Introduction:-
Consumers are moving outside the purchasing funnel— changing the way they research and buy your products. If your marketing hasn’t changed in response, it should, says a McKinsey study.
Every day, people form impressions of brands from touch points such as advertisements, news reports, conversations with family and friends, and product experiences. Unless consumers are actively shopping, much of that exposure appears wasted. But what happens when something triggers the impulse to buy? Those accumulated impressions then become crucial because they shape the initial consideration set: the small number of brands consumers regard at the outset as potential purchasing options.
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The funnel analogy suggests that consumers systematically narrow the initial consideration set as they weigh options, make decisions, and buy products. Then, the postsale phase becomes a trial period determining consumer loyalty to brands and the likelihood of buying their products again. Marketers have been taught to “push” marketing toward consumers at each stage of the funnel process to influence their behavior. But our qualitative and quantitative research in the automobile, skin care, insurance, consumer electronics, and mobile-telecom industries shows that something quite different now occurs.
Step 1: Need Recognition
The business must know it needs a new product, whether from internal or external sources. The product may need to be reordered, or it may be a new item for the company.
Step 2: Specific Need
The right product is critical for the company. Some industries have standards to help determine specifications. Part numbers help identify these for some businesses. Other industries have no point of reference. The company may have ordered the product in the past. If not, then the business must specify the necessary product by using identifiers such as color or weight.
Step 3: Source Options
The business needs to determine where to obtain the product. The company might have an approved vendor list. If not, the business will need to search for a supplier using purchase orders or research a variety of other sources such as magazines, the Internet, or sales representatives. The company will qualify the suppliers to determine the best product for the business.
Step 4: Price and Terms
The business will investigate all relevant information to determine the best price and terms for the product. This will depend on whether the company needs commodities (readily available products) or specialized materials. Usually, the business will look into three suppliers before it makes a final decision.
Step 5: Purchase Order
The purchase order is used to buy materials between a buyer and seller. It specifically defines the price, specifications, and terms and conditions of the product or service and any additional obligations.
Step 6: Delivery
The purchase order must be delivered, usually by fax, mail, personally, email, or other electronic means. Sometimes the specific delivery method is specified in the purchasing documents. The recipient then acknowledges receipt of the purchase order. Both parties keep a copy on file.
Decision-making journey for the following products: (a) Luxury Watch (b) Breakfast Cereal (c) Protein Shake
At the time of purchasing these products, we follow these six steps which we explained above these steps are:
- Step 1: Need Recognition
- Step 2: Specific Need
- Step 3: Source Options
- Step 4: Price and Terms
- Step 5: Purchase Order
- Step 6: Delivery
Types of Consumer Decision Making
Consumers are faced with purchase decisions nearly every day. But not all decisions are treated the same. Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are fairly routine and require little effort. For example, students give a lot more thought to buying a college education or a vacation trip than they do to buying cheese or car wash. In general, there are three types of consumer decision-making; routine decision making, limited decision making, and extensive decision making.
To purchase low-cost goods and services, the consumer typically applies routine decision-making, requiring little search and decision time. Consumers do not consider this type of purchase an important one and are not highly involved in it. Usually, buyer knows a few brands of products but stick with one.
To attract consumers who use routine decision-making, marketers must what characteristics consumers evaluate. For example, if some buyers choose whatever brand of bread or soda is cheapest, marketers may focus on setting a low price or offering frequent discounts.
Limited decision-making usually occurs when the consumer has a previous product
Factors That Affect the Consumer Buying Process
Consumers are different, the products that they buy are different, and the situations in which consumers make purchase decisions are different. Several factors affect the consumer buying process, including social factors, situational factors, personal factors, and psychological factor. Of these four influences, the social influence is the strongest. Marketers must understand the role played by the buyer’s culture, subculture, social class, reference groups, and family. Among these social influences, none is more important than family. Growing up in a society, a child learns basic values, perceptions wants, and behaviors from the family and other important institutions.
A person’s buying decisions are also influenced by personal characteristics that are unique to each individual, such as gender and personality. Physiological differences between men and women result in different needs, such as health and beauty products.
Conclusion:-
In the concluding lines, I would like to say that the Consumer decision-making process involves the consumers identifying their needs, gathering information, evaluating alternatives, and then making their buying decision. Consumer behavior may be determined by economic and psychological factors and are influenced by environmental factors like social and cultural values.
Consumer decision-making behavior is a complex procedure and involves everything starting from problem recognition to post-purchase activities. Decisions can be complex, comparing, evaluating, selecting as well and purchasing from a variety of products depending upon the opinion of a consumer over a particular product. This renders understanding and realizing the basic problem of the consumer decision-making process for marketers to make their products and services different from others in the marketplace.
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