TUTORIAL 3

1. Describe the stages in the buyer decision process.

The first stage is they need recognition. This is often identified as the first and most important
step in the customer’s decision process. A purchase cannot take place without the recognition of
the need. The need may have been triggered by internal stimuli (such as hunger or thirst) or
external stimuli (such as advertising or word of mouth).

The second stage is information search. Having recognized a problem or need, the next step a
customer may take is the information search stage, in order to find out what they feel is the best
solution. This is the buyer’s effort to search internal and external business environments, in order
to identify and evaluate information sources related to the central buying decision. Your
customer may rely on print, visual, online media or word of mouth for obtaining information.

The third stage is evaluation of alternatives. As you might expect, individuals will evaluate
different products or brands at this stage on the basis of alternative product attributes – those
which have the ability to deliver the benefits the customer is seeking. A factor that heavily
influences this stage is the customer’s attitude. Involvement is another factor that influences the
evaluation process. For example, if the customer’s attitude is positive and involvement is high,
then they will evaluate a number of companies or brands; but if it is low, only one company or
brand will be evaluated.

The next stage is purchase decision. The penultimate stage is where the purchase takes place.
Philip Kotler (2009) states that the final purchase decision may be ‘disrupted’ by two factors:
negative feedback from other customers and the level of motivation to accept the feedback. For
example, having gone through the previous three stages, a customer chooses to buy a new
telescope. However, because his very good friend, a keen astronomer, gives him negative
feedback, he will then be bound to change his preference. Furthermore, the decision may be
disrupted due to unforeseen situations such as a sudden job loss or relocation.

The last stage is post-purchase behavior. In brief, customers will compare products with their
previous expectations and will be either satisfied or dissatisfied. Therefore, these stages are
critical in retaining customers. This can greatly affect the decision process for similar purchases
from the same company in the future, having a knock-on effect at the information search stage
and evaluation of alternatives stage. If your customer is satisfied, this will result in brand loyalty,
and the Information search and Evaluation of alternative stages will often be fast-tracked or
skipped altogether

2. Describe the buyer decision process for new products.

 Awareness
 This is the stage when consumer becomes aware of the new product but
lacks proper
 information. This is the area where major marketers spend billions of dollars. Simply
speaking, if
 the consumer not aware of the product, he is never going to buy the product
is the stage when consumer becomes aware of the new product but lacks proper
information. This is the area where major marketers spend billions of dollars. Simply speaking, if
the consumer not aware of the product, he is never going to buy the produc
This is the stage when consumer becomes aware of the new product but
lacks proper information. This is the area where major marketers spend billions of dollars.
Simply speaking, if the consumer not aware of the product, he is never going to buy the
product
 Once the consumer is aware, he starts searching for information. Whether it is daily soap,
car or
 for that matter home, consumer won’t buy it unless he knows about it. Let us imagine that
 someone knows of a new company, and they’ve started to think about buying something
along
 the lines of what they sell. We need to draw them in with something of interest. For this we
need
 to be relevant. We have to find out the questions they’re asking themselves at this moment.
We
 need to answer them
 Interests
Once the consumer is aware, he starts searching for information. Whether it is daily soap,
car or for that matter home, consumer won’t buy it unless he knows about it. Let us imagine
that someone knows of a new company, and they’ve started to think about buying something
along the lines of what they sell. We need to draw them in with something of interest. For
this we need to be relevant. We have to find out the questions they’re asking themselves at
this moment. We need to answer them.
 Evaluation
 This is the stage when the consumer considers whether trying the new product makes sense.
Once the new company gained consumer’s interest, people will start weighing up whether
the company meets their buying criteria. They’ll be looking for evidence that the
company can deliver what they say they can. Here, the company needs to be proven. For
every promise they make, they need to provide proof.
 Trail
The consumer tries the new product on a small scale to improve his or her estimate of its
value
 Adoption
Adoption is when the consumer decides to make full and regular use of the product. Buyers
will often go with their gut at this critical hurdle. As such, the company needs to be friendly
to ensure that they feel comfortable working with you. This can often be by virtue of the
company being known by someone else in their circle. This means that you need to be
friendly to everyone who could have their ear
 Once the consumer is aware, he starts searching for information. Whether it is daily soap,
car or
 for that matter home, consumer won’t buy it unless he knows about it. Let us imagine that
 someone knows of a new company, and they’ve started to think about buying something
along
 the lines of what they sell. We need to draw them in with something of interest. For this we
need
 to be relevant. We have to find out the questions they’re asking themselves at this moment.
We
 need to answer them
Once the consumer is aware, he starts searching for information. Whether it is daily soap, car or
for that matter home, consumer won’t buy it unless he knows about it. Let us imagine that
someone knows of a new company, and they’ve started to think about buying something along
the lines of what they sell. We need to draw them in with something of interest. For this we need
to be relevant. We have to find out the questions they’re asking themselves at this moment. We
need to answer them
Once the consumer is aware, hr i
for that matter home, consumer won’t buy it unless he knows about it. Let us imagine that
someone knows of a new company, and they’ve started to think about buying something along
the lines of what they sell. We need to draw them in with something of interest. For this we need
to be relevant. We have to find out the questions they’re asking themselves at this moment. We
need to answer th

