Buyer Decision Process

(noun)

the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service.

Related Terms

Examples of Buyer Decision Process in the following topics:

  • Lifestyle

    • In consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process for consumers.
    • However, in consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process of consumers.
    • Lifestyle is also referred to as a buyer characteristic in the Black Box Model, which shows the interaction of stimuli, consumer characteristics, decision process, and consumer responses.
    • The buyer's "black box" contains the buyer characteristics (e.g., attitudes, motivation, perception, lifestyle, personality, and knowledge) and the decision process (e.g., problem recognition, information research, alternative evaluation, purchase decision, and post-purchase behavior) which determine the buyer's response (e.g., product choice, brand choice, dealer choice, purchase timing, and purchase amount).
    • The Black Box Model considers the buyer's response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem.

  • Two basic relationship types

    • Buyers often illustrate this loyalty for several reasons.
    • One reason a buyer remains loyal is simply convenience.
    • The buyer must purchase snacks, candy, meat, and drinks, just to name a few.
    • This particular buyer uses a wholesaler to purchase all necessary items.
    • With a functional relationship, both parties are interested in their own profits, therefore, price is usually the most important factor in the decision making process.

  • Types of Buying Decisions

    • Buying decisions are based on buyer behavior.
    • Consumer behavior and business behavior can differ because their buying processes are different.
    • Because consumers often buy on emotion, ads can affect the buying decision.
    • Consumer products are often advertised on television in a way that tries to create an emotional tie with the buyer.
    • Sometimes the type of product will make a difference in the buying decision.

  • The Marketing Exchange

    • Unfortunately, buyers seldom write down their personal policies and objectives.
    • This is the mystery, or the "black box," of buyer behavior that makes the exchange process so unpredictable and difficult for marketers to understand.
    • There tends to be some negotiation between the parties in the exchange process.
    • An understanding of how they arrive at a decision allows the marketer to build an offering that will attract buyers.
    • In general, the consumer decision process includes the following steps:

  • Buying Situations

    • For consumer brands, the buyer is an individual.
    • Since there are more people involved in the decision-making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C.
    • Buyers go though three stages of the buying process, which include:
    • Buyers move in and out of each stage.
    • Organizations have to become better at determining what need and what questions buyers have when they decide to engage in the sales process.

  • Negotiating

    • B2B buyers and sellers use negotiating tactics to agree upon terms and pricing that benefit both the customer and the seller.
    • The negotiation process is an important step during the business-to-business (B2B) buying process.
    • Typically, many departments and roles are involved in the decision-making process for business purchases.
    • Writing and noting customer specifications, listening to buyer concerns, and communicating specific actions are roles team members must satisfy during the negotiation process.
    • Negotiating tactics in B2B transactions involve taking into account both buyer and seller interests.

  • B2B vs. Consumer Marketing: Similarities and Differences

    • Whereas emotional factors play a large role in B2C purchases, B2B purchasing decisions tend to be less emotional and more task-oriented than consumer buyer markets.
    • While consumer marketing is aimed at large groups through mass media and retailers, the negotiation process between the buyer and seller is more personal in business marketing.
    • For example, B2B marketers often present products and their benefits in private presentations to key decision-makers.
    • As a result, confidence and trust are gradually built between the seller and buyer over a period of time.
    • The evaluation and selling process for B2B purchases are longer and more complex than consumer purchases.

  • Defining a Market System

    • A market system is a way to match buyers and sellers.
    • In an economy, a market system is any systematic process that enables many market players to bid and ask.
    • Markets help such buyers and sellers meet to trade.
    • The chosen prices impact the immediate group of buyers and sellers, but also may impact long term supply and demand decisions within the market.
    • The NASDAQ is a stock market where buyers and sellers of stocks can meet and trade.

  • Decision-Making Units

    • The group of individuals responsible for making a buying decision in a B2B context are labelled the decision making unit (DMU).
    • The group responsible for making the buying decision in companies is referred to as the decision making unit (DMU).
    • The economic buyer justifies the purchase by linking it to profit.
    • The infrastructure buyer - This role influences the buying decision at the execution level.
    • The user buyer - This position influences the buying decision at the user level and decides whether the organization will achieve its financial objectives through the purchase.

  • Types of Transactions

    • The buyer buys the assets of the target company.
    • The form of payment might be decisive for the seller.
    • Third, with a share deal the buyer's capital structure might be affected and the control of the buyer modified.
    • The balance sheet of the buyer will be modified, and thus the decision maker should take into account the effects on the reported financial results.
    • However, economic dilution must prevail towards accounting dilution in the decision making process.