Stages of Consumer Buying Process

Objectives
In the study of consumer buying process, it can be understood that how a
consumer spends his time, effort and money while purchasing a product. From
the marketers’ perspective, the understanding of consumer buying process
provide information on why consumers are buying a particular brand of product
or not buying at all and how to target them for conducting business as
consumers are the only persons with whose presence business activities are
actually transacted. Marketers need to give importance on the whole stages of
buying process because some consumers may skip one or two stages while
frequently buying low-cost products or consumers can go through the all stages
while buying an unfamiliar, high-price product by consuming much time for
taking a decision. The study of consumer buying process enables to understand
consumers’ need, what factors influences the buying decision and how they
make decision about the purchase.
Introduction
The consumer behaviour has always been an interesting topic in marketing
studies for effective planning and implementing marketing strategies.
Marketer’s task is to understand the consumer buying decision process towards
the goods or services which enable them to take marketing decisions in order to
satisfy the consumers’ needs and wants. The study of consumers’ behaviour on
how they make decisions and how the marketers can obtain them to purchase
the company’s products is a success key to business organisation. Thus the
success or failure of marketing depends on the consumer business patterns.
Every human being has different attitude. So the types of consumer buying
behaviour are needed to be examined as it greatly influenced by the item to be
purchased. Besides the marketing also need to have the knowledge of how
consumers gather information about difference alternatives those would be used
in selecting the product among competing brands. While buying a product,
consumer goes through different stages.
Consumer Decision Process Behaviour
Different consumers have different consumer decision making behaviour that
depend on the products’ cost, degree of consumer involvement, effort that goes
into decision making importance associated to the purchase for the current and
future satisfaction. Consumers utilize different consumer decision making
behaviours. There are three types of consumer- decision making behaviour.
They are:-
 1. Nominal decision making: It is also known as habitual decision making
or routine decision making. This kind of decision making happens
generally on low involvement purchase with low-cost and frequently
purchased products that are used regularly. There involve no evaluation
alternatives other than the preferred brand. This is due to the continued
satisfaction with the brand even though they are conscious of the
presence of other alternative brands. Thus, the level of effort used in the
decision making is low. For example, after being used the Tata Salt, the
consumer feels satisfied and purchases continuously without spending
any mental exercise on decision making process. This helps the consumer
saves time and effort and they are loyal to one brand.

0. Limited decision making: It is generally associated with the purchase of

less frequently and comparatively high-cost product. So, the consumers
may gather information about several brands before making a final
decision. There involves some effort in decision making in order to
satisfy the need. For example, buying different brands of perfumes. In
this, the consumers are not loyal to one brand. They prefer to buy
different types of brand that means they are frequent brand switcher. This
does not mean that they are not satisfied with the product but because of
avoiding boredom of using one brand in long run. There involves some
extent of information search and decision making

