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Types of Consumer Purchase Decisions

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Lecture 2. Consumers and Markets(1)

I. Consumers Buying Behavior

This tutorial includes the following topics:

Consumer Buying Behavior. Types of Purchase Decisions.

Why Consumers Buy. What Influences Purchasing

Internal Influences: Perceptual Filter. Knowledge and Attitude. Personality and Lifestyle. Roles and Motivation

External Influences: Culture and Groups. Situation

How Consumers Buy. Purchase Decision (Steps 1, 2, 3, 4 and 5)

 

Consumer Buying Behavior.

Consumer behaviour is the study of why buyers do what they do (or don’t do). The better we can understand the rational, emotional and often subconscious reasons for consumers’ actions, the better we will be at creating effective marketing campaigns.

Does good marketing always make people do what we want them to do? No. But it can present our brand’s story in the best possible light. In order to do this it is important to understand what consumers want, how they make decisions, why they choose the brands they do and how and where we should talk to them. [Fundamentals of Marketing, p.40]

As you might guess, factors affecting how customers make decisions are extremely complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make things more interesting. Since every person in the world is different, it is impossible to have simple rules that explain how buying decisions are made. But those who have spent many years analyzing customer activity have presented us with useful “guidelines” in how someone decides whether or not to make a purchase.

Types of Consumer Purchase Decisions

Consumers are faced (cстикаються) with purchase decisions nearly every day. But not all decisions are treated the same (трактуються однаково). Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are routine and require little effort. In general, consumers face four types of purchase decisions:

  • Minor New Purchases – these purchases represent something new to a consumer but in the customer’s mind it is not a very important purchase in terms of need, money or other reason (e.g., status within a group).
  • Minor Re-Purchases – these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty).
  • Major New Purchases – these purchases are the most difficult of all purchases because these are important to the consumer but the consumer has little or no previous experience making the purchase AND is important. This type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.
  • Major Re-Purchase - these purchase decisions are also important to the customer but the customer feels more confident in making the decision since they have experienced purchasing the product in the past.

 

For marketers it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some the product is new, while other customers see the purchase as routine. The implication of buying behavior for marketers is that different buying situations require different marketing efforts.


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