MARKETING RESEARCH

Marketing Intelligence Resit



Marketing Intelligence Resit

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

1.1-2 Describe the main stages of the purchase decision making process for both individual and organizational customers. In your answer include the following headings;-

Stages of Purchase Decision Making Process

The analysis of the stages of the buying decision, allows a better understanding of consumer buying behavior (Malhotra, 2008, pp. 34-97). These stages are as follows:

Need Recognition

The process commence when an individual recognizes his needs. The consumer either gets aware about his basic need (hunger, pain etc) or react to a stimulus of marketing (watching a food commercial etc).

Information Search

The individual, after recognizing his needs, decides the amount of information required. If he already knows where and how to get his needs fulfilled, then he reaches a purchasing decision. Otherwise the search continues. The sources of gathering information can be personal (family, friends etc), commercial (advertising media) or related to own past experiences possible (Wrenn & Mansfield, 2009, pp. 56-78). 

Evaluation of Alternatives

In this stage, the customer evaluates different alternatives of the solution before making the purchase. The criteria of evaluation vary according to the demographic and psychological characteristics of the customer (Kolb, 2010, pp. 78-98).

Purchase Decision

After the customer has gathered the information and evaluated possible alternatives, he makes a decision and makes the purchase.

Post-Purchase Evaluation

In the final stage, the customer makes post-purchase evaluation. Of the product satisfies him, he will again purchase the product and will refer the product to others around him. However, of the customer is not satisfied with the product, he will not purchase the product again and will not hesitate to express his discontent to others.

Theories of Buyer Behavior

There are many theories of buyer behavior, two of them are stated below:

Expectancy-Value theory (EVT)

There are three primary components of EVT. Firstly, an individual responds to new information regarding an item or action by developing a belief about the item or action (Brace, 2009, pp. 75-99). Secondly, an individual assigns values to every characteristic on which a belief is based on. Thirdly, a probability is modified or created on the basis of the outcome on a calculation based on values and beliefs.

Cognitive Learning Theory

Cognitive theorists believe that some aspects such as attitudes, beliefs and past experiences of people, mentally combine to generate the behavior of the buyer. According the theory, the brain or nervous system is the dominant center.

1.3 Explain the factors that could impact on the buying behavior of both individual and organizational customers.

Buying behavior is a significant aspect which is crucial for all the organizations to understand so that they are able to create and build their products and image as per the purchasing requirements of the customers. The organizations and/or brands are able to understand the customers' needs and requirements. Through understanding and analyzing the buyer behavior of the customers, the products and services can be sold in a more appropriate manner (Wiid & Diggines, 2010, pp. 57-88). There are many factors that influence and impact the buyer behavior of ...