Purchase Decision

Examples of Purchase Decision in the following topics:

• Purchase

  • During the purchase decision stage, the consumer may form an intention to buy the most preferred brand or product.
  • The purchase decision is the fourth stage in the consumer decision process and when the purchase actually takes place.
  • According to Philip Kotler, Keller, Koshy and Jha (2009), the final purchase decision, can be disrupted by two factors:
  • The decision may be disrupted due to a situation that one did not anticipate, such as losing a job or a retail store closing down.
  • This is also a time during the which the consumer might decide against making the purchase decision.

• Reference Groups

  • Reference groups are groups that consumers will look to for help in making purchasing decisions.
  • Reference groups are considered a social influence in consumer purchasing.
  • They are often groups that consumers will look to to make purchasing decisions.
  • A company might use a celebrity it feels will match its target market to get that market to purchase its product.
  • Reference groups can and do have a tremendous influence on purchasing decisions.

• Buying Centers

  • A buying center is a group of people within an organization who make business purchase decisions.
  • Many people are involved in the daily transactions and the purchase decisions both on the buying side and the selling side.
  • A buying center is a group of employees, family members, or members of any type of organization responsible for finalizing major purchase decisions.
  • Influencers who try to affect the outcome decision with their opinions
  • The chairman of the Hong Kong Stock Exchange is an example of a member in an organization responsible for finalizing major purchase decisions.

• Post-Purchase Behavior

  • Post-purchase behavior is when the customer assesses whether he is satisfied or dissatisfied with a purchase.
  • An example of cognitive dissonance is when a customer might feel compelled to question whether he has made the right purchase decision.
  • Post-purchase behavior is the final stage in the consumer decision process when the customer assesses whether he is satisfied or dissatisfied with a purchase.
  • A customer will also be able to influence the purchase decision of others because he will likely feel compelled to share his feelings about the purchase.
  • For example, the customer might feel compelled to question whether he has made the right decision.

• Opinion Leaders

  • Opinion leaders are people consumers look to for guidance in making purchase decisions, usually someone with more knowledge of the subject.
  • Our purchase decisions are influenced by any number of people or groups.
  • We often look to opinion leaders for help in our consumer decisions.
  • All these professionals can influence the decisions consumers make within their area of expertise.
  • Opinion leaders can have a profound influence on the success of a product, and on one's own consumer purchases.

• Family

  • Many factors influence purchasing.
  • One way to understand the family's impact on consumer behavior is to identify the decision maker for a purchase.
  • A decision maker for a purchase can be a husband, wife, or even a child, and sometimes decisions are made in collaboration.
  • Often, the decision maker changes based on the type of purchase or the size of the purchase.
  • Describe how family dynamics and the family life cycle can influence purchasing decisions

• Stages of Business Buying

  • The purchasing process is different in both cases and the following is a list of the stages involved in B2B buying:
  • Results become feedback for other stages in future business purchasing decisions
  • If the decision for a particular brand of soft drink was not right, there are minimal implications.
  • Additionally, the purchasing office / manager may have to justify a purchasing decision.
  • If the decision proves to be harmful to the organization, disciplinary measures may be taken or the person may even face termination of employment.

• Purchase Behavior

  • Business customers also purchase a wide variety of different services, depending on their business needs.
  • Because B2B sales cycles can extend over months and even a few years, the business customers are more cautious and rational in their purchasing decisions than day-to-day consumers.
  • Predicting customer purchase behavior also allows B2B companies to segment industrial markets.
  • The goal for every industrial market segmentation scheme is to identify the most significant differences among current and potential customers and/or suppliers that will influence their purchase decisions or buying behavior, while keeping the segmentation approach as simple as possible.
  • Identify the unique characteristics of B2B purchase behavior and how it influences B2B marketing tactics

• 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.
  • 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.
  • However, in reality, many decisions are not made in awareness of a determined problem by the consumer.

• 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).
  • Within organizations, major purchases typically require input from various parts of the organization, including finance, accounting, purchasing, information technology management, and senior management.
  • The economic buyer justifies the purchase by linking it to profit.
  • 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.