READING: BUYING-PROCESS STAGES

The Buyer’s Decision Process

For many products, the purchasing behavior is routine: you notice a need and you
satisfy that need according to your habit of repurchasing the same brand or the cheapest
brand or the most convenient alternative, depending on your personal assessment of
trade-offs and value. In these situations, you have learned from your past experiences
what will best satisfy your need, so you can bypass the second and third stages of the
process. This is called simple decision making. However, if something changes
appreciably (price, product, availability, services), then you may re-enter the full decision
process and consider alternative brands.
The following section discusses each step of the buyer decision-making process.

1……………………………………………..
The first step of the buyer decision process is recognizing that there is a problem–or
unmet need–and that this need warrants some action. Whether we act to resolve a
particular problem depends upon two factors: (1) the magnitude of the difference between
what we have and what we need, and (2) the importance of the problem. A man may
desire a new Lexus and own a five-year-old Ford Focus. The discrepancy may be fairly
large but relatively unimportant compared to the other problems he faces. Conversely, a
woman may own a two-year-old car that is running well, but for various reasons she
considers it extremely important to purchase another car this year. Buyers do not move
on to the next step until they have confirmed that their specific needs are important
enough to act on.
Part of need recognition is defining the problem in a way that allows the buyer to take
the next step toward finding a solution. In many cases, problem recognition and problem
definition occur simultaneously: a buyer runs out of toothpaste, for instance. In other
cases, these are separate tasks. Consider a scenario in which you injure your knee. You
may know that your knee hurts, and you can’t walk very well, but you need to further
define the problem before you can take action: Do you need a good night’s sleep?
A brace? Pain medication? Physical therapy? Surgery? All of these things? As a buyer,
you will be able to begin solving your problem once it is adequately defined.
Marketers get involved in the need recognition state at three points:
1. Knowing what problems buyers are facing, so they can develop a marketing mix
to address these problems
2. Activating problem recognition, in order to trigger the start of the purchasing
process
 3. Shaping how buyers define the need or problem, in order to influence their wants
as they look for a solution
Marketing interactions through ads, Web sites, salespeople, and any number of other
activities create opportunities for marketers to communicate with buyers and become
engaged in need recognition. Listening to buyer through social media or the buyer
support team provides insight into the ways buyers perceive the problems they
face. A public service announcement espousing the dangers of cigarette smoking helps
trigger a sense of needing to do something about cancer prevention. Advertising weekend
and evening shopping hours triggers awareness of the problem of limited weekday
shopping opportunities for busy working parents. Once a young man recognizes that he
needs a new coat, marketing tries to influence his choices: Should it be a trendy, bargain-
priced jacket from Old Navy or the pricey North Face coat he can wear snowboarding
(assuming he can scrape together money for a lift pass after buying the coat). In each of
these scenarios, marketing plays an active role in facilitating need recognition.

2……………………………………………………………….
After recognizing a need, the prospective buyer may seek information to help identify
and evaluate alternative products, services, experiences, and outlets that will meet that
need. Information may come from any number of sources: family and friends, search
engines, Yelp reviews, personal observation, Buyer Reports, salespeople, product
samples, and so forth. Which sources are most important depends on the individual and
the type of purchase he or she is considering.
The promotion element of the marketing mix should provide information to assist
buyers in the decision process. When marketers understand which information sources
their target buyers turn to during the search process, they can develop a promotion
strategy and tactics that put their offerings and message into the search path. For instance,
teen boys rely heavily on peer networks to know what’s interesting, cool, and desirable.
A social media strategy is essential for virtually any product—video games, fashion,
gadgets, sports gear, music, and on—targeting these buyers.
In some cases, buyers already have the information they need based on past
purchasing and consumption experience–for better or for worse. Good experiences
reinforce buyer loyalty, while bad experiences destroy opportunities for repeat purchases.
For instance, a buyer who needs new tires may look for sales in the local newspaper or
ask friends for a recommendation. If she has bought tires before and had a good
experience, she may go to the same dealer and buy the same brand.
The information-search process can also identify new needs. As a tire shopper looks
for information, she may decide that the tires are not the real problem, but instead she
needs a new car. At this point, her newly perceived need may trigger a new information
search.
Information search involves both mental and physical activities that buyers must
perform in order to make decisions and solve their problems through the marketplace. As
anyone who has purchased a car, computer, or pet knows, it takes time, energy,
and money to achieve a satisfactory outcome. Often it means foregoing more desirable
activities. Eventually most buyers learn that the benefits of information search can
outweigh the costs, particularly for bigger-ticket purchases. A thorough information
search may save money, improve the quality of selection, or reduce risks.

