marketing research
LECTURE FOUR: THE IMPORTANCE OF UNDERSTANDING CONSUMER LIFESTYLES AND BUYING EXPERIENCES, THEIR PERCEPTIONS OF VALUE, RISK AND PRODUCT APPLICABILITY
Subject
Page
1. The Customer Buying Process
2
2. Information And Purchase Decisions
2
3. Identifying the ‘Risk Barriers’
7
4. Summary
7
5. Discussion Questions
7
6. References / Reading List
8
1. The Customer Buying Process
Miller and Layton (2000) define a Buying-decision process as the series of logical stages, which differ for consumers and organisations, that a prospective purchaser goes through when faced with a buying problem.
The stages of the buying –decision process are:
Needs recognition: the consumer is moved to action by a need.
Identification of alternatives: the consumer identifies alternative products and brands and collects information about them. Product and brand identification may come from a simple memory scan of previous experiences to an extensive external search.
Evaluation of alternatives: the consumer weighs the advantage and disadvantage of alternatives identified. The evaluation may involve a single criterion, or several criteria, and then compare each alternative. For example, you might select a frozen dinner on price alone or on price, taste, and ease of preparation.
Purchase and related Decision: the consumer decides to buy or not to buy and makes other decision related to the purchase. If the decision is to buy, a series of related decisions will be made, such as where and when to make transaction, how to order or take delivery, the method of payment and other issues.
Post-purchase behaviour: the consumer seeks reassurance that the choice make was the correct one. What a consumer learns from going through the buying process has an influence on his next time purchase.
After we identify the customer buying–decision process, we should know there are some important factors that influence it, such as information, social factors, psychological factors, and
Subject
Page
1. The Customer Buying Process
2
2. Information And Purchase Decisions
2
3. Identifying the ‘Risk Barriers’
7
4. Summary
7
5. Discussion Questions
7
6. References / Reading List
8
1. The Customer Buying Process
Miller and Layton (2000) define a Buying-decision process as the series of logical stages, which differ for consumers and organisations, that a prospective purchaser goes through when faced with a buying problem.
The stages of the buying –decision process are:
Needs recognition: the consumer is moved to action by a need.
Identification of alternatives: the consumer identifies alternative products and brands and collects information about them. Product and brand identification may come from a simple memory scan of previous experiences to an extensive external search.
Evaluation of alternatives: the consumer weighs the advantage and disadvantage of alternatives identified. The evaluation may involve a single criterion, or several criteria, and then compare each alternative. For example, you might select a frozen dinner on price alone or on price, taste, and ease of preparation.
Purchase and related Decision: the consumer decides to buy or not to buy and makes other decision related to the purchase. If the decision is to buy, a series of related decisions will be made, such as where and when to make transaction, how to order or take delivery, the method of payment and other issues.
Post-purchase behaviour: the consumer seeks reassurance that the choice make was the correct one. What a consumer learns from going through the buying process has an influence on his next time purchase.
After we identify the customer buying–decision process, we should know there are some important factors that influence it, such as information, social factors, psychological factors, and
References: Reading List Miller and Layton, 2000. Fundamentals of Marketing. Fourth Edition. McGraw-Hill Book Company Australia Pty Limited. Cateora &Graham, 2002,. “Marketing Management: A Strategic Decision –Making Approach”, 4th Ed. McGraw-Hill.Inc. Robbins S. P., Millett B., Cacioppe R., Waters – Marsh T., 1998, Organisational Behaviour – Leading and Managing in Australia and New Zealand, Prentice Hall http://www.zdnet.com/products/stories/reviews/0,4161,374921,00.html www.cruisecompany.net