Decision making
The Customer Buying Process (also called a Buying Decision Process) describes the process your customer goes through before they buy your product. Understanding your customer’s buying process is not only very important for your Salespeople, it will also enable you to align your sales strategy accordingly.
The process has been interpreted by many scholars over the years; however, the five stages framework remains a good way to evaluate the customer’s buying process. John Dewey first introduced the following five stages in 1910:
1. Problem/Need Recognition This is often identified as the first and most important step in the Customer’s Decision Process. A purchase cannot take place without the recognition of the need. The need may have been triggered by internal stimuli (such as hunger or thirst) or external stimuli (such as advertising or word of mouth).
2. Information Search Having recognised a problem or need, the next step a customer may take is the Information Search stage, in order to find out what they feel is the best solution. This is the buyer’s effort to search internal and external business environments, in order to identify and evaluate information sources related to the central buying decision. Your customer may rely on print, visual, online media or word of mouth for obtaining information.
3. Evaluation of Alternatives As you might expect, consumers will evaluate different products or brands at this stage on the basis of alternative product attributes – those which have the ability to deliver the benefits the customer is seeking. A factor that heavily influences this stage is the customer’s attitude. Involvement is another factor that influences the evaluation process. For example, if the customer’s attitude is positive and involvement is high, then they will evaluate a number of companies or brands; but if it is low, only one company or brand will be evaluated.
4. Purchase Decision The penultimate stage is where the purchase takes place.
The process has been interpreted by many scholars over the years; however, the five stages framework remains a good way to evaluate the customer’s buying process. John Dewey first introduced the following five stages in 1910:
1. Problem/Need Recognition This is often identified as the first and most important step in the Customer’s Decision Process. A purchase cannot take place without the recognition of the need. The need may have been triggered by internal stimuli (such as hunger or thirst) or external stimuli (such as advertising or word of mouth).
2. Information Search Having recognised a problem or need, the next step a customer may take is the Information Search stage, in order to find out what they feel is the best solution. This is the buyer’s effort to search internal and external business environments, in order to identify and evaluate information sources related to the central buying decision. Your customer may rely on print, visual, online media or word of mouth for obtaining information.
3. Evaluation of Alternatives As you might expect, consumers will evaluate different products or brands at this stage on the basis of alternative product attributes – those which have the ability to deliver the benefits the customer is seeking. A factor that heavily influences this stage is the customer’s attitude. Involvement is another factor that influences the evaluation process. For example, if the customer’s attitude is positive and involvement is high, then they will evaluate a number of companies or brands; but if it is low, only one company or brand will be evaluated.
4. Purchase Decision The penultimate stage is where the purchase takes place.