Welcome to MBA Marketing Management BUYING BEHAVIOR

[Audio] Welcome to MBA – MARKETING MANAGEMENT BUYING BEHAVIOR.

[Audio] DECISION-MAKING PROCESS IN CONSUMER BEHAVIOR  The Consumer Decision-Making Process  Problem Recognition and Need Identification  Information Search Strategies  Evaluation of Alternatives  Post-Purchase Behavior and Satisfaction.

[Audio] THE CONSUMER DECISION-MAKING PROCESS The consumer decision-making process is a fundamental aspect of buying behavior, encompassing the steps consumers take when making purchasing decisions. Understanding this process is essential for businesses to develop effective marketing strategies that resonate with consumers and drive sales. This study material delves into the stages of the consumer decisionmaking process and explores the factors that influence each stage. Stages of the Consumer Decision-Making Process: Recognition of Need/Want:  The decision-making process begins when consumers recognize a need or want for a particular product or service. This recognition can be triggered by internal stimuli (such as hunger or thirst) or external stimuli (such as advertising or recommendations). Information Search:  After identifying a need, consumers embark on an information search to gather relevant information about available options. They may seek information from various sources, including personal experiences, word-of-mouth recommendations, online reviews, and advertising..

[Audio] THE CONSUMER DECISION-MAKING PROCESS Evaluation of Alternatives:  Once consumers have gathered information, they evaluate the available alternatives based on various criteria such as price, quality, features, brand reputation, and personal preferences. This evaluation helps consumers narrow down their options and make informed decisions. Purchase Decision:  After evaluating alternatives, consumers make the purchase decision by selecting the product or service that best meets their needs and preferences. Factors influencing the purchase decision may include price, availability, promotional offers, and past experiences. Post-Purchase Evaluation:  Following the purchase, consumers engage in post-purchase evaluation to assess their satisfaction with the chosen product or service. If their expectations are met or exceeded, they are likely to experience post-purchase satisfaction. However, if they encounter discrepancies between expectations and reality, they may experience post-purchase dissonance or regret..

[Audio] Factors Influencing the Consumer Decision-Making Process Internal Factors:  Internal factors such as individual needs, preferences, attitudes, motivations, and personality traits play a significant role in shaping the consumer decision-making process. These factors vary from one individual to another and can influence perceptions and choices. External Factors:  External factors refer to influences outside the individual that affect the decision-making process. These may include social, cultural, economic, technological, and environmental factors, as well as marketing stimuli such as advertising, promotions, and sales tactics. Psychological Factors:  Psychological factors, including perception, learning, memory, and attitudes, influence how consumers process information and make decisions. Marketers often leverage psychological principles to shape consumer perceptions and behavior through branding, messaging, and persuasion techniques. Social Factors:  Social factors such as family, peers, social class, culture, and reference groups play a significant role in influencing consumer behavior. Social influence mechanisms like conformity, social proof, and peer pressure can impact purchasing decisions and brand choices..

[Audio] Factors Influencing the Consumer Decision-Making Process Implications for Marketing Strategies: Market Segmentation:  Understanding the consumer decision-making process allows marketers to segment the market based on consumer needs, preferences, and behaviors. By identifying distinct consumer segments and tailoring marketing efforts to address their specific needs, businesses can maximize the effectiveness of their strategies. Product Positioning:  Marketers can use insights from the decision-making process to position their products or services effectively in the minds of consumers. By highlighting unique features, benefits, and value propositions that resonate with target consumers, businesses can differentiate themselves from competitors and influence purchase decisions. Information Provision:  Providing accurate, relevant, and timely information to consumers at various stages of the decision-making process can facilitate informed choices and build trust. Marketers should ensure that information is readily accessible through multiple channels and formats to accommodate diverse consumer preferences. Post-Purchase Support:  Offering post-purchase support and engagement opportunities can enhance customer satisfaction and loyalty. Businesses should seek feedback from customers, address any concerns or issues promptly, and provide resources or assistance to optimize product usage and enjoyment..

[Audio] PROBLEM RECOGNITION AND NEED IDENTIFICATION Problem recognition and need identification are critical stages in the consumer decision-making process, marking the beginning of the journey towards making a purchase. This phase involves consumers recognizing a discrepancy between their current state and desired state, leading them to seek solutions to fulfill their unmet needs or wants. Understanding how consumers recognize problems and identify needs is essential for marketers to develop effective strategies that address consumer needs and influence purchasing behavior. Factors Influencing Problem Recognition: Internal Triggers:  Internal triggers arise from within the individual, such as physiological needs (e.g., hunger, thirst), psychological desires (e.g., status, self-esteem), or cognitive dissonance (e.g., conflicting beliefs or attitudes). Consumers may recognize a problem when they experience discomfort, dissatisfaction, or a sense of urgency to change their current situation. External Stimuli:  External stimuli come from the environment and may include advertisements, social influences, personal experiences, or situational factors. Marketers leverage external stimuli to create awareness and stimulate problem recognition by highlighting consumer pain points, offering solutions, or showcasing the benefits of a product or service..

