Student Name: Venus

Student Number:
Course: International Foundation Diploma
Module Code and Title: Marketing, Advertising and Promotions
Lecturer: Mr Tan Kien Chiang Andy
Assessment Topic: Factors Influencing Consumer Buying Behaviour
Word Count 1584
Due Date: 25 June 2020 Date Submitted: 16 June 2020
Weighting within Module: 35% (100 Marks)

ALL MARKS ARE PROVISIONAL AND ARE SUBJECT TO CHANGE UNTIL

CONFIRMED BY THE EXTERNAL EXAM BOARD

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 Table of Contents

1.0 INTRODUCTION.........................................................................................................................1

2.0 THE 5 STAGES OF CONSUMER BUYING PROCESS...........................................................2

2.1 Need Recognition........................................................................................................................3

2.1.1 Internal Stimuli.....................................................................................................................3
2.1.2 External Stimuli....................................................................................................................3

2.2 Information Search......................................................................................................................3

2.3 Evaluation of Alternative.............................................................................................................4

2.4 Purchase Decision........................................................................................................................5

2.5 Post Purchase Behaviour.............................................................................................................7

3.0 PERSONAL REFLECTION........................................................................................................8

4.0 FUTURE IMPLICATION............................................................................................................9

5.0 CONCLUSION............................................................................................................................10

REFERENCES..................................................................................................................................11
 1.0 INTRODUCTION

Nowadays, consumers not only decide to purchase product or services based on their
preference, needs and buying power but also based on how they perceive the product’s value.
In addition, the modern consumer decides on purchase depending on how the product has met
their expectation and satisfaction. Hence, marketers must have an in-depth study of consumer
behaviour to gain profit by giving consumers maximum satisfaction. In regards to consumer
behaviour, it is defined as a step of the procedure as well as physical activities associated
with purchasing, evaluating, consuming and disposing of services and products (Khan, 2006).
It is also followed by the consumer mental, behavioural and emotional response to the
product or services. Consumer behaviour is studied by business and marketers to improve
their business performance. In addition, it is much easier for them to understand how
behaviour gives a big impact on the consumer’s purchase decision. Marketers can also
forecast what motivates the consumer to purchase and then to deliver the products that can
respond to consumer’s motivation, thus, successfully exceed and meet consumer’s
expectations over time. Hence, the objective of this report is to identify and clarify the 5
stages of the consumer buying process.

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 2.0 5 STAGES OF CONSUMER BUYING PROCESS

Consumers will go through five stages of the buying process in any purchase which,
evaluation of alternatives, needs or problem recognition, information search , purchase
decision and post-purchase behaviour.

Figure 1. Consumer's Decision-making Process. Source: (Lake, 2009)

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2.1 Need Recognition

Need recognition is a stage where consumers become fully aware or recognize that
they have a need or a problem. The consumers also recognize that there is a distance between
their actual and desired state (Lake, 2009). Thus, consumers need and the problem can be
stimulated by internal and external stimuli.

Figure 2. Actual State and Desired State. Source: (Mothersbaugh & Hawkins, 2013)

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2.1.1 Internal Stimuli

Internal stimuli are things or normal needs from within that triggered consumers to
make an action or purchase a product. It happens when consumers are at a state of need
deprivation. For instance, feels hungry and wants food or wants allergy medicine because of
allergies are internal stimuli.

Figure 3. The Abraham Maslow’s Hierarchy of Needs. Source: (Kotler & Armstong, 2007)

2.1.2 External Stimuli

External stimuli are things from the outside which influences a consumer to make a
purchase. Advertisements, consultative selling or conversation with friends and families may
uncover the consumer’s need. For example, a person replaces his old shoes because he saw
an advertisement for new shoes (Lake, 2009).

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2.2 Information Search

Information search is a stage where the consumers gather information to inform their
buying decision when their need or problem is recognized. It is also known as a pre-purchase
search where consumers have uncertainty about the product. Internal search is a common
combination of past memories and experiences. Moreover, it is decisions with low levels of
participation that affect the daily activities of consumers. On the other hand, External search
is engaged with various information from different sources such as commercial, public,
personal or experiential (Kardes, et al., 2010).

SOURCES EXAMPLES

Personal Neighbours, acquaintances, family and

friends.
Commercia Advertising, dealers, Internet, salesperson,
l retail displays, product packaging, websites.

Public Mass media, rating organizations

Experientia Handling, trial basis, examining
l
Table 1. Sources of External Search

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2.3 Evaluation of Alternative

During this stage, the consumer will process the information and finally made his or
her decision. Consumers will then evaluate, identify and assesses the value of the alternative
and looks at the features that they want. They will choose the preferred product that meets
their benefit and perceive products as a bundle of attributes. However, some consumer may
buy products which they have researched thoroughly whereas some may buy on impulse.

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 Table 2. Factors that Influence Cost and Benefit. Sources: (Khan, 2006)

2.4 Purchase Decision

In the purchase decision stage, the consumer will purchase their most preferred
products, brand or services. However, two factors may interfere with the consumer’s
purchase decision and intention. Thus, the attitudes of others are the first factor that may
interfere with the decision. For instance, consumers will prefer to purchase the lowest-priced
car rather than the expensive car if it is told by someone dear to them. Unanticipated
situational factors are the second factor to disturb consumer’s purchase. It happens when
consumers detect risk in the product and will postpone the purchase (Kotler & Armstong,
2007).