3…………………………………………………………….
As a buyer finds and processes information about the problem she is trying to solve,
she identifies the alternative products, services, and outlets that are viable options. The
next step is to evaluate these alternatives and make a choice, assuming a choice is
possible that meets the buyer’s financial and psychological requirements. Evaluation
criteria vary from buyer to buyer and from purchase to purchase, just as the needs and
information sources vary. One buyer may consider price most important while another
puts more weight on quality or convenience.
The information search helps inform buyers about the criteria they might consider as
they are evaluating options and making a final selection. For any given purchasing
decision, each buyer develops a set of criteria–often only a mental list–along with the
relative importance of each quality in their final selection. This evaluation process may
be very systematic and comprehensive for some people and purchases. There are also
people who find the selection process difficult or frustrating, and so they cope with their
discomfort by keeping the number of alternatives to a minimum, or by making an
impulse purchase at the last moment. Note that the selection and evaluation phases of
buyer problem solving are closely related and often happen simultaneously.
Consider a situation in which you are buying a new vacuum cleaner. During your
information search process, you identified five leading models in online reviews, as well
as a set of evaluation criteria that are most important to you: 1) price, 2) suction power,
3) warranty, 4) weight, 5) noise level, and 6) ease of using attachments. After visiting
Sears and Home Depot to check out all the options in person, you’re torn between two
models you short-listed. Finally you make the agonizing choice, and the salesperson
heads to the warehouse to get one for you. He returns with bad news: The vacuum
cleaner is out of stock, but a new shipment is expected in three days. Strangely relieved,
you take that as a sign to go for the other model, which happens to be in stock. Although
convenience wasn’t on your original list of selection criteria, you need the vacuum
cleaner before the party you’re having the next day. You pick the number-two choice and
never look back.
From the marketer’s perspective, understanding your target buyer’s evaluation criteria
is critical. You need to demonstrate these qualities in order to be short-listed in the
selection set. Often these qualities make the difference in your offering being selected
over competitors’. In the end, selection remains something of an unpredictable black box
because people think differently, and the circumstances for any given purchasing
situation are unique to the person, the product, and the problem being solved.

4………………………………………….
After much searching and evaluating (or perhaps very little), buyers at some point
have to decide whether they are going to buy. Anything marketers can do to simplify
purchasing will be attractive to buyers. For example, in advertising, marketers
might suggest the best size of product for a particular use or the right wine to drink with a
particular food. Sometimes several decision situations can be combined and marketed as
one package. For example, travel agents often package travel tours, and stores that sell
appliances try to sell them with add-on warranties.
To do a better job of marketing at this stage of the buying process, a seller needs to
have answers to questions about buyers’ shopping behavior. Those answers will increase
the likelihood of closing the sale and maximizing value at the moment of purchase.
Useful questions to ask include the following:
 How much effort is the buyer willing to spend in shopping for the product?
 What factors influence when the buyer will actually make the purchase?
 Are there any conditions that would prohibit or delay the purchase?
Marketers should look for opportunities to influence things in their favor at the point
of purchase. Product pricing, labeling, and packaging can be hugely influential at this
stage of the process. Product sampling, coupons, and rebates may also give an extra
incentive to buy. Personal selling, product display, convenience, and ease of finding the
product may also lead the buyer to make one choice over another. Actually determining
how a buyer goes through the decision-making process is a difficult research task, in part
because it can vary so much from buyer to buyer. The key for marketers is to be aware of
the influencing factors and how to shape them to your advantage.

5…………………………………………………….
All the behavior determinants and the steps of the buying process up to this point take
place before or during the time a purchase is made. However, a buyer’s feelings and
evaluations after the sale are also significant to a marketer, because they can influence
repeat sales and what the buyer tells others about the product or brand.
 Marketing is all about keeping the buyer happy at every stage of the decision-
making process, including postpurchase. It is normal for buyers to experience some
postpurchase anxiety after any significant or nonroutine purchase. This anxiety reflects a
phenomenon called cognitive dissonance. According to this theory, people strive for
consistency among their cognitions (knowledge, attitudes, beliefs, and values). When
there are inconsistencies, dissonance arises, which people try to eliminate.
In some cases, the buyer makes the decision to buy a particular brand already aware
of dissonant elements or things that are inconsistent with their internal criteria. A
common example is price: a buyer falls in love with every aspect of a product, but it costs
more money than he intended to spend. His cognitive dissonance is whether to spend the
extra money for a product he loves or else stick with a second-best product that fits the
budget. In other cases, dissonance is aroused by information received after the purchase.
For instance, a disturbing report about sweatshop labor comes out days after you
purchase a pair of athletic shoes from the company involved.
Marketers may take specific steps to reduce postpurchase dissonance. One obvious
way is to help ensure delivery of a quality solution that will satisfy buyer. Another step is
to develop advertising and new-buyer communications that stress the many positive
attributes or confirm the popularity of the product. Providing personal reinforcement has
proven effective with big-ticket items such as automobiles and major appliances.
Salespeople in these areas may send cards or even make personal calls in order to
reassure buyer about their purchase.

A. Match the tittles below to the Paragraphs in the reading.

 Information search
 Recognition of need
 Evaluation of alternatives
 Post-purchase evaluation
 Purchase decision
B. True & False questions
1. Marketers should not look for opportunities to influence things in buyer’ favor at
the point of purchase.
2. A set of evaluation criteria that the buyer need to evaluate when buying a vacuum
cleaner: 1) price, 2) suction power, 3) warranty, 4) weight, 5) noise level, and 6) ease of
using attachments.
3. Buyers must perform in order both mental and physical activities to make decision
and solve their problems through the marketplace, this step is involved in information
search.
 4. The buying-process happens when buyer recognizes that there is a problem–or
unmet need–and that this need warrants some actions.
C. Discussion
1. What social media strategy that Marketers use to target teen boys?
2. What steps the marketers get involved in the need recognition state?
3. What steps may the marketers take to reduce postpurchase dissonance of buyer?
4. What sources that buyer may seek information from?
D. Construct the sentences
+ Circumstance
+ Strategic decision
+ Agent
+ Decision