J.C.

BOSE UNIVERSITY OF
SCIENCE AND TECHNOLOGY
YMCA, FARIDABAD

(ASSIGNMENT - 1)
CONSUMER BEHAVIOUR

SUBMITTED BY: - SUBMITTED TO: -

AMIT KUMAR GUNJAN GUMBER(A.P)
MBA – III(A)
18001701005
Q: ¬- Differentiate between industrial buyer
and consumer. Explain consumer buying
process in detail with example?
Industrial buying is a much more formal buying process and
usually involves several people within the organization. A manager
may issue a buying brief and the buyer would need to research
products that best match that brief then feed this back for final
approval. These transactions often involve large quantities, larger
costs and more complex techniques for negotiating and buying.

Industrial buyers are far less likely to make impulse buys as it

affects the rest of the company and their position within it. These
choices are centered around quality, delivery, service and price. The
buying will likely build up relationships with suppliers also. Because
there is more at stake, many suppliers in B2B exchange meet
regularly to touch base with clients and manage the ongoing
relationships and expectations of the buyer.

Consumers however usually follow a much simpler process only

consulting themselves and the internal search for smaller, regular
purchase items and can make impulse buys. They have no one to
answer to for these smaller purchases and usually have little contact
or loyalty with the supplier. Often consumers are very sensitive to
price. For larger purchases such as a car, consumers may consult
family or friends with the external search and gather information for
larger purchases that are non-habitual. They may refer to the
internet for research and comparisons, friends for advice, and they
may shop around at various alternative suppliers to establish the
best value. They will then have their set of choices to make their final
decision, perhaps with the help of a friend or family member.

Consumer buying process

5 stages in the buying decision-making process

1. Recognition of unsatisfied need

The buying decision process begins when a consumer realizes they have a need. They become aware
they have a problem they want to solve or a gap they want to fill.

At this point, the customer may or may not know what will solve their problem. They may only be
aware that they want to change their reality or situation. Or they may have an idea about what will
help them but are not quite sure which brand, product, service, or solution will provide the best
option.

Example: A consumer buying process example at this phase could be a college freshman, Sarah, who
has a computer that is starting to run slowly. She is getting ready to start the semester and needs a
computer that will efficiently help her with her assignments.

Or, it could be a project manager, Joe, who is tired of his team using an outdated method of Excel
spreadsheets for keeping track of their projects. He needs a new tool or system for project
management.

2. Information Search
The next phase of the buying decision process begins when the customer starts looking for
information that will help them solve their problem. They know they need something to fix their
situation but aren’t sure which solution is best for them.

The customer starts searching for information that will help him or her better understand their
situation and identify what will fix their issues. At this point, the customer frequently turns to online
research and conducts searches to find solutions.

Example: Sarah, the college student may start seeking information to help resolve her immediate
problem, which is speeding up her computer. Depending on what she finds, she may also begin
searching for options for purchasing a new computer.

The project manager, Joe may start researching topics about improving project management and
may find multiple software solutions that could improve his processes.
3. Evaluation of alternatives
Once the initial information search is complete, customers start reflecting on what they learned or
discovered. They begin to evaluate their options to determine which is the best solution for their
problem.

Customers at this point in the buying decision process have a lot to consider. They must determine
what solution is the most trustworthy, affordable, highest quality, and highest performing. They look
for reasons to believe why one solution has more benefits than the other.

Example: In this phase, Sarah might be making a comparison list of multiple computers. The list may
include prices, features, and reviews.

Joe is at the point where he is doing product demos to see which software best fits his needs.

4. Actual Purchase Decision

At this point of the buying decision process, the customer is ready to pull the trigger and make a
purchase. They have made their decision about which product, service, brand, or solution is best for
them, and they are ready to buy.

The research and evaluation are over, so now the customer just needs a clear pathway to purchase.
For a brand to help customers through this phase, you need to make it simple to buy. You also need
to present additional reinforcements (like great reviews, testimonials, discounts, etc.) that will lead
to purchase and avoid negative reinforcements (like bad reviews, additional expenses, barriers, etc.),
which will cause customers to turn away.

Example: Now that the college student, Sarah, has decided to buy, she is likely eager to make the
purchase and get her computer. She may, therefore, be more likely to buy the computer if she gets
free and expedited shipping.

Joe, the project manager may need final approval for making his purchase, but he will also be eager
to get going, so a free trial may be the way to get him through this phase.

5. Post-Purchase Evaluation
At the last step of the five-stage consumer decision-making process, the path to buying is complete.
The customer has made a purchase. But that doesn’t mean the customer journey is complete. Now
is the time when the customer reflects on whether they made the right decision.

The customer will consider if the solution accurately and fully meets their needs. They will decide if it
was worth the cost and if the brand delivered on their promises. They will feel either satisfaction or
buyer’s remorse. If it’s the former, the customer could come back to make another purchase. But if
it’s the latter, the customer could reject the brand, never make another purchase, and even share
their negative experience with others.
Examples: When Sarah makes it to this phase of her buying decision process, she is using the
computer and discovering what she likes and doesn’t like. Reading resources that show her how to
better utilize the computer could make her like it more.

Joe is going through a similar process. He is utilizing the tool, distributing it to his team, and hearing
feedback from his colleagues. Seeing articles about how this software has helped people like him will
likely improve his perception of the product.