The consumer buying process shown in Exhibit 5.1 depicts five stages of activities that consumers may go through in buying goods and services. The process begins with the recognition of a need, and then passes through the stages of information search, evaluation of alternatives, purchase decision, and postpurchase evaluation. A marketer’s interest in the buying process can go well beyond these stages to include actual consumption behaviors, product uses, and product disposal after consumption. As we consider each stage of the buying process, it is important to keep a few key issues in mind First, the buying process depicts the possible range of activities that may occur in making purchase decisions. Consumers, however, do not always follow these stages in sequence and may even skip stages en route to making a purchase. For example, impulse purchases, such as buying a pack of chewing gum or a newspaper, do not involve lengthy search or evaluation activities. On the other hand, complex purchases like buying a home are often quite lengthy as they incorporate every stage of the buying process. Likewise, consumers who are loyal to a product or brand will skip some stages and are most likely to simply purchase the same product they bought last time. Consequently, marketers
have a difficult time promoting brand switching because they must convince these customers to break tradition and take a look at what different products have to offer. Second, the buying process often involves a parallel sequence of activities associated with finding the most suitable merchant of the product in question. That is, while consumers consider which product to buy, they also consider where they might buy it. In the case of name brand products, this selection process may focus on the product’s price and availability at different stores or online merchants. A specific model of Sony television, for example, is often available from many different retailers and may even be available at Sony’s website (www.sonystyle.com). Conversely, in the case of private-label merchandise, the choices of product and merchant are made simultaneously. If a customer is interested only in Gap brand clothing, then that customer must purchase the clothing from a Gap store or the Gap website.
Third, the choice of a suitable merchant may actually take precedence over the choice of a specific product. In some cases, customers are so loyal to a particular merchant that they will not consider looking elsewhere. For example, many older consumers are fiercely loyal to American car manufacturers. These customers will limit their product selection to a single brand or dealership, greatly limiting their range of potential product choices. In other cases, customers might be loyal to a particular merchant because they hold that merchant’s credit card or are a member of its frequent customer program. Finally, some merchants become so well known for certain products that customers just naturally execute their buying process with that merchant. Sears, for example, is well known for its selection of name-brand appliances and tools. For many customers, Sears is the natural place to go when they are in the market for a new refrigerator, washer, or wrenches.
Need Recognition
Third, the choice of a suitable merchant may actually take precedence over the choice of a specific product. In some cases, customers are so loyal to a particular merchant that they will not consider looking elsewhere. For example, many older consumers are fiercely loyal to American car manufacturers. These customers will limit their product selection to a single brand or dealership, greatly limiting their range of potential product choices. In other cases, customers might be loyal to a particular merchant because they hold that merchant’s credit card or are a member of its frequent customer program. Finally, some merchants become so well known for certain products that customers just naturally execute their buying process with that merchant. Sears, for example, is well known for its selection of name-brand appliances and tools. For many customers, Sears is the natural place to go when they are in the market for a new refrigerator, washer, or wrenches.
Need Recognition
The buying process begins when consumers recognize that they have an unmet need. This occurs when consumers realize that there is a discrepancy between their existing level of satisfaction and their desired level of satisfaction. Consumerscan recognize needs in a variety of settings and situations. Some needs have their basis in internal stimuli, such as hunger, thirst, and fatigue. Other needs have their basis in external stimuli, such as advertising, window shopping, interacting with salespeople, or talking with friends and family. External stimuli can also arouse internal responses, such as the hunger you might feel when watching an advertisement for Pizza Hut.
