Name: Sharanabasappa N M
ID: PG 23478
Assignment: 02
Date: 06-Dec-2024
Marketing Management- BUYER DECISION
List and Define the stages of buyer decision with a suitable example
I. Definition:
As a part of consumer behaviour, the buying process is the decision making process used by consumers regarding
the market transactions before, during, and after the purchase of a good or service. It can be seen as a particular
form of a cost–benefit analysis in the presence of multiple alternatives
Common examples include shopping and deciding what to eat. Decision-making is a psychological construct. This
means that although a decision cannot be "seen", we can infer from observable behavior that a decision has been
made. Therefore, we conclude that a psychological "decision-making" event has occurred. It is a construction that
imputes a commitment to action. That is, based on observable actions, we assume that people have made a
commitment to effect the action.
- Nobel laureate Herbert A. Simon sees economic decision-making as a vain attempt to be rational.
- Simon claimed (in 1947 and 1957) that if a complete analysis is to be done, a decision will be immensely
complex
- Simon also wrote that peoples information processing ability is limited.
- The assumption of a perfectly rational economic actor is unrealistic.
- Factors such as cognitive effort and decision-making time also play a role.
II. 5 steps of the consumer decision making process
The consumer decision-making process involves five basic steps. This is the process by which consumers evaluate
making a purchasing decision.
1. Problem recognition: Recognizes the need for a service or product
2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against comparable alternatives
4. Purchase decision: Makes actual purchase
5. Post-purchase evaluation: Reflects on the purchase they made
1. Problem recognition
The first step of the consumer decision-making process is recognizing the need for a service or product. Need
recognition, whether prompted internally or externally, results in the same response “a want”. Once consumers
recognize a want, they need to gather information to understand how they can fulfil that want, which leads to step
two.
But how can you influence consumers at this stage? Since internal stimulus comes from within and includes basic
impulses like hunger or a change in lifestyle, focus your sales and marketing efforts on external stimulus.
2. Information search
When researching their options, consumers again rely on internal and external factors, as well as past interactions
with a product or brand, both positive and negative. In the information stage, they may browse through options at a
physical location or consult online resources, such as Google or customer reviews.
As a brand is to give the potential customer access to the information they want, with the hopes that they decide to
purchase product or service. Creating a funnel and planning the types of content that people will need. Presenting as
a trustworthy source of knowledge and information
Another important strategy is word of mouth—since consumers trust each other more than they do businesses,
make sure to include consumer-generated content, like customer reviews or video testimonials, on the website.
3. Alternatives Evaluation
At this point in the consumer decision-making process, prospective buyers have developed criteria for what they
want in a product. Now they weigh their prospective choices against comparable alternatives.
Alternatives may present themselves in the form of lower prices, additional product benefits, product availability, or
something as personal as color or style options. Marketing material should be geared towards convincing consumers
that the product is superior to other alternatives.
4. Purchase decision
This is the moment the consumer has been waiting for the purchase. Once they have gathered all the facts, including
feedback from previous customers, consumers should arrive at a logical conclusion on the product or service to
purchase.
If everything is done correctly, the consumer will recognize that the product is the best option and decide to
purchase it.
5. Post-purchase evaluation
This part of the consumer decision-making process involves reflection from both the consumer and the seller. As a
seller, one should try to gauge the following:
Did the purchase meet the need the consumer identified?
Is the customer happy with the purchase?
How can you continue to engage with this customer?
Post-purchase engagement could include follow-up emails, discount coupons, and newsletters to entice the
customer to make an additional purchase.
Example 1:
Problem recognition: Winter is coming “Buying the winter coats”
Information search: The customer searches “women’s winter coats” on Google to see what options are out there.
When she sees someone with a cute coat, she asks them where they bought it and what they think of that brand.
Alternatives evaluation: The customer compares a few brands that she likes. She knows that she wants a brightly
colored coat that will complement the rest of her wardrobe and though she would rather spend less money, she also
wants to find a coat made from sustainable materials.
Purchase decision: The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand
uses sustainable materials and asking friends for their feedback, she orders the coat online.
Post-purchase evaluation: The customer finds did this product meet the expectation, also seller asks the feedback
and review on the product.
Example 2: Phases explained while getting mortgage loan
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