[Audio] PROBLEM RECOGNITION AND NEED IDENTIFICATION The Need Identification Process: Information Search:  Once consumers recognize a problem or need, they begin an information search to gather relevant information about available solutions. This search may involve seeking advice from friends or family, consulting online reviews, comparing product features, or evaluating alternatives to address the identified need. Evaluation of Alternatives:  After gathering information, consumers evaluate the available alternatives based on various criteria such as price, quality, brand reputation, and suitability to their needs. This evaluation helps consumers narrow down their options and select the best solution to fulfill their needs or wants..

[Audio] PROBLEM RECOGNITION AND NEED IDENTIFICATION Implications for Marketing Strategies: Identifying Consumer Pain Points:  Marketers should conduct market research to identify consumer pain points and unmet needs within their target market. By understanding the specific challenges or problems faced by consumers, businesses can develop products or services that address these pain points effectively and differentiate themselves from competitors. Creating Awareness and Solutions:  Marketers can leverage advertising, content marketing, and promotional campaigns to create awareness of consumer problems and offer solutions. By highlighting the benefits and features of their products or services, businesses can position themselves as viable solutions to consumers' needs and drive demand. Personalization and Customization:  Tailoring marketing messages and offerings to address individual needs and preferences can enhance consumer engagement and satisfaction. By leveraging data analytics and consumer insights, businesses can personalize their marketing efforts to resonate with specific audience segments and increase relevance. Providing Educational Resources:  Offering educational resources and informative content can empower consumers to make informed decisions about addressing their needs. Marketers can create tutorials, how-to guides, or product demonstrations that provide valuable information and guidance to consumers navigating the problem recognition and need identification process..

[Audio] INFORMATION SEARCH STRATEGIES Information search is a crucial stage in the consumer decision-making process, where individuals actively seek out relevant information to evaluate alternatives and make informed purchase decisions. This study material explores various information search strategies employed by consumers and their implications for buying behavior. Types of Information Search Strategies: Internal Search:  Internal search involves consumers retrieving information from their memory based on past experiences, knowledge, and existing attitudes. This strategy is commonly used for lowinvolvement purchases or familiar products where consumers rely on their internal information sources to make quick decisions. External Search:  External search entails seeking information from external sources such as friends, family, colleagues, experts, advertisements, reviews, and online sources. Consumers engage in external search when they perceive a higher level of risk or uncertainty associated with the purchase, or when they encounter unfamiliar products or brands..

[Audio] INFORMATION SEARCH STRATEGIES Pre-Purchase vs. Ongoing Search:  Pre-purchase search occurs before making a buying decision, typically for significant or infrequent purchases where consumers invest time and effort to gather information. Ongoing search, on the other hand, occurs continuously over time, as consumers seek to stay informed about product updates, new offerings, or changing market trends. Passive vs. Active Search:  Passive search involves unintentional exposure to information through everyday experiences, media consumption, or word-of-mouth communication. Active search, on the contrary, involves deliberate efforts to seek out information by actively browsing, researching, or consulting various sources to fulfill specific information needs. Factors Influencing Information Search: Product Involvement:  The level of involvement or importance attached to the purchase influences the extent of information search. High-involvement products typically trigger extensive information search as consumers seek to minimize risk and ensure optimal decision outcomes, whereas lowinvolvement products may prompt minimal search efforts. Perceived Risk:  Perceived risk, including financial risk, performance risk, social risk, and psychological risk, motivates consumers to engage in information search to mitigate uncertainties and make confident purchase decisions. Higher perceived risk levels often lead to more extensive information search efforts..

[Audio] INFORMATION SEARCH STRATEGIES Information Availability:  The availability and accessibility of information sources significantly impact consumers' information search behavior. The proliferation of digital platforms, online reviews, social media, and comparison websites has facilitated easy access to product information, empowering consumers to conduct thorough research before purchasing. Implications for Marketing Strategies: Providing Accessible Information:  Marketers should ensure that relevant product information is readily accessible and available across various channels, including company websites, social media platforms, online forums, and review websites. Clear, concise, and transparent information helps build consumer trust and facilitates informed decision-making..

[Audio] INFORMATION SEARCH STRATEGIES Enhancing Online Presence:  Given the increasing reliance on digital channels for information search, businesses should invest in optimizing their online presence and visibility. This includes search engine optimization (SEO), content marketing, and online advertising to attract consumers actively seeking information online. Leveraging Social Proof:  Social proof, such as customer reviews, ratings, testimonials, and endorsements, influences consumers' information search process and purchase decisions. Marketers should encourage satisfied customers to share their experiences and opinions, leveraging social proof to build credibility and trust with potential buyers. Educational Content and Engagement:  Providing educational content, product demonstrations, how-to guides, and interactive tools can aid consumers in their information search process and foster engagement with the brand. By offering valuable insights and assistance, businesses can position themselves as trusted advisors and influencers in the decision-making journey..