buyer Behavior             


The behavior shown by customers towards buying of goods and services is called buyer behavior. Buyer’s behavior should be understood to get success in a competitive environment. As the buyer behavior is a psychological aspect, it becomes difficult to understand, study and analyze. A business organization should, specially, pay more attention towards questions such as –“Who influences buying decision? Who takes buying decision? Who does buy? How does he buy? When and who buys? Who uses the goods? For this, an organization should study and analyze the buyer behavior. Understanding buyer behavior is very complicated. So, a manager should carefully use his/her notion, knowledge and experience in it.

Buyers are the backbone for the success of any business organization. Without buyers or customers no organizational success can be achieved. So, a proper strategy should be made by studying their behavior. Efforts should be made to understand the buyer’s behavior and find out the answers of the questions such as, “Who and how many persons participate in the decision of the buyer’s for buying goods or services? What is to be bought? What is the reason for buying? What is the occasion of buying? What is the buying channel? How much is the buying frequency etc.? Buyer’s features and buying process influence their buying behavior. So, this aspect of buyers also should be considered while studying and analyzing buying behavior. Different writers and experts have defined buyer behavior. Some of the main are as follows:

According to Prof. Philip Kotler, “Buying behavior is the decision process and acts of customers involves in buying and using products.”

 

According to E. W. Condiff, R. R. Still and R. A. Govoni, “Buyer behavior may be viewed as orderly process whereby the individual interacts with his/her environment for the purpose of making market place decisions on products and services.”

 

According to C. G. Waltters and W. G. Paul, “Consumer behavior is the process whereby individuals decide what, when, where, how and from whom to purchase goods and services.”

 

According to Frederick Webster, “Buyer behavior is all psychological, social and physical behavior of potential customers as they become aware to evaluate, purchase, consume and tell other people about the product and services.”

In conclusion, the buyer’s behavior is related to getting and consumption of goods and services. A business organization should make marketing mix only after studying and analyzing buyer behavior carefully. Buyer behavior is a psychological aspect. So, its study and analysis is a complex task. Proper strategy should be formed by studying and analyzing it carefully. Generally, business organizations should get answers to the following questions to understand buyer behavior.

What do they buy? -->> Object / Goods

Why do they buy? -->> Reason

When do they buy? -->> Occasions

Where do they buy? -->> Place

How do they buy? -->> Frequency

Importance of Buyer Behavior             


Consumers are like the backbones for the success of business organization. Marketing mix can be properly made by understanding consumers’ behavior to get success in competitive environment. So, to understand consumer’s behavior is important in marketing. They are consumer satisfaction, effective use of marketing resources, developing marketing mix, identifying market opportunities, selection of target market, product positioning, attracting consumers and understanding their perception about the product. They can be discussed as follows:

1. Consumer’s satisfaction


As the business success depends on the satisfaction of consumers, they should be satisfied properly understanding their behavior. If the matters such as, which goods, why, when, where, how, the consumers buy are known clearly, they can be satisfied by providing proper goods at right place and right time. Such information can be obtained from the study of consumers’ behavior. So, business organizations need to get knowledge about consumers’ behavior.

2. Use of resources


Study on consumer behavior is also necessary to use marketing resources effective in any business organization. Which brand do the consumers like much? Whether they are satisfied with the price and quality of the product or not? What are the helping factors to motivate the consumers to buy and use the product? How is the shifting trend of consumers to substitute products? etc. The answers to such questions can be found out from the analysis of consumer behavior. Business firms become successful to make proper adjustment in marketing mix.

3. Develop marketing mix


Marketing mix plays an important role in achievement of organizational goal. Marketing mix should be effective. Besides other environmental elements, consumers’ behavior needs to be studies and analyzed to make it effective and contextual. Goods and services can be developed and produced to satisfy the wants and needs of the consumers according to the change of time and fashion through proper marketing mix by identifying the factors which influence consumers’ behavior.

4. Locate market opportunities


Consumers’ wants and needs can be located from the study of their behavior. Such wants and needs are found as opportunities for business organizations. The organizations can get success in competitive environment by using them. If consumers’ wants and needs are not studied and analyzed, such opportunities cannot be identified. As a result, they slip from the hands. So, it is necessary to know the consumers’ behavior.

5. Select the target market


It is also necessary for a marketing manager to know the consumers’ behavior for the selection of target market. Consumers’ behavior is an important element of market segmentation. A business organization can divide markets effectively in different segments by knowing consumers’ behavior, analyze and select the best market segment. If consumers’ behavior is not understood, market cannot be segmented effectively and target market cannot be selected. As a result, business success cannot be achieved.

6. Product positioning


The special effort made by a business organization to popularize its products distinctively against the competitors’ and to create positive attitude in customers towards its own products is called product positioning. An organization can position its products in target market by understanding consumers’ behavior. So, it is also necessary to understand consumers’ behavior.

7. Attracting consumers


An organization needs to understand consumers’ behavior to attract customers to its products and services. Consumers can be attracted by conducting the programs such as personal selling, advertisement and other promotional activities. But trying to attract them by means of several unnecessary loads becomes impractical and expensive. As a result, all efforts become counter productive. So, consumer’s behavior should be carefully studied and analyzed to attract them towards the products or services by applying proper method.

8. Consumers’ perception about product


Consumers have their own perception and attitude towards any products and services. Such attitudes and perceptions may be positive or negative. If they are positive, the products should be given continuity, but if they are negative, they should be terminated by proper methods, for instance, convincing them, positioning the products, product development etc. So, consumers’ behavior should be studied and analyzed to know the perception and attitudes of the consumers.

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