Theories of Buyer Behavior in Terms of the Individuals and Markets - Assignment Example

BUYER BEHAVIOR By The main stages of the purchase decision-making process. Before the buyer or the consumer purchase a particular product he or she has to go through various decision making process follow same specific stages so as to come up with a correct decision in order to carry out the right purchase of the product needed. These stages are explained bellow: Stage 1: Need recognition. This is same as the problem recognition. This is the first step in the decision-making process of buying goods and products. When the consumers recognize the need of having a product, it will stimulate the buyer to have a buying decision (GERBER, 2008 p. 50). Example, when an individual feels thirst he or she will have need to buy water or a cold drink. Stage2: Information search. Once you have identified the need, there is need to seek information on the problem identified. The consumer will start to gather as much information he or she will get. The consumer will have to be guided by the following sources, Internal information: This is the information which is in the mind of the consumer. This can be from the previous experiences that the consumer had with the products. External information: This is the products information obtained from people or other consumers in press media that are using the brand of the same kind (GERBER, 2008 p. 50). Stage3: Evaluation of alternatives. Consumers evaluate other alternative sources which are available in the market. Consumer will have to choose one of the best according to his or her need. Stage4: The decision of purchasing. After the consumer has gone through the above stages and evaluated the solutions, he will choose the brand that suits him according to his needs. Then the consumer will go ahead with the real purchase of the products. Stage5: Post purchase behavior and evaluation. After the consumer purchased the product, he or she will carry out customer’s analysis. This is to know whether the product is useful to you or not. And also knowing if it had fulfilled the needs or not (GERBER, 2008 p. 50). In conclusion, it’s very important for the consumer to carry out specific research and follows the five stages before and after purchasing a given product that he or she may need. This will enable him or her to have the right product without a regret. Four theories of buyer behavior in terms of the individuals and markets. There are a number of theories which are in line with the buyer behavior in terms of individuals and market. These theories include environmental theory of buying behavior, generic theory of buying behavior, cultural theory and internal theory of buying behavior. This is explained below. Environmental Theory of buying behavior: Individuals can show different buying behavior basing on the situation and the environment the individual is in. The environment in which the individual is will make very big measure in the market in which the individual is in. Example an individual can be in the supermarket and buy a water bottle at a cheap price, but after a long day of working in a busy place the individual will buy that bottle of water at a higher price than it was in the supermarket (HOWARD, 1969 p. 45). Cultural theory of buying behavior: The individual and market behavior of a buyer can be affected by the culture in which the individual is in. When an individual was being raised and brought up in the family, the person’s behavior can be influenced by the family member. Example the individual can acquire good discipline and behavior. Individuals’ culture value and beliefs are learned through the community context (HORTON, 1984 p. 87). Generic theory of buying behavior: The generic model can be used by individuals to follow during the decision-making process. Buyer will go to the market and conduct research so as to purchase the product, and also its pricing (HOWARD, (1969 p. 98). An example is when the individual makes the decision to buy a television after an old television break and the cost of repairing it is too costly. The individual will have to investigate a new television that is in the market, he or she will evaluate its features, the price and also its cost and come up with a decision of purchase. If the consumer will like the performance of that product, I future the individual will have high chances of buying that brand. Thus making the products of the same brand in the market to be bought Internal theory of buying behavior: For many purchases, consumer will have to go through a generic theory model of making decision and through this process consumer will make the decision. This theory is where individuals will go in different places comparing the prices before making the final decision of purchasing the product in the market. Their personality normally drives some individual and select good product despite the price and the features (HOWARD, 1969 p. 78). In conclusion, all the named theories above are very effective when it comes to buyer behavior in line with the individual and the market. Factors that affect buyer behavior. In the business world, buyers are affected by different and uncontrolled behaviors when it comes to buying g of commodities. This behavior is influenced by many things which may include the environmental factors, the situational factors, marketing factors, psychological and personal factors, cultural influences and family factors. Business people normally try to figure out some trends in order for them reaching out people to buy their commodities and products. This is explained in more in detailed as shown below. Situational Factors: Situational