EPGPM 2020

Marketing Management 1
Topic: Types of Buying Decision Behaviour

Dr. Jones Mathew

Professor in Marketing,
Great Lakes Institute of Management, Gurgaon

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Agenda
• Why there are different kinds of buying decision behaviour
• 4 major types of buying decision behaviours
• Characteristics of each type of buying decision behaviour
• Examples of each type of buying decision behaviour
• How marketers should respond to each type of buying decision
behaviour.

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Why there are different kinds of
buying decision behaviours

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Why there are different kinds of
buying decision behaviours
• Consumers have different cultural, social, personal and psychological
backgrounds

• These different backgrounds have an impact on perception,

motivation, learning, attitude formation, and decision making

• Different market situations affect the buying decision making process

• Monopoly, duopoly, oligopoly, free competition
• Personal use, organizational use, defence use

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Types of buying decision behaviours

Complex buying behaviour

Dissonance-reducing buying
behaviour
Habitual buying behaviour

Variety-seeking buying behaviour

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Types of buying decision behaviours
Four Types of Buying Behaviour

(* ORGL. BUYING) BUYING

SITUATIONS
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Habitual Buying Decision Behaviours
• Key characteristics: low involvement, few perceived
differences between brands.
• Buying cues:
• Favourite brand
• What’s available in store
• Cheapest alternative
• A loaf of bread gets bought because of brand familiarity. If
that brand is not available the customer normally switches to
the nearest substitute brand. There is lower brand loyalty.
• Not much research is put into searching for alternatives.
• Influenced by mass media advertisements. Brand familiarity
requires high frequency ads.
• To induce trial marketers have to do price drop promotions,
and sales promotions
• Marketers should attract customers based on visual imagery
and symbols in theiradvertisements

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 Variety Seeking Buying Decision Behaviour
• Key characteristics: Low involvement; high
perceived differences between brands
• Buying cues:
• Boredom and curiosity are buying decision drivers
(not dissatisfaction)
• A lot of brand switching happens (switching cost is
low)
• Need for variety (urge for novelty)
• Brand switching happens almost unintentionally,
subconsciously
• Brands have to adopt strategies like dominating
shelf space and packing it with similar/related
brands of the same company and entice habitual
buyers familiar with the brand
• Marketers ust avoid out-of-stock situations,
sponsor frequent advertising, offer lower prices,
discounts, deals, coupons and free samples

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Dissonance Reducing Buying Decision
Behaviour
• Key characteristics: High involvement, low perceived differences
between brands
• Buying cues:
• High prices
• Infrequent purchase
• Low availability of choices
• Product availability, time availability, budget availability
• Limited information search
• Marketers have to ensure that products in this category are easily
available for the customer not to have to make extensive search ops.

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Extensive Problem Solving Buying
Decision Behaviour
• Key characteristics: High involvement, high
perceived difference between brands
• Buying cues:
• Infrequent purchase
• Expensive / unfamiliar product
• Extensive research and consulting with family,
friends and experts
• Social and psychological costs play an important role
• Buyer passes through a learning process – develops
beliefs about the product/brand 🡪 builds attitudes
🡪 arrives at a purchase decision
• Marketers must help the consumer understand
how the product will help in their lives in a deeper
sense than mere utilitarian problem solving.
• Advertising must influence buyer attitudes and
beliefs.

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Summary
• Consumer decision making depends a lot on a consumer’s cultural,
social, personal and psychological background.
• High and low involvement with the product category and perceived
differences (high vs low) between brands in a product category play a
big role in the type of buying decision making behaviour which will be
adopted.
• 4 broad categories of decision making behaviours are there –
Habitual, Variety seeking, Dissonance Reducing, and Extensive
Problem solving.
• Marketers are prescribed different approaches in communicating
with and persuading customers.

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 Thank you

Dr. Jones Mathew

Professor,
Great Lakes Institute of Management, Gurgaon.
jones.m@greatlakes.edu.in; jonesmathewphd@gmail.com; 98113-72532
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