0. Extended decision making: This is the response when a consumer

purchases an unfamiliar product which is one time high investment like
house, car, etc. It demands the high involvement of consumer in the
purchase decision process evaluating the multiple alternatives that are
gathered from extensive internal and external information search.
Generally, it takes more time to make decision.
Participants in Consumer Buying Decision
Marketer needs to know how the consumer makes the decision to purchase
product. The purchase may be done by individual consumer or group or
household members. A purchase decision of a person may be influenced by
number of individuals. The followings are the five different participants in
consumer buying decision:-
1. Initiator: Initiator is the person who first feels the need for the product
for satisfy certain requirements. Consequently, he begins to search for
the information to draw decision with or without involving others.
 2. Influence: Influences collect the relevant information for the particular
products that the initiator has suggested. They influence the decision of
the purchase by persuading others in the decision-making process.
3. Decider: The person how decides whether to buy or not, what to buy,
how to buy, from whom to buy or where to buy.
4. Buyer: The buyer goes to store and make transaction for the products
thereby making the actual purchase. The marketer considers him as the
only participants involved in the decision-making process.
5. User: He is the one who consumes or uses the product or service.
Buyer Decision Making Process
The consumer buying decision process is the decision making process where the
consumer makes the choice to purchase product in a product category. The
consumer decision making behaviour is a systematic complex process that
involves 5(five) stages i.e. problem recognition, information search, evaluation
of alternatives, purchase decision and post-purchase behaviour. The consumer
goes through these stages one can purchase product. Further, this buying
process begins before the actual purchase and goes beyond the final purchase of
a product. Consequently, marketers need to focus on the entire buying process
to understand how consumers think, feel and select among existing alternative
brands, use and dispose ideas towards the products.
For buying low priced products or regularly purchased products consumer’s
purchase decisions are based on habitual or routine choice. They may escape
one or more stages of buying decision process because they do not want to
engage in buying decision process while purchasing a product frequently. For,
example a person buys a product for everyday use. But in case of buying new or
highly involvement products, the consumer does not skip any of this process.
They go through all these 5(five) stages to make the best outcome of his
decision.
Fig.1 Stages of Buyer Decision Making Process
The 5 stages are given below:-
1. Need Recognition: The buying process starts as soon as the buyer feels a
need or a problem. The need or the problem can be driven by internal or
external stimuli. Internal stimuli are the awareness of the need due to
physical or psychological factors such as hunger, thirst etc. while external
stimuli are the outside influences. For example, when a person is going
for a walk, he may feel thirsty that leads to buy a water bottle or he may
admire the new car riding on the road that may drive him the possibility
of purchasing it. In case of water bottle, it is internal stimuli and in case
of car, it is the influence of external stimuli. This stage is the most
important stage in consumer buying process because without the arousal
of need, the process cannot be engaged. Consumers reflect their degree of
need on the rate of pace to fulfil it. Marketers need to identify what
trigger the consumers a particular need and development of marketing
programmes that trigger these stimuli, which can further be translated
into purchase.

0. Information search: After recognizing the need, the consumer tries to

solve it by gathering substantial amount of information about the product
in order to fulfil his needs. Through internal and external search,
consumer tries search for information regarding the product.

0. Internal search: It involves recalling the information in the consumer’s

memory about the similar purchase decisions that he acquired
information from various sources and stored it for future use. It is the
experimental source of information from own experiences of using the
product. When search cannot provide sufficient information, the
consumer begins to search from external sources.
0. External search: In case of consumer has no prior knowledge about the
product, he search information from: -
