Six Steps in Consumer Buying Behavior

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This is a guide that provides more information about the six steps involved in the consumer decision making process. These six steps include: identifying the problem, generating alternatives, evaluating alternatives, making the decision, implementation, and evaluating the results. This guide provides a report generated by five people sent out into the consumer field that observed what factors influence people while they are purchasing certain goods or services. This guide can be used by small businesses or other entities that want to learn more about the mindset of the average consumer.

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									This is a guide that provides more information about the six steps involved in the
consumer decision making process. These six steps include: identifying the problem,
generating alternatives, evaluating alternatives, making the decision, implementation,
and evaluating the results. This guide provides a report generated by five people sent
out into the consumer field that observed what factors influence people while they are
purchasing certain goods or services. This guide can be used by small businesses or
other entities that want to learn more about the mindset of the average consumer.
Six Steps in
Consumer Buying
Table of Contents



Objective of the report ........................................................................................................ 4

Steps in decision-making process ....................................................................................... 4

Experiences of the group members ..................................................................................... 4

Sarmad tahir ........................................................................................................................ 4

Ahsan ayub.......................................................................................................................... 5

Madiha batool ..................................................................................................................... 5

Zoya khan............................................................................................................................ 5

Experience of visiting a mobile shop:................................................................................. 6

Decision-making process: ................................................................................................... 6

   1. Identify the problem:................................................................................................... 6

   2. Generate alternatives:.................................................................................................. 6

   3. Evaluate alternatives: .................................................................................................. 7

       Brand.......................................................................................................................... 7

   4. Make the decision: ...................................................................................................... 7

   5. Implementation: .......................................................................................................... 8

   6. Evaluate the results and feedback: .............................................................................. 8

Tools for effective group decision -making: ....................................................................... 8

Conclusion: ......................................................................................................................... 8




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Objective of the Report
The main purpose of the report is to find what whether consumers follow the six steps
that are involved in the decision making process. In order to determine whether
consumers follow these steps while purchasing goods and services, we made a team of
five people that were asked to visit different locations of the city and observe what
factors influence people while they are buying certain goods or services.


We have prepared four brief summaries of what each member of the group observed and
felt during their visit whereas one of the members was assigned the task to evaluate the
buying behavior process in the six steps as discussed in the class. Just to recall the six
steps before consumers buys any product or service is as follows:


Steps in Decision-Making Process

1. Identify the Problem
2. Generate Alternatives
3. Evaluate Alternatives
4. Make the Decision
5. Implementation
6. Evaluate the results and Feedback




Experiences of the group members


SARMAD TAHIR

I (SARMAD TAHIR) visited a CAR SHOWROOM OF TOYOTA SOUTHERN
MOTORS located at Korangi Industrial Area. I had an excellent experience of visiting
that car showroom. The very first customer really supported me a lot in solving this case



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study .But the thing which I have noticed that customers usually focus on the fourth point
that is make the decision as they are making a big investment, so this is what I have
experienced.


AHSAN AYUB

I (AHSAN AYUB) went to a Computer Shop at Gulistan-e-Jauhar. It was an
outstanding experience. I examined about 5 to 6 customers & found variations in the
customers demand and preferences. From this experience I found that out of 5 customers
3 preferred quality over price. Though, some people evaluated the price and the benefits
derived from the products. As many people were comparing the price of USB Drive and
the Storage Capacity. Like people were comparing the prices of 2 GB USB Drive and 4
GB USB Drive and their prices and the decisions were made on these ratios.


MADIHA BATOOL

I (MADIHA BATOOL) visited a SHOE SHOP at TARIQ ROAD. It was an excellent
experience to visit a shop in order to implement the daily routine studies in practical life.
I nearly examined 4 to 5 customers and found variation in the buying decision. .But the
thing which I have noticed is that the customers usually take a lot of time in making a
decision.


ZOYA KHAN

I (ZOYA KHAN) visited a General Store at Gulshan-e-Iqbal. It was a good experience
to visit that shop. I stayed there for 1 to 1.5 hours and examined 2 to 3 customers and
found one lady buying a skin product because she had a skin problem. From this
experience I have noticed that there is a variation in customer’s demand as they generally
prefer quality of product than the price. Also I observed that many of the goods having
low prices like cold-drinks, biscuits, chips, chocolates, etc. were sold very quickly. This




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shows that there were many people who were not following these six steps and they were
making their purchasing decision at the shop.




EXPERIENCE OF VISITING A MOBILE SHOP:

          I visited a MOBILE SHOP at PAK TOWERS. It was an excellent experience.
When I entered the mobile shop, there was only one customer in the shop. She was
interested in buying a new mobile. Previously she was using NOKIA 5300 and now she
wants to shift herself to a more recent or advanced one.


DECISION-MAKING PROCESS:


1. IDENTIFY THE PROBLEM:

            She was using NOKIA 5300 and now she wants to shift herself to a more
recent or advanced mobile. Secondly that mobile was not working properly (Gilbert,
1991).




2. GENERATE ALTERNATIVES:

Different alternatives are generated that what other products can fulfill my needs and
requirements. Though, there can be many alternatives but a few have been shortlisted on
the basis of likes, culture, taste, mood etc.


        NOKIA N95
        SONY ERICSSON W810i
        MOTORAZR (MOTOROLA)
        SAMSUNG D900




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3. EVALUATE ALTERNATIVES:

            She viewed the features of every individual mobile, and also the working and
external look of the mobile. Then she evaluates each mobile on the basis of most
important factors. These factors can vary from individual to individual but most
important factors that could be needed for mobile phones can be:
        Looks
        Price
        Warranty
        Reliability




Brand                  Price             Warranty                  Reliability   Looks

NOKIA                  8                 9                         10            10
SONY                   9                 8                         9             8
ERICSSON
SAMSUNG                7                 6                         7             7
MOTOROLA               6                 5                         6             7




These are the main four factors on which most of the consumers decide whether to
purchase a mobile phone or not. People tend to evaluate how much value they are going
to get by purchasing each good and then they decide on the total scores or the total value
that they will drive.



4. MAKE THE DECISION:

            Finally, she decided to go for NOKIA N 95, reason she quoted for it was she
liked the working and external view of this mobile other than the mobiles she viewed and




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moreover the reliability and warranty of NOKIA is better than the others. Plus the
features and overall mobile fits the style of mobile she always wanted.


5. IMPLEMENTATION:

         Once the decision has been made in the mind the next step is to implement the
decision. The decision was implemented as purchasing the mobile.


6. EVALUATE THE RESULTS AND FEEDBACK:

          NOKIA COMPANY will evaluate the results by going to their target market,
which they have served and get feedback from their actual customers.



TOOLS FOR EFFECTIVE GROUP DECISION -MAKING:

          The best tool for our group was BRAINSTORMING because we 5 members
are classmates so we all understands each other and because of that feel free to give
suggestions to each other and then generate alternative (Engell, 1995).


Conclusion:

Consumers generally follow these six steps while they are buying a good, but not always.
When the price of the good is high, or when the consumer is doubtful about what he will
get in return then they do follow these six steps. Otherwise, many goods are bought just
at that moment without going through any process of decision making. Also, many
people tend to calculate the amount of value against the price paid in other words Cost to
benefit Ratio.




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References
        Engel, J.F., Blackwell, R.D and Miniard, P.W. (1995) Consumer Behavior.
        Gilbert, D.C. (1991) “An Examination of the Consumer Behavior Process Related
         to Tourism. “ In Progress in Tourism, Recreation and Hospitality Management,
         edited by C.P. Cooper .London: Belhaven, pp.78-105




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