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Buyer decision process
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==Stages== [[File: Burlington Arcade, shops.jpg|thumb|upright|Consumers shopping at London's [[Burlington Arcade]] engage in a variety of recreational and functional purchasing activities β from window shopping through to transporting their purchases homewards.]] The five stages of a decision process were first introduced by philosopher [[John Dewey]] in ''How We Think'' in 1910.<ref>{{cite book|last=Dewey |first=John |title=How we think|year=2007|publisher=Cosimo|location=New York|isbn=9781605200996|url=https://archive.org/details/bub_gb_TE1IAAAAMAAJ/page/n79/mode/2up|page=72|access-date=13 September 2023}}</ref> Later studies expanded upon Dewey's initial work and are seen as foundational for analysis of consumer purchasing decision-making.<ref>Simpson, F., [https://www.forbes.com/sites/fionasimpson1/2019/01/13/know-your-buyer-franchisee-recruitment-and-understanding-the-buying-decision-process/ Know Your Buyer: Franchisee Recruitment And Understanding The Buying Decision Process], ''Forbes'', published 13 January 2019, accessed 13 September 2023</ref> Dewey did not refer in ''How We Think'' specifically to ''purchasing'' decisions, but in applied terms his five stages are: *Problem/Need Recognition β recognize what the problem or need is and identify the product or type of product which is required.<ref name="Marketing Management by Philip Kotler">{{cite web|url= http://dl.ueb.edu.vn/bitstream/1247/2250/1/Marketing_Management_-_Millenium_Edition.pdf |title=Marketing Management β Millenium Edition|first=Philip |last=Kotler |publisher=Pearson Customer Publishing |accessdate=28 December 2012 |url-status=dead |archiveurl= https://web.archive.org/web/20130201142039/http://dl.ueb.edu.vn/bitstream/1247/2250/1/Marketing_Management_-_Millenium_Edition.pdf |archivedate=1 February 2013 }}{{Page needed|date=September 2023}}</ref> For example, A university student realizes their laptop has become too slow to run design software, prompting the need for a new, more powerful model. *Information Search β the consumer researches the product which would satisfy the recognized need.<ref name="Marketing Management by Philip Kotler" /> Example: The student starts browsing tech review websites, comparing brands, and checking specifications and prices online. *Evaluation of Alternatives β the consumer evaluates the searched alternatives. Generally, the information search reveals multiple products for the consumer to evaluate and understand which product would be appropriate.<ref name="Marketing Management by Philip Kotler" /> Example: They narrow choices down to three laptops, weighing trade-offs between price, features, and customer reviews. *Purchase Decision β after the consumer has evaluated all the options and would be having the intention to buy any product, there could be now only two things which might just change the decision of the consumer of buying the product that is what the other peers of the consumer think of the product and any unforeseen circumstances. Unforeseen circumstances for example, in this case, could be financial losses which led to not buying of the product.<ref name="Marketing Management by Philip Kotler" /> Example: The student decides to buy a mid-range model from a brand with strong support and warranty policies. *Post Purchase Behavior β after the purchase, the consumer may experience post-purchase dissonance feeling that buying another product would have been better. Addressing post-purchase dissonance spreads the good word for the product and increases the chance of frequent repurchase.<ref name="Marketing Management by Philip Kotler" /> Example: After using the new laptop for a few weeks, the student shares their experience in an online review, expressing satisfaction or regret depending on performance. These five stages are a framework to evaluate customers' buying decision process. While many consumers pass through these stages in a fixed, linear sequence, some stages such as evaluation of alternatives may occur throughout the purchase decision.<ref>{{cite book|last1=Rossiter |first1=J.R. |last2=Bellman |first2=S. |title=Marketing Communications: Theory and Applications |publisher=Pearson Australia |date=2005 |page=24}}</ref> The time and effort devoted to each stage depend on a number of factors including the perceived risk and the consumer's motivations. In the case of an impulse purchase, such as the purchase of a chocolate bar as a personal treat, the consumer may spend minimal time engaged in information search and evaluation and proceed directly to the actual purchase.