0. Personal sources (family, friend, colleagues, etc)
0. Commercial sources (advertising, dealers, salespersons)
0. Public sources (mass media)
When the purchase is high involvement, external information search becomes
more significant to get enough information for evaluation. The purpose of
information search is to yield an awareness set of brand which includes evoked
set, inept set and inert set. At this stage, marketer needs to provide up-to-date
and adequate information about the product.
0. Evaluation of alternatives: The criteria that the consumer evaluates are
benefits of the product, importance of each benefits, brand benefits,
function of the product, cost and product attributes that can deliver the
needs. In case of buying low-price product, the consumer may not spend
effort on decision making about a brand. But in case of high involvement
purchase like car, consumer tries to evaluate all the alternatives based on
the various benefit attributes. Then, the consumer will rank the product
according to the relative value-weights to different brands and make the
decision according to it. For example while buying a car, some
consumers may prefer feature like dimensions of the car like length,
width, height, boot space etc. while some others may give their priority
on safety and security. Based on the individual need, taste and budget the
consumer select the brand by evaluating and comparing the alternatives.
0. Purchase decision: After eliminating the alternatives he made base on
the choice, the consumer intends to buy certain brand so he needs to
decide the brand, the retailer, the quantity, purchase mode and the timing
of the purchase. During this stage, the marketer needs to take care of
consumer for competitive advantage and to gain their relationship. The
time spent between the decision and actual purchase may be short in case
of buying the non-durable, low-involvement products. While buying and
consuming a product, consumer may encounter several risks:
0. Functional risk: the performance of the product does not meet the
expectation
0. Physical risk: the product affects the consumer’s or others’ health or
physical well-being.
0. Social risk: the product that affects the self-image of the consumer.
0. Financial risk: Financial problem occurs if the price of the product is not
worth the expensed.
0. Psychological risk: regretting, bad feelings or horrible experiences given
by using the product.
0. Time risk: the failure of the product after a few days of purchase needs to
replace or repair, thus wasting time.
To avoid such risks consumer needs to search information from different
sources. Since the perceived risks affect the consumer buying pattern, marketer
must study what causes the feeling of risks in consumer and also provide
information to reduce the perceived risks.
 0. Post-purchased behaviour: The purchased decision is followed by the
post-purchased behaviour. It is the stage of consumer analysis of the
product whether it fulfils his need or not and it satisfies him or not. It may
be associated with cognitive dissonance as the product is not met with the
consumer expectation. More the closeness between the buyer’s
expectation and the product’s perceived performances more the level of
consumer satisfaction. In case of exceeding the buyer’s expectation, he
will be delighted. This makes the probability of buying the product
repeatedly and influences others in decision making process. On the other
hand, dissatisfied consumer will stop buying the product or warns against
the product to their friends, families, etc. and gives negative views of the
product on social media. So, the marketers have to take consumer
feedback and suggestions for the improvement of their products to match
with the buyer’s expectation, which will lead to have more market shares.
They also need to observe how consumer uses and disposes of the
products like batteries, electronic equipments, plastic bottles, etc. as these
products can harm environment.
Conclusion:
Marketing is all about identifying and fulfilling the needs of consumers to
satisfy them. So, to understand the need of the consumers, the marketers need to
understand the decision making process of the consumers in order to effectively
target consumers, improve products and to understand how the consumers are
influenced by the exiting competition with its competitors. The consumer
decision process includes the process from how a consumers start thinking
before buying a product to how they react after using the product. They are not
only influenced by family, friends, advertisers, and social media but also by
mood, situation and emotion in the decision process. All these factors are
combined together to form the consumer buying behaviour.

