MARKETING RESEARCH

Marketing Intelligence Resit



Marketing Intelligence Resit

TASK 1 - Understand Buyer Behaviour and Purchase Decision-Making Process

Stages of Purchase Decision Making Process

The examination of the stages of the purchase decision permits an enhanced understanding of buying behaviour adopted by the consumers and the businesses (Malhotra, 2008, pp. 34-97). These stages of the purchase decision are described below:

Need Identification

The procedure starts when an individual identifies his needs. The customer either gets conscious about his primary need that is hunger, discomfort or responds to a stimulation of promotion or marketing as initiated by the organizations for instance watching an advertisement regarding a new beverage (Wrenn & Mansfield, 2009, pp. 56-78).

Search for information

The individual, after acknowledging his needs, chooses the amount of details needed. If he already knows from where and in what way to get his needs satisfied, then he gets to a buying choice. Otherwise the search for satisfying the need carries on. The resources of collecting details can be individual such as family, and buddies, public such as advertising and promotions or relevant to own previous encounters possible (Wrenn & Mansfield, 2009, pp. 56-78).

Evaluating the available alternatives

In this level, the consumer in need analyze different available alternatives before making a final decision for buying and purchasing. The requirements of assessment differ according to the distinct features and characteristics of the consumer or customer (Kolb, 2010, pp. 78-98).

Purchase Decision

When the customer has collected the details and analyzed and examined possible solutions, the consumer finally makes a buying decision and chooses the most appropriate alternative to satisfy his or her need.

Post-purchase Evaluation

In the ultimate level, the consumer does post-purchase assessment and examination. The goods or services that meet his need and delights the customer, the customer considers that product or service next time when he comes across similar need and also refers the product or service to others around him. However, if the customer is not pleased with the product or service, he will not buy the item again and will spread the bad word of mouth to others around him (Kolb, 2010, pp. 78-98).

Buyer behaviour theories

A number of theories regarding buyer's behaviour have been put forward. Two well known theories of them are described below:

Cognitive learning theory

Cognitive advocates believe that some factors such as behaviour, principles and past encounters of people, psychologically merge to produce the behaviour of the customer. According the concept, the mind or neurological system is the prominent centre of the behaviour adopted by the buyer or consumer when making a purchase.

Expectancy value theory (EVT)

There are three primary elements as put forward by expectancy value theory. First of all, a person reacts to new details concerning products or services by creating a perception about the products or services (Brace, 2009, pp. 75-99). Secondly, a person designates value to every attribute on which a perception is depending on. Lastly, a possibility is customized or created on the basis of the result on a computation depending on values and perceptions (Brace, 2009, ...