The Buyer Decision Process and Business buyer decision process

The Buyer Decision Process in Marketing

The buyer decision process is a fundamental concept in marketing, outlining the steps a consumer goes through when deciding to make a purchase. Understanding this process allows marketers to target their efforts more effectively. Here's a breakdown of the five stages:

1. Need Recognition

• Definition: The initial stage where the consumer identifies a gap between their current state and a desired state. This is the trigger that initiates the buying process.
• Triggers:
  • Internal Stimuli: Basic needs like hunger, thirst, or fatigue.
  • External Stimuli: Marketing efforts (ads, promotions), social influences, or changes in circumstances.
• Examples:
  • Running shoes wear out (problem recognition).
  • Seeing a stylish new outfit online (want recognition).
  • Feeling hungry (basic need recognition).

2. Information Search

• Definition: Once a need is recognized, the consumer actively searches for information about potential solutions.
• Sources:
  • Internal Sources: Past experiences, memories, and personal knowledge.
  • External Sources:
    • Personal sources (friends, family, colleagues).
    • Commercial sources (advertising, websites, salespeople).
    • Public sources (consumer reports, reviews).
    • Experiential sources (product trials, samples).
• Examples:
  • Researching different brands of running shoes online.
  • Asking friends for recommendations on a new restaurant.
  • Reading product reviews on a retailer's website.

3. Evaluation of Alternatives

• Definition: Consumers compare various products or brands based on their criteria and needs. They assess the pros and cons of different options.
• Evaluation Criteria:
  • Features, benefits, and quality.
  • Price and value.
  • Brand reputation.
  • Convenience and availability.
  • Personal preferences and values.
• Examples:
  • Comparing different brands of smartphones based on price, camera quality, and battery life.
  • Evaluating different models of cars based on fuel efficiency, safety ratings, and features.
  • Deciding between different types of coffee based on taste, origin, and price.

4. Purchase Decision

• Definition: The stage where the consumer makes a purchase choice based on their evaluation.
• Influencing Factors:
  • Availability of the product.
  • Payment options and financing.
  • Store atmosphere and shopping experience.
  • Unexpected situations.
• Examples:
  • Choosing a specific brand of sneakers and adding them to a shopping cart.
  • Deciding to go to a particular restaurant because it has available tables.
  • Making a final decision to buy a car after test driving it.

5. Post-Purchase Behavior

• Definition: The consumer assesses their satisfaction and makes a judgment about their purchase after the transaction.
• Key Aspects:
  • Customer satisfaction or dissatisfaction.
  • Cognitive dissonance (buyer's remorse).
  • Word-of-mouth recommendations.
  • Brand loyalty and future purchases.
• Examples:
  • Feeling happy with the new phone purchase and recommending it to others.
  • Experiencing buyer's remorse after buying a product that does not meet expectations.
  • Leaving a positive review for a product online and becoming a repeat customer.

Business Buyer Decision Process - 8 Steps

This document outlines the eight-step process that businesses typically follow when making a purchasing decision.

1. Problem Recognition

• Description: The process begins when a need or problem is identified within the organization. This can be triggered by various factors, such as:
  • Shortage of existing supplies
  • Dissatisfaction with current products or services
  • New business opportunities requiring new resources
  • Technological advancements
  • Changes in regulations
• Outcome: Clear articulation of the need or problem.

2. General Need Description

• Description: Once the problem is recognized, the buyer defines the characteristics and quantity of the item(s) needed. This is a broad description and does not specify particular brands or suppliers.
• Focus: Defining general requirements, functions, and specifications.
• Example: "We need new office chairs for our employees" instead of "We need the ergonomic X brand chairs".
• Outcome: A general understanding of what is required to address the identified problem.

3. Product Specification

• Description: The buyer now refines the general need into specific technical requirements for the product or service. This includes detailed specifications, features, and performance criteria.
• Focus: Technical requirements, quality standards, and desired functionalities.
• Example: Specifying the material, adjustability, dimensions, and load capacity for the office chairs.
• Outcome: A clear and detailed set of specifications that suppliers can use to propose solutions.

4. Supplier Search

• Description: The buyer actively researches and identifies potential suppliers capable of meeting the specified needs. This involves various methods:
  • Online search
  • Trade directories
  • Industry contacts
  • Recommendations from other businesses
  • Attending trade shows
• Focus: Finding suppliers that have a track record of reliable and quality products.
• Outcome: A shortlist of potential suppliers.

5. Proposal Solicitation

• Description: The buyer formally requests proposals or bids from the shortlisted suppliers. This outlines the specific requirements and evaluation criteria.
• Focus: Gathering detailed offers, including pricing, delivery schedules, warranties, and any other pertinent information.
• Outcome: Received proposals from the selected suppliers.

6. Supplier Selection

• Description: The buyer evaluates the received proposals based on predefined criteria, which can include:
  • Price
  • Quality
  • Delivery time
  • Supplier reputation
  • After-sales service
  • Financial stability
• Focus: Choosing the supplier that offers the best overall value and meets the organization's needs.
• Outcome: Selection of a chosen supplier and agreement on terms.

7. Order Routine Specification

• Description: The buyer finalizes the order, specifying:
  • Technical specifications
  • Quantity
  • Delivery schedule
  • Payment terms
  • Return policies (if any)
• Focus: Formalizing the agreement and clearly outlining expectations for both parties.
• Outcome: A formal purchase order is issued.

8. Performance Review

• Description: After receiving and using the product/service, the buyer conducts a post-purchase evaluation to assess supplier performance, product quality, and overall satisfaction.
• Focus:
  • Confirming whether the product/service meets the requirements
  • Identifying areas for improvement in the future
  • Assessing if they will use this supplier again for repeat purchases
• Outcome: Insights and feedback are used for future purchasing decisions and supplier relationship management.