The Buyer Decision Process

The Buyer Decision Process 

The buyer decision process consists of five stages:
1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5.Postpurchase behavior

Need Recognition: The buyer recognizes a problem or need triggered by either an: Internal stimuli, or External stimuli

Information Search: Information search may or may not occur.  Consumers can obtain information from any of several sources.
1. Personal sources (family, friends, neighbors, acquaintances)
2. Commercial sources (advertising, salespeople, Web sites dealers, packaging, displays)
3. Public sources (mass media, consumer rating organizations, Internet searches)
4. Experiential sources (handling, examining, using the product)
5. Commercial sources inform the buyer.
Personal sources legitimize or evaluate products for the buyer.

Evaluation of Alternatives: Alternative evaluation is how the consumer processes information to arrive at brand choices. How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. In some cases, consumers use careful calculations and logical thinking. At other times, the same consumers do little or no evaluating; instead they buy on impulse and rely on intuition.

Purchase Decision: Generally, the consumer’s purchase decision will be to buy the most preferred brand.
Two factors can come between the purchase intention and the purchase decision. 1.Attitudes of others
2.Unexpected situational factors

Postpurchase Behavior: The difference between the consumer’s expectations and the perceived performance of the good purchased determines how satisfied the consumer is. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is said to be delighted. Cognitive dissonance, or discomfort caused by postpurchase conflict, occurs in most major purchases.

The Buyer Decision Process for New Products
A new product is a good, service, or idea that is perceived by some potential customers as new.
The adoption process is the mental process through which an individual passes from first learning about an innovation to final adoption. Adoption is the decision by an individual to become a regular user of the product.
Stages in the Adoption Process
Consumers go through five stages in the process of adopting a new product:
1. Awareness: The consumer becomes aware of the new product, but lacks information about it.
2. Interest: The consumer seeks information about the new product.
3. Evaluation: The consumer considers whether trying the new product makes sense.
4. Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value.
5. Adoption: The consumer decides to make full and regular use of the new product.

Individual Differences in Innovativeness
People differ greatly in their readiness to try new products. People can be classified into the adopter categories. The five adopter groups have differing values.
1. Innovators are venturesome—they try new ideas at some risk.
2. Early adopters are guided by respect—they are opinion leaders in their communities and adopt new ideas early but carefully.
3. The early majority are deliberate—although they rarely are leaders, they adopt new ideas before the average person.
4. The late majority are skeptical—they adopt an innovation only after a majority of people have tried it.
5. Laggards are tradition bound—they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.

Influence of Product Characteristics on Rate of Adoption
Five characteristics are important in influencing an innovation’s rate of adoption.
1. Relative advantage: The degree to which the innovation appears superior to existing products.
2. Compatibility: The degree to which the innovation fits the values and experiences of potential consumers.
3. Complexity: The degree to which the innovation is difficult to understand or use.
4. Divisibility: The degree to which the innovation may be tried on a limited basis.
5. Communicability: The degree to which the results of using the innovation can be observed or described to others.