Buyer Behaviour and Decision-Making Process - Essay Example

Buyer behaviour and decision making process Consumer decisions in purchasing have been of great concern to most scholars in the world. Early researchers used a number of approaches to address this subject but the most prominent model was based on the Utility Theory which proposed that buyers make informed choices depending on the anticipated results of such decisions (Pride et al., p. 146). Clients are perceived as rational choice architects who care much about their self-interests. In contrast to this ancient theory, modern theories considers consumer character as a makeup of varied influences acknowledging the existence of wide variety of consumer behaviours that are beyond purchase activities. These activities comprise of; necessity recognition, information research, weighing options, creations of willingness to purchase, the actual act of buying, consumption and discarding. This approach of buyer behaviour has gone through series of development over several decades as emerging research methods and paradigms are amalgamated. A good number of varied methodologies have been amalgamated in researches pertaining to decision making processes based on clashing psychological traditions. The stages that a buyer undergoes while making a purchase decision can be illustrated diagrammatically as follows. The process starts with a vast number of consumers but these consumers may at any stage of the model. A consumer is likely to go through all the stages of the decision process only during the first time of purchasing the commodity. It also occurs during purchase of costly and high quality products. Customer behaviour and buying process can be modelled as shown below. This decision is known as complex decision (Sumathi et al., p. 12). For a vast number of products, the buying behaviour is a frequent affair where the aroused urge is catered for as a habit as a repeat purchasing of the product takes place. In essence, the past reinforcement in their experience contributes directly to purchasing. As a result, the last two stages are skipped. This is known as simple decision. It is important to note that the buyer a times may consider re-entering into the entire decision making process where there are changes in terms of cost, item, availability and services. This is done with a view of picking alternative choices. The following diagram shows a stimulus response model in purchasing behaviours Potential market size and demand In order to determine the potentiality, size and demand, there is need to conduct a thorough market analysis that will take into consideration the attractiveness and changes in the market that operates within a specific industry. Market analysis is a distinct type of industry analysis whose major concern is to analyse the market environment with a view of coming up with what is popularly regarded as SWOT analysis. With such analysis, appropriate strategies that will direct the company’s direction. In addition, market analysis or documented investigation as it has been often branded by some scholars is often utilized to inform scheduling of a firm. Market size refers to the dimensions of the market. It is defined via the market segment volume of transactions in a particular market. The volume is determined by the number of customers as well as demand for commodities. In addition, the volume of sales may be dependent on qualities or quantities. Importance of customer satisfaction and feedback Customer satisfaction after buying a good is an important aspect to any company. It is possible to gauge customer satisfaction through a feedback from a customer. The most common way of getting such a feedback is by allowing the customer to fill a questionnaire feedback. By going through a questionnaire, the management will be in a position to know how customers reacted to a new product from where they would be able to improve. It is imperative to share customers’ feedback with all staff members as it goes a long way towards improving service delivery in the entire company. It is also important to share your response to feedback among your customers as a way of telling them that their concerns were addressed. This is vital in building a long lasting trust between the customers and the organisation. The trust bestowed on the firm will make the customers to make return visits, recommend the company to friends and derive general satisfaction. Factors that affect buyer behaviour Customers as part of the trade exchange group play an ultimate role in the buying process. They have individual policies and goals that define their individual responses in the buying process. Without buyers, trade would never thrive. This is because they concentrate on successful trading. In addition, their needs justify the need for marketing. A misunderstood buyer behaviour, leads to the inability to offer the market with the necessary offers in terms of goods and services. The success of every market depends solely on the availability of buyers and the possibility of the market to offer goods and services as demanded by buyers. Failures on the part of buyers often culminate to exchange faltering and the goals of the seller may not be met. It is important to note that since buyers have freedom of choice in terms of the choice from the available alternatives, they ultimately control the entire market segment. Consumer behaviour is a term used to attribute to purchasers who have tendencies of buying goods and services for personal, kinfolk and group purpose. It is a combination of exertions and efforts pertaining to the buyer’s preparedness to resolve problems. Human beings have unique personalities as well as behavioural propensities. For instance, while some may be easy to convince others may require complex intervention. Many factors generally affect purchase behaviour. Such influences are sometimes complex due to our physiological and psychological tendencies. Specifically, the factors are grouped as situational, extrinsic and intrinsic. Situational influences encompass all aspects that affect the buyer’s decision at the point or place of sale and occur within the buying time/period. Situational influences comprise of market demand, demographic characteristics and complexity. On the other hand, intrinsic influences are those internal factors of knowledge and socialization, temperament and incentive as well as lifestyle. Some vital intrinsic factors include psychological characteristics such as motivation, socialization, attitudes and lifestyles. Extrinsic influences are factors outside the buyer and which have a big influence on a buyer’s persona. Several elements of culture such as ethos, shared class, situation groups and family structure are important extrinsic factors affecting buying behaviour. product loyalty, company image and repeat purchase Brand loyalty in regards to marketing infers to buyers willingness to make a comeback with a view of making a similar purchase of either a good or service (Pride et al., p.71). Sometimes, brand loyalty extends to a buyer’s willingness to sacrifice his/her needs for the sake of the brand. Owing to situational constraints, customers a times consider repurchasing the brand as a last resort. Sometimes buyers may consider repurchasing the commodity and this is demonstrated through a repeat buying of goods or services. Achieving brand loyalty is not an easy venture since customers need to be convinced the quality of the purchased brand is worth their money and this is measured on the basis of repeat purchase behaviour. Loyalty is very beneficial to a company since customers may even be ready to pay higher costs or even refer new customers to the company. Corporate image infers to how the company is perceived externally. This majorly lies with how the management is able to build company name in what they value in terms of values and general principles on goods or services they deal with. Corporate social responsibility is often used by companies as a way of endorsing an acceptable company image to the society. Such a public image is vital in attracting more customers towards buying the firms commodities. Works cited: Pride, William M, Robert J. Hughes, and Jack R. Kapoor. Business; Mason, OH: South-Western Cengage Learning, 2012. Print. Sumathi, S, and P Saravanavel. Marketing Research and Consumer Behaviour. New Delhi: Vikas Pub, 2003. Print. Read More