Buying Decision Behaviour

Buying Decision BehaviourContents (Jump to)1.0 Introduction2.0 Types of Buying Decision Behaviour3.0 The splendour of understanding consumer buy demeanours4.0 ConclusionReferences1.0 IntroductionUnderstanding consumer buying behavior is crucial for successful merchandising. Consumer buying behaviour is defined as the buying behaviour of final consumers, individuals and households who purchase goods and services for personal consumption (Kotler, Brown, Adam and Armstrong, 2001 858). Consumer buying behaviour brook be classified into four groups complex, variety-seeking, dissonance-reducing and normal buying behaviour. These buying decision behaviours vary in terms of the involvement levels and the perceived differences surrounded by defacements (Lawson, Tidwell, Rainbird, Louden and Bitta, 1997 523). According to Mitchell (2002 71), angiotensin converting enzyme of the core functions of marketing is to connect buyers and sellers as expeditiously and in effect as possible. The refore, it is imperative for marketers to acquire a profound and comprehensive understanding of consumer buying behaviours.2.0 Types of Buying Decision BehaviourThe relationship between unlike types of consumer buying behaviour with the level of consumer involvement and the degrees of differences between brands. The level of involvement in a purchasing a product is related to the importance of the purchase, the risks gnarly and the type of cognitive processing that is generated (East, 1997 19).2.1 Complex buying behaviourComplex buying behaviour is personalised by high levels of consumer involvement in a purchase and significant perceived differences among brands (Kotler, et al., 2001 211). Consumers usu whollyy apply complex buying behaviour when the intended purchases are expensive, infrequent and risky (Rowley, 1997 88). Purchase decisions are more(prenominal) intricate compared to other products that are less costly (Chao and Gupta, 1995 48). According to Adcock (1993 54), buy ers undertaking complex buying behaviour are likely to go through to each one stage of the decision making process. They go out usually spend time inquiring about the product, evaluating alternative brands and comparing options before finally making the purchase. For example, a person who wishes to buy a car would be very involved in deciding what car to purchase. He or she will engage in an extensive information search, such as by visiting different car dealers, surfing the Internet and so on, to evaluate and compare the numerous types of models uncommitted in the market and also to scout for the best deals. They may take weeks or months to make a decision. A car is an expensive asset and will usually be used for a long time. As a result, consumers undergo complex buying decision behaviour to ensure that they will non regret their investment in future.2.2 Dissonance-reducing buying behaviourDissonance-reducing buying behaviour encompasses high involvement in purchase decisions but little dissimilarity between brands (Adcock, 1993 57). Purchases are usually expensive, infrequent and risky (Kotler, et al., 2001 211). The buying decision is often made from only a small range of products. Considering the products brand name is not the main priority in the purchase decision, consumers will make their choice by evaluating and comparing the products based on their price, quality, performance and the consumers individual preferences ( Kennedy and Kiel, 2000 84). For example, when purchasing a lawn mower, consumers may face a high involvement decision because a lawn mower is rather costly. However, the lawn mower brand names will not be of much concern to consumers. Buyers will still look around and compare different lawn mowers based on their extrinsic features, and purchases are normally made in spite of appearance a shorter period of time as foreign to complex buying behaviour (Kotler, et al., 2001 212). After making a purchase, the consumer may encounter po stpurchase dissonance, also know as after-sales discomfort, resulting from discrepencies between the consumers decision and the consumers prior paygrade (Lawson, et al.,1997 447). For instance, the buyer may discover undesirable traits or hear negative comments about the lawn mower and thereof regret his or her purchase. To minimise such dissonance, marketers have introduced certain features to satisfy customers, such as warranties and after-sales services (Lawson, et al.,1997 637).2.3 Variety-seeking buying behaviourVariety-seeking buying behaviour can be defined as consumer buying behaviour in situations concerning low consumer involvement but with significant perceived differences in brands (Kotler, et al., 2001 212). These purchases are made merely because the of the consumers desire for novelty (Lawson, et al., 1997 525). In other words, consumer may deviate from their normal brand purchase because they feel like trying something different for a change. Consumers who habitu ate variety-seeking buying behaviour buy for the sake of diversifying and not as a result of dissatisfaction with the product (Adcock, 1993 57). To further illustrate the point, a consumer who regularly buys Kellogs Corn Flakes, whom one day opts to purchase Nestles Honey Stars for a change, is engaging in variety-seeking buying behaviour. The consumer may be just bored of Kellogs Corn Flakes for awhile after overwhelming them every morning and would like to try out a different cereal, not because he or she is discontented with Kellogs Corn Flakes. Marketers have developed strategies to invalidate this consumer behaviour, which will be discussed in the later sections of this report.2.4 Habitual buying behaviourConsumers perform habitual buying behaviour when buying frequently purchased products that are relatively of low cost and that involves very little risk and decision effort (Kennedy and Kiel, 2000 84). There is low consumer involvement and few differences between brands in t his buying behaviour (Rowley, 1997 89). These products are purchased almost automatically out of habit rather than brand loyalty by consumers( http//www.bbci.freeserve.co.uk/SAGEPROJECT/UnderstandingConsumerBehaviour.asp). This