Page 66 - DMGT550_RETAIL_MANAGEMENT

Unit 4: Retail Buying Behaviour

A customer can obtain information from several sources: Notes
1. Personal sources: family, friends, neighbours etc.
2. Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale
displays
3. Public sources: newspapers, radio, television, consumer organisations; specialist magazines
4. Experiential sources: handling, examining, using the product
The usefulness and influence of these sources of information will vary by product and by
customer. Research suggests that customers value and respect personal sources more than
commercial sources (the influence of “word of mouth”). The challenge for the marketing team
is to identify which information sources are most influential in their target markets.
In the evaluation stage, the customer must choose between the alternative brands, products and
services.

!
Caution In most countries, concentration is typically high on the buyer side than the
seller side.
How does the customer use the information obtained?
An important determinant of the extent of evaluation is whether the customer feels “involved”
in the product. By involvement, we mean the degree of perceived relevance and personal
importance that accompanies the choice.

Where a purchase is “highly involving”, the customer is likely to carry out extensive evaluation.
 High-involvement purchases include those involving high expenditure or personal risk –
for example buying a house, a car or making investments.

 Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in
the supermarket) have very simple evaluation processes.
Why should a marketer need to understand the customer evaluation process?

The answer lies in the kind of information that the marketing team needs to provide customers
in different buying situations.
In high-involvement decisions, the marketer needs to provide a good deal of information about
the positive consequences of buying. The sales force may need to stress the important attributes
of the product, the advantages compared with the competition; and maybe even encourage
“trial” or “sampling” of the product in the hope of securing the sale.
Post-purchase evaluation - Cognitive Dissonance
The final stage is the post-purchase evaluation of the decision. It is common for customers to
experience concerns after making a purchase decision. This arises from a concept that is known
as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative
would have been preferable. In these circumstances that customer will not repurchase
immediately, but is likely to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to persuade the potential
customer that the product will satisfy his or her needs. Then after having made a purchase, the
customer should be encouraged that he or she has made the right decision.

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