Marketing intelligence

Topics: Decision making, Marketing, Consumer behaviour Pages: 5 (2897 words) Published: October 29, 2014

1.1 Introduction
Bidco is a trans-national company that through their wide range of product categories aims to touch the common people in a special way on a daily basis. Their main aim is to sustain the No.1 market share that they hold in the East and Central African market. They thrive to do this through understanding the buyer behavior and the purchase decision making process. This document is divided into the following sections; Purchase decision making process, factors affecting buyer behavior at Bidco, theories of buyer behavior and their application to Bidco and, the evaluation of the relationship between brand loyalty, corporate image and repeat purchase. 1.2 Purchase decision making process

Behind the visible act of making a purchase lays a decision process. The consumer purchase decision making processes are the stages a buyer passes through in making choices about which products and services to buy. The five stages is summarized in the diagram below: Fig 1.1

Source: PicstoPin, 2014
Problem recognition; This is the first step in the process. The buying process is initiated when the customer identifies a problem or a need that has to be fulfilled. Perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. Information search; The information search stage clarifies the options open to the consumers and may involve- Internal search basically involves scanning one’s memory to recall previous experience and knowledge on products/services. However the cost of gathering information in this case is low. On the other hand there is External search which includes personal sources such as friends and family, marketer dominated sources such as advertising, websites and salespeople and public sources such as consumer reports. Evaluating alternatives; Once the consumer has determined what will satisfy their want or need they will begin to begin to seek out the best deal. This may be based on price, quality, or other factors that are important for them. Customers read many reviews and compare prices, ultimately choosing the one that satisfies most of their parameters. Purchase; After tallying up all the criteria for the decision the customers now decide on what they will purchase and where. They are definite on what they want to purchase. They may have had prior experience with this exact decision or maybe they succumbed to advertising about this product or service and want to give it a try. Post purchase evaluation; The involvement of marketing takes place even after the product has been purchased. Once the purchase has been made, the consumer looks at if the product has satisfied their need/want. They evaluate if the product is below or above their expectations. The goal for every marketer is not for a one-time customer but a repeating lifetime customer. One bad experience of buyer’s remorse and the brand perception could be tarnished forever. On the other hand, one excellent experience can lead to a brand loyal customer who may even become a brand evangelist for the organization. However, the model implies that customers pass through all stages in every purchase but, in more routine purchases, customers often skip or reverse some of the stages. 1.3 Factors that affect buyer behavior at Bidco

Buyer behavior is a management theory component that analyzes the purchasing habits of individuals and/or groups. It is primarily used for marketing purposes; the analysis includes an examination of perception, desire, decision-making and satisfaction. In general, the main factors that affect consumer behavior at Bidco is price and the availability of substitutes however Bidco is trying to overcome this through producing a variety of products under the same line. For example, in the edible oils section, they sell Elianto, Golden fry, Sun gold, Olive gold blend, Soya gold, Bahari fry and Ufata. There are several factors that affect buyer behavior, these are; Culture, personal...

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