The consumer buying roles can be broadly studied under two categories, industrial buying and individual buying.

Roles in Industrial Buying:

In the early 1970's, the industrial marketing professors Frederick E. Webster and Yoram Wind, developed the 'buying centre' concept in order to structure large scale sales in complex corporate environments. In the early 1980's, Thomas Bonoma expanded their original list of five roles with the role of initiator. The concept then classified six buying roles for members of the organisation in the purchasing process. In a firm, a purchase depends on the person making the purchase decision as well as on the many employees concerned with improving the effectiveness and development of the operations who want to exert influence. A buying centre makes joint purchase decisions as an informal group. Its task consists of information acquisition, search processes, the development of choice criteria and decision making among alternatives.

 The buying centre has three principal aspects:

1. composition: the size, hierarchical levels and functional areas involved; 2. influence: those individuals with the most influence in the buying process; 3. roles: the identification of different roles played by buying centre members.

 A buying centre includes all members of the purchasing organisation who play any of six roles in the purchase process:

1. INITIATOR first identifies the need to buy a particular product or service to solve an organisational problem;

2. INFLUENCER (their) views influence the buying centre's buyers and deciders;3. DECIDER ultimately approves all or any part of the entire buying decision -- whether to

buy, what to buy, how to buy, and where to buy;4. BUYER holds the formal authority to select the supplier and to arrange terms of

condition;5. USER consumes or uses the product or service;6. GATEKEEPER controls information or access or both, to decision makers and

influencers.

The model structured industrial buying processes that are characterized by multi- person involvement levels, extensive internal and external coordination effort, and long lead times. An individual can facilitate or assume more than one role in the purchase process and several

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Chapter 2

Buying Decision Making Process: buying roles, Stages of the decision process – High and low effort decisions, Post purchase decisions, Models of consumer behaviour

individuals may hold the same role. The importance of the different roles varies by buy phase and organisation size.

Roles Played While Making a Individual (Not organization) Buying Decision

For many products, it is easy to identify the buyer. Men normally choose their shaving equipment and women choose their lipsticks. Other products involve a decision-making unit consisting of more than one person

Consider the selection of a family automobile. The teenage son may have suggested buying a new car. A friend might advise the family on the kind of car to buy. The husband might choose the make. The wife might have definite desires regarding the car’s size and interior. The husband might make the financial offer. The wife might use the car more often than her husband.

Thus we can distinguish five roles people might play in a buying decision:

i. Initiator: A person who first suggests the idea of buying the particular product or service.

ii. Influencer: A person whose view or advice influences the decision.

iii. Decider: A person who decides on any component of a buying decision; whether to buy, what to buy, how to buy, or where to buy

iv. Buyer: The person who makes the actual purchase.

v. User: A person who consumes or uses the product or service.

A company needs to identify these roles because they have implications for designing the product, determining messages, arid allocating the promotional budget. If the husband decides on the car make then the auto company will direct advertising to reach husbands. The auto company might design certain car features to please the wife. Knowing the main participants and their roles helps the marketer fine-tune the marketing program.

Stages in Consumer buying decision making:

Engel, Blackwell and Kollat have developed in 1968 a model of consumer buying decision process in five steps: Problem/need recognition, information search, evaluation of alternatives to meet this need, purchase decision and post-purchase behavior.

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Consumer Buying Decision Process

I. Need recognition / Problem recognition : The need recognition is the first and most important step in the buying process. If there is no need, there is no purchase. This recognition happens when there is a lag between the consumer’s actual situation and the ideal and desired one.

However, not all the needs end up as a buying behavior. It requires that the lag between the two situations is quite important. But the “way” (product price, ease of acquisition, etc.) to obtain this ideal situation has to be perceived as “acceptable” by the consumer based on the level of importance he attributes to the need.

For example, you have a pool and you would like someone to take care of regularly cleaning it instead of you (ideal situation) because it annoys you to do it yourself (actual situation). But you don’t judge the “way” to reach this ideal situation (pay $250 / month for a specialized company) as “acceptable” because its price to obtain it seems too high. Especially compared to the relatively low level of importance you attach to it. So you won’t have a purchase behavior in this situation.

