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Name :- Patel Manthan J. Roll no. :- B091045 Class :-S.Y.BBASem-3 Topic :- Baying Decision Process, Industrial Baying Decision Process Submitted to :- Sahzad Sir Collage :- S.S.N.C.M.I.T.Collage Assiment :- Marketing Management

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Source of Philip Kotlar

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-:Introduction of Baying Decision Process:- How can marketers learn about the stages in the baying process for their product? They can think about how they themselves would act, in the introspective method. They can interview a small number of recent purchasers, in the retrospective method. They can use the prospective method to locate consumers who plan to buy the product and ask consumers to describe the ideal way to bay the product, in the prescriptive method. Each method yields a picture of the steps in the process.

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Introduction of Baying Decision Process Trying to understand the customer’s behavior in connection with a product has been called mapping the customer’s consumption system, customers activity cycle, or customer scenario. Marketers can do this for such activity clusters as doing laundry, preparing for a wedding, or buying a car. Buying a car.

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-:The Baying Decision Process:- These basic psychological processes play an important role in understanding how consumers actually make their buying decisions. Table 1 provides a list of some Key consumer behavior question in terms of “who, what, when, where, how and why.” Smart companies try to fully understand the customers’ buying –decision process all their experience in learning, choosing, using and even disposing of a product. Bissel developed its S team n’ Clean vacuum cleaner based on the product trial experience of a local PTA group near corporate headquarters in Grand Rapids, Michigan.

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The Baying Decision Process Marketing scholars have developed a “stage model” of the buying-decision process ( see table 1). The consumers passes through five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post purchase behavior. Clearly, the buying process starts long before the actual purchase and has consequences long afterward. Consumers don’t always pass through all five stages in buying a product. They may skip or reverse some. When you buy your regular brand of toothpaste, you go directly form the need for toothpaste to the purchase decision, skipping information search and evaluation. The model in table 1 provides a good frame of reference, however ,because it captures the full range of considerations that arise when a consumers faces a highly involving new purchase

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Table 1 Problem Recognition Post Purchase Behavior Purchase Decision Evaluation of Alternatives Information Search

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Problem Recognition The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli. With an internal stimulus, one of the person’s normal needs –hunger, thirst, sex-rises to a threshold level and becomes a drive; or a need can be aroused by an external stimulus. A person may admire a neighbor’s new car or see a television ad for a Hawaiian vacation, which triggers thoughts about the possibility of making a purchase. Marketers need to indentify the circumstances that trigger a particular need by gathering information form a number of consumers. They can then develop marketing strategies that trigger consumers interest.

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Problem Recognition Who buys our product or service? Who makes the decision to buy the product? Who influences the decision made? Who assumes what role? What does the customers buy? What needs must be satisfied? Why do customers buy a particular brand? Where do they go or look to buy the product or service? When do they buy? Any seasonality factors? How is our product perceived by customers? What are customers’ attitudes toward our product? what social factors might influence the purchase decision? Do customers lifestyle influence their decision? How do personal or demographic factors influence the purchase decision? Table 3

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-:Information Search:- Surprisingly, consumers often search for limited amounts of information. Surveys have shown that for durables, half of all consumers look at only one store, and only 30% look at more than one brand of appliances. We can distinguish between two levels of involvement with search. The milder search state is called heightened attention. At this level a person simply becomes more receptive to information about a product. At the next level, the person may enter an active information search: looking for reading material, phoning friends, going online, and visiting stores to learn about the product.

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Information sources:- Personal. Family, friends, neighbors, acquaintances Commercial. Advertising, web sites, salespersons, dealers, packaging, displays Public. Mass media, consumer-rating organizations Experiential. Handling examining, using the product The relative amount and influence of these sources very with the product category and the buyer’s characteristics. Generally speaking, the consumers receives the most information about a product form commercial-market-dominated-sources . However, the most effective information often comes form personal sources or public sources that are independent authorities.

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Total set Awareness Set Consideration Set Choice Set Decision ? Apple Dell Hewlett-Paced Toshiba Compaq NEC Apple Dell Hewlett-Paced Toshiba Compaq Apple Dell Toshiba Apple Dell Table 2

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Search Dynamic:- Through gathering information, the consumer about competing brands and their features. The first box in Table 2 shows the total set of brands available to the consumers. The individual consumer will come to know only a subset of these brands, the awareness set. Some brands, the consideration set, will meet initial buying criteria. As the consumer gather more information , only a few the choice set, will remain strong contenders. The consumer makes a final choice form this set.

