Consumer and Organizational Behaviour II – SS1 Marketing Lesson Note (Second Term)

The consumer buying process is the series of stages a buyer passes through when deciding to buy a product or service.

Behavioural objectives

By the end of the lesson, students should be able to:

1. list the stages of the consumer buying process in order;
2. explain what happens at each stage;
3. give examples of internal and external stimuli that create a need;
4. explain why post-purchase behaviour matters to marketers;
5. state two differences between consumer buying and organisational buying.

What are the stages of the consumer buying process?

There are five stages in the consumer buying process: problem recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour.

• Purchase is one stage only: buying is the fourth step, not the whole process.
• Not every decision ends in a purchase: the buyer may stop at any stage.
• Not every decision uses every stage: this depends on how complex the decision is.

Stage 1: What is problem recognition?

Problem recognition is the stage at which a consumer identifies a need or want for a product.

• Other name: awareness of need.
• Starting point: a purchase cannot take place without a felt need.
• Internal stimuli: signals from within the body, such as hunger and thirst.
• External stimuli: signals from outside, such as advertising, a friend’s recommendation or seeing a product in a shop.
• Example: a student feels thirsty and decides to buy a bottle of cold water or a soft drink.
• Role of the marketer: to recognise consumer needs and show how the product can satisfy them.

Stage 2: What is information search?

Information search is the buyer’s effort to find information that will help with the buying decision.

• Personal sources: family, friends and neighbours.
• Commercial sources: advertisements, wholesalers, retailers and dealers.
• Experience: examining or trying the product before buying.
• Result: a successful search leaves the buyer with a list of possible alternatives.

Stage 3: What is evaluation of alternatives?

Evaluation of alternatives is the stage at which the consumer assesses the available brands that could satisfy the need.

• Criteria: the buyer compares options against what he or she wants, such as price, quality, taste and durability.
• Narrowing down: the buyer cuts the list of options until the best one remains.
• Basis of choice: the best option according to the buyer’s needs, taste and pocket.

Stage 4: What is the purchase decision?

The purchase decision is the stage at which the buyer actually buys the product that seems best able to satisfy the need.

• Position: it is the fourth step in the process.
• What the buyer has done: considered the factors about the product and compared deals.
• Decisions made: how much to spend, which brand to choose and where to buy.

Stage 5: What is post-purchase behaviour?

Post-purchase behaviour is what a consumer feels and does after buying, based on satisfaction or dissatisfaction.

• Evaluation: the consumer judges whether the purchase was the right one. This may or may not be a conscious thought.
• Satisfied buyer: likely to buy again and to speak well of the product.
• Dissatisfied buyer: may stop buying, complain or warn others.
• Marketer’s goal: to give good results so that customers review the product well or recommend it to others.

Why do consumers not always follow every stage?

The amount of effort a buyer puts into a decision depends on the price and importance of the product.

What is organisational buying behaviour?

Organisational buying behaviour is the way businesses, government bodies and institutions decide to buy goods and services.

• Organisational buyers: companies, schools, hospitals and government ministries.
• Purpose: to use the goods in running the organisation or to resell them.
• Example: a school buying desks, or a bakery buying flour.

How does organisational buying differ from consumer buying?

Evaluation

1. List the stages of the consumer buying process in order.
2. What is problem recognition? Give one example.
3. State two internal stimuli and two external stimuli that can create a need.
4. Why do consumers carry out an information search before buying?
5. What happens at the post-purchase stage?

Assignment

Answer both parts in your notebook.

1. Explain the difference between the evaluation of alternatives stage and the purchase decision stage.
2. Explain why post-purchase behaviour is important to a marketer.