normally applies to grocery products. For instance, people do not broadly spend much time or mental effort selecting a packet of sugar or a bar of soap. They do not genuinely pay attention to the brand names of these products. Unlike complex buying behaviour, consumers who purchase the homogeneous product regularly, do not go through all the steps in the decision making process (Kotler, et al., 2001 212). They need not undertake an information search or evaluate and compare the different products in the market. Instead, they receive information through repetitive advertisements on the television or untriedspapers and this forms brand familiarity. Consumers are not inclined to a product, rather, they select the particular brand out of familiarity (Kotler, et al., 2001 212). They would just recognise their need and immediately make a purchase decision. They may not even bother to make a postpurchase evaluation (Rowley, 1997 89).3.0 The importance of understanding consumer buying behaviours3.1 Develop a more effective and good marketing strategyConsumer buying behaviour is an integral part of marketing. Attaining a deeper comprehension of the different types of consumer buying behaviour would be a boon for marketers as it would assist them in developing a more sophisticated marketing strategy, thus allowing the organisation to compete more efficiently and effectively than its competitors (Mitchell, 2002 74). By analysing the type of buying behaviour that relates to the organisations products, marketers are able perform effective segmentation, which may lead to a more efficient targeting of resources (Rowley, 1997 89). For example, for products that are susceptible to complex buying behaviours such as automobiles and computers, markete rs tend to concentrate on promoting them on the rear end of the features and the benefits a consumer may gain from the products (Adcock, 1993 56)..Most car catalogues will show pictures of the engine and highlight the details of the technical features of the vehicle. For products that are more prone to dissonance-reducing and habitual buying behaviours, marketers will advertise substantially to ensure that their products will be considered by as many people as possible (Adcock, 1993 57) and also to familiarise consumers with their products (East, 1997 19). Providing another example, marketers will try to encourage habitual buying behaviour for products that are more inclined to variety-seeking buying behaviours among consumers by extensive advertising and tyrannical shelf space. In contrast, marketers may also try to encourage variety-seeking buying behaviour by offering promotions and free samples (Kotler, et al., 2001 212). They do so to induce new customers to purchase their p roducts. To summarise the point, a clear understanding of the types of buying behaviours can help marketers to construct relevant marketing strategies to market the particular product so as to increase the products sales.3.2 Form a healthy relationship between buyers and sellersAs mentioned earlier, one of the core functions of marketing is to connect buyers and sellers as efficiently and effectively as possible (Mitchell, 2002 71). The marketing concept stresses that organisations should create a marketing mix that will satisfy their customers better than their competitors. To do so, marketers must examine the study influences that determine what, where, when and how consumers make purchasing decisions (http//www.bbci.freeserve.co.uk/SAGEPROJECT/UnderstandingConsumerBehaviour.asp). According to Wilson (1998 785), marketers who understand the types of buying behaviour that are related to their product will be able to come up with marketing techniques that will provide customer sati sfaction and at the same time, establish brand loyalty among its customers. Marketers should always remind themselves that satisfied consumers would have a very positive impact on the organisations success. Therefore, it is essential for marketers to understand and evaluate the different types of consumer buying behaviour.4.0 ConclusionThe four types of buying behaviour mentioned earlier basically summarises how and why consumers make their purchase decisions. However, one has to keep in mind that the purchase of a particular product does not always derive the same type of decision making behaviour (East, 1997 19). For example, an affluent businessman who enjoys collecting cars may not undergo complex buying behaviour as opposed to an average earning salesman who is buying a car for transportation purposes. In conclusion, understanding consumer buying behaviour can assist marketers in constructing a more efficient and effective marketing strategy allowing them to form a tighter rel ationship with their customers. Hence, it is vital for marketers to understand the four different types of buying behaviour that relates to their product.ReferencesAdcock, D., Bradfield, R., Halborg, A., and Ross, C. (1993), trade Principles and Practice, Pitman Publishing, London.Chao, P. and Gupta, P.B. (1995), learning search and efficiency of consumer choices of new cars International Marketing Review, Vol. 12, No. 6, pp 47-59.East, R. (1997), Consumer Behaviour Advances and Applications in Marketing, Prentice Hall, London.Kotler, P., Brown, L., Adam, S., and Armstrong, G. (2001), Marketing, (5th Edn), Prentice Hall, Sydney.Lawson, R., Tidwell, P., Rainbird, P., Loudon, D., and Bitta, A.D. (1997), Consumer Behaviour in Australia and New Zealand, McGraw-Hill, Sydney.Kennedy, M and Kiel (2000). Marketing A Strategic Approach. Nelson Thompson Learning, Melbourne.Mitchell, A.S. (2002), Do you really want to understand your customer? Journal of Consumer Behaviour, Vol. 2, Issue 1, pp 71-79.Rowley, J. (1997), Focusing on customers Library Review, Vol 46, No. 2, pp 81-89.Samara, N., Understanding Consumer Behaviour, (http//www.bbci.freeserve.co.uk/SAGEPROJECT/UnderstandingConsumerBehaviour.asp) Accessed (30 overbearing 2003)Wilson, D.F. (1998), Why divide consumer and organisation buyer behaviour? European Journal of Marketing, Vol. 34, No. 7, pp 780-796.