BUYING DECISION PROCESS AND CONSUMER BEHAVIOR

For any product, it is essential to know what factors influence the consumer behavior. It is defined as the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants. In layman’s terms, it refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants.

The Maslow’s hierarchy of needs pyramid defines diagrammatically as to WHY a consumer buys a product. It is as follows:

Digging into the concept of consumers buying decision process, we can find a 5 step model which is as follows;

1.    Problem Recognition: 
The buying process commences with the consumer realizing that he requires something. This realization later translates into a purchase. Magnum is not a solution to a problem but an exceptional alternative for the consumers who wish to experience a sophisticated and luxurious experience. Magnum is recognized as a symbol of royal treatment. It provides a sense of satisfaction and pleasure from its first distinctive crack to the last bite.  

2.    Information Search: 
After realizing the problem, the consumers next step is to find potential solutions i.e. product/s which might satisfy his current need. (Ask around as to which ice cream might give him maximum satisfaction)  This is called the information search phase. This information can be obtained from following sources-

     a.    Personal: Family, friends, neighbors etc.
b. Commercial: Advertisements, Flyers, Salespersons, Websites etc.
c. Public: Mass media, ratings etc.
d. Experiential: Contact with the product, use, feeling the product etc.

Since Magnum is Pro active with its promotions and advertisements, information can be found on all sources- personal,commercial, public and experiential.

3. Evaluation Of Alternatives: 
During this stage of consumer decision making process perspective customers are engaged in evaluation of alternatives. In other words, during this stage “consumers consider the relative importance of each attribute of the product-service mix”. Influencing customer behaviour at this stage of decision making process is critical for retailers in terms of improving their levels of customer attraction and retention. The consumer usually has in mind what exactly is he expecting from his potential buy. So it is on the basis of a few parameters that he evaluates and eliminates choices, coming down to a select few in order to make his final decision.

 For example, a consumer will finally know what alternatives he has apart from MAGNUM; however he will look into factors like Price, Exceptional ice cream quality, Range of flavours, Attractive packing which highlights the premium nature, Unique shape and dark chocolate coating and finalize the brand.

4. Purchase Decision:

This is the stage where the consumer actually makes the decision! This decision comes after consideration of factors such as brand, dealer, quantity, timing and mode of payment. This is a stage when the marketer has to be extremely wary of the product positioning from the point of view of perceived risks. These may be:

a. Functional risk: Product performance
b. Physical risk: Product may cause physical harm or discomfort to user
c. Financial risk: Worth of the product
d. Social risk: Using the product brings embarrassment to user
e. Psychological risk: Product affects mental well being of the user
f. Time risk: Product is not worth the time invested in it and in cases, time that would be invested later looking for a better replacement.

Factors playing significant role on the choice of purchase at this stage differ if it’s a first time decision or repeat. For the first time, factors like packaging, flavours, quality and price play and important role. Usually the consumer will have a desire to experience the superiority of magnum over the other chocolate bars. After trying it, the consumer may think on the past experience, value the ice cream is providing as compared to the other similar ice cream products and then decide to buy or not to buy.

 

5. Post-Purchase Behavior: 

The behavior of a consumer post making a purchase may be termed as post-purchase behavior.This is based on how was his experience with the product. If the customer derive the satisfaction he wanted or not. If the consumer is very happy with his experience, he might end up as a repeat buyer for the product and also lead to recommendations to potential buyers. Alternatively, if the experience of a buyer is not very good, he will negatively publicize the product, which might affect the sales of the product.

In the end, we can conclude that the consumer’s behavior and buying patterns are an essential part of marketing strategies employed by the producers. It is of paramount importance for any marketer to analyze his potential buyer’s frame of mind as it will help him sell his product better.