This is the stage when the consumer considers whether trying the new product makes sense.
Once the new company gained consumer’s interest, people will start weighing up whether the
company meets their buying criteria. They’ll be looking for evidence that the company can
deliver what they say they can. Here, the company needs to be proven. For every promise they
make, they need to provide proof.
4. Trial:
Trial is wherein buyer test or have a trial of the product. If the new company survived scrutiny to
the extent that their potential buyer believes that the company is a real contender for
their
business, the next step is for them to establish a sense of what it would be like if they bought
from you. For this, you need to be helpful. Facilitate some way of your buyer experiencing being
your customer before they become one. This is pretty difficult in services as
services are
generally intangible in nature. However service marketing managers do find ways of offering
Trial packs to users. Comparatively, it is pretty easier in Product marketing and finds a major
usage in BTL (Below the Line) sales promotion. Below the line (BTL) advertising is more one to
one, and involves the distribution of pamphlets, handbills, stickers, promotions, brochures placed
at point of sale, on the roads through banners and placards. It could also involve product demos
and samplings at busy places like malls and market places or residential complexes.
5. Adaption:
Adaption is when the consumer decides to make full and regular use of the product. Buyers will
often go with their gut at this critical hurdle. As such, the company needs to be friendly to ensure
that they feel comfortable working with you. This can often be by virtue of the company being
known by someone else in their circle. This means that you need to be friendly to everyone who
could have their ear. This works like Commercial Karma.

This is the stage when the consumer considers whether trying the new product makes sense.
Once the new company gained consumer’s interest, people will start weighing up whether the
company meets their buying criteria. They’ll be looking for evidence that the company can
deliver what they say they can. Here, the company needs to be proven. For every promise they
make, they need to provide proof.
4. Trial:
Trial is wherein buyer test or have a trial of the product. If the new company survived scrutiny to
the extent that their potential buyer believes that the company is a real contender for
their
business, the next step is for them to establish a sense of what it would be like if they bought
from you. For this, you need to be helpful. Facilitate some way of your buyer experiencing being
your customer before they become one. This is pretty difficult in services as
services are
generally intangible in nature. However service marketing managers do find ways of offering
Trial packs to users. Comparatively, it is pretty easier in Product marketing and finds a major
usage in BTL (Below the Line) sales promotion. Below the line (BTL) advertising is more one to
one, and involves the distribution of pamphlets, handbills, stickers, promotions, brochures placed
at point of sale, on the roads through banners and placards. It could also involve product demos
and samplings at busy places like malls and market places or residential complexes.
5. Adaption:
Adaption is when the consumer decides to make full and regular use of the product. Buyers will
often go with their gut at this critical hurdle. As such, the company needs to be friendly to ensure
that they feel comfortable working with you. This can often be by virtue of the company being
known by someone else in their circle. This means that you need to be friendly to everyone who
could have their ear. This works like Commercial Karma.This is the stage when consumer
becomes aware of the new product but lacks proper information. This is the area where
major marketers spend billions of dollars. Simply speaking, if the consumer not aware of the
product, he is never going to buy the product
This is the stage when consumer becomes aware of the new product but lacks
proper information. This is the area where major marketers spend billions of dollars. Simply
speaking, if the consumer not aware of the product, he is never going to buy the product
This is the stage when consumer becomes aware of the new product but lacks
proper information. This is the area where major marketers spend billions of dollars. Simply
speaking, if the consumer not aware of the product, he is never going to buy the product
This is the stage when consumer becomes aware of the new product but lacks
proper information. This is the area where major marketers spend billions of dollars. Simply
speaking, if the consumer not aware of the product, he is never going to buy the product
Explain why business demand is considered a derived demand.
3. Briefly explain the types of business buying situations.

Straight Rebuy: straight rebuy is considered as one of the most reliable and convenient buying
situation which engages us in making the routine purchase for the business. It’s done through a
familiar supplier and no certain modifications are required at the time of ordering the products.
Modified Rebuy: The modified rebuy is considered as a different buying situation in which the
buyer drifts towards a new and improved product to fulfill the rapidly changing requirements.
Therefore, purchasers use the trial purchase option in order to evaluate if the new product is
worth the time and efforts. This buying situation is also known as ‘Limited Problem Solving’,
which might slightly change the customer’s perception towards something unique.

New Task: The new task highlights another buying situation in which we’re given the liberty to
purchase a new product. In this scenario, the buyer is not aware of the product’s effectiveness.
However, certain aspects such as the importance of the product and its overall cost are highly
considered before making the purchase. Such buying situation includes a list of products that we
have never or rarely purchase from the markets.

4. Explain why business demand is considered a derived demand.

Derived demand is a need for a good or service that occurs consequently due to a demand
of something else. For example, because there is an increase in demand for online
shopping, there is thus an increase in demand for UPS trucks and truck-driving services.
(furniture needs wood) Business demand follows this pattern of derived demand because as
need for products increases, business thus increases. This also works with prices. As
demand increases, businesses have the ability to raise prices due to consumer needs. Going
back to the online shopping example, business is on the rise so more packaging trucks and
delivery drivers are needed. This increases business and opens up more employment
opportunities. This growing need for trucks and deliverers demonstrates business demands.