Research suggests that customers go through a five-stage
decision-making process in any purchase. This is summarised in the diagram
below:
This
model is important for anyone making marketing decisions. It forces the
marketer to consider the whole buying process rather than just the purchase
decision (when it may be too late for a business to influence the choice!)
The model implies that customers pass through all stages in
every purchase. However, in more routine purchases, customers often skip or
reverse some of the stages.
For example, a student buying a favourite hamburger would
recognise the need (hunger) and go right to the purchase decision, skipping information
search and evaluation. However, the model is very useful when it comes to
understanding any purchase that requires some thought and deliberation.
The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins).
The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins).
An “aroused” customer then needs to decide how much information
(if any) is required. If the need is strong and there is a product or service
that meets the need close to hand, then a purchase decision is likely to be
made there and then. If not, then the process of information search begins.
A customer can obtain information from several sources:
• Personal sources: family, friends, neighbours etc
• Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays
• Public sources: newspapers, radio, television, consumer organisations; specialist magazines
• Experiential sources: handling, examining, using the product
• Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays
• Public sources: newspapers, radio, television, consumer organisations; specialist magazines
• Experiential sources: handling, examining, using the product
The usefulness and influence of these sources of information
will vary by product and by customer. Research suggests that customers value
and respect personal sources more than commercial sources (the influence of
“word of mouth”). The challenge for the marketing team is to identify which
information sources are most influential in their target markets.
In the evaluation stage, the customer must choose between the
alternative brands, products and services.
How does the
customer use the information obtained?
An important determinant
of the extent of evaluation is whether the customer feels “involved” in the
product. By involvement, we mean the degree of perceived relevance and personal
importance that accompanies the choice.
Where a purchase is
“highly involving”, the customer is likely to carry out extensive evaluation.
High-involvement
purchases include
those involving high expenditure or personal risk – for example buying a house,
a car or making investments.
Low
involvement purchases (e.g.
buying a soft drink, choosing some breakfast cereals in the supermarket) have
very simple evaluation processes.
Why
should a marketer need to understand the customer evaluation process?
The answer lies in the
kind of information that the marketing team needs to provide customers in
different buying situations.
In high-involvement
decisions, the marketer needs to provide a good deal of information about the
positive consequences of buying. The sales force may need to stress the
important attributes of the product, the advantages compared with the
competition; and maybe even encourage “trial” or “sampling” of the product in
the hope of securing the sale.
Post-purchase
evaluation - Cognitive Dissonance
The final stage is the
post-purchase evaluation of the decision. It is common for customers to
experience concerns after making a purchase decision. This arises from a
concept that is known as “cognitive dissonance”. The customer, having bought a
product, may feel that an alternative would have been preferable. In these
circumstances that customer will not repurchase immediately, but is likely to
switch brands next time.
To manage the
post-purchase stage, it is the job of the marketing team to persuade the
potential customer that the product will satisfy his or her needs. Then after
having made a purchase, the customer should be encouraged that he or she has
made the right decision.
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