Stages in the Buying Process
Types of Needs
Utilitarian Needs –satisfied when purchases accomplish a specific task. Shopping needs to be easy, and effortless like Sam’s or a grocery store.
Hedonic needs – satisfied when purchases accomplish a need for entertainment, emotional, and recreational experience as in department stores or specialty stores.
Hedonic Needs that Retailers can Satisfy
Stimulation
Ex: Background music, visual displays, scents
Satisfy need for power and status
Ex: Canyon Ranch – upscale health resorts
Adventure
Treasure hunting for bargains
Conflicting Needs
Most customers have multiple needs.
Moreover, these needs often conflict.
The pattern of buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers is called CROSS-SHOPPING .
Stimulating Need Recognition
Advertising
e-mails
direct mail
publicity
special events
communicate the availability of new merchandise or special prices.
Information Search
Amount of Information Search Depends on the value from searching versus the cost of searching
Factors Affecting Amount of Information Search
Product Characteristics
Complexity
Cost
Customer Characteristics
Past experience
Perceived risk
Time pressure
Market Characteristics
Number of alternative brands
Sources of Information
Internal
Past experiences
Memory
External
Consumer reports
Advertising
Word of mouth
Amount of Information Searched
The amount of information search undertaken depends on the value customers feel they can gain from searching versus the cost of searching.
The value of the search stems from the degree to which the additional information improves the customer’s purchase decision.
The Internet has dramatically reduced the time and effort needed to collect information and increased the quality of information acquired to make a decision when buying.
The amount of information search is affected by...