Buying Decision Making Process Buying roles, Stages of the decision process – High and low effort decisions, Post purchase decisions, Models of consumer behaviour

1. Buying roles, Stages of the
decision process – High and low
effort decisions, Post purchase
decisions, Models of consumer
behaviour

2.  The consumer buying roles can be broadly
studied under two categories:
 1.Industrial buying and
 2.Individual buying.

3.  In the early 1970's, the industrial marketing
professors Frederick E. Webster and Yoram Wind,
developed corporate buying.
 In the early 1980's, Thomas Bonoma expanded
their original list of five roles with the role of
initiator.
 The concept then classified six buying roles for
members of the organisation in the purchasing
process.
 A buying centre makes joint purchase decisions
as an informal group. Its task consists of
information acquisition, search processes, the
development of choice criteria and decision
making among alternatives.

4.  Explains organization buying behaviour. It
considers four sets of variables which affect
the buying behaviour are:
 1.Environment,
 2. organization,
 3.Buying center, and
 4.Individual.

5.  1. The environmental variables include physical,
technological, economic, political, legal, labour
unions, cultural, customer demands, competition,
and supplier information.
 2.The organizational variables include objectives,
goals, organization structure, purchasing policies and
procedures, degree of centralization in purchasing,
and evaluation and reward system.
 These variables particularly influence the
composition and functioning of the buying centre,
and also, the degree of centralization or
decentralization in the purchasing function in the
buying organization.

6.  3.The functioning of buying centre is
influenced by the organizational variables,
the environmental variables, and the
individuals variables.

7.  1.INITIATOR first identifies the need to buy a particular product or
service to solve an organisational problem;
 2.INFLUENCER (their) views influence the buying centre's buyers and
deciders;
 3.DECIDER ultimately approves all or any part of the entire buying
decision -- whether to buy, what to buy, how to buy, and where to buy;
 4.BUYER holds the formal authority to select the supplier and to arrange
terms of condition;
 5.USER consumes or uses the product or service;
 6.GATEKEEPER controls information or access or both, to decision
makers and influencers.

8.  4.The output of the group decision-making
process of the buying centre includes
solutions to the buying problems of the
organization and also the satisfaction of
personal goals of individual members of the
buying centre.

10.  For many products, it is easy to identify the
buyer.
 Men normally choose their shaving
equipment
 Women choose their lipsticks.
 However, Other products involve a decision-
making unit consisting of more than one
person

11.  The teenage son may have suggested buying
a new car.
 A friend might advise the family on the kind
of car to buy.
 The husband might choose the make.
 The wife might have definite desires
regarding the car’s size and interior.
 The husband might make the financial offer.
 The wife might use the car more often than
her husband.

12.  i. Initiator: A person who first suggests the idea of buying
the particular product or service.
 ii. Influencer: A person whose view or advice influences the
decision.
 iii. Decider: A person who decides on any component of a
buying decision; whether to buy, what to buy, how to buy,
or where to buy
 iv. Buyer: The person who makes the actual purchase.
 v. User: A person who consumes or uses the product or
service.

13.  A company needs to identify these roles because
they have implications for designing the product,
determining messages, arid allocating the
promotional budget.
 If the husband decides on the car make then the
auto company will direct advertising to reach
husbands.
 The auto company might design certain car
features to please the wife.
 Knowing the main participants and their roles
helps the marketer fine-tune the marketing
program.

14.  Engel, Blackwell and Kollat ​​have developed in
1968 a model of consumer buying decision
process in five steps

16.  The need recognition is the first and most
important step in the buying process.
 If there is no need, there is no purchase.
 This recognition happens when there is a lag
between the consumer’s actual situation and the
ideal and desired one.
 Ex: The ability to be able to go to your work by
car in 20 minutes every morning (ideal situation)
rather than lose three hours in transit because
you do not have a car and you live in the
countryside (actual situation) is something that
means a lot to you. So you will have a buying
behavior to purchase a car. Even if the price is
important.

