Prepared by:

Nor Izzuddin Bin Norrahman

Lecturer of Management, Banking and Islamic Finance

Astin College

Marketers must be EXTREMELY careful in analyzing consumer behavior.

In this chapter, we look at how consumers make buying decisions.

We will focus on:

Consumer buying roles & types of decisions

Main steps in the buyer decision process

Process which consumers learn about and buy new products

The marketer needs to know which PEOPLE are INVOLVED in the BUYING DECISION.

Husband?

Wife?

Children?

Friend?

Man?

Woman?

Cuttlefish?

Consumer Buying Roles

Initiator

Influencer

DeciderBuyer

User

Initiator The person who first suggests or thinks of the idea of buying a

particular product or services.

Influencer A person whose views or advise carries some weight in

making the final buying decision.

Decider The person who ultimately makes a buying decision or any

part of it – buy or no? what to buy? Where to buy? How?

Buyer The person who makes an actual purchase

User The person who consumes or uses a product or service

Source: Kotler, Philip and Armstrong, Gary, PRINCIPLES OF MARKETING 9th .ED. (New Jersey: Prentice-Hall, Inc., 2001) p.191

Complex buying

behavior

Dissonance -Reducing buying

behavior

Variety – Seeking Buying Behavior

Habitual buying

behavior

High

LowHigh Low

Dif

fere

nce

s B

etw

een

Bra

nd

s

Involvement

Highly involved in a purchase and perceive significant differences among brands.

Highly involved because the product is expensive, risky, purchase infrequently, and highly self-expressive.

Have much to learn about the product category.

The buyer have to pass trough a learning process.

Examples?

Occurs when consumers are highly involved with an expensive, infrequent, or risky purchased, BUT SEE LITTLE DIFFERENCE AMONG BRANDS.

Example?

Because of the little difference, the buyer may experience post-purchase dissonance when they notice certain advantages.

How to fix it?

After-sale communications should provide evidence and support to help consumers feel good about the brand.

Occurs under conditions of low consumer involvement and little significant brand different.

Examples? – Sugar

Consumers do not search extensively for information about brands, evaluate brand characteristics, and make weighty decisions about which brands to buy.

Instead, they passively receive information as they watch TV or read magazines.

Ads repetition creates brand familiarity rather than brand conviction.

Low consumers involvement but significant perceived brand differences.

Consumers do a lot of brands switching

Example?

Buyer Decision Process

Problem awareness

Information search

Evaluation of alternatives

Purchase

Post purchase behavior

Buyer-Decision process for new products

How do buyers approach the purchase of NEW PRODUCTS?

How consumers learn about the new products and make decision whether to ADOPT them or not?

Adoption process – “the mental process through which an individual passes from first hearing about an innovation to final adoption”

Stages in adoption process Awareness

The consumer becomes aware of the new product but lacks information about it.

Interest The consumer is stimulated to seek information about the

new product.

Evaluation The consumers considers whether trying the new product

makes sense.

Trial The consumer tries the new products on small scale to

improve his or her estimate of its value.

Adoption The consumer decides to make full and regular use of the new

product.

Individual differences in innovativeness

Tutorial Please specify who is involve (the buying role) in your

purchase over smartphone.

What level are you in the differences of innovativeness?

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