Consumer is a person who buys or uses things (goods) or services. Marketers are
the persons who provide these services. The most challenging questions for marketers
are why buyers do what they do (or don't do). Such knowledge is critical for
marketers, since having a strong understanding of buyer's behavior will shed light on what
is important for the consumer and also suggest the important influences on
consumer decision-making. Factors affecting consumers' buying decisions are
extremely complex. It is deeply rooted in
psychology with dashes of sociology thrown in just
to make things more interesting. It explains the influences on the consumer from
groups such as family, friends and society in general. Consumers' buying behavior
result from deeply held values and attitudes,
their perception of the world, their place in it, from common sense, from impulse or
just plain take. Consumers mainly face two types of purchase decisions: `New
Purchase'—these purchases are very difficult to
be made by consumer due to lack of confidence in decision-making; and
`Repurchase'—consumer feels confident in making
these decisions since they have previous experience in purchasing the product.
Let's examine the process of how a consumer takes buying decision
(Figure 1).
The importance of each step might vary depending on the
circumstances surrounding the purchase. Consumers' decision-making process begins when
buyer realizes his/her unsatisfied need, want or desire. Needs may be functional
or psychological in nature, and retailers are often trying to satisfy psychological
needs as much as functional ones (Babin et
al., 1994). Consumers are motivated to satisfy their needs, they will next undertake
a search for information on possible solutions. Consumers' search efforts
may result in a set of options from which a choice can be made. There might be
two levels to this stage. At level one, the consumer may create a set of
possible solutions to their needs (i.e., product
types) while at second level the consumer may be evaluating particular
products
(i.e., brands). The purchase decision may provide three possibilities to a
consumer: from whom to buy, when to buy and also not to buy. In many cases the
solution chosen by the consumer is the same as the product whose evaluation is the highest.
A favorable post-purchase evaluation of the product leads to consumer satisfaction.
If the product performs below the consumer's expectation, then he/she
will reevaluate satisfaction with the decision, which at its extreme may result in
the consumer returning the product. When the consumer is satisfied with the
product's performance, repeat purchase is more
likely (Szymanski and Hernard, 2001).
Consumer's decision-making process is influenced by many factors such as
cultural, social, personal and psychological. `Cultural factors' exert the broadest
and deepest influence on consumer behavior.
It represents beliefs and, in many cases, we learn to act by interacting or
observing other members of society. Consumer
buying process offers two useful perspectives: the decision-making process associated
with consumer buying and the factors which affect the buying process (Rowley,
1997). The author further stated that the consumers buying process can be
divided into personal, psychological and social
and cultural factors. The `social factors', such as consumer's small groups,
family, reference group, social roles and status
can affect consumer responses and influence their buying behavior. `Personal
factors' such as age, lifecycle stage, occupation, education and economic situation,
and `Psychological factors' such as, motivation, perception, learning, beliefs and
attitudes and personality, also play major roles
in consumer decision-making process. The `marketing programs' often have
a considerable amount of influence on consumers' buying decision. It
sometimes becomes irrelevant for consumers to
think about the quality of the product when they are so influenced by its
marketing: "Customer satisfaction is the major aim
of the marketing concept" (Dibb et al., 1994). |