Principles of Marketing - Buyer Behavior
What is Buyer Behavior?
Buyer Behavior - This is the set of activities a consumer goes through in obtaining products. It also includes the decision process that preceded or determined those activities.
There are essentially two types of buyer behavior, consumer and industry. While both are similar in theory, there are differences that exists in the process each goes through when going through the buying process. This article will focus mainly on consumer buyer behavior.
When consumers realize they have an unmet need, they choose to begin a purchase process. In this process, the consumer will face one of three levels of problem solving. These include:
- Routine problem solving - This is a situation wherein consumers are typically purchasing low priced, frequently purchased items. It is also called routine response behavior. This is because it is usually a product that one buys over and over without giving it much thought. A marketers goal with routine problem solving is to reinforce the purchase habits of existing customers and change the habits of non-existing customers.
- Limited problem solving - In a limited problem solving situation, a consumer is familiar with the product class, the major brands in the product class, and knows the attributes and characteristics on which to evaluate the product. However, the customer may then be confronted with a brand with which he or she is unfamiliar. A marketer of the unknown brand must provide information to the consumer that will increase his or her comprehension and confidence in the brand. This could be in the form of comparison charts or information packets.
- Extended problem solving - In this scenario, consumers do not know the product class, the major brands, nor the product attributes on which to evaluate the product. The marketer must provide information to the consumer that will indicate what the important product class attributes are, the relative importance of those attributes, and the position your brand has on those attributes.
The Consumer Adoption Process
The consumer adoption process is the stages a consumer goes through in making a purchase. Steps include awareness, interest, evaluation of alternatives, trial, and finally the purchase decision.
Awareness - Also know as the need recognition stage, awareness is the moment that a consumer becomes aware of a need or problem they have, or of a new product available. During this stage, the marketer must demonstrate that the product can satisfy the consumers needs.
Interest - This is also known as the information search stage. After a need is recognized, the consumer collects information about the product. Consumers engage in in three processes that can harm or impede the effectiveness of the marketers program. These are:
- Selective exposure - This occurs when a consumers will only consider certain sources of information. They may only read online articles, only watch TV, or only ask a friend who may know something about the product. Marketers must adapt to the consumer and use the sources they prefer.
- Selective perception - This occurs when consumers screen out certain information. They may only be willing to listen to issues they believe to be important in a product or service. The marketer must identify what they consider important and promote it.
- Selective retention - This occurs when consumers only remember what they want to remember. In this case, a marketer must add something to the promotion to help the consumer remember certain things This may be a jingle in ads, colorful signage, or something similar.
Evaluation of Alternatives - A person will eventually get to the point where he is ready to evaluate options. What he is doing is systematizing, or organizing all of the information he has just collected. What brands are being considered? What does he consider the most important class attributes to evaluate? The consumer will compare the brands across product class attributes.
Three things occur in this stage:
- Evoked Set - Out of all the brands in the product class, the person will only consider several or a few. This becomes known as his or her evoked set.
- Salient Attributes - These are attributes the person feels are important within the evoked set that has been selected. If he is considering three brands of computer, screen size may be a salient attribute.
- Determinate Attributes - These are characteristics of the product that the consumer feels are most important when making a purchase decision. Note that it cannot be a determinate attribute unless it was also considered a salient attribute. Determinate attributes are subsets of salients.
There are also what are called irrelevant attributes. These are features the marketer may promote, but the consumer does not feel are important. An example would be a salesman speaking a lot about the unique color of a car, while the consumer does not care about that.
Trial - Trial occurs when a consumer tries a product in an inexpensive fashion. Not all products have a trial and this is entirely optional to the consumer and marketer.
Purchase Decision - When a consumer finally feels he or she is ready to purchase a product, there are a couple of factors that will need to be addressed before the sale is made.
Brand Attitude - These are factors affecting the brand that determine if the consumer will buy the brand.
Social Factors - This includes others in life who are important to the consumer. These people will have an impact on the decision
Anticipated Situational Factors - These are things the consumer expects to happen. This simply means that the consumer knows his income, knows how the economy currently is, knows the store image, or something similar.
- All of these will finally lead to a consumers purchase intention. There are however certain post purchase factors that may change the persons mind beforehand or cause them to return the product.
Non-predictable Situational Factors - These are things that occur between the time the purchase intention is developed and the time the purchase decision is to be made. This might mean the person lost there job or the dealer went out of business.
Perceived Risk - A consumer may have some level of anxiety because of uncertainty about how well the product will actually perform.
After all of these factors are taken into consideration, the consumer will arrive at his purchase decision.
Confirmation - This is post purchase behavior. Consumers may start to rethink their decision. They begin to experience what is known as cognitive dissonance. This occurs when the consumers experiences some uncertainty about the correctness of his or her decision. This is always a possibility.
In order for a marketer to deal with cognitive dissonance, he must:
- Communicate the product decision the consumer made and extend gratitude to them
- Advertise the product using new buyers as the spokespeople.
- Use owners manuals or leaflets in the product that describe the merits of the product.