On the other hand, the ability to be able to go to your work by car in 20 minutes every morning (ideal situation) rather than lose three hours in transit because you do not have a car and you live in the countryside (actual situation) is something that means a lot to you. So you will have a buying behavior to purchase a car. Even if the price is important.

In addition to a need resulting from a new element, the gap between the actual situation and the ideal situation may be due to three cases. The current situation has not changed, but the ideal situation has (a neighbor told you about the possibility – that you did not know – to clean the pool by a specialized company). Or, the ideal situation is still the same but it’s the actual

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situation has changed (you’re tired of cleaning your pool by yourself). Or finally, the two situations have changed.

The recognition of a need by a consumer can be caused in different ways. Different classifications are used:

Internal Drive (physiological need felt by the individual as hunger or thirst) which opposes the external stimuli such as exposure to an advertisement, the sight of a pretty dress in a shop window or the mouth-watering smell of a french “pain au chocolat” when passing by a bakery.

Classification by type of needs: o Functional need: the need is related to a feature or specific functions of the product or

happens to be the answer to a functional problem. Like a computer with a more powerful video card to be able to play the latest video games or a washing machine that responds to the need to have clean clothes while avoiding having to do it by hand or go to the laundromat.

o Social need: the need comes from a desire for integration and belongingness in the social environment or for social recognition. Like buying a new fashionable bag to look good at school or choose a luxury car to “show” that you are successful in life.

o Need for change: the need has its origin in a desire from the consumer to change. This may result in the purchase of a new coat or new furniture to change the decoration of your apartment.

II. Information search: Once the need is identified, it’s time for the consumer to seek information about possible solutions to the problem. He will search more or less information depending on the complexity of the choices to be made but also his level of involvement. (Buying pasta requires little information and involves fewer consumers than buying a car.)

Then the consumer will seek to make his opinion to guide his choice and his decision-making process with:

Internal information: this information is already present in the consumer’s memory. It comes from previous experiences he had with a product or brand and the opinion he may have of the brand.

Internal information is sufficient for the purchasing of everyday products that the consumer knows – including Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG). But when it comes to a major purchase with a level of uncertainty or stronger involvement and the consumer does not have enough information, he must turns to another source:

External information: This is information on a product or brand received from and obtained by friends or family, by reviews from other consumers or from the press. Not to mention, of course, official business sources such as an advertising or a seller’s speech.

During his decision-making process and his Consumer Buying Decision Process, the consumer will pay more attention to his internal information and the information from friends, family or

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other consumers. It will be judged more “objective” than these from an advertising, a seller’s speech or a commercial brochure of the product.

III. Alternative evaluation: Once the information collected, the consumer will be able to evaluate the different alternatives that offer to him, evaluate the most suitable to his needs and choose the one he think it’s best for him.

In order to do so, he will evaluate their attributes on two aspects. The objective characteristics (such as the features and functionality of the product) but also subjective (perception and perceived value of the brand by the consumer or its reputation).

Each consumer does not attribute the same importance to each attribute for his decision and his Consumer Buying Decision Process. And it varies from one shopper to another. Mr. Smith may prefer a product for the reputation of the brand X rather than a little more powerful but less known product. While Mrs. Johnson has a very bad perception of that same brand.

The consumer will then use the information previously collected and his perception or image of a brand to establish a set of evaluation criteria, desirable or wanted features, classify the different products available and evaluate which alternative has the most chance to satisfy him.

The process will then lead to what is called “evoked set”. “The evoked set” (aka “consideration set”) is the set of brands or products with a probability of being purchased by the consumer (because he has a good image of it or the information collected is positive).

On the other hand, “inept set” is the set of brands or products that have no chance of being purchased by the shopper (because he has a negative perception or has had a negative buying experience with the product in the past). While “inert set” is the set of brands or products for which the consumer has no specific opinion.

The higher the level of involvement of the consumer and the importance of the purchase are stronger, the higher the number of solutions the consumer will consider will be important. On the opposite, the number of considered solutions will be much smaller for an everyday product or a regular purchase.

