Facilitator: Ardhendu Shekhar Singh

BUYING PROCESS

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SESSION PLAN
Recap Buying process

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BUYING PROCESS

Is the process a consumer/organization goes through to make decisions regarding the purchase, use, and disposal of goods and services.

Individual Organizational

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COMPARISON OF INDIVIDUAL AND ORGANIZATIONAL BUYING

Actors Processes Motive Volume Number of customers Location (concentrated/dispersed) Distribution Negotiation

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PROCESS STAGE (SIMKIN, 2000)

ADOPTION PROCESS FOR NEW PRODUCTS

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Stages in the Adoption Process

Awareness Interest Evaluation Trial Adoption

AIDA (Awareness, Interest, Desire, Action)

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LEVELS OF ADOPTION
Percentage of Adopters

Early Majority Innovators

Late Majority

Early Adopters

34%

34%

Laggards

13.5% 2.5%

16%

Early

Time of Adoption

Late
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FACTORS INFLUENCING CONSUMER BUYING PROCESS

There

are two main influences on consumer purchasing behaviour:

Internal

characteristics that determine behaviour - psychological and personal.

influences where the behaviour occurs - cultural and social.
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External

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PSYCHOLOGICAL INFLUENCES

1.

Motivation 2. Perception 3. Learning 4. Beliefs and Attitudes

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1.

MOTIVATION

When

a consumer indicates an interest in buying a product, there are a number of questions we might ask. Why is he/ she interested ? What is the person really seeking? What needs is he/ she trying to satisfy? have many needs at any given time.
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We

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MOTIVATION THEORIES

Sigmund Freud assumed that people are generally unaware of the real psychological forces shaping their behaviour. He sees a person as growing up with many needs that are never fully controlled. This theory suggests that buyers dont always know what motivates a particular purchase, so a marketer may need to undertake greater indepth research to find an appropriate answer.
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CONTD

Abraham Maslow sought to explain why people are driven by particular needs at particular times. Why does one person spend much time and energy on personal safety, while another person tries hard to gain the esteem of others? He concluded that human needs are arranged in a hierarchy, from the most urgent (basic) need, to the least urgent. Herzbergs two factor (hygiene and
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MASLOWS HIERARCHY OF NEEDS

Selfactualization
Esteem Social Safety Physiological

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2.

PERCEPTION
The process by which we Select; Organise; and Interpret information A motivated person is ready to act. How that person acts will be influenced by his or her perception of the situation. Two people with similar motivation, and in the same situation, might act quite differently because they each have a different perception of the situation.
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PERCEPTUAL PROCESSES

Selective Exposure is the message noticed? we respond only to certain influences

Selective Distortion adapt information to suit, to better match our beliefs about a product Selective Retention retain only supporting information that reinforces attitudes and beliefs Subliminal Perception Subliminal perception occurs whenever stimuli presented below the threshold or limen for awareness are found to influence thoughts, feelings, or actions.
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3.

LEARNING

When people act, they learn. Learning describes changes in an individual's behaviour arising from experience. Learning occurs through the interplay of drives; stimuli; cues; responses; and reinforcement. The significance of learning theory to marketers is that they can build demand for a product by associating it with strong drives, using motivating cues and providing positive reinforcement.
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4.

BELIEFS AND ATTITUDES

People acquire their beliefs and attitudes through acting and learning. This will then influence their individual buying behaviour.

A belief is a descriptive thought or conviction that a person has about something; it involves having a specific opinion. Incorrect beliefs about a products features or its brand image can reduce product sales.
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4. CONTD
An attitude describes a persons relatively consistent evaluations, feelings and tendencies towards an object or idea. People retain attitudes towards a wide range of objects, including business firms and their particular products.

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PERSONAL INFLUENCES

A buyer's decisions are also influenced by personal characteristics such as:

Age

and life-cycle stage Occupation Level of Education Economic situation Personality and Self Image Consumer lifestyle
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CULTURAL INFLUENCES
Cultural

factors have the greatest level of influence on consumer behaviour. Because of this, marketers need to understand the role played by:
Culture. Cultural

diversity. Social class.

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SOCIAL INFLUENCES

Household types: changing lifestyles and family roles can affect buying decisions. Groups:
Membership groups to which we belong. Reference groups that influence our attitudes. Opinion leaders who have significant influence

Roles and Status within society

will vary with each situation

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CONSUMER BUYING ROLES

Initiator

user

Influencer

Buying decision

Buyer

Decider

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TYPES OF BUYING BEHAVIOR

Consumer decision making will vary with the type of product to be purchased

Complex Buying Behavior

Expensive, risky purchase; perceived differences between products

Dissonance-Reducing Buying Behavior

Expensive, risky; difficult to differentiate between the products
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CONTD
Habitual Buying Behavior
Consumer makes regular purchase of the same product

Variety-Seeking Buying Behavior

Consumer is prone to brand switching; has a low commitment to a particular product

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TYPES OF BUYING BEHAVIOR

High Involvement
Significant difference between brands Low Involvement

Complex

Variety seeking

Few difference between brands

Dissonance reducing

Habitual

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CONTD.

Total setawareness setconsideration setchoice setdecision

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TYPES OF ORGANIZATIONAL BUYING

Straight rebuy/regular Modified rebuy New buy

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SHETH, 1973

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FACTORS INFLUENCING ORGANIZATIONAL BUYING PROCESS (WEBSTER AND WIND, 1972)

Environmental Organizational Interpersonal Individual

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ENVIRONMENTAL
Competition Legal Economic Sociocultural Technological

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ORGANIZATIONAL
Objective Purchasing policies Resources Buying center structure

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INTERPERSONAL
Cooperation Conflict Power relationship

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INDIVIDUAL
Age Educational level Job status Personality Income

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DISPOSAL OF PRODUCTS
Obsolete Not satisfied

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