Glossary:
nt products High capital value goods that are purchased only after careful decision.

nt products A cheap or frequently buy product that consumer buys without thinking much
about it.

Tendency of the consumers to continuously purchase one brand’s products over

another.

A combination of 4Ps (product, place, price and promotion) used to promote its
brand or product.
ram A well-planned set of activities to achieve marketing objectives.

egy It refers to business’ overall game plan for reaching prospective consumers and
turning them into customers of the products.

vantage In business, a competitive advantage is the attribute that allows an organization

to outperform its competitors.

It represents the percentage of an industry, or a market’s total sales, that is

earned by a particular company over a specific
period.

The uncertainty that a consumer has when buying products.

A type of product manufactured by a particular company under a

particular name.
FAQs
Q.1 What is consumer buying decision process?
Ans: It is the decision making process where the consumer makes the choice to
purchase product in a product category.
Q.2 Who are the participants included in the buyer decision making process?
Ans: The participants included in the buyer decision making process are
initiator, influencer, decider and buyer.
Q.3 Explain nominal decision making with example.
Ans: It is also known as habitual decision making or routine decision making
that happens generally on low involvement purchase with low-cost and
frequently purchased products that are used on regular basis. There involves no
evaluation alternatives other than the preferred brand. This is due to the
continued satisfaction with the brand even though they are conscious of the
brand differences. Thus, the level of effort used in the decision making is low.
For example, after being used the Tata Salt, the consumer feels satisfied and
purchases continuously without spending any mental exercise on decision
making process. This helps the consumer saves time and effort and they are
loyal to one brand.
Q.4 Explain limited decision making behaviour. Give example.
Ans: It is generally associated with the purchase of less frequently and
comparatively high-cost product. So, the consumers may gather information
about several brands before making a final decision. There involves some effort
in decision making in order to satisfy the need. For example, buying different
brands of perfume like Dolce & Gabbana, Caivin Klein, etc. In this, the
consumers are not loyal to one brand. They prefer to buy different types of
brand that means they are frequent brand switcher. This does not mean that they
are not satisfied with the product but to avoid boredom of using one brand in
long run. There involves some extent of information search and decision
making
Q.5 What is extended decision making behaviour? Give example.
Ans: This is the response when a consumer purchases an unfamiliar product
which is one time high investment like house, car, etc. It demands the high
involvement of consumer in the purchase decision process evaluating the
multiple alternatives that are gathered from extensive internal and external
information search. Generally, it takes more time to make decision.
Q.6 What are the perceived risks that may face by consumers?
Ans: The perceived risks that may face by consumers are:
0. Functional risk: the performance of the product does not meet the
expectation
0. Physical risk: the product affects the consumer’s or others’ health or
physical well-being.
0. Social risk: the product that affects the self-image of the consumer.
0. Financial risk: Financial problem occurs if the price of the product is not
worth the expensed.
0. Psychological risk: regretting, bad feelings or horrible experiences given
by using the product.
0. Time risk: the failure of the product after a few days of purchase needs to
replace or repair, thus wasting time.
Q.7 Why is it important to understand the post-purchase behaviour of a
consumer?
Ans: It is the stage of consumer analysis of the product whether it fulfils his
need or not and it satisfies him or not. It may be associated with cognitive
dissonance as the product is not met with the consumer expectation. In case of
exceeding the buyer’s expectation, he will be delighted. This makes the
probability of buying the product repeatedly and influences others in decision
making process. On the other hand, dissatisfied consumer will stop buying the
product or warns against the product to their friends, families, etc. and gives
negative views of the product on social media. That’s why it is important to
understand the post-purchase behaviour of a consumer.
Q.8 What is the source of information for internal search?
Ans: The source of information for internal search involves recalling the
information in the consumer’s memory about the similar purchase decisions that
he acquired information from various sources and stored it for future use.
Q.9 What are the sources of information for external search?
Ans; The sources of information for external search are personal sources
(family, friend, etc.), commercial sources (advertising, salesperson,etc.) and
public sources ( mass media).
Q.10 What are the internal and external stimuli? Discuss with example.
Ans: Internal stimuli are the awareness of the need due to physical or
psychological factors such as hunger, thirst, etc. while external stimuli are the
outside influences. For example, when a person is going for a walk, he may feel
thirsty that leads to buy a water bottle or he may admire the new car riding on
the road that may drive him the possibility of purchasing it. In case of water
bottle, it is internal stimuli and in case of car, it is the influence of external
stimuli.
Reference:
Bose, B.S (2009). Marketing Management (2 nd
ed.). Mumbai: Himalaya
Publishing House PVT.LTD.
Blackwell, R.D., Miniard, P.W and Engel, J.F. (2006). Consumer behaviour
(10 ed.). South-Western: Thomas.
th

Consumer Behaviour-Decision Making. Retrieved from Hawkins, D.I., Best,

R.J, and Coney, K.A. (1998). Consumer Behaviour; Building Marketing
strategy (7 ed.). U.S: Mc Grew-Hill.
th

Jaideep, S. Top 5 Stages of Consumer Buying Process. Retrieved from

Kazmi, S. (2007). Marketing Management: Text and Cases. New Delhi: Excel
Books.
Kotler, P., and Keller, K.L. (2018). Marketing Management (15 ed.). Noida,
th

Uttar Pradesh: Pearson.

Kotler, P., Koshy, A., and Jha, M. (2012). Marketing Management: A South
Asian perspective (13 ed.). Noida, Uttar Pradesh: Pearson.
th

Kumar, A., and Meenakshi, N. (2006). Marketing Management. New Delhi:

Vikas Publishing House PVT LTD.
Kumar, S.R. (2017). Consumer Behaviour: The Indian context (concepts and
cases). Noida, Uttar Pradesh: Pearson.
Lake, L. (2019, January 14). Perceived Risks and How To Overcome It.
Retrieved from
MUNTHIU, M.-C. (2009). The Buying Decision Process and Types of Buying
Decision Behaviour. Sibiu Alma Mater University Journals. Series A. Economic
Sciences, 2 (4), 27-33.
Nair, N.R., and Nair, S.R. (2013). Marketing Management: The value
perspective. New Delhi: Sultan chand and sons.
Stankevich, A, (2017). Explaining the Consumer Decision-Making Process:
Critical Literature Review. Journal of International Business Research and
Marketing,2(6), 7-14.
Varshney, R.L., and Gupta, S.L. (2005). Marketing Management Text and
Cases: An Indian Perspective (3 ed.). New Delhi: Sultan Chand and sons.
rd

