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Prepared by:
Nor Izzuddin Bin Norrahman
Lecturer of Management, Banking and Islamic Finance
Astin College
Marketers must be EXTREMELY careful in analyzing consumer behavior.
In this chapter, we look at how consumers make buying decisions.
We will focus on:
Consumer buying roles & types of decisions
Main steps in the buyer decision process
Process which consumers learn about and buy new products
The marketer needs to know which PEOPLE are INVOLVED in the BUYING DECISION.
Husband?
Wife?
Children?
Friend?
Man?
Woman?
Cuttlefish?
Consumer Buying Roles
Initiator
Influencer
DeciderBuyer
User
Initiator The person who first suggests or thinks of the idea of buying a
particular product or services.
Influencer A person whose views or advise carries some weight in
making the final buying decision.
Decider The person who ultimately makes a buying decision or any
part of it – buy or no? what to buy? Where to buy? How?
Buyer The person who makes an actual purchase
User The person who consumes or uses a product or service
Source: Kotler, Philip and Armstrong, Gary, PRINCIPLES OF MARKETING 9th .ED. (New Jersey: Prentice-Hall, Inc., 2001) p.191
Complex buying
behavior
Dissonance -Reducing buying
behavior
Variety – Seeking Buying Behavior
Habitual buying
behavior
High
LowHigh Low
Dif
fere
nce
s B
etw
een
Bra
nd
s
Involvement
Highly involved in a purchase and perceive significant differences among brands.
Highly involved because the product is expensive, risky, purchase infrequently, and highly self-expressive.
Have much to learn about the product category.
The buyer have to pass trough a learning process.
Examples?
Occurs when consumers are highly involved with an expensive, infrequent, or risky purchased, BUT SEE LITTLE DIFFERENCE AMONG BRANDS.
Example?
Because of the little difference, the buyer may experience post-purchase dissonance when they notice certain advantages.
How to fix it?
After-sale communications should provide evidence and support to help consumers feel good about the brand.
Occurs under conditions of low consumer involvement and little significant brand different.
Examples? – Sugar
Consumers do not search extensively for information about brands, evaluate brand characteristics, and make weighty decisions about which brands to buy.
Instead, they passively receive information as they watch TV or read magazines.
Ads repetition creates brand familiarity rather than brand conviction.
Low consumers involvement but significant perceived brand differences.
Consumers do a lot of brands switching
Example?
Buyer Decision Process
Problem awareness
Information search
Evaluation of alternatives
Purchase
Post purchase behavior
Buyer-Decision process for new products
How do buyers approach the purchase of NEW PRODUCTS?
How consumers learn about the new products and make decision whether to ADOPT them or not?
Adoption process – “the mental process through which an individual passes from first hearing about an innovation to final adoption”
Stages in adoption process Awareness
The consumer becomes aware of the new product but lacks information about it.
Interest The consumer is stimulated to seek information about the
new product.
Evaluation The consumers considers whether trying the new product
makes sense.
Trial The consumer tries the new products on small scale to
improve his or her estimate of its value.
Adoption The consumer decides to make full and regular use of the new
product.
Individual differences in innovativeness
Tutorial Please specify who is involve (the buying role) in your
purchase over smartphone.
What level are you in the differences of innovativeness?
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