Typically, we think of needs as necessities, particularly with respect to the necessities of life (food, water, clothing, safety, shelter, health, or love). However, this definition islimited because everyone has a different perspective on what constitutes a need. For example, many people would argue that they need a car when their real need is for transportation. Their need for a car is really a “want” for a car. This is where we draw the distinction between needs and wants. A need occurs when an individual’s current level of satisfaction does not equal their desired level of satisfaction. A want is a consumer’s desire for a specific product that will satisfy the need. Hence, people need transportation, but they choose to fulfill that need with a car, rather than with alternative products like motorcycles, bicycles, public transportation, a taxi, or a horse
The distinction between needs and wants is not simply academic. In any marketing effort, the firm must always understand the basic needs fulfilled by their products. For example, people do not need drills; they need to make holes or drive screws. Similarly, they do not need lawnmowers; they need shorter, well-manicured grass. Understanding these basic needs allows the firm to segment markets and create marketing programs that can translate consumer needs into wants for their specific products. An important part of this effort involves creating the appropriate stimuli that will foster need recognition among consumers. The idea is to build on the basic need and convince potential consumers to want your product because it will fulfill their needs better than any competing product.
Typically, we think of needs as necessities, particularly with respect to the necessities of life (food, water, clothing, safety, shelter, health, or love). However, this definition islimited because everyone has a different perspective on what constitutes a need. For example, many people would argue that they need a car when their real need is for transportation. Their need for a car is really a “want” for a car. This is where we draw the distinction between needs and wants. A need occurs when an individual’s current level of satisfaction does not equal their desired level of satisfaction. A want is a consumer’s desire for a specific product that will satisfy the need. Hence, people need transportation, but they choose to fulfill that need with a car, rather than with alternative products like motorcycles, bicycles, public transportation, a taxi, or a horse
The distinction between needs and wants is not simply academic. In any marketing effort, the firm must always understand the basic needs fulfilled by their products. For example, people do not need drills; they need to make holes or drive screws. Similarly, they do not need lawnmowers; they need shorter, well-manicured grass. Understanding these basic needs allows the firm to segment markets and create marketing programs that can translate consumer needs into wants for their specific products. An important part of this effort involves creating the appropriate stimuli that will foster need recognition among consumers. The idea is to build on the basic need and convince potential consumers to want your product because it will fulfill their needs better than any competing product.
It is also important to understand that wants are not the same thing as demand. Demand occurs only when the consumer’s ability and willingness to purchase a specific product backs up their want for the product. Many customers want a luxury yacht, for example, but only a few are able and willing to buy one. In some cases, consumers may actually need a product, but not want it. So-called “unsought products” like life insurance, cemetery plots, long-term health insurance, and continuing education are good examples. In these cases, the marketer must first educate consumers on the need for the product, and then convince consumers to want their products over competing products. For example, Allstate’s “Are You in Good Hands?” campaign specifically questions whether potential customers are sure about their insurance coverage. Creating the seed of doubt in the consumer’s mind is a good first step toward educating potential customers about the need for adequate insurance.
Understanding consumers’ needs and wants is an important consideration in market segmentation. Some markets can be segmented on the basis of needs alone. College students, for example, have needs that are very different from senior citizens; and single consumers have very different needs than families with small children. However, the marketing of most products does not occur on the basis of need-fulfillment alone. In the automobile market, for example, essentially no manufacturer promotes their products as being the best to get you from Point A to Point B (the basic need of transportation). Rather, they market their products on the basis of consumer wants such as luxury (Lexus), image (Mercedes), sportiness (Jaguar), durability (Ford trucks), fuel economy (Honda Civic), and value (Kia). These wants are the hot buttons for consumers, and the keys to promoting further activity in the buying process.
Information Search
Understanding consumers’ needs and wants is an important consideration in market segmentation. Some markets can be segmented on the basis of needs alone. College students, for example, have needs that are very different from senior citizens; and single consumers have very different needs than families with small children. However, the marketing of most products does not occur on the basis of need-fulfillment alone. In the automobile market, for example, essentially no manufacturer promotes their products as being the best to get you from Point A to Point B (the basic need of transportation). Rather, they market their products on the basis of consumer wants such as luxury (Lexus), image (Mercedes), sportiness (Jaguar), durability (Ford trucks), fuel economy (Honda Civic), and value (Kia). These wants are the hot buttons for consumers, and the keys to promoting further activity in the buying process.