PARTICIPANTS IN THE BUYING PROCESS AND

ORGANISATIONAL BUYING BEHAVIOUR

Objective:
While making purchase decision of a same product, different individuals may
show different behaviour in the decision-making process. So, it is necessary to
understand the participants involved in the purchase decision in order to
effectively use the marketing mixes. Marketing organizations try to fulfil
maximum customer satisfaction. For this purpose, government in different
forms plays various roles like controlling unfair trade practices, formulating
various laws, establishing institutions, etc. The behaviour that is shown by an
organization in buying goods is influenced by variables like environmental,
interpersonal, individual etc. There are users, deciders, influencers, gatekeepers
and buyers who involved in organization buying process. If industrial
consumers do not buy the goods for industrial usages to produce products,
personal consumers cannot do buying. Because the task of industrialist is to
satisfy the needs of personal consumers. Thus, industrial consumers are more
complex indecision-making process.
Introduction:
Individuals or groups purchase various companies’ products in order to satisfy
themselves. It is the important task of the marketers to know who make the
consumer purchase decision because types of person like influencer, deciders,
initiators, etc. participate in the purchase decision-making process. Among
organizational and environmental factors that affect the marketing decision,
Government’s role is one of the important as they are very powerful. To control
the unfair trade practices and provide quality products to consumers, they
passed numbers of law in the country.
The most important activity of organizations is buying to satisfy their needs.
They make purchase decisions by identifying the alternatives, evaluating them
and select among available brands and suppliers. Industrial consumer buying
process is more complex than personal consumer buying process. Personal
consumer buys products for personal, group or family consumption while
industrial consumer buys goods for industrial usages.
Participants in the buying process:
Purchase of products can be done by individuals or by groups. An individual is
influenced by number of people around him while making buying decision.
There are 5 different roles that involve in the buying process. They are:-
1. Initiator – It is the person who identifies the need for a particular
product and then starts searching for information regarding the product.
This process can be done by his own or with others for making buying
decision.
2. Influencer – Influencer persuades the buying decision by suggesting the
specification of the product. He may be a member of initiator’s
reference group. Influencer may differ to the degree in which he can
influence the person in buying decision process.
3. Decider – Decider is the person who decides to purchase the product i.e.
what brand, from whom, from where, how to pay and at what time to
buy it.
4. Buyer – According to the decision that has made for buying a particular
product, the buyer goes to the shop to conduct business transaction. He
is the only person who makes the actual purchase. Marketers only see
him other than who are being involved in the buying decision-making
process. At this stage, information search and evaluation of alternatives
are completed.
5. User – User is the only person who consumes the purchased product.
The user may or may not be the initiator, decider and buyer. Individual
or group can use the product.
Various groups interested in consumer behaviour:
Roles of Government - Buying decision-making behaviour of a consumer is
affected by various organizational and environmental factors. Among these
factors, Government is one of them who are very powerful and sometimes their
role as decision-input override the influence on decision-making. Public policy
makers rely on that the involvement of Government in the marketing exchanges
will give advantage to the society entirely. In today’s world, consumers aremore
conscious of their rights. They begin to search for products with ISI, ISO,
AGMARK and FPO trademark because the products with these marks are
assured the quality standard and avoided the consumers from unfair trade
practices.

