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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.
  • 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.
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