Information Search
When done correctly, marketing stimuli can prompt consumers to become interested in a product, leading to a desire to seek out additional information. This desire can be passive or active. In a passive information search, the consumer becomes more attentive and receptive to information, such as noticing and paying attention to automobile advertisements if the customer has a want for a specific car brand. A consumer engages in an active information search when he or she purposely seeks additional information, such as browsing the Internet, asking friends, or visiting dealer showrooms. Information can come from a variety of sources. Internal sources, including the personal experiences and memories, are typically the first type of information that consumers search. Information can also come from personal sources, including word-of-mouth advice from friends, family, or coworkers. External sources of informationinclude advertising, magazines, websites, packaging, displays, and salespeople. Although external sources are the most numerous, consumers typically trust these sources less than internal and personal sources of information.
The amount of time, effort, and expense dedicated to the search for information depends on a number of issues. First, and perhaps most important, is the degree of risk involved in the purchase. Consumers by nature are naturally risk averse; they use their search for information to reduce risk and increase the odds of making the right choice. Risk comes in many forms, including financial risk (buying a home), social risk (buying the right clothing), emotional risk (selecting a wedding photographer), and personal risk (choosing the right surgeon). In buying a car, for example, consumers regularly turn to Consumer Reports magazine, friends, and government safety ratings to help reduce these types of risk. A second issue is the amount of expertise or experience the consumer has with the product category. If a first-time buyer is in the market for a notebook computer, they face a bewildering array of choices and brands. This buyer is likely to engage in an extensive information search to reduce risk and narrow the potential set of product choices. The same buyer, several purchases later, will not go through the same process. Finally, the actual cost of the search in terms of time and money will limit the degree to which consumers search for information. In some situations, such as time deadlines or emergencies, consumers have little time to consult all sources of information at their disposal.
The amount of time, effort, and expense dedicated to the search for information depends on a number of issues. First, and perhaps most important, is the degree of risk involved in the purchase. Consumers by nature are naturally risk averse; they use their search for information to reduce risk and increase the odds of making the right choice. Risk comes in many forms, including financial risk (buying a home), social risk (buying the right clothing), emotional risk (selecting a wedding photographer), and personal risk (choosing the right surgeon). In buying a car, for example, consumers regularly turn to Consumer Reports magazine, friends, and government safety ratings to help reduce these types of risk. A second issue is the amount of expertise or experience the consumer has with the product category. If a first-time buyer is in the market for a notebook computer, they face a bewildering array of choices and brands. This buyer is likely to engage in an extensive information search to reduce risk and narrow the potential set of product choices. The same buyer, several purchases later, will not go through the same process. Finally, the actual cost of the search in terms of time and money will limit the degree to which consumers search for information. In some situations, such as time deadlines or emergencies, consumers have little time to consult all sources of information at their disposal.
Throughout the information search, consumers learn about different products or brands and begin to remove some from further consideration. They evaluate and reevaluate their initial set of products or brands until their list of potential product choices has been narrowed to only a few products or brands that can meet their needs. This list of suitable alternatives is called the evoked set, and it represents the outcome of the information search and the beginning of the next stage of the buying process.
Evaluation of Alternatives
Evaluation of Alternatives
In evaluating the alternative product or brand choices among the members of the evoked set, the consumer essentially translates his or her need into a want for a specific product or brand. The evaluation of alternatives is the black box of consumer behavior because it is typically the hardest for marketers to understand, measure, or influence. What we do know about this stage of the buying process is that consumers base their evaluation on a number of different criteria, which usually equate with a number of product attributes
Consumers evaluate products as bundles of attributes that have varying abilities to satisfy their needs. In buying a car, for example, each potential choice represents a bundle of attributes, including brand attributes (e.g., image, reputation, reliability, safety), product features (e.g., power windows, automatic transmission, fuel economy), aesthetic attributes (e.g., styling, sportiness, roominess, color), and price. Each consumer has a different opinion as to the relative importance of these attributes some put safety first, while others consider price the dominant factor. Another interesting feature of the evaluation stage is that the priority of each consumer’s choice criteria can change during the process. Consumers may visit a dealership with price as their dominant criterion, only to leave the dealership with price dropping to third on their list of important attributes.