One or more combinations of the following forms have been taken up by the
Government for influencing companies’ marketing decision: -
Participative – In order to influence marketing decisions, State actively
participates, in the Countries marketing operations.
0. The Government starts acting like a manufacturer or monopoly buyer or
seller.
0. Through the identified agencies, the Government conducts the
distribution of certain goods.
0. The Government promotes or bans the utilization of certain goods.
0. Transportation and infrastructural facilities are given by Government
based on the priority.
Institutional –
Certain movements in the country which influence the marketing decision-
makers are institutionalized by the Government. For instance, the Bureau of
Indian Standards is developed by Indian Government in order to institutionalize
the product grading and standardization movement. The activities of this
institution are facilitating product identification, marking and quality
certification. The aim of the movement is to remove the private intermediaries
that have been institutionalized by the Government by encouraging, aiding
regulating consumer’s co-operatives marketing society for enabling the
consumers to self-help themselves.
Commercial relations: -Commercial relations within the country are required
to regulate by government by enacting relevant laws as it is the citizens’
representative who has the responsibility of regulating the affairs of the country.
Without laws, people cannot conduct commercial activities even though they
are very powerful. People in commercial trade require getting recourse from the
laws made by the State in order to remain as legally binding relationship.
Legislation – To influence the marketing decisions and operations of a firm,
government needs to enact relevant laws. Certain decisions and actions are
prohibited by laws and impose punishment for those who violated the laws. In
India, various laws have been formed by Central, State and Local self-
governments which give influences on making decision. To safe guard the
consumer from unfair trade practices, the Government has executed many laws.
Organisational buying behaviour and its nature:
Philip Kotler says that “Organisational buying is a process by which a
company/organisation establishes a need for purchasing products and chooses
among competing brands and suppliers.” Pette D. Bennett asserts that
“Organizational buying behaviour is the decision making process by which a
buying group establishes the needs for goods and services and identifies,
evaluate and chooses among alternative brand and suppliers.”
Organizations also make buying decisions to buy their needs just as individuals
do. But, the goal of buying is different. The most essential activity of
organizations is buying. They buy goods for using in business operations,
reselling them or manufacturing products. The buying process of organization is
more complex than the consumer buying process. It consumes more time in
order to ensure that everything works as per the plan. Various participants
involve in organizational buying process. There are deciders, influencers,
buyers, user and gatekeepers. Deciders and influencers play primary roles while
the other remaining play secondary roles.
Buying centre – Organizational purchase decision is made by a group of
individuals. All individuals who participate in the decision-making process are
termed as decision making unit (DMU). Buying centre includes members of
DMU who share common goal and responsibility arising from the decisions.
Not only these individuals who play important role in decision making may or
may not be a part of buying organization but also they may directly or indirectly
take part in decision-making process. Different individuals play different roles
in buying centre. They are:
Primary roles:-
1. Deciders – Deciders are the members organization who have the
decision-making power. They decide from which supplier the
organization needs to buy goods.
2. Influencers – They are the members who affect the decisions-making
process by providing information on products specification and
analyzing alternatives.
Secondary roles:-
0. Buyers – Buyers are those people who buy goods from the suppliers on
behalf of the organization. They make the actual transaction of business
buying.
0. Users – The activities of user are using the purchased goods and make a
report on the performance of the product in the course of time.
0. Gatekeepers – These are the members who manage the information
flow and find the buying influences.
Not only the marketing stimuli but also the other stimuli affect organizational buying
behaviour. Marketing stimuli are the 4Ps (i.e. Product,Price,Place and
Promotion) and other stimuli are associated with technological, cultural,
economic, political and competition. All these stimuli affect the choice of
goods, suppliers, quantities, delivery time, etc. by the organization.
Characteristics of organizational buying behaviour: -
1. Rational process – The purchase decision is more influenced by the
production and distribution objective factors. The level of mistakes that
commit in this is very low.
2. Buy large quantities – These includes the bulk purchase which is
common in organization buying. Not only to meet the demand of raw
materials for large-scale production, but also to keep the sufficient
amount of stocks to avoid stock-outs, bulk purchase is required.
Moreover buying in large quantities is also economical.
3. More persons are involved – It is not a person’s responsibility. It
involves many persons from different departments for making purchase
decision.
4. Well-defined criteria – It involves fewer numbers of alternatives to
choose from and evaluation of such alternatives is based on the
predetermined criteria. The criteria are developed according to the need
of the organization.
5. Buyers and sellers are extensively contacted – Frequent contact
between the organization buyers and sellers is necessary because there
are few buyers in the industrial goods market as it is localized.
6. 5 roles in purchase process – In the organization buying process,
there are five roles i.e. users, influencers, buyers deciders and gate-
keepers.
Difference between personal consumer and industrial consumer:-
The consumers who buy products for personal use or for family, friends or for
giving gifts are called personal consumer. E.g. mobile phones, clothes, body
lotion, etc.
An industrial consumer involves various types of organizations:-
Commercial enterprises – They buy industrial products with the intention
other than selling to consumers. It can be classified as –
1. Industrial distributors/dealers – They resell the industrial products
which are already bought to the commercial, institution or Government
bodies without changing the products’ form.
 2. Original equipment manufacturer – In order to integrating into the
products that an organization manufactures, industrial goods are
purchased. These are OEMs.
3. Users – Users are those organizations who buy industrials goods to aid
their manufacturing process or to run business operations smoothly.

