Page 65 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes

Notes It is important to identify the role that your product can play in retailers’
assortments: is it because it is unique, low cost, fast supply due to high manufacturing
flexibility or whatever other particular reason.

4.1 The Buying Process

Research suggests that customers go through a five-stage decision-making process in any
purchase. This is summarised in the diagram below:

Figure 4.1: Five Stage Decision-making Process

This model is important for anyone making marketing decisions. It forces the marketer to
consider the whole buying process rather than just the purchase decision (when it may be too
late for a business to influence the choice!)
The model implies that customers pass through all stages in every purchase. However, in more
routine purchases, customers often skip or reverse some of the stages.
For example, a student buying a favourite hamburger would recognise the need (hunger) and
go right to the purchase decision, skipping information search and evaluation. However, the
model is very useful when it comes to understanding any purchase that requires some thought
and deliberation.

The buying process starts with need recognition. At this stage, the buyer recognises a problem
or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing
stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins).
An “aroused” customer then needs to decide how much information (if any) is required. If the
need is strong and there is a product or service that meets the need close to hand, then a purchase
decision is likely to be made there and then. If not, then the process of information search
begins.

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