IV. Purchase decision: Now that the consumer has evaluated the different solutions and products available for respond to his need, he will be able to choose the product or brand that seems most appropriate to his needs. Then proceed to the actual purchase itself.

His decision will depend on the information and the selection made in the previous step based on the perceived value, product’s features and capabilities that are important to him.

But his Consumer Buying Decision Process and his decision process may also depend or be affected by such things as the quality of his shopping experience or of the store (or online shopping website), the availability of a promotion, a return policy or good terms and conditions for the sale.

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For example, a consumer committed to the idea of buying a stereo of a well-known brand could change his decision if he has an unpleasant experience with sellers in the store. While a promotion in a supermarket for a yogurt brand could tip the scale for this brand in the consumer’s mind who was hesitating between three brands of his “evoked set”.

V. Post-purchase behavior: Once the product is purchased and used, the consumer will evaluate the adequacy with his original needs (those who caused the buying behavior). And whether he has made the right choice in buying this product or not. He will feel either a sense of satisfaction for the product (and the choice). Or, on the contrary, a disappointment if the product has fallen far short of expectations.

An opinion that will influence his future decisions and buying behavior. If the product has brought satisfaction to the consumer, he will then minimize stages of information search and alternative evaluation for his next purchases in order to buy the same brand. Which will produce customer loyalty.

On the other hand, if the experience with the product was average or disappointing, the consumer is going to repeat the 5 stages of the Consumer Buying Decision Process during his next purchase but by excluding the brand from his “evoked set”.

The post-purchase evaluation may have important consequences for a brand. A satisfied customer is very likely to become a loyal and regular customer. Especially for everyday purchases with low level of involvement – such as Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG). A loyalty which is a major source of revenue for the brand when you combine all purchases made by customer throughout his entire life (called “lifetime customer value”). The “Holy Grail” that all brands in the industry are trying to achieve.

Positive or negative, consumers will also be able to share their opinion on the brand. Whether in their family or by word-of-mouth. Or on a much broader scale now with social networks or on consumer product review websites. A tendency not to be overlooked because now with the Internet, an unhappy customer can have a strong power to harm for a brand.

That’s why that’s important for companies to have awareness of that matter. In addition to optimizing the customer experience, a guarantee (for example, for a washing machine), an efficient customer service and a specific call center are some of the assets that can be developed to improve post-purchase behavior if there is any trouble with the product.

An example of Consumer Buying Decision Process:

Nothing like a real example to better understand the five stages of the Consumer Buying Decision Process. Maybe this situation sounds familiar to you.

Stage 1 – Need recognition: It’s sunday night. You’re hungry (internal physiological stimuli) and there is nothing in the fridge. You will order food (statement of need).

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Stage 2 – Information search: You already have ordered to the Indian restaurant in your street last month (internal information). A friend recommended a pizzeria in your neighbourhood (external information from environment). And this morning you’ve found a flyer for a sushi restaurant in your mailbox (external information from advertising).

Stage 3 – Alternative evaluation: You have a bad opinion of the Indian restaurant since you’ve been sick the last time (inept set). The pizzeria is both recommended by your friend and also happens to be a well-known brand (positive perception – evoked set). As for the sushi restaurant, it got good reviews on Tripadvisor (positive perception – evoked set).

Stage 4 – Purchase decision: After evaluating the possibilities, you’ve decided to choose the well-known pizza delivery chain. In addition, a new episode of your favorite TV show is broadcasted tonight on TV.

Stage 5 – Post-purchase behavior: The pizza was good (positive review). But you know there was too many calories and you regret a little bit (mixed feelings about yourself). The next time you will choose the sushi restaurant. There is less fat in sushi than pizza (next purchase behavior)!

Consumer Low Effort and High Efforts Decision making

As we are aware that many factors influence a consumer’s behavior. Depending on a consumer’s experience and knowledge, some consumers may be able to make quick purchase decisions and other consumers may need to get information and be more involved in the decision process before making a purchase. The level of involvement reflects how personally important or interested in consuming a product and how much information is required to make a decision. The level of involvement in buying decisions may be considered a continuum from decisions that are fairly routine (consumers are not very involved) to decisions that require extensive thought and a high level of involvement. Whether a decision is low, high, or limited, involvement varies by consumer, not by product, although some products such as purchasing a house typically require a high-involvement for all consumers. Consumers with no experience purchasing a product may have more involvement than someone who is replacing a product.

