Consumers are getting Smarter

Consumer Busing Behavior

Today the consumers are smarter than ever. With the power of internet and social media, the consumers are getting more aware of the products and services being offered.

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PRECIPITATING SITUATIONS/FACTORS

The initial step of the purchasing cycle is that the consumer perceives an issue which should be understood, or a need which should be fulfilled. Fundamentally, the consumer is searching for an answer for resolve a condition of distress. The inconvenience could emerge from anything – a powerlessness to complete work in time, baffling innovation or forms, or a contender picking up leverage.

Janet, a young independent working woman in Manhattan, has just moved to her new apartment. Since moving into her new home she has been intending to supplant her old cheap furniture with more stylish furniture. This is the stage of problem recognition of a consumer buying decision.
It is important step in order to understand what we as consume looking for. The stage of precipitating factors help us understand our need, problem and would lead us to shape a solution for the same with a clear mindset instead looking vaguely for something that may not even solve his/her problem.

DECISION PROCESS BEGINS

The second step in the basic purchasing process is to accumulate all data accessible about conceivable arrangements. The bigger the buy choice, the more extended this procedure will take. A consumer will need to be exceptionally careful in his/her search, in regards to highlights, valuing, usability, and so on.

Janet at this stage is visiting various furniture stores and with the help of sales representatives understanding about the advantages and disadvantages of different sorts and styles of furniture. She is continuosly looking for options, even while visiting her friends’ houses. Finally, she calls her parent’s decorater to discuss decorating options and colors.

At this stage of informational learning the consumer like Janet, is understanding the products and offering in the market. It may be through people, researching the internet or visiting physical stores. This steps is very crucial, as before making a choice a consumer must understand and know about maxinum number of offerings in the market giving his/her a broader variety of choice selection.

A PURCHASE IS MADE

In this stage the client chooses what to purchase, where to purchase in the wake of experiencing all the above stages. After legitimate evaluation of the considerable number of certainties the customer settles on a coherent choice to purchase an item in light of his needs and needs. The Needs and need are frequently activated from the promoting and advertising efforts, proposals from individual associations or might be from both.

Finally, after going through such tedious framework, has finally bought a TV cabinet. She is very delighted and feels it would be a great addition to her home. The 100 inches cabinet will give her ample space to set up additional things such as books in addition to the TV.

This is the most overwhelming stage of consumer process as the consumer has to make a decision and buy the product.

Five Factors which influence Consumer Decision

  • Price: One of the key aspects in almost every product categorry is the price/cost of the product or service. It is more than offen the biggest influence in terms of percentage which influences a consumer decision. The factor various based on the target market, the more competitive the industry the more is price senstivity.
  • Personal Preference: Consumer decision is impacted by different shades of preferences, needs, ethics and qualities. In certain dynamic businesses, for example, mold, nourishment and individual care, the individual view and conclusion of the customer relating to style and fun can turn into the predominant affecting component. In spite of the fact that promotion can help in affecting these variables to some degree, the individual purchaser different preferences apply more prominent impact on the end buy made by a customer.
  • Product Placement: One of the other key influencer is the physical and market placement of the product. It is very important for marketers to make sure they are targeting the right audience for their products while running campaigns and advertisements. Also, the physical aspect plays a big role especially in industries like FMCG where the product needs to be placed in a right spot to attract consumers.
  • Cultrural Factors

Cultural factors have a subtle influence on a consumer’s purchasing decision process.
Since every individual lives in a different social condition, the sorts of items or administrations they expect to utilize can be specifically or in a roundabout way be affected by the general social setting in which they live and develop. These Cultural elements incorporate race and religion, convention, standing and good qualities.

  • Functional Factors:
    This is one of the most basic factor backed by the logical thinking of a consumer. The product needs to provide a functional utility to the consumer in order for the consumer to purchase the product.

Reference:

Schiffman, L. G., Kanuk, L. L., & Wisenblit, J. (2010). Consumer behavior. Upper Saddle River, NJ: Prentice Hall.

 

 

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Daniel Fortune

Daniel Fortune is a successful business professional, entrepreneur, father, and lover of travel.

8 thoughts on “Consumers are getting Smarter

  • November 2, 2018 at 6:27 pm
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    Thanks for helping me understand the purchasing cycle Daniel. As someone in sales it is hard to accept that not everyone is going to buy from me…that I may just be a step on the information highway that would lead them to a final purchasing decision. I get that if I am helpful, informative, and not pushy that I may end up getting the sale, but so many times after I have extended myself to educate the customer they go somewhere else to purchase. How can I get on the the last stage of the purchasing cycle and be the one to get the sale?

    Reply
    • November 5, 2018 at 5:46 am
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      Thanks for your response, Melo Ann. The purchasing cycle is such an important concept that all business owners must understand to maximize sales. I’m gad you have become an educated business professional. Differentiating your product offering and making sure to build relationships can help you dominate your market. You might also look into the concept of disruptive innovation and employ some of these tactics. 

      Reply
  • November 2, 2018 at 6:29 pm
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    I take all of those things you mentioned into account as I shop for products.  Usually, it’s not on the smaller things so much, but I will take and shop around looking for the best option on the things that cost more or that I want to last longer or both.  I also have to take into account if the thing I’m shopping for is available in my area, if I can get it over the internet or how far I’m going to have to travel to obtain it.  Thanks!!

    Reply
    • November 5, 2018 at 5:48 am
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      GREAT, Kaeyos… I’m so very happy for you that you have chosen to become an educated consumer. Understanding how business works can help save a great deal of money. 

      Reply
  • November 2, 2018 at 6:37 pm
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    That’s an excellent description of the consumer buying cycle. I hadn’t seen the Five Factors laid out like that and they obviously play a crucial part in the eventual buying decision.

    The problem for anyone wanting to sell something, of course, is how to be there when the customer arrives at the decision and purchasing phase. Ideally we would ‘be there’ for the customer at that stage? Is it possible to jump in when they are ready to buy  or is it more practical and feasible to get them at the initial ‘I have a problem’ stage and guide them through to purchase? That sounds like a good idea but there is the chance that they will jump ship and not be with you when they make a purchase.

    What are your thoughts and suggestions on  that?
    Ian

    Reply
    • November 5, 2018 at 5:49 am
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      Thanks for your response, Iantrader! It’s always best to build relationships, use reminder advertising, provide consistent value, and ensure you personalize your messages and communications throughout the whole cycle. 

      Reply
  • November 2, 2018 at 6:46 pm
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    I’m totally in!

    Learnt a lot from your post.

    Customers are really getting smarter. Product placement is something rreally vital in getting tto attract your customers. I tried going to the link 1-year free oof business insider prime  and I loved tthe whole concept

    You may also alignment want to check because viewing from a mobile is not aligned. Great post anyways.

    Looking forward to more from you.

    Reply
    • November 3, 2018 at 12:54 pm
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      Thanks for letting me know about the mobile version of this article. I will look into it. I appreciate your perspectives on product placement. I hope you enjoy the business inside primer! I have been subscribed to it for a year now and it helped me really focus and hone in on my customer target. 

      Reply

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