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Marketers need to identify the hierarchy of attributes that guide consumers decision making in order to understand different competitive forces and how these various sets get formed. This process of identifying the hierarchy is called marketing partitioning. Years ago, most car buyers first decide on the manufacture and then on one of its car division(brand-dominate hierarchy). A buyer might favor General Motors Cars and, within this set, Pontiac. Today, many buyers decide first on the nation form which they want to buy a car. Buyers may first decide they want to buy a Japanese car, then Toyota, and then the Corolla model of Toyota. Search Dynamic:-

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Search Dynamic:- Table 2 makes it clear that a company must strategize to get its brand into the prospect’s awareness, consideration, and choice sets. If a food store owner arranges yogurt first by brand and then by flavor within each brand, consumers will tend to select their flavors form the same brand. However, if all the strawberry yogurts are together, then all the vanilla and so forth, consumers will probably choose which flavors they want first, and then choose the brand name they want for that particular flavor.

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Evaluation of Alternatives How does the consumers process competitive brand information and make a final value judgment? No signal process is used by all consumers, or by one consumers in all buying situations. There are several processes, and the most current models see the consumer forming judgments largely on a conscious and rational basis. Some basic concepts will help us understand consumers evaluation process: First, the consumers is trying to satisfy a need. Second, the consumers is looking for certain benefits form the product solution. Third, the consumers sees each product as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy this need.

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Evaluation of Alternatives The attributes of interest to buyers vary by product-for example: Hotels- Location, cleanliness, atmosphere, price Mouthwash- Color, effective, germ-killing capacity Tires- Safety, tread life, ride quality, price Consumers will pay the most attention to attribute that deliver the sought-after benefits. We can often segment the market for a product according to attributes important to different consumer groups.

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Beliefs and Attitudes Through experience and learning, people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. Just as important are attitudes , a person’s enduring favorable or unfavorable evaluations, feelings, and action tendencies toward some object or idea. People have attitudes towards almost everything: religion, politics, clothes, music, food.

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Expectancy-Value Model The consumers arrives at attitudes toward various brands through an attribute evaluation procedure. He or she develops a set of beliefs about where each brands stands on each attribute. The expectancy-Value Model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs-the positives and negatives-according to importance. Suppose Linda has narrowed her choice set to four laptop computers(A, B, C, D). Assume she’s interested in four attributes: memory capacity, graphics capability, size and weight, and price. Table 4 shows her beliefs about how each brand rate on the four attributes. If one computer dominated the others on all the criteria, we could predict that Linda would choose it. But, as is

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often the case, her choice set consists of brands that vary in their appeal. If Linda wants the best memory capacity, she should buy C: if she wants the best graphics capability, she should buy A; and so on. If we knew the weights Linda attaches to the four attributes, we could more reliably predict her computer choice. Suppose she assigned 40% of the importance to the computer’s memory capacity, 30% to the graphics capability, 20% to size and weight, and 10% to price. To find Linda’s perceived value for each computer, according to the expectancy- value model, leads to the following perceived Values: Computer A=0.4(8)+0.3(9)+0.2(6)+0.1(9)=8.0 Computer B=0.4(7)+0.3(7)+0.2(7)+0.1(7)=7.0 Expectancy-Value Model

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Table 4 Computer Attribute Memory Capacity Graphics Capability Size and Weight Price A B C D 8 8 8 8 9 7 4 3 9 9 9 9 9 7 2 7

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Expectancy-Value Model Computer C=0.4(10)+0.3(4)+0.2(3)+0.1(2)=6.0 Computer D=0.4(5)+0.3(3)+0.2(8)+0.1(5)=5.0 An expectancy-model formation their preferences the same way. Knowing this, the marketer of computer B.

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Purchase Decision In the evaluation stage, the consumers forms preferences among the brands in the choice set. The consumer may also form an intention to buy the most preferred brand. In executing a purchase intention, the consumers may make up to five sub decision: brand (brand A), dealer (dealer 2), quantity (one computer),timing (weekend), and payment method (credit card).

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No compensatory models of consumer choice