Consumer buying stages-Consumer Psychology
Introduction
This session is aimed at familiarising students briefly with the
course structure.
The major part of this session however is spent
on introducing the subject area of Consumer Behaviour.
The decision – Making process is also considered by looking at various buying behaviour models.
Objectives
At the end this session you should:
代写留学生论文Understand the scope of Consumer behaviour
Understand trends in Consumer Research
Understand various buying styles.
Key Ideas:
The buying behaviour process can be seen as a continuum:
Extended problem solving behaviour on the one end and limited problem solving on the other end (pp 155, Engel et al)
Extended Problem Mid-range problem Limited Problem
Solving solving Solving
High Complexity Low
Consider extended buying behaviour or complex decision – making.
Stages involved:
Need activation or problem definition
Search
Evaluation
Purchase
Post-Purchase
Stage 1: NEED ACTIVATION
Consider factors that lead to Need activation which is the first step in the Complex decision making process. Need can be activated by factors such as:
Changed circumstances: acquiring for instance a better job will mean more buying power and an increased demand for more expensive products (i.e. a car).
Product acquisition: Purchase of a car as a result of this new found buying power may automatically lead to a need for petrol..
Product consumption: Petrol once purchased, can only make a limited number of journeys. The need to drive more will lead to repeated demand for petrol.
Individual differences: As individuals we are different to each other, therefore the intensity with which we feel a need also varies amongst us.
For instance some consumers would wait till their cars have put a lot of mileage on before changing their cars (actual state that warranted a change of car) whereas there are some consumers who may buy cars every year (desired state) for a variety of reasons . Difference between need and want .
5) Market influences: They can pay a major role in stimulating a felt need. Marketers do this by reminding consumers of their existing products or informing them of new innovations.
Stage 2: SEARCH
Once the need has been recognised the second stage in the buying process is search. As a part of growing up, we all go through experiences and accumulate knowledge that may serve as a pool of ready information to be used whenever needed. Consumers will use this available information to search for a solution when they are faced with a problem related to buying.
This phenomenon is known as an internal search. Failing to find a suitable solution with this process, consumers may look elsewhere for an answer. This may include collecting information from friends, salespeople, magazines, etc. This process is known as external search. There are three dimensions along which the external search can take place:
1) Degree of search: total amount of time spent.
2) Direction of search: Specific content of search.
3) Sequence of search: Order in which search has taken place.
There are factors that determine the scope of ‘search’ undertaken:
Situational factors: External search is directly dependant on the availability of information and urgency of purchase.
This phenomenon is known as an internal search. Failing to find a suitable solution with this process, consumers may look elsewhere for an answer. This may include collecting information from friends, salespeople, magazines, etc. This process is known as external search. There are three dimensions along which the external search can take place:
1) Degree of search: total amount of time spent.
2) Direction of search: Specific content of search.
3) Sequence of search: Order in which search has taken place.
There are factors that determine the scope of ‘search’ undertaken:
Situational factors: External search is directly dependant on the availability of information and urgency of purchase.
Product characteristics: The nature of characteristics of a product to be purchased will determine the search undertaken. If consumers perceive products available in the market as significantly different from each other, then there will be a need to spend more on evaluation.
Factors related to Consumers: The amount of product knowledge, the level of involvement and the motivation consumers have, also directly affect the search stage. For instance if a consumer has previous knowledge of a product he / she will rely more on the internal search alternatively more external search will take place if consumers are uninformed.
Stage 3: EVALUATION
The third stage in the buying process is ‘Evaluation’. The previous stage will have generated a few ‘alternatives’ or ‘possibilities’. These need to be evaluated before a final purchase decision
decision can be made. Price and Brand names are two main factors (out of several) which will play a key role in evaluation criteria.
Stage 4: PURCHASE
Purchase decision: This stage deals with the act of purchase. Important issues at this stage are:
Whether to buy: There may have been changes in circumstances since the decision to buy was made. This may mean changing the purchase plan.
What to buy: This may require further information search on alternatives available and selection procedure.
When to buy: Some purchases are very seasonal whereas others need to be purchased frequently.
How to buy: Mode of payment to be considered; cash payment as opposed to credit cards or hire purchase.
Stage 5: POST-PURCHASE STAGE
Acquisition or consumption of a product can either lead to satisfaction or dissatisfaction amongst a consumer. Satisfaction will lead to repeat purchases whereas the latter may lead to complaints and cessation of the product purchase in future.
The factors that we have looked at in the proceeding section discuss a complex or an extended buying process. This buying process may be undertaken by consumers because the product they are buying may be expensive, unfamiliar and infrequently purchased
and may feel they have to undergo this lengthy process to eliminate risk. It may also be due to high motivational and involvement levels of consumers.
Sellers want to avoid cognitive dissonance- discomfort caused by post purchase conflict .i.e happy with the benefits of buying that item/brand but unsure about the sacrifices made in not buying other options. Buying usually involves compromise.
As mentioned in the beginning on the other end of buying continuum we have limited problem solving. Impulse or routine buying behaviour may be examples of this process. The stages involved in complex buying behaviour may or may not be followed. In some instances if they are followed at all they may not be as intense as complex buying behaviour.
In GROUPS
List a number of products and services which would represent ,complex ,intermediate and simple buying behaviour processes.
Are there disagreements as to where to place products by different group members?
Pick two product/services that are in a different category to each other and map out the buying process (you or someone else would go through) .This is your purchase process model for this consumer.
How does this vary to rational, involved decision making model.
How can marketing use this knowledge to more effectively market products