What is the decision process by which customers come to purchase and consume products?

The customer buying process (also called a buying decision process) describes the journey your customer goes through before they buy your product. Understanding your customer’s buying process is not only very important for your salespeople, it will also enable you to align your sales strategy accordingly.

The five stages framework remains a good way to evaluate the customer’s buying process. John Dewey first introduced the following five stages in 1910:

1. Problem/need recognition

This is often identified as the first and most important step in the customer’s decision process. A purchase cannot take place without the recognition of the need. The need may have been triggered by internal stimuli (such as hunger or thirst) or external stimuli (such as advertising or word of mouth).

2. Information search

Having recognised a problem or need, the next step a customer may take is the information search stage, in order to find out what they feel is the best solution. This is the buyer’s effort to search internal and external business environments, in order to identify and evaluate information sources related to the central buying decision. Your customer may rely on print, visual, online media or word of mouth for obtaining information.

3. Evaluation of alternatives

As you might expect, individuals will evaluate different products or brands at this stage on the basis of alternative product attributes – those which have the ability to deliver the benefits the customer is seeking. A factor that heavily influences this stage is the customer’s attitude. Involvement is another factor that influences the evaluation process. For example, if the customer’s attitude is positive and involvement is high, then they will evaluate a number of companies or brands; but if it is low, only one company or brand will be evaluated.

4. Purchase decision

The penultimate stage is where the purchase takes place. Philip Kotler (2009) states that the final purchase decision may be ‘disrupted’ by two factors: negative feedback from other customers and the level of motivation to accept the feedback. For example, having gone through the previous three stages, a customer chooses to buy a new telescope. However, because his very good friend, a keen astronomer, gives him negative feedback, he will then be bound to change his preference. Furthermore, the decision may be disrupted due to unforeseen situations such as a sudden job loss or relocation.

5. Post-purchase behaviour

In brief, customers will compare products with their previous expectations and will be either satisfied or dissatisfied. Therefore, these stages are critical in retaining customers. This can greatly affect the decision process for similar purchases from the same company in the future, having a knock-on effect at the information search stage and evaluation of alternatives stage. If your customer is satisfied, this will result in brand loyalty, and the Information search and Evaluation of alternative stages will often be fast-tracked or skipped altogether.

On the basis of being either satisfied or dissatisfied, it is common for customers to distribute their positive or negative feedback about the product. This may be through reviews on website, social media networks or word of mouth. Companies should be very careful to create positive post-purchase communication, in order to engage customers and make the process as efficient as possible.

Consumers go through a set of sequential steps while buying a product. A buying process is the sequence of steps that a consumer takes while making a purchasing decision. A normal consumer purchase includes the recognition of needs and wants. Next comes the information search, followed by an evaluation of all the choices. Finally, the purchase happens, and post-purchase evaluation follows a purchase.

Let’s go over each stage of a consumer buying process: 

1. Identify the Problem

This is the first stage of the buying process. A consumer will not initiate a purchase without the recognition of the needs or wants. When a consumer feels the need to buy a particular product, he will go for a purchase decision.  There is an unmet need or there is a problem that can be solved by buying a particular product.

Needs arise as there is a problem. For example, you broke the table that you were regular ling using for your business. And due to this problem, you now have to buy a new table.

Wants arise either because you have need a product or just because you are influenced by external factors. For example, you see your friends using a laptop for their project work. You might also have seen numerous advertisements about how a laptop can help you in your project work. Due to this influence, you feel you want to upgrade to a laptop though you may already have a desktop. 

In this stage, the marketer should identify the needs of the consumers and offer the products based on the desire. 

2. Information search

At this stage, the consumer is aware of his need or want. He also knows that he wants to buy a product that can relieve his problem. Therefore, he wants to know more about the product that can relieve his problem. This leads to the information search stage. 

The consumer will try to find out the options available and the best solution for his problem. The buyer will look for information in internal and external business environments. A consumer may look into advertisements, print, videos, online and even might ask his friends and family.

When consumers want to buy a laptop, they look for a laptop, its features, price, discounts, warranty, after-sales service, insurance, and a lot of other important features.

Here, a marketer must offer a lot of information about the product in the form of informative videos, demos, blogs, how-to-do videos, and celebrity interviews.

3. Evaluation of Alternatives

By now the consumer has done enough research about the kind of product that can solve his problem. The next step is to evaluate alternative products that can solve his problem. Various points of information gathered from different sources are used in evaluating alternatives. 

Generally, consumers evaluate the alternatives based on a number of attributes of the product. Looks, durability, quality, price, service, popularity, brand, social media reviews are some of the factors that consumers consider. 

The market offers many products that can solve the problem of a consumer. Hence the consumer has to make a choice after evaluating the various alternatives available.

At the end of this stage, the consumer will rank his choices and pick a product that best matches his needs and wants.  

4. Purchase Decision/Purchase

At this point, customers have already explored multiple options. They are aware of the pricing and payment options available. Here, consumers are deciding whether to buy that product or not. Yes, even at this stage they can still drop the purchase and walk away. 

Philip Kotler (2009) says the final purchase decision may be ‘interrupted’ by two factors. Customers may get negative feedback from friends or other customers who bought it. For example, a customer shortlisted a laptop, but his friend gave negative feedback. This will make him to change his decision. Furthermore, the decision might also change. Sudden changes in business plans, financial crunch, unexpected higher prices, etc. might lead the consumer to drop the idea of buying the laptop. 

The Consumer chooses the product that he wants to buy, but many times, he may not actually buy it for various reasons. At this stage, a marketer should find out the various reasons why the consumer is hesitating to buy. The reasons could be price, value, and change in the needs of the consumer.

A marketer needs to step up the game.  Start by reminding the customers of the reason behind their decision to buy the product. Furthermore, give as much information regarding your brand reiterating that you are the best provider of the product that can fulfill his needs. 

Retargeting by simple email reminders can enforce the purchase decision.

5. Post-Purchase Evaluation

This is the last stage and is most often ignored by marketers.

After buying the product, customers compare products with their expectations. There can be two outcomes:  Either satisfaction or dissatisfaction.  Consumers will be happy after buying the product if it has satisfied their needs. But in case the product was not up to his expectations, the consumer will be dissatisfied. A consumer can be lost even at this stage.

A dissatisfied customer might feel as though he took an incorrect decision. This will result in returns! Offering an exchange will be a straightforward action. However, even when a customer is satisfied, there is no guarantee that the customer might be a repeat customer. 

Customers, either satisfied or dissatisfied, can take action to distribute their experience in the form of customer reviews. This may be done through reviews on customer forums, websites, social media conversations, or word of mouth.

A marketer has to make sure that the consumer will be satisfied with the product so that his experience will lead to repeat customers. Brands need to be careful to create a positive post-purchase experience.

Wrapping up

Marketers need to take time to understand the five stages of the consumer buying process. Doing this establishes that your marketing strategy addresses each component of a consumer buying behavior.

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