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Stages of the Buying Decision Process

I. Problem recognition
(awareness of need)--difference between the
desired state and the actual condition.
Deficit in assortment of products. Hunger--
Food. Hunger stimulates your need to eat. Can
be stimulated by the marketer through
product information--did not know you were
deficient? i.e., see a commercial for a new pair
of shoes, stimulates your recognition that you
need a new pair of shoes.

It could be that your


computer stops working and
you now have to look for a
new one, all those DVD films
you purchased you can no
longer play! So you have a
problem or a new need.
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II. Information search
So we have a problem, our computer no longer works
and we need to buy a new one. What’s the solution?
Yes go out and purchase a new one, but which brand?
Shall we buy the same brand as the one that blew up?
Or stay clear of that?
 Personal sources
 Commercial sources
 Public sources
 Experiential sources

A successful information search leaves a buyer with


possible alternatives, the evoked set.

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Successive Sets Involved in Decision Making

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The Buying Decision Process
III. Evaluation of Alternatives

Need to establish criteria for evaluation, features the buyer


wants or does not want. Rank/weight alternatives. May
decide that you want to eat something spicy, indian food
gets highest rank etc.

So what computer do we purchase? Shall it be IBM, Apple


or Dell? Consumers allocate attribute factors to certain
products, almost like a point scoring system which they
work out in their mind over which brand to purchase.

Marketers try to influence by "framing" alternatives.

 Potential Attributes of interest


 Cameras
 Hotels
 Mouthwash
 Tires

 Brand beliefs

 Brand image 11-5


The first step in setting Brand Belief is to broaden the vision of brands
so that they stops being simply ‘products.’ Instead, they get associated
with their beliefs.

Second, a company needs to choose and integrate the central belief for a
brand by making it universal, ideal and timeless.

The beliefs about a product must be authentic, integral and in-sync with
the brand.

Finally, the brand must breathe, walk, speak, and communicate its
values effectively and consistently across different channels.

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“Have it your way” meets the need for control, freedom of choice and
individual attention. And it is directly aimed at the brewing feeling of
‘entitlement’ we all harbour. People today feel that they have the right to enjoy
everything life has to offer, right here, right now in the exact way they want
it.
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Harley-Davidson (Harley) doesn’t just sell motorcycles; it offers its
customers a whole new lifestyle and experience. The brand image
represented the fundamental American values: “individuality, freedom,
and adventure.”
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A Consumer’s Brand Beliefs about Computers

Computer Attribute

Memory Graphics Size and


Capacity Capability Weight Price
A 10 8 6 4

B 8 9 8 3

C 6 8 10 5

D 4 3 7 8

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 Strategies designed to stimulate interest
 Redesign the product
 Alter beliefs about the brand
 Alter beliefs about competitors’ brands
 Alter the importance weights
 Call attention to neglected attributes
 Shift the buyer’s ideas

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The Buying Decision Process

IV. Purchase Decision

 Informediaries
 Consumer Report
 Unanticipated situational factors
 Perceived risk
 Brand decision
 Vendor decision
 Quantity decision
 Timing decision
 Payment-method decision 11-11
The Buying Decision Process
 Postpurchase Behavior
 Postpurchase Satisfaction
 Cognitive Dissonance

 Postpurchase Actions
 Postpurchase Use and Disposal

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Cognitive dissonance is a
psychological state that
describes the uncomfortable
feeling between what one
holds to be true and what one
knows to be true.

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How Customers Dispose of Products

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CONSUMPTION MOTIVES

Why they buy? What they buy?


 Status  Car, Tagheur watch
 Social Acceptance  Snacks
 Rewards  Gifts
 Individuality  Tattoos
 Masculinity  Gun, Cigarette
 Love & Affection  Chocolates, Toys

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BUYING ROLES

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The four type of consumer buying behavior are:

 Routine Response/Programmed Behavior--buying low involvement


frequently purchased low cost items; need very little search and
decision effort; purchased almost automatically. Examples include soft
drinks, snack foods, milk etc.

 Limited Decision Making--buying product occasionally. When you


need to obtain information about unfamiliar brand in a familiar
product category. Requires a moderate amount of time for information
gathering. Examples include Clothes--know product class but not the
brand.

 Extensive Decision Making/Complex high involvement, unfamiliar,


expensive and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars,
homes, computers, education. Spend alot of time seeking information
and deciding. Information from the companies MM; and relatives,
store personnel etc. Go through all five stages of the buying process.

 Impulse buying, no conscious planning.

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The purchase of the same product does not always elicit
the same Buying Behavior. Product can shift from one
category to the next.

For example:
Going out for dinner for one person may be extensive
decision making (for someone that does not go out often
at all), but limited decision making for someone else.
The reason for the dinner, whether it is an anniversary
celebration, or a meal with a couple of friends will also
determine the extent of the decision making.

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Four Types of Buying Behavior
High Involvement Low Involvement
Significant Differences Complex buying Variety-seeking
between Brands behavior buying behavior

Few Differences between Dissonance-reducing Habitual buying


Brands buying behavior behavior

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The Buying Decision Process
 Complex Buying Behavior
 Dissonance-Reducing Buyer Behavior
 Habitual Buying Behavior
 Variety-Seeking Buying Behavior

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HOME TASK

READ PAGES 146-158

ASSIGNMENT No. 2
Analyze the marketing mix and
marketing strategy of a company

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