Buyer

Behavior
Purchase Decisions

Purchase and Consumption

Decisions
Product purchase decisions
Whether or not to buy the product or service?

Brand purchase decisions

What brand or model to purchase?

Outlet purchase decisions

What store or outlet to patronize?

Payment purchase decisions

How to pay for the goods or service?

Decision-Making
Processes

Extended Decision-Making
Homes, cars, insurance, appliances, furniture,
medical care, educational programs.

Deliberate Choice Process

Furnishings, clothes, gifts, small appliances and
equipment, personal services.

Routine Purchase Process

Stock food items, household goods, toiletries,
cleaning supplies.

Impulse Buying Decisions

Small ticket novelties, candy, gum, snack foods,
beverages, fast food.

Four Views of Consumer

Decisions
The Economic View
The rational consumer with perfect knowledge and
accurate judgment of alternatives.

The Passive View

The consumer buyer submits to the persuasive
presentation of marketers and sales people.

The Cognitive View

The consumer seeks or receives information that is
processed to reach a deductive conclusion.

The Emotional View

The consumer responds to symbols that evoke inner
drives, feelings, and mood states.

Product Factors
Increasing Information
Search

Long Interpurchase time

Frequent product
changes
Frequent price changes
Volume purchasing
High price
Many alternatives
Much variation

Consumer Factors
Increasing Information
Search

High education
High income
Up-scale job
Under 35 years
Low dogmatism
Low-risk perceiver
High product
involvement

Situational Factors
Increasing Information
Search Experience

First-time buyer
No past experience
Bad past experience

Social Acceptability
Product is gift
Socially visible goods

Value-Related Factors

Discretionary purchase
Mixed product attributes
Family disagreement
Deviation from referents
Ecological danger
Conflicting information

Five Forms of Purchase

Risk
Monetary Risk

The chance the product or service will not perform its

function or serve its purpose.

Functional Risk

The chance the product or service will not perform its

function or serve its purpose.

Physical Risk

The chance the product or service will injure or damage

person or property.

Social Risk

The chance the goods will embarrass or humiliate

consumers or cause rejection.

Psychological Risk

The chance the purchase will lead to feelings of

weakness, stupidity, or self-indulgence.

Determinants of Response to
Risk
Risk Capital
What the buyer can afford to loose without experiencing
serious harm or catastrophic consequences.

Consumers Vulnerability
The availability or lack of a particular type of risk capital
possessed by the consumer.

Risk Inherent in Product

The attributes or characteristics of the product that
intensify a particular type of consumer risk.

Alleviation Methods
The means by which the marketer and/or the consumer
can reduce or manage the perceived risk.