<ref name= "Kotler2009">{{cite book|last1=Kotler |first1=Phillip |last2=Keller |first2=K.L. |last3=Koshy |first3=A. |last4=Jha |first4=M. |date=2009 |title=Marketing Management β a South Asian Perspective |location=Delhi, India |publisher=Prentice Hall}}</ref> [[File: A serviceman accesses social media channels using an iPad, outside MOD Main Building in London MOD 45156052.jpg|thumb|upright|The rise of digital media and social networks are changing the way that consumers search for product information.]] ===Problem/need-recognition=== Problem/Need-recognition is the first step in the buying decision. Without knowing what the customer needs, they will not be enticed to purchase the product. The need can be triggered by internal stimuli (e.g. [[hunger]], [[thirst]]) or external stimuli (e.g. [[advertising]]).<ref name="Kotler2009" /> [[Abraham Maslow|Maslow]] held that [[Maslow's hierarchy of needs|needs are arranged in a hierarchy]]. According to [[Maslow's hierarchy]], only when a person has fulfilled the needs at a certain stage, can he or she move to the next stage. The problem must be the products or services available. It's how the problem must be recognized. ===Information search=== {{update|section|date=October 2024}} The [[Information Search Process|information search]] stage is the next step that the customers may take after they have recognized the problem or need in order to find out what they feel is the best solution. The field of information has come a long way in the last forty years,{{when|date=October 2024}} and has enabled easier and faster information discovery.{{citation needed|date=October 2024}}<!--<ref>{{cite journal|last=Bunn|first=Michele D.|title=Taxonomy of Buying Decision Approaches |journal=Journal of Marketing|date=January 1993|volume=57|issue=1|pages=38β56|jstor=1252056|publisher=American Marketing Association|doi=10.2307/1252056}}</ref>--> Consumers can rely on print, visual, and/or voice media for getting information. ===Evaluation of alternatives=== [[File:Mahane_Yehuda_shoppers.jpg|thumb|Shoppers inspect the quality of fresh produce at a market in Jerusalem.]] At this stage, consumers evaluate different products/brands on the basis of varying product attributes, and whether these can deliver the benefits that the customers are seeking.<ref name= "Kotler2009" /> This stage is heavily influenced by one's attitude, as "attitude puts one in a frame of mind: liking or disliking an object, moving towards or away from it".<ref name= "Kotler2009" /> For example, in high-involvement purchases such as buying a car, consumers may compare numerous models, read reviews, and seek expert opinions; whereas for low-involvement purchases like toothpaste, they may rely on brand familiarity or promotional cues. {| class="wikitable" |- ! Customer involvement!! High !! Medium !! Low |- | Characteristics || High || Medium || Low |- | Number of brands examined || Many|| Several || Few |- | Number of sellers considered || Many || Several || Few |- | Number of product attributes evaluated || Many || Moderate || One |- | Number of external information sources used || Many || Few || None |- | Time spent searching || Considerable || Little || Minimal |} ===Purchase decision=== This is the fourth stage, where the purchase takes place. According to Kotler, Keller, Koshy, and Jha (2009),<ref name="Kotler2009"/> the final purchase decision can be disrupted by two factors: negative feedback from other customers and the level of motivation to comply or accept the feedback. For example, after going through the above three stages, a customer chooses to buy a [[Nikon D80]] [[DSLR]] camera. However, because his good friend, who is also a photographer, gives him negative feedback, he will then be bound to change his preference. Secondly, the decision may be disrupted due to unanticipated situations such as a sudden job loss or the closing of a retail store. ===Post-purchase behavior=== These stages are important to keeping customers. Customers match products with their experiences on whether they are either content or discontent with the product. This affects the decision process for resemblant purchases from the same company in the future,<ref>Blythe, Karn (2008), Consumer Behavior. U.K., Thompson Learning, 2008</ref> mainly at the information search stage and evaluation of alternatives stage. If brand loyalty is made then customers will often fast-tracked or skip completely the information search and evaluation of alternative stages. Either being content or discontent, a customer will spread good or bad opinions about the product. At this stage, companies try to make favorable post-purchase communication to encourage the customers to purchase.<ref>Foxall, Gordon. R., (2005) Understanding Consumer Choice USA, Palgrave Macmillan, 2005</ref> Also, [[cognitive dissonance]] ([[consumer confusion]] in marketing terms) is common at this stage; customers often go through the feelings of post-purchase psychological tension or anxiety. Questions include: "Have I made the right decision?", "Is it a good choice?", etc.
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