The Buyer Decision Process (Figure below)

 The buyer decision process consists of five stages:

1. need recognition,

2. information search,

3. evaluation of alternatives,

4. purchase decision, and

5. postpurchase behavior.

 

Need Recognition

The buyer recognizes a problem or need. 

The need can be 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.

· Personal sources (family, friends, neighbors, acquaintances),

· Commercial sources (advertising, salespeople, dealer Web sites, packaging, displays),

· Public sources (mass media, consumer-rating organizations, Internet searches), and

· Experiential sources (handling, examining, using the product). 

Commercial sources inform the buyer.

Personal sources legitimize or evaluate products for the buyer.

Evaluation of Alternatives

Alternative evaluation: 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

Consumer satisfaction is determined by the difference between the consumer’s expectations and the perceived performance of the good purchased.

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:

· Awareness: The consumer becomes aware of the new product but lacks information about it.

· Interest: The consumer seeks information about the new product.

· Evaluation: The consumer considers whether trying the new product makes sense.

· Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value.

· 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 shown in Figure 5.6.

 

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. Early mainstream adopters are deliberate—although they rarely are leaders, they adopt new ideas before the average person.

4. Late mainstream adopters are skeptical—they adopt an innovation only after a majority of people have tried it.

5. Lagging adopters 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.

· Relative advantage: the degree to which the innovation appears superior to existing products.

· Compatibility: the degree to which the innovation fits the values and experiences of potential consumers.

· Complexity: the degree to which the innovation is difficult to understand or use.

· Divisibility: the degree to which the innovation may be tried on a limited basis.

· Communicability: the degree to which the results of using the innovation can be observed or described to others.

The following book will help you to have a better understand on consumer behavior.

The TED talk will help you to have a better understand on consumer decision making process.