Personal consumer Industrial consumer

1. They buy products for 1. They buy goods to operate organization
personal consumption or to resale.
or for family, friends or 2. In industrial consumer’s buying
gift. process, it includes problem
2. Buying process of recognition, need description, product
personal consumers specification, vendor search, proposal
involves recognition of request, vendor selection, purchase
need, information routine selection and post purchase
search and evaluation evaluation.Determining product
of alternatives, specification, search for information
purchase decision and and evaluating suppliers, negotiating a
post-purchase purchase order and evaluating
behaviour. performance of the product or supplier.
3. The factors that affect 3. Environmental, organizational, inter-
the personal personal and individual variables
consumer’s buying influence the industrial consumer’s
decision are cultural, buying process.
social, personal and 4. Products are purchased in bulk
psychological factors. quantities.
4. The consumer may 5. While the industrial consumer gives no
want many products at attention on product specification
a time but purchase because of great potential revenue of
products according to that products.
the preference. 6. In this, buyer is different from user or
5. Product specification decider is different from gate-keepers
happens in this. i.e. different persons play different
6. A person can play two role.
 or more roles in the 7. Numbers of person in the purchasing
buying process i.e. a process are more as many persons from
person who is the different departments are responsible in
initiator can also be purchase decision making.
decider, buyer or user. 8. There are fewer brands to choose for
7. Only one person may industrial consumer.
involve in purchase 9. While they are concentrated in the
decision. same region.
8. There are very large 10.Due to the costs and risks associated
numbers of brands are high, decisions are made jointly by
from which the various members.
personal consumer can
evaluate to get the final
product.
9. They are generally
spreaded all over the
country.
10.Decision of buying a
product can be made
by single individual.

Table.1 Difference between personal consumer and industrial consumer.

Glossary:
1. Brand – It is a product that is produced by a particular firm under a
particular name.
2. Business transaction – An event of interchanging goods, moneys or
services between two or more parties.
3. Buying decision making process – It is the decision making process of a
consumer with regards to market transaction before, during and after the
purchase of a good or service.
4. Co-operative marketing society – When producers of any products form
a society with an aim of carrying out marketing their produce, this kind of
society is called co-operative society.
5. Marketing exchange – It is happened when two or more individuals
trade goods or services.
6. Product identification – It is a broad category of labelling that consists
of various functions like product traceability, brand protection and
various information labels.
 7. Quality certification – It refers to two main things i.e. certifying the
individuals’ knowledge and certifying quality management of a
company’s system.
8. Quality standard – In order to meet the purpose of the product, it is a
detail of the specifications, requirements, the various guidelines and
characteristics to be able to meet its quality by the product.
9. Target consumers – A group of consumers who are likely to purchase
the company products.
10.Unfair trade practices –It is refers to the adoption of unfair method or
deceptive practice for the purpose of promoting any sale or use or supply
of any goods.
FAQs:
Q1. Who are the participants in consumer buying process?
Ans: The participants in consumer buying process are initiator, influencer,
decider, buyer and user.
Q2. Who are the participants in organizational buying process?
Ans: The participants in organizational buying process are deciders, influencers,
buyers, users and gatekeepers.
Q3. Define the organizational buying behaviour?
Ans: Organizational buying behaviour is the decision making process by which
a buying group establishes the needs for goods and services and identifies,
evaluate and chooses among alternative brand and suppliers.

Q4. What is the Participative form that the government picked up that affect
companies marketing decisions?
Ans:In order to influence marketing decisions, State actively participates, in the
Countries marketing operations.
0. The Government starts acting like a manufacturer or monopoly buyer or
seller.
0. Through the identified agencies, the Government conducts the
distribution of certain goods.
0. The Government promotes or bans the utilization of certain goods.
0. Transportation and infrastructural facilities are given by Government
based on the priority.
Q5. Give any three characteristics of organizational buying behaviour.
 Ans: 1) Rational process – The purchase decision is more influenced by the
production and distribution objective factors. The level of mistakes that commit
in this is very low.
2) Buy large quantities – These include the bulk purchase which is common in
organization buying. Not only to meet the demand of raw materials for large-
scale production, but also to keep the sufficient amount of stocks to avoid stock-
outs, bulk purchase is required. Moreover buying in large quantities is also
economical.
3) More persons are involved – It is not a person’s responsibility. It involves many
persons from different departments for making purchase decision.

Q6. Who are Industrial distributors or dealers?

