The model of buyer behavior is a theoretical framework that helps organizations to understand how consumers make purchasing decisions. By understanding this model, organizations can develop effective marketing strategies that cater to the needs of their target market. Read this article by Viindoo to know more about typical models.
What is the Model of Buyer Behavior?
The model of buyer behavior is a theoretical framework that outlines the different stages that consumers go through when making a purchasing decision. This model is based on the premise that consumers are rational beings who make decisions based on their needs and wants.
Frequently, corporations employ these models to gauge customer insight within a specific market to particular products, pricing structures, product features, advertising, and competitors. This practice typically aids them in enhancing customer engagement and making informed marketing or business development choices. Utilizing buyer behavior models may additionally aid businesses in retaining and pleasing their customers.
What is the buyer behavior model?
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Common Stages In Buyer Behavior
Businesses might wonder what is buyer behavior. In general, buyer behavior is not the same for every product and service they purchase or at every customer touchpoint. Nevertheless, these are general stages that customers may go through when making a purchase decision. Businesses can include these stages in the model built to gain more customers.
Businesses should know the buyer behavior definition and stages
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Stage 1: Problem Recognition
The first stage in the buyer behavior process is problem recognition. This occurs when a consumer realizes that they have a need or want that is not currently being met. This need can be triggered by internal or external factors. Internal factors include changes in personal circumstances, such as a change in job or lifestyle. External factors include changes in the environment, such as new technology or changes in social trends.
Stage 2: Information Search
Once a consumer has recognized a problem, they will start to search for information about potential solutions. This information search can take many forms, including asking friends and family, searching online, or consulting professional sources. During this stage, consumers are looking for information that will help them to evaluate potential solutions to their problems.
Customers tend to do a lot of search before making the decision to buy
Stage 3: Evaluation of Alternatives
After gathering information, the consumer will begin to evaluate the different alternatives available to them. The buyer behavior example in this stage is comparing the features and benefits of different products or services, as well as the cost and convenience of each option. During this stage, the consumer is trying to determine which option will best meet their needs and provide the greatest value for their money.
Stage 4: Purchase Decision
The final stage in the buyer behavior process is the purchase decision. At this point, the consumer has evaluated the different options available to them and has decided which product or service to purchase. During this stage, the consumer will make the actual purchase, either online or in-store.
Making the decision to purchase is the final stage
Typical Models Of Buyer Behavior
There are several buyer behavior models existing. Based on the unique characteristics and features, different businesses can apply the different model that is most appropriate for them. Refer to these 5 famous models to get more ideas.
The Nicosia model illustrates how the characteristics of customers, the process of consumer decision-making, and the marketing communications of an organization are interconnected, as well as the feedback that customers provide to the organization. This model particularly focuses on identifying customer needs, the criteria for their satisfaction, and their potential willingness to pay. These attributes encompass factors such as personality, demographics (such as age, gender, etc.), and social influences that may vary based on geographic location.
The model also depicts how customers assess the value of a product or service, make price comparisons between different offerings, and utilize various inputs to evaluate the product's perceived value. Marketing communications are represented as advertisements in newspapers and on television channels, while feedback is obtained through customer surveys, focus group meetings, and other methods, to determine whether differences exist among customers based on different communication elements.
This model includes 4 stages:
- Stage 1 – Transfer of Information
- Stage 2 – Evaluation Stage
- Stage 3 – Act of Purchase
- Stage 4 – Feedback
The Engel-Kollat-Blackwell model is another classic model of buyer behavior. This model suggests that the consumer decision-making process is influenced by a range of internal and external factors. The model consists of 4 distinct stages:
- Stage 1 – Information Input Stage
- Stage 2 – Information Processing Stage
- Stage 3 – Decision Process Stage
- Stage 4 – Variables Influencing the Decision Process
The Howard Sheth Model is a complex synthesis of the various social, psychological, and marketing factors that influence consumer choice, arranged into a coherent sequence of information processing. Its purpose is not only to elucidate consumer behavior in terms of cognitive functioning but also to offer a testable depiction of such behavior and its outcomes.
According to this model, consumer decision-making occurs at three distinct levels:
- Extensive problem-solving
- Limited problem-solving
- Habitual response behavior
The Howard Sheth Model of Consumer Behavior includes four major sets of variables:
- Perceptual and Learning Constructs
- Exogenous (External) Variables
Howard Sheth Model
The Stimulus-Response Model is a simple model that suggests that consumers respond to stimuli from their environment. This model of buyer behavior proposes that external stimuli can trigger a consumer's purchasing behavior.
This consumer model is commonly utilized by business professionals since consumers who frequently make impulsive purchases often lack purchasing constraints. Marketing and business development experts can use this model by emphasizing in-store marketing campaigns, product packaging design, and strategic discounts. This approach also often extends to online shopping when businesses adjust their algorithms on the company website.
Hawkins Stern Impulse Buying Model
The model being discussed refutes the learning model by claiming that consumers do not always engage in rational decision-making before purchasing products. It also classifies different types of impulse buying:
- Escape purchase: This kind of purchase pertains to items with visual appeal that a consumer did not originally intend to buy.
- Reminder purchase: This kind of purchase is influenced by in-store promotions or reminders of a particular product's existence, such as bag clips in the potato chip aisle.
- Suggested purchase: This kind of purchase is influenced by social media ads, store employees, or recommendations from friends and family. For instance, a website might suggest a lens cleaner and glasses case to a consumer who has purchased a pair of glasses.
- Planned purchase: This kind of purchase involves a consumer buying a desired product when the store offers a discount or promotional deal.
In conclusion, understanding the model of buyer behavior and different types of models is essential for developing effective marketing strategies that cater to the needs of consumers at each stage of the buying process. Each model has its unique features and advantages. Hopefully, the article by Viindoo provides businesses with some ideas about the most suitable model to use.
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