Purchase Decision
Consumers evaluate products as bundles of attributes that have varying abilities to satisfy their needs. In buying a car, for example, each potential choice represents a bundle of attributes, including brand attributes (e.g., image, reputation, reliability, safety), product features (e.g., power windows, automatic transmission, fuel economy), aesthetic attributes (e.g., styling, sportiness, roominess, color), and price. Each consumer has a different opinion as to the relative importance of these attributes some put safety first, while others consider price the dominant factor. Another interesting feature of the evaluation stage is that the priority of each consumer’s choice criteria can change during the process. Consumers may visit a dealership with price as their dominant criterion, only to leave the dealership with price dropping to third on their list of important attributes.
Purchase Decision
After the consumer has evaluated each alternative in the evoked set, he or she forms an intention to purchase a particular product or brand. However, a purchase intention and the actual act of buying are distinct concepts. A consumer may have every intention of purchasing a new car, for example, but several factors may prevent the actual purchase from taking place. The customer may postpone the purchase due to unforeseen circumstances, such as an illness or job loss. The salesperson or the sales manager may anger the consumer, leading them to walk away from the deal. The buyer may not be able to obtain financing for their purchase due to a mistake in their credit file. Or the buyer may simply change his or her mind. Marketers can often reduce or eliminate these problems by reducing the risk of purchase through warranties or guarantees, making the purchase stage as easy as possible, or finding creative solutions to unexpected problems.
Postpurchase Evaluation In the context of attracting and retaining buyers, postpurchase evaluation is the connection between the buying process and the development of long-term customer relationships. Marketers must closely follow consumers’ responses during this stage to monitor the product’s performance and its ability to meet consumers’ expectations. In the postpurchase stage, consumers will experience one of these four outcomes:
• Delight the product’s performance greatly exceeds the consumer’s expectations
• Satisfaction the product’s performance matches the consumer’s expectations
• Dissatisfaction the product’s performance falls short of the consumer’s expectations
• Cognitive Dissonance (Postpurchase Doubt) the consumer is unsure of the product’s performance relative to their expectations
Consumers are more likely to experience dissatisfaction or cognitive dissonance when the dollar value of the purchase increases, the opportunity costs of rejected alternatives are high, or the purchase decision is emotionally involving. Firms can manage these responses by offering liberal return policies, providing extensive post-sale support, or reinforcing the wisdom of the consumer’s purchase decision. The firm’s ability to manage dissatisfaction and dissonance is not only a key to creating customer satisfaction; it also has a major influence on the consumer’s intentions to spread word-of-mouth information about the company and its products
Postpurchase Evaluation In the context of attracting and retaining buyers, postpurchase evaluation is the connection between the buying process and the development of long-term customer relationships. Marketers must closely follow consumers’ responses during this stage to monitor the product’s performance and its ability to meet consumers’ expectations. In the postpurchase stage, consumers will experience one of these four outcomes:
• Delight the product’s performance greatly exceeds the consumer’s expectations
• Satisfaction the product’s performance matches the consumer’s expectations
• Dissatisfaction the product’s performance falls short of the consumer’s expectations
• Cognitive Dissonance (Postpurchase Doubt) the consumer is unsure of the product’s performance relative to their expectations
Consumers are more likely to experience dissatisfaction or cognitive dissonance when the dollar value of the purchase increases, the opportunity costs of rejected alternatives are high, or the purchase decision is emotionally involving. Firms can manage these responses by offering liberal return policies, providing extensive post-sale support, or reinforcing the wisdom of the consumer’s purchase decision. The firm’s ability to manage dissatisfaction and dissonance is not only a key to creating customer satisfaction; it also has a major influence on the consumer’s intentions to spread word-of-mouth information about the company and its products
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