You have probably thought about many products you want or need but never did much more than that. At other times, you’ve probably looked at dozens of products, compared them, and then decided not to purchase any one of them. When you run out of products such as milk or bread that you buy on a regular basis, you may buy the product as soon as you recognize the need because you do not need to search for information or evaluate alternatives. As Nike would put it, you “just do it.” Low-involvement decisions are, however, typically products that are relatively inexpensive and pose a low risk to the buyer if the buyer makes a mistake by purchasing them.

Consumers often engage in routine response behavior when they make low-involvement decisions—that is, they make automatic purchase decisions based on limited information or information they have gathered in the past. For example, if you always order a Diet Coke at lunch, you’re engaging in routine response behavior. You may not even think about other drink

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options at lunch because your routine is to order a Diet Coke, and you simply do it. Similarly, if you run out of Diet Coke at home, you may buy more without any information search.

Some low-involvement purchases are made with no planning or previous thought. These buying decisions are called impulse buying. While you’re waiting to check out at the grocery store, perhaps you see a magazine with Angelina Jolie and Brad Pitt on the cover and buy it on the spot simply because you want it. You might see a roll of tape at a check-out stand and remember you need one or you might see a bag of chips and realize you’re hungry or just want them. These are items that are typically low-involvement decisions. Low-involvement decisions aren’t necessarily products purchased on impulse, although they can be.

By contrast, high-involvement decisions carry a higher risk to buyers if they fail, They are complex, and/or have high price tags. A car, a house, and an insurance policy are examples. These items are not purchased often but are relevant and important to the buyer. Buyers don’t engage in routine response behavior when purchasing high-involvement products. Instead, consumers engage in what’s called extended problem solving, where they spend a lot of time comparing different aspects such as the features of the products, prices, and warranties.

High-involvement decisions can cause buyers a great deal of post-purchase dissonance (anxiety) if they are unsure about their purchases or if they had a difficult time deciding between two alternatives. Companies that sell high-involvement products are aware that post-purchase dissonance can be a problem. Frequently, they try to offer consumers a lot of information about their products, including why they are superior to competing brands and how they won’t let the consumer down. Salespeople may be utilized to answer questions and do a lot of customer “hand-holding.”

Limited problem solving falls somewhere between low-involvement (routine) and high-involvement (extended problem solving) decisions. Consumers engage in limited problem solving when they already have some information about a good or service but continue to search for a little more information. Assume you need a new backpack for a hiking trip. While you are familiar with backpacks, you know that new features and materials are available since you purchased your last backpack. You’re going to spend some time looking for one that’s decent because you don’t want it to fall apart while you’re traveling and dump everything you’ve packed on a hiking trail. You might do a little research online and come to a decision relatively quickly. You might consider the choices available at your favorite retail outlet but not look at every backpack at every outlet before making a decision. Or you might rely on the advice of a person you know who’s knowledgeable about backpacks. In some way you shorten or limit your involvement and the decision-making process.

Products, such as chewing gum, which may be low-involvement for many consumers often use advertising such as commercials and sales promotions such as coupons to reach many consumers at once. Companies also try to sell products such as gum in as many locations as possible. Many products that are typically high-involvement such as automobiles may use more personal selling to answer consumers’ questions. Brand names can also be very important regardless of the consumer’s level of purchasing involvement. Consider a low- versus high-involvement decision—say, purchasing a tube of toothpaste versus a new car. You might routinely buy your favorite

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brand of toothpaste, not thinking much about the purchase (engage in routine response behavior), but not be willing to switch to another brand either. Having a brand you like saves you “search time” and eliminates the evaluation period because you know what you’re getting.