17.  The need may be a result of an
 Internal drive (physiological need felt by the
individual as hunger or thirst) or
 An external stimuli such as exposure to an
advertisement, the sight of a pretty dress in a
shop window or the mouth-watering smell of
a food.

18.  Once the need is identified, it’s time for the
consumer to seek information about possible
solutions to the problem.
 He will search more or less information
depending on the complexity of the choices
to be made but also his level of involvement.
(Buying pasta requires little information and
involves fewer consumers than buying a car.)

19.  1.Internal information: this information is already
present in the consumer’s memory. It comes from
previous experiences he had with a product or brand
and the opinion he may have of the brand.
 Internal information is sufficient for the purchasing of
everyday products that the consumer knows –
including Fast-Moving Consumer Goods (FMCG) or
Consumer Packaged Goods (CPG). But when it comes
to a major purchase with a level of uncertainty or
stronger involvement and the consumer does not
have enough information, he must turns to another
source

20.  2.External information: This is information on a
product or brand received from and obtained by
friends or family, by reviews from other consumers or
from the press. Not to mention, of course, official
business sources such as an advertising or a seller’s
speech.
 During his decision-making process and his
Consumer Buying Decision Process, the consumer will
pay more attention to his internal information and the
information from friends, family or other consumers.
It will be judged more “objective” than these from an
advertising, a seller’s speech or a commercial
brochure of the product.

21.  Once the information collected, the consumer will be able to
evaluate the different alternatives that offer to him, evaluate the
most suitable to his needs and choose the one he think it’s best
for him.
 In order to do so, he will evaluate their attributes on two aspects:
 1.The objective characteristics (such as the features and
functionality of the product) and the
 2.Subjective (perception and perceived value of the brand by the
consumer or its reputation).
 If he has a good image of it or the information collected is
positive, he decides to buy. On the other hand,
 A negative buying experience with the product in the past he has
no specific opinion.

22.  Consumer choose the product or brand that
seems most appropriate to his needs. Then
proceed to the actual purchase itself.
 His decision will depend on the information,
perceived value, product’s features and
capabilities, his shopping experience or of
the store (or online shopping website), the
availability of a promotion, a return policy or
good terms and conditions for the sale.

23.  Once the product is purchased and used, the
consumer will evaluate the adequacy with his
original needs and whether he has made ​​the
right choice in buying this product or not.
 He will feel either a sense of satisfaction for
the product (and the choice). Or, on the
contrary, a disappointment if the product has
fallen far short of expectations.

24.  If the product has brought satisfaction to the
consumer, he will then minimize stages of
information search and alternative evaluation for
his next purchases in order to buy the same
brand. Which will produce customer loyalty.
 On the other hand, if the experience with the
product was average or disappointing, the
consumer is going to repeat the 5 stages of
the Consumer Buying Decision Process during his
next purchase but by excluding the brand which
he purchased.

25.  Stage 1 – Need recognition: It’s sunday night. You’re hungry (internal
physiological stimuli) and there is nothing in the fridge. You will order
food (statement of need).
 Stage 2 – Information search: You already have ordered to the Indian
restaurant in your street last month (internal information). A friend
recommended a pizzeria in your neighbourhood (external information
from environment).
 Stage 3 – Alternative evaluation: You have a bad opinion of the Indian
restaurant since you’ve been sick the last time (inept set). The pizzeria is
both recommended by your friend and also happens to be a well-known
brand (positive perception – evoked set). As for the sushi restaurant, it
got good reviews (positive perception – evoked set).
 Stage 4 – Purchase decision: After evaluating the possibilities, you’ve
decided to choose the well-known pizza delivery chain.
 Stage 5 – Post-purchase behavior: The pizza was good (positive review).
But you know there was too many calories and you regret a little bit
(mixed feelings about yourself). The next time you will choose the sushi
restaurant. There is less fat in sushi than pizza (next purchase behavior)!

