Tutorial 4

Understanding Consumer
And
Business Buyer Behavior

15) Describe the stages in the buyer

decision process.

The Buyer Decision Process are need recognition, information search,

evaluation of alternatives, purchase decision and postpurchase behaviour.

1st stage: Need Recognition

-The buyer recognizes a problem or need.
-The need can be triggered by internal stimuli(e.g.,hunger or thirst) and
external stimuli(e.g., advertisement).

2nd stage: Information Search

-An interested consumer may or may not search for more information.
-Sources of information:
>Personal sources (family, friends, neighbours, acquaintances)
>Commercial sources (advertising, salesperson, packaging, displays)
>Public sources (mass media, consumer rating organizations, Internet searches)
>Experiental sources (handling, examining, using the product)

3rd stage: Evaluation Of Alternatives

-Refers to how consumers process information to arrive at brand choices.
-In some cases, consumers use careful calculations, logical thinking and
situation
-At other times, the same consumers do little or no evaluating. Instead they
buy on impulse and rely on intuition.

4th stage: Purchase Decision

-Consumers purchase decision will be to buy the most preferred brand.
-The 2 factors can come between the purchase intention and the purchase
decision are Attitudes of others and Unexpected situational factors.

5th stage: Postpurchase Behavior

-The difference between the consumers expectations and the products
perceived performance will determine how satisfied the consumer is.
-If the product falls short of expectations, the consumer is disappointed.
-If it meets expectations, the consumer is satisfied.
-If it exceeds expectations, the consumer is delighted.
-Cognitive dissonance, or discomfort caused by postpurchase conflict, occurs
in most major purchases.

16) Describe the buyer decision process for new

products.

1st stage: Awareness

-The consumer becomes aware of the new product but lacks information
about it.

2nd stage: Interest

-The consumer seeks information about the new products.

3rd stage: Evaluation

-The consumer considers whether trying the new product makes sense.

4th stage: Trial

-The consumer tries the new product on a small scale to improve his or her
estimate of its value.

5th stage: Adoption

-The consumer decides to make full and regular use of the new product.

17) Briefly explain the types of business buying

situations

Straight rebuy
-The buyer reorders something without any modifications.

Modified rebuy
-The buyer wants to modify product specifications, prices, terms or suppliers.

New task buy

-A company buying a product or service for the first time.

Systems selling (or solutions selling)

-Buying a packaged solution to a problem from a single seller. Avoids the
separate decisions involved in a complex buying situation.