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 Table 3. Perceived Risks. Sources: (Kardes, et al., 2010)

Figure 4. Physical Surrounding Purchase Decisions. Source: (Khan, 2006)

2.5 Post Purchase Behaviour

Post-purchase behaviour is the dislikes, likes, attitude and preference towards the

product or service. Thus, it symbolises whether or not the consumer will repeat their purchase

and recommend it to others. However, some consumer may experience ‘cognitive

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dissonance’ when the products didn’t satisfy and meet their expectations. So, marketers need

to observe post-purchase actions, post-purchase satisfaction as well as the post-purchase

product uses.

Figure 5. Customer’s Satisfaction. Source: (Khan, 2006)

3.0 PERSONAL REFLECTION

By understanding consumer behaviour, I have concluded that there are 5 stages of the
consumer buying process before the consumer purchase the product. As a consumer myself, I
have also gone through these stages in my daily routine. A few weeks ago, I’ve recognized
the problem that I need to replace my old Asus laptop with a new one as it is not functioning
properly. Thus, to solve this problem, I went through various websites to search for the most

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affordable and high-quality laptop. I’ve also asked my friend's opinion about what laptop or
model is the best for a student. After searching from various sources, I decided to compare
two laptop brand which is Acer and Asus. I went to the actual stores to look more into the
functions, quality and style of both laptops. In the end, I chose a new model of the Asus
laptop as it is a brand I’m familiar with and the price is cheaper than Acer’s laptop.

Sometimes, I purchase products when the advertisement has caught my attention. Due
to COVID-19 situation, the game console Nintendo Switch has become more popular than
before. A lot of advertisement is shown on Facebook, Instagram, Google and even on You-
tube. Thus, I bought the Nintendo Switch Lite to satisfy my desire.

There are times where I regret purchasing a service. I went to a hair salon hoping to
get a stylish and cute haircut. However, I was disappointed that the hairstylist is not
professional at all, thus, my haircut was terrible and ugly. So, I promised myself to never go
back to the same salon again and will not recommend it to my friends and families.

As I have sensitive skin which causes allergies, I will look into the content when
purchasing a skincare product. I buy products which have labelled ‘allergy-free’ or made
from natural ingredients. Thus, I only buy skincare products from the brand Clinnelle and
The Face Shop and avoid those which are not in these categories.

4.0 FUTURE IMPLICATION

It is the role of the marketers to satisfy and meet the consumer's satisfaction in these
processes. Marketers need to understand the ways to deal with consumer’s cognitive
dissonance. Cognitive dissonance is the feeling of uncertainty and discomfort that occurs
when there is a conflict (Kumar, 2014). So, marketers can emphasize the benefits and why
the product is better than others after purchasing. This is because some consumers need

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reassurance to feel that her choice is wise. Moreover, marketers can provide after-sale service
to consumers. For instance, free repairing service, 2-year warranty or even provide refund
policies.

Furthermore, marketers can understand consumer post-purchase behaviour by

providing post-purchase communication. For instance, consumer satisfaction surveys and
feedback or send e-mails to follow up. Marketers can also make phone calls to ensure the
customer is satisfied. If there are any negative feedbacks, marketers must modify an enhance
the product to reduce any negative feedbacks in the future.

Marketing Mix can also be applied to increase marketing strategy by using the 4P’s. It
is known as a group of different marketing decision variables used by companies to market
their service and products (Singh, 2012).

Table 4. 4P’S Elements. Source: (Singh, 2012)

Moreover, types of the promotion mix such as direct marketing, sales promotion,
advertising, public relations and personal selling can be used by marketers to further achieve
their marketing goals. Promotion mix is a great way to trigger consumers desire to purchase
product or services. For example, advertising on social media, newspaper or television is a
convenient way for consumers to learn about a company’s product and also for marketers to
target their consumer.

5.0 CONCLUSION

All in all, there are 5 stages of the consumer buying process that consumer undergoes
before purchasing a product. The 5 stages of the buying process include information search,

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evaluation of alternatives, need recognition, purchase decision and post-purchase behaviour.
A consumer recognizes a lack in problem or need and searches information from various
sources to solve their problem. Then, they will choose the best alternative to make a purchase
and may or may not repurchase the product. They may also feel uncertain or discomfort
towards the product. Thus, it is the marketer’s role to ensure that they satisfy consumers and
meet or even exceed their expectations. Marketers can provide post-purchase communication
or after-sale service. They must also apply the marketing mix as well as the promotional mix.
Hence, by understanding consumer behaviour, marketers can satisfy consumer, increase
sales, gain profit and most importantly increases overall business performance.

REFERENCES

Kardes, R., Cronley, L. & Cline, W., 2010. Consumer Behaviour. 2nd ed. US: South-Western
Cengage Learning, Inc.

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Khan, M., 2006. Consumer Behaviour and Advertising Management. 1st ed. New Dehli: New
Age International (P) Limited, Publishers.

Kotler, P. & Armstong, G., 2007. Principles of Marketing. 12th ed. London: Pearson
Education International, Inc.

Kumar, M., 2014. The Impact on Consumer Buying Behaviour: Cognitive Dissonance.
Global Journal of Finance and Management, 6(9), pp. 833-840.

Lake, A., 2009. Consumer Behaviour for Dummies. 1st ed. Indianapolis: Wiley Publishing,
Inc.

Mothersbaugh, L. & Hawkins, I., 2013. Consumer Behaviour: Building Marketing Strategy.
13th ed. New York: McGraw-Hill Education.

Singh, M., 2012. Marketing Mix 4P'S for Competitive Advantage. Journal of Business and
Management, 3(6), pp. 40-45.

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