26.  Many factors influence a consumer’s
behavior.
 The level of involvement varies from low
involvement to high involvement
 We think about many products we want to
buy but did not buy
 Sometimes we look at products, compare
them, and then decided not to purchase

27.  Low-involvement decisions are, however,
typically products that are relatively
inexpensive and pose a low risk to the buyer
if the buyer makes a mistake by purchasing
them.
 Ex: we routinely buy our favorite brand of
toothpaste, not thinking much (Low effort)

28.  High -involvement decisions are, however,
non-repetitive products that are relatively
expensive and pose a high risk to the buyer if
the buyer makes a mistake by purchasing
them.
 When it comes to the car, you might engage
in extensive problem solving but, again, only
be willing to consider a certain brand or
brands.

29.  1.The consumer is not informed of the
product or service offering.
 2.The consumer is not aware about the
various decision criteria used to evaluate the
product or service offering, and he is also not
aware of the various brands that are available
and from which to evaluate.
 3.The purchase process involves significant
effort on part of the consumer. Examples:
Jewellery, electronic goods, Real estate and
property etc.

30.  1.The consumer is familiar of the product or service
offering; but he is unaware of the various brands.
 2.The consumer is aware of some brands and also of the
various criteria used to evaluate
 the product or service offering; he is unaware of the new
brands that have been introduced.
 3.He has not evaluated the brands amongst the awareness
set and has not established preferences amongst the
group of brands.
 4. The purchase process is more of a recurring purchase
and it involves only a moderate effort on part of the
consumer.
 Examples: A laptop replacing a desktop.

31.  1.The consumer is well informed and
experienced with the product or service offering.
 2.The consumer is aware of both the decision
criteria as well as the various brands available.
 3.The purchase process involves no effort on part
of the consumer. It is simple and the process is
completed quickly; purchases made out of habit.
These are routine purchases. Examples: Staples,
Cold drinks, Stationery etc.

32. Sl.
No
Parameters High
consumer
efforts
Moderate
consumer
efforts
Low
consumer
efforts
1 Consumer Involvement High Medium Low
2 Time taken to make decisions High Low to high Low
3 Information gathering Yes Yes No
4 Information sources Many Few Few or none
5 Awareness and
knowledge of Decision criteria
No No Yes
6 Awareness and knowledge of
Alternative brands avaiable
Somewhat Yes Yes
7 Evaluative criteria Complex Moderate Simples
8 Brands considered Many Few One (repeat
purchase)

33.  Broaden the consumer’s set of experiences in
his memory.
 It provides a check on how well he is doing as
a consumer.
 Helps to Make adjustments in future
purchases.

34.  Post Purchase Behaviour is what occurs after
the value proposition becomes the Value
acquisition.
 When the buyer become the user/consumer,
it results in post purchase behaviour

35.  Satisfaction refers to the buyer’s state of
being adequately rewarded in a buying
situation for the sacrifice he or she has made.
 Dis-satisfaction refers to the buyer’s state of
being not adequately rewarded in a buying
situation for the sacrifice he or she has made.

36.  Post-Purchase Dissonance is the dis-
satisfaction or an unhappy feeling that the
consumer experiences after the purchase.
 (1) dissonance is uncomfortable and will
motivate the person to reduce it and
 (2) individuals experiencing dissonance will
avoid situations that produce more
dissonance.

37.  First, there is a price.
 There is psychological importance.
 There is product performance.
 There are number of rejected alternatives.
 Perceived performance of alternatives
rejected.
 credibility of the source of new information
affects the amount of dissonance it causes.

38.  Consumers should
 (1) change his or her valuation of the
alternative,
 (2) seek new information to support his or
her choice, or
 (3) change his or her attitudes.

39.  Business Should:
 1) Match their products with the appropriate
target consumers.
 2) Offer clear communication, return policies,
warranties, in-store demonstrations
 3) Make salespeople available to answer
questions.