Purchasing behavior
1.
Realize a need
2.
Search for information
3.
Evaluate information
4.
Purchase
5.
Evaluate product value
·
The first phase is
recognizing the need. In this phase, consumers realize they need or want a
product or service. This recognition takes place whether the consumer simply
needs to replace a product (such as milk in the refrigerator) or make an
entirely new purchase (such as buying a first house).
·
The second phase is
one in which consumers search for information. Consumers may perform Internet
research, go to different stores to see the products available, talk to others
who have purchased similar products, read the reviews of other consumers, or
consult professional sources that review products.
·
The third phase of the
decision-making process is product evaluation. Once consumers finish searching
for information, they have many facts about product features and costs.
Consumers, however, have to determine the individual weights they give to each
item. When buying a home, for example, is having an attached garage a
significant enough feature to warrant a higher cost? That depends on the
consumer’s preferences. Has the consumer previously purchased a product from
one company and was so pleased that, even though the cost is higher, the person
will only consider that brand for future purchases? Factors like these play
into how consumers evaluate products when making purchase decisions.
·
The fourth phase is
the actual product choice and purchase. For low-involvement decisions,
consumers generally go from the recognition of the need (the first phase) to
this phase (purchasing the product). Making this jump usually pertains to less
expensive and replacement items with few risks or where consumers have already
made the decision, such as picking up a dozen eggs because they have run out.
For higher-level involvement decisions pertaining to products of greater cost
and greater risk, consumers will go through each of the previous
phases and may take a considerable amount of time before making the actual
purchase.
·
The fifth phase of the
decision-making process concerns how consumers evaluate their purchase after
the fact. Is the product what they expected? Or does the consumer feel post-purchase
dissonance(sometimes
referred to as buyer’s remorse)? Companies do many things to try to ensure
customers are happy with their product purchase. Some offer warranties,
money-back guarantees, or toll-free hotlines for service. Others may try to
adjust customer expectations in a way that the company knows it can meet or
beat it. For example, a company may tell a customer that the product will
arrive in five to seven days, knowing to the product will likely arrive in two
to three. In that way, the customer is extremely happy when purchase arrives
“early.”
·
The sixth and last
phase of the decision-making process is the disposal of the product when it is
no longer of use to consumers. In years past, neither consumers nor companies
thought much about disposal, but now this phase is of significance to both.
Consumers are much more aware of the consequences of their use and disposal.
This awareness drives companies to consider these issues as well. People may
purchase products because they know the return or reclamation policy of the
company, or they may buy products they know will produce less waste.
4 p’ s of marketing, product price, promotion, place
Marketing research is to find answers to specific questions.
Steps in marketing research
1. Define the Problem
2. Develop Your Research Plan
3. Collect Relevant Data and Information
4. Analyze Data and Report Findings
5. Take Action
Step 1. Define the problem. In this step, a company looks at what it
believes are symptoms of a problem or a need to be filled. The company digs
deep to sort through potential causes and tries to define the problem as
accurately as possible. With the problem defined, the marketing research team
writes the research objective. The research objective will clearly state what the research
aims to accomplish—the goal.
Step 2. With the goal of the
research clearly stated,
the next step in the process is to design the research. The research design
will outline exactly what data researchers will collect, who they will collect
that data from, and how and when they will collect the data. The design also
states how companies will analyze the collected data. Primary
data is information you collect yourself, using
hands-on tools such as interviews or surveys, specifically for the research
project you are conducting. Secondary data is data that has already been
collected by someone else, or data you have already collected for another
purpose.
Step 3. Once companies determine what data they will collect, they
can then design the data collection forms. These forms must be standardized so that
companies can collect information in a consistent way and then compare the
information. Surveys provide one popular way to gather data for market
research. Companies can give surveys to a large number of people in a
relatively short period of time, and quickly and easily tabulate the answers.
Step 4. Marketers refer to selecting the individuals who will
participate in the research as “drawing the sample.” The sample is
a subset of potential buyers and should represent the entire target market for
a product. Companies must take care when drawing the sample for the research
because, if they do not correctly select the sample, the results of the
research will be inaccurate.
Step 5. The next step is to actually collect
the data. Depending on the design of the research, marketers might do this in a
face-to-face situation or over the phone. Another possibility is to conduct the
research with the help of computers and/or the Internet.
Step 6. Once marketers have conducted all the
research and collected all the data, the next step is to analyze the data.
First, they must review it for any obvious errors. Then, they need to tabulate
and analyze the data to draw conclusions from the results
.
Step 7. The last step in the market research
process is to write the research report. This is the report presented to the
decision makers within an organization. It shares both the findings and any
conclusions drawn from the research.
What are the steps of customer value analysis?
Step 1. Identify the major benefits and
attributes that customers value for choosing a product. These include factors
such as ease of use. Note that this step is an assessment of specific benefits
and attributes, not a listing of features.
Step 2. Determine
the quantitative importance of the benefits and attributes. This step is an
attempt to assign an actual price differential for the value-added benefits of
the company’s product over a competitor’s product.
Step 3. Review
and assess the company's product and the competitor’s product in regard to
their performance on each benefit and attribute. Ascertaining who the
competitors are and honestly evaluating how their product and pricing compares
is critical.
Step 4. Assess
how customers rate the company’s product against the competitor’s product in
each benefit or attribute area. Again, this step requires honest assessment.
Step 5. Monitor
how customers perceive the value of the product over time. While getting the
initial sale is important, companies also must maintain a satisfied customer
base.
steps to customer proposition writing
1. Customer
Identification:
2.
Distinct Advantages
3.
Measuring Value:
4.
Sustainability
5.
Competitor Comparison:
What is a
value proposition?
Clearly and
succinctly states why the product or service is superior to those offered by
the competition.