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.

II. Information search Personal sources Commercial sources 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.

Successive Sets Involved in Decision Making

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

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.

“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.   

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.”

A Consumer’s Brand Beliefs about Computers Attribute Memory Capacity Graphics Capability Size and Weight Price A 10 8 6 4 B 9 3 C 5 D 7

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

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

The Buying Decision Process Postpurchase Behavior Postpurchase Satisfaction Cognitive Dissonance Postpurchase Actions Postpurchase Use and Disposal

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.

How Customers Dispose of Products

CONSUMPTION MOTIVES Why they buy? Status Social Acceptance Rewards Individuality Masculinity Love & Affection What they buy? Car, Tagheur watch Snacks Gifts Tattoos Gun, Cigarette Chocolates, Toys

BUYING ROLES

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.

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.

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

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

Analyze the marketing mix and marketing strategy of a company HOME TASK READ PAGES 146-158 ASSIGNMENT No. 2 Analyze the marketing mix and marketing strategy of a company