factors are depending on the situation on which the buyer is may affect his or her behavior. Example, the Social situation can significantly affect buyer behavior, whereby a buyer can be, can decide to buy or not to depend on the relationship between the buyer and the seller. The buyer can buy or refuse to buy the commodities just because he or she knows the seller or not (PRIDE, (2006 p. 255). Time factor: Buyers behavior can be affected by the days’ time, time to the year and time the buyer will be failing to buy the commodities. Example, some buyers like to buy their commodities in the morning when they go out to purchase the days commodities. They do like buying during morning hours just because of one reason or the other; they can be referred to as the morning people. Other buyers like to go out to buy their goods during the evening time of the day. The reason for this may be due to the person working in the office during the morning hours. They can be referred to as the evening people. The buyer’s mood: Some buyer’s behavior can be affected by the moods which they are in at the particular time. The buyer’s mood may temporarily be effective in their spending. Some buyers enjoy doing shopping and find it to be entertaining. Some buyers can be affected by the sour mood they are in, thus reducing their moods of buying the commodities (PRIDE, (2006 p. 255). Psychological factors: Psychological factors may have an effect on the buyer’s behavior. Example include; motivation. This is the inward drive of having the desire to get what we may need. Some buyers can be motivated to buy the commodities from sellers or not. Perception. This is the interpretation of the world around us and has a sense of it in our brain. And this is through the stimuli. Buyers have a different way on how they perceived goods they need to buy. Example if the buyers have a wrong perception of the goods can make them not to buy the goods. And if they have the right perception about the goods, they will buy them. Subliminal advertising. This is where consumers are exposed to stimuli such as advertisement and photos. Consumers are taught how the perceive information subconsciously and being influenced by the products which are being shown (PRIDE, 2006 p. 255). Learning. Buyer can have a behavioral change after they get information and gain the experience. Buyers can buy the products after they learn how it works. Culture: Culture is also another factor that have an influence on behavior. Buyer’s behavior can be affected by the culture in which the person is coming from. As the individual was growing up, the child was influenced family members who teaches them what is good or bad. Culture prescribes the way people live, thus having impact on the goods the buyer will buy. Example in the case of miniskirts some buyers cannot buy it because their culture cannot allow them to do so. Family: The person’s family is also the most important factor influencing buying behavior. The family in which the buyer is coming from can affect his or her behavior depending on whether the family members like the product to be bought or not. In conclusion, it’s quite evident that the behavior of the buyers is affected by different factors ranging from environmental factors, social factors, situational factors, psychological factors and also marketing factors. Relationship between brand loyalty, corporate image and repeat purchasing. Brand loyalty is representation of consumer loyalty and dedication as per the brand. It shows the customer having a desire to buy the specific brand. The perception builds a buying habit. Corporate image is the company perception by the consumer community. This is the accepted image of the company is standing for. Corporate image is the picture formed psychologically in the customers mind. Repeat purchasing occurs when the individual purchases a certain product in the market, after using the product the individual is pleased with the product and attempts to use the same products of the same brand again (WALTER, (1988 p. 8). These notions of corporate image, brand loyalty and the repeat purchase have an interrelation with each other. Companies will have to employ different creativity and apply correct marketing techniques in order to build a very firm corporate image in the consumers mind within the widespread community (WALTER, 1988 p. 8). Suddenly, the customer will be attracted towards that brand and in the event buys it. When the customer buys the brand for the first time, he or she will have to test the product of the same brand. If the product satisfy the consumers need in a successful way, he or she will buy that brand again and becomes a routine for them. The person will also go ahead and recommend the brand to his or her friends. The purchase is carried on repeatedly, and this will have to bring on the brand royalty. In conclusion, the product in the market must be fulfilling to the specifications and needs as it is wanted by consumers to make them buy that product. And also recommend the product to their associates, thus making brand loyalty, corporate image and repeat purchase to interrelate with each other. Reference List GERBER, K., & BOTHMA, N. (2008). Consumer behavior. Cape Town, Pearson Education South Africa. HOWARD, J. A., & SHETH, J. N. (1969). The theory of buyer behavior. New York, Wiley. HORTON, R. L. (1984). Buyer behavior: a decision-making approach. Columbus, Ohio, C.E. Merrill Pub. Co.Top of Form PRIDE, W. M., & FERRELL, O. C. (2006). Marketing: concepts and strategies. Boston, Houghton Mifflin Co. WALTER, I., & MURRAY, T. (1988). Handbook of international management. New York, Wiley. Bottom of Form Read More