Buyer behavior plays an important role when buyer purchases a product. It is important to satisfy need and want. Likewise, buyers differ in the way they purchase a certain product. Buyer behavior is “the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the buyer and society” (Hawkins & Mothersbaugh, 2013, p. 6). A process that buyer go through in deciding the purchase of product or service to satisfy needs and wants is the buying decision process. Buying decision process is also known as psychological process. Perner (2008) expresses the view that buyer behavior consists of the psychological processes that buyers undergo in need recognition, discover techniques to fulfill the needs, decide purchasing, information interpretation, create plans, and work out with these plans. The buying decision process happens within a buyer every time they decide to purchase product (Young & Pagoso, 2008). As mentioned by Kotler and Armstrong (2010), there are five important steps in buying decision namely recognizing the need, searching the information, evaluating the alternative, purchasing decision and post-purchasing behavior.
The first step in buying decision process is recognizing the need. The need of buying is the stages that required buyer to recognize their needs (Halvadar & Cavale, 2007). Usually, the consumer having a problem when comes to buying process. This is due to the multiple of choices appearing when they want to buy things. Therefore, a dilemma of choosing would happen as a result of inequity between needs and desired situations (Lamb, Hair, & Ma...
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...urchase. Hawkins & Mothersbaugh (2013) stated that satisfaction is including repurchase, positive word of mouth, and loyalty. The occurrence of dissatisfaction situation impact buyer switching to another brand and create a negative word of mouth. O’Neill and Palmer (2004) pointed out that cognitive dissonance occurs when the satisfaction is low and not fulfills their expectation. Kotler and Armstrong (2012,) expresses the view that the satisfaction of customer is a main reason to develop profitable and long-term relationship with buyers. For example, when the car’s performances meet the buyer’s expectation, the level of satisfaction is high. Plus, a seller’s profit increased because of buyer expectation and satisfaction has met. This step is carried out to ensure that the buying decision has effectively achieved its goal in delivering the purpose of message.
More importantly, the decision to purchase is done subconsciously. This means that the majority of the time, your consumer is not even aware of their decision to buy or not to buy your product. In fact,
With the current market conditions, it is “immensely” vital to be able to make the right decisions while managing a much precious resource “our money’. Thousands of sellers/suppliers are solely focusing their marketing and sales efforts to be everywhere a person goes, and mainly online through social media. Wants which were never thought of are emerging and new products and services are available at a glance every second, and thus, “informed decisions” are a must. Through social media, consumers are now tempted to desire products and services they do not need, but they can hardly resist that because it is simply there every time they scroll down their news feed of their Instagram or
The study of buyer preference depend on the “observation method” which tend to be less costly or least expensive way understanding behaviour. The selective enquiry measure undertaken in studying buyer preference with the assistance of questionnaires. Questionnaires usually determine the varied behaviour and not actual hence it is the method of observation.
The consumer decision process consists of these six steps. First, problem recognition: Awareness of an unmet need. Second, information search: Search for alternatives that will meet your needs. Third, alternative evaluation: Evaluate the alternatives. Forth, purchase decision: Decide on the best alternative for you based on your criteria. Fifth, post-purchase behavior: Determine if you are satisfied with your choice. Sixth, disposal of product: Determine if you will keep it, upgrade it, or get rid of
From buying a hamburger to buying a house people use a process in order to make a decision on what to buy. (book cite) describes this as the consumer decision process (pg.175). Utilizing a consumer decision process model, marketers are able to better understand how consumers are purchasing products and services. The five step consumer decision process model includes need recognition, information search, alternative evaluation, purchase, and post purchase. Not all purchases require following all five steps to a T, but consumers, whether they know it or not, follow a version of this model when making a purchase. Companies also use this model in order to effectively market their products and services. A company
Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch new products, segment the market, determine market entrance and in brand management. Therefore, a better understanding of how consumers decide what to purchase is critical to the success of a product. There are numerous theories and models describing the consumer purchasing decision process.
Best Buy, one of the biggest consumer electronics retailers in the world, provides products from smartphone, computers to large electronic appliances. It aims at offering a large variety of products with outstanding customer service at a comparably economical price. Yet, it has been facing internal and external challenges in the recent years. Bottom line and the share price are slightly catching up after a fall in 2013 but still barely satisfying the shareholders and customers are changing their purchasing habits which may threaten its future.
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
Customer satisfaction is a key ingredient to the success of any business.It is the most important factor that creates repeated customers. Some people know it but do not realize its importance. If a customer of yours is satisfied with one of your products or services, chances are this customer will purchase more of your products or services, which will increase your revenue. Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work. Customer satisfaction takes a very important place in Marketing. As much as you think that your marketing strategies should help you generate sales, think about how the same marketing strategies could help you achieve Customer satisfaction. There are a lot of elements involved with Customer satisfaction.
Rousseau, G.G. 2007. Buyer reality: attitudes, learning, and involvement. (In Hughes, T., ed. Buyer behaviour: understanding consumer psychology and marketing. 4th ed. South Africa: Oxford university Press. p. 185-213).
Customer satisfaction is the overriding factor for the successful operation. Sales of the supermarket can grow when it makes its customers satisfied with the goods or services by best policy to fit customers’ requirement. So, it can be told that customer satisfaction is followed by customer revisiting or repurchasing. They can also tell their acquaintances about products or services as good. Customer satisfaction and sales might be linked directly, companies have to check the factors periodically such as quality, schedule, layout, inventory and so on to lift customer satisfaction because even small factors that employees didn’t recognize can affect consumer satisfaction enormously.
In today’s marketplace the experience that a customer encounters whilst purchasing a product can be as important as the functionality of that product. Modern consumers are more savvy about products, marketing and required levels of customer service. It would be assumed that the product is functionally sound and has the appropriate desirability. Therefore, the critical factor in satisfying a consumer is the purchase and post purchase experience.
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all
In today’s competitive world where organizations looking for high profitability and market share, consumers have very important role. Companies are looking for capture consumers in order to get larger market share. For this reason organization developed a number of techniques and tools. One of such tools is consumer behavior which has been come from economic theory. Consumer behavior is mainly studying the factors and situations that can affect purchase decisions of consumers. Consumer behavior is being very important discipline of management sciences which help out to understand of customers’ decision making.
The buy grid model is a version of a theory developed as a general model of rational organizational design making, explaining how companies make decisions (Dwyer and Tanner, 2006). The buy-grid model has three components, which are: the buy-phases, the buy-class (buy situation) and the buying centres.