When it comes to marketing goods or services, understanding your customers buying decision-making process matters. Amazingly, many small businesses fail to recognise how important it is to understand their customers buying decision process. The good news is, it’s quite a quick and simple task. It just requires placing yourself in your customers’ shoes and applying some logical thought.

Buyer behaviour experts generally agree that there are five stages in the consumer buyer decision-making process. The nature of the product, however, will almost always influence the complexity of each purchase decision we make.

For example, tangible goods are easier to evaluate in comparison to services. To illustrate this, let’s consider the buyer evaluation criteria used when we purchase a box of tissues. At around $2.50 a box, for many people, buying a box of tissues is a simple routine purchase. Apart from price, we might consider the brand’s reputation for being soft, and we might also evaluate the various sizes available. Usually we won’t spend more than 15 seconds evaluating such a low price item of convenience.

By comparison, consider the thought that goes into choosing aluminium stair nosings, a solicitor, a surgeon, a company that builds custom outdoor kitchens in Brisbane, a mechanic to service your car, or perhaps reliable WordPress hosting. Apart from price, we are faced with many other considerations. These occur before, during and after the buying decision-making process has actually concluded. Additional criteria might include: the service provider’s reputation, positive recommendations from family, friends or work colleagues, as well as warranty duration and convenience (location wise).

As a rule of thumb, the more expensive the good or service, the more complex the buying purchase decision becomes. For instance, compare our tissue example to the thought that goes into buying a new car. When we buy a new car, we will consider the following criteria as part of a complex buying decision-making process:

• Price;
• Brand;
• Model;
• Size;
• Colour;
• Performance;
• Reputation;
• Quality;
• Value for money;
• Safety rating;
• The price of parts;
• Warranty;
• The reputation of the dealership;
• The dealership’s location (I.e. Is it handy); and
• The availability.

Depending upon the goods or services we’re buying, some stages in the buying decision-making process may be bypassed altogether. Alternatively, some stages can become far more complex, requiring intensive evaluation. Let’s take a look at an example.

5 stages in the buying decision-making process

To provide our readers with a sound understanding of the five stage consumer buying decision-making process, we’ll consider each stage in sequential order.

Recognition of an unsatisfied need

The first stage of the process involves buyers realising that they have a need that is yet to be satisfied. For example, you might be at home with your partner on a Saturday evening. Being somewhat bored you might say to your other half, “I’m feeling restless – I wouldn’t mind doing something tonight”. This is a prime example of this stage. Basically, at this time a need exists (for entertainment), but it hasn’t yet been determined how this need will be satisfied.

Information search

Stage two involves information search. It is the stage at which we apply informal and/or formal consideration. As discussed, you may have recognised that an unsatisfied need for entertainment exists. But, as yet, you do not know how this void will be filled. You and your partner, therefore, begin searching for information that will ultimately lead to the fulfilment of your need.

Continuing on with the scenario, above, you might start recalling past activities, which had previously satisfied your need for entertainment. You might also recall word of mouth (WOM) testimonials from family and friends. Or you may have seen a TV commercial recently, advertising something that caught your attention.

At this time, you may consider these past and present options as part of your bundle of possible entertainment solutions.

Evaluation of alternatives

Stage three is when you evaluate your preferred bundle of various options, which were identified in the previous stage. They are then compared to each other for their ability to best satisfy your needs. These preferred options represent the greatest interest to us. Consumer behaviour experts refer to these as, the buyer’s evoked set. Here, buyers consider the core and augmented product elements of all products contained in their evoked set. The core component represents the benefits of the product (in this case entertainment), whereas the augment component referrers to the extended attributes of the product, for example, price, location and convenience.

To explain this stage in the buying decision-making process, let’s make some assumptions. In fact, we’ll say you and your partner have now identified a number of possible entertainment options. These include:

• Going to the cinema;
• Dining out at your favourite restaurant;
• Going to a night club;
• Having a dabble at a casino; and
• Watching a DVD at home.

At this stage, buyers will begin to evaluate these for their ability to satisfy their need. Other factors also start to creep into the equation at this time. In line with our boredom example, things like how much energy you have, the cost of each activity, the proximity of these options to your home will be evaluated.

Actual purchase decision

Quite simply, the fourth stage where the purchase decision is made. Having evaluated your evoked set, as well as the situational factors just discussed, a choice is made. Let’s presume you and your partner are high income earning professionals. With cash not being an issue, you decide to splash-out at your local Casino for the evening. You immediately book a taxi and reserve a table at one of the Casino’s upper-class restaurants and also attend the Casino’s latest show.

Post-purchase evaluation

The fifth stage occurs when the ultimate consumer or business buyer performs post-purchase evaluation of of the good or service they buy. This post-evaluation process presents significant implications for marketers. If, for example, the product fails to live up to the buyer’s expectations, it can negatively affect future sales and repeat business.

To conclude our ‘boredom’ scenario, you and your partner might arrive at the Casino, completely satisfied with your decision, going on to have a fabulous night out.

By contrast, your taxi might arrive 30 minutes late. As a result, by the time they get to the Casino you could be feeling tired an agitated. Your partner could turn to you and say, “You know, perhaps we should have gone to the cinema and viewed a movie instead.” This post-purchase experience is termed buyers’ remorse or cognitive dissonance.

By thoroughly understanding the buying decision-making process, marketers can devise various strategies, which can reduce the likelihood of buyers’ remorse or post-purchase anxiety from occurring. Although, our example clearly demonstrates that this is not always possible due to external factors outside of the firm’s direct control.