When it comes to the car, you might engage in extensive problem solving but, again, only be willing to consider a certain brand or brands. For example, in the 1970s, American-made cars had such a poor reputation for quality that buyers joked that a car that’s “not Jap [Japanese made] is crap.” The quality of American cars is very good today, but you get the picture. If it’s a high-involvement product you’re purchasing, a good brand name is probably going to be very important to you. That’s why the manufacturers of products that are typically high-involvement decisions can’t become complacent about the value of their brands.

High consumer efforts decision making: will happen when:

1.The consumer is not informed of the product or service offering. 2.The consumer is not aware about the various decision criteria used to evaluate the product or service offering, and he is also not aware of the various brands that are available and from which to evaluate. 3.The purchase process involves significant effort on part of the consumer. Examples: Jewellery, electronic goods, Real estate and property etc.

Moderate consumer efforts decision making: will happen when:

1.The consumer is familiar of the product or service offering; but he is unaware of the various brands. 2.The consumer is aware of some brands and also of the various criteria used to evaluate the product or service offering; he is unaware of the new brands that have been introduced. 3.He has not evaluated the brands amongst the awareness set and has not established preferences amongst the group of brands. 4. The purchase process is more of a recurring purchase and it involves only a moderate effort on part of the consumer. Examples: A laptop replacing a desktop.

Low consumer efforts decision making: will happen when:

1.The consumer is well informed and experienced with the product or service offering. 2.The consumer is aware of both the decisi on criteria as well as the various brands available. 3.The purchase process involves no effort on part of the consumer. It is simple and the process is completed quickly; purchases made out of habit. These are routine purchases. Examples: Staples, Cold drinks, Stationery etc.

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Compaarison between High, Moderate and Low consumer efforts

Sl.No

Parameters High consumer efforts

Moderate consumer efforts

Low consumer efforts

1 Consumer Involvement

High Medium Low

2 Time taken to make decisions

High Low to high Low

3 Information gathering Yes Yes No4 Information sources Many Few Few or none

5 Awareness and knowledge of Decision criteria

No No Yes

6 Awareness and knowledge ofAlternative brands avaiable

Somewhat Yes Yes

7 Evaluative criteria Complex Moderate Simples

8 Brands considered Many Few One (repeat purchase)

Post-purchase Evaluation

There are several benefits from post purchase evaluation.

First, it serves to broaden the consumer’s set of experiences in his memory.

Second, it provides a check on how well he is doing as a consumer in selecting value acquisitions, stores, and so on.

Third, the feedback that the consumer receives from this stage helps to make adjustments in future purchases.

Post-Purchase Behaviour

Post Purchase Behaviour is what occurs after the value proposition becomes the Value acquisition.When the buyer become the user/consumer. Some important marketing implications flow from buyers post-purchase decision. Information learned can be used to improve products and services, undertake better targeted promotions, and design more effective strategies to keep actual customers and attract new ones.

Consumer Satisfaction/Dissatisfaction

Satisfaction refers to the buyer’s state of being adequately rewarded in a buying situation for the sacrifice he or she has made.

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Dis-satisfaction refers to the buyer’s state of being not adequately rewarded in a buying situation for the sacrifice he or she has made.

Post-purchase Dissonance

Consumers may become dissonant over a purchase decision.  Cognitive dissonance occurs as a result of a discrepancy between a consumer’s decision and the consumer’s prior evaluation.  This theory was derived from two basic principles:

(1) dissonance is uncomfortable and will motivate the person to reduce it and

(2) individuals experiencing dissonance will avoid situations that produce more dissonance.

Factors That Cause Dissonance

There are several factors that make dissonance highly likely both before and after the purchase.

First, there is price or total payment cost.

Second, there is psychological importance.

Third, there is product performance.

Fourth, there is the number of rejected alternatives.

Fifth is the perceived performance of alternatives rejected.

Sixth, the credibility of the source of new information affects the amount of dissonance it causes.

How to Reduce Dissonance

There are several major ways in which the consumer strives to reduce dissonance.  He or she may:

(1) change his or her valuation of the alternative,

(2) seek new information to support his or her choice, or

(3) change his or her attitudes.

What marketers must do:

Match their products with the appropriate target consumers

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Offer clear communication, return policies, warranties, in-store demonstrations

Make salespeople available to answer questions

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