UNIT – V

PURCHASE DECESION PROCESS

• HIGH &LOW INVESTMENT
Investment is commonly defined as the
consumers personal interest in buying (or)
using an item from a given product fields.
Ex: product category (car)
brand (Indica )
add (Print add)
medium (Tv or Net)
Decision (buy or not)
• Interest ,needs & values of demand
• Involve affects (Information
searching,processing,attention,congtive
learning & satisfaction )
Characteristics High Low Involvement
Involvement

Decision Making Sequential Model (Perfect Less evidence for both

& Right)
Cognitive Learning (Passive
Learning) Try to Change

Habits Loyalty Inertia (Change)

Instrumental Condition
 SOME CONSUMER INVESTMENT
Eg: 1, Link brand with issue : High chooses
from oil
• Low chooses from oil (saffola ,sunnola,olive
oil)
2,Link brand with Personal situation:
• Even if you have high potential . Choose low
potential product.
• Eg: cycling
 CREATS INVOLVEMENT
• Use some simple (opinion of an expert )
• Demo of the product
• Price , quality, quantity, technology
 PRE PURCHASE BEHAVIOUR
 Product brand Product quality

social class family culture

environment
discount offer
 POST PURCHASE BEHAVIOUR
PURCHASE

Product expectation conformation

Product performance
 DIFFUSION OF INNOVATION
• The acceptance of new product & services.
• The framework for exploring consumer
acceptance of new products is drawn from the
area of research known as diffusion of
innovation.
 DIFFUSION PROCESS
• Diffusion process - macro process

Spread of a new product

Adoption process

Micro process – focus individual consumer

accept or reject
 DIFFUSION PROCESS
• How innovation spread
• New product, service, idea,practice
spread by communication (
• mass media, salespeople)
• To member (target market ).
 FOUR BASIC ELEMENTS OF
DIFFUSION PROCESS
i,THE INNOVATION :
1 ,Frim oriented def :
 Product from the company
 New to market place (competitors or consumers )
 It has considered merit when object is examine.
• ii.Product innovation:
1.continous innovation :
It involves the introduction of a modified rather
than new product.
Eg: Microsoft windows
Mobile phones
chocolate
Car
2.A dynamically continuous innovation :
It may involve the creation of a new product or
services change of an product..
Eg: Digital camera
Digital video recorder
MP3 players
Disposable diapers
3.A discontinuous innovation:
Consumers adopt to new behavior patterns
Eg:Radios,Tv,fax,Internet
• Iii. Market oriented def:
Newness of a product is terms of consumers
expectation.
-Two market – oriented definitions of products
innovation.
-New product is purchased by relatively small
percentage of the market (How much product
in market )
-New product is purchased by short period of
time(How long period in market)
4.Consumer oriented def:
 Newness – consumer protection of the product
 Purchase innovativeness ( cost , quality)
 Use innovativeness (about product features)
• Product Characteristics that influence
Diffusion
S.No Characteristics Definition Example

1. Relative Advantage New product as Superior Lcd tv, Laptop

to the existing one

2 Compatibility New Product with Present Mobile, camera,

needs and Values alarm clock etc

3. Complexity New product is Different Cold coffee, soap.

to understand

4. Trialability Tried on Limited basis Free samples,

downloads etc.
 The channels of communication
 How it spread through
(word of mouth communication)
 Internet play a major role
 Eg: Ford,GeneralMotars,other major
automobiles used net to promote their
products.
 podcasts helps to develop their products.
 THE SOCIAL SYSTEM
A social system is a Physical, social or cultural
environment to which people belong and
within which they function..
Eg: Corn in super market
New medicine
Diet product for geriatric community
 MODERN SOCIAL SYSTEM
• Positive attitude
• Advance technology
• Respect for Edu & Science
Eg :In U.S – Beef consumption is high in 1970
(80% )..but now 60%
-Chicken,fish consumption high(Nutrition value)
 TIME
• THREE TYPES
i. The amount of purchase time :
-Consumers initial awareness of a new
product(or) services.
- They purchase (or) reject it
ii. Adopters categories:
when the consumer adopt new product
 5 STAGES
i.Innovators - first to adopt new products &
services.
ii.Early adopters - second, socially integrated, less
risk involved leader.
iii.Early majority - after these two critical
position (journal or magazine reader)
iv.Late majority - skeptical – below in edu,social
status & income.
v.Laggards –tradition bound – quite long
Eg; shampoo and Soap
 RATE OF ADOPTION
• How long it takes a new product or services to
be adopted by members of a social system..
Eg: B & w in India and color TV in U.S.
 MANAGINING DISSONANCE
 Dissonance occurs – discrepancy between
consumers decision & the consumer prior
evaluation.
Dissonance occurs
 Minimum threshold is passed
 Purchase decision is irrevocable product
 Selected alternative have less attractive feature.
 Lack in several desirable alternatives
Eg :Buy car (color,price,model)
 HOW TO REDUCE DISSONANCE
1.Change his evaluation of alternatives.
2.Seek new information to support his choice.
3.Change his attitude.