Ans: They resell the industrial products which are already bought to the
commercial, institution or Government bodies without changing the products’
form.

Q7. What are factors that affect the industrial consumers?

Ans: Environmental, organizational, inter-personal and individual variables
influence the industrial consumer’s buying process.
Q8. Why Commercial relations do are regulated by government?
Ans:Commercial relations within the country are required to regulate by
government by enacting relevant laws as it is the citizens’ representative who
has the responsibility of regulating the affairs of the country. Without laws,
people cannot conduct commercial activities even though they are very
powerful. People in commercial trade require getting recourse from the laws
made by the State in order to remain as legally binding relationship.

Q9. What are the differences between personal consumer and industrial consumer?
Give four points
Ans:
Personal consumer Industrial consumer
 1. They buy products for 1. They buy goods to operate
personal consumption or organization or to resale.
for family, friends or gift. 2. In industrial consumer’s buying
2. Buying process of personal process, it includes problem
consumers involves recognition, need description,
recognition of need, product specification, vendor
information search and search, proposal request, vendor
evaluation of alternatives, selection, purchase routine
purchase decision and selection and post purchase
post-purchase behaviour. evaluation. Determining product
3. The factors that affect the specification, search for
personal consumer’s information and evaluating
buying decision are suppliers, negotiating a purchase
cultural, social, personal order and evaluating performance
and psychological factors. of the product or supplier.
4. The consumer may want 3. Environmental, organizational,
many products at a time inter-personal and individual
but purchase products variables influence the industrial
according to the consumer’s buying process.
preference. 4. Products are purchased in bulk
quantities.

Q10. Why does Indian Government develop the Bureau of Indian standards?
Ans:The Bureau of Indian Standards is developed by Indian Government in
order to institutionalize the product grading and standardization movement.
Conclusion:
The marketers need to understand the buying process and the participants who
play main roles in the purchase decision. And the consumer behaviour with
regard to purchase decision is affected by various roles of government. In order
to satisfy the needs of the goods for manufacturing products, organizations
make purchase decision. Comparedto personal consumers, industrial consumers
have closer buyer-seller relationship, involve more number of participants in
purchase decision, etc. The participants in the organizational buying process
like users, decider, buyer etc. do not assume two or more roles by the same
person. This makes the process more complex than the personal consumer
buying process.
Reference:
Bose, B.S. (2009). Marketing Management (2 nd
ed.). Mumbai: Himalaya
Publishing House PVT.LTD.
Chand, S.7 Different Members of the Buying Centre of an organization.
Retrieved from http://www.yourarticlelibrary.com/organization/7-different-
members-of-the-buying-centre-of-an-organization/22538
Difference Between Consumer Buying & Industrial Buying-Marketing
Management. Retrieved from
http://smartlearningway.blogspot.com/2015/01/difference-between-consumer-
buying.html?m=1
Loudon, D.L., & Della Bitta, A.J. (2002). ConsumerBehaviour: Conceptsand
Applications(4 ed.) New Delhi: Tata McGraw-Hill Publishing Company
th

Limited.
Kumar, A., &Meenakshi, N. (2006). Marketing Management. New Delhi: Vikas
Publishing House PVT LTD.
Organizational Buying Behaviour Introduction. Retrieved from
http://bbamantra.com/organizational-buying-behaviour/
Saxena, R.(2016). Marketing Management (5 ed.). Chennai: McGraw Hill
th

Education.
Sontakki, C.N. (2004). Marketing Management [In the Indian Background],
Ludhiana: Kalyani Publishers.
Varshney, R.L., & Gupta, S.L. (2005). Marketing Management: Text and
Cases(An IndianPerspective) (3 ed.). New Delhi: Sultan Chand & Sons.
rd
Stages of Industrial Buying Process, Factors Influencing Industrial Buying
Behaviour

OBJECTIVES:
Marketers must know how industrial buyers respond to marketing stimuli within
the organization, the buying activity is made up of two major parts i.e. buying
centre that is the decision making unit of an organisation where the members of
it play different roles such as deciders, gatekeepers, etc. in the industrial buying
process and the other one is buying decision process which involves eight stages
viz. problem recognition, need description, product specification, need
description, product specification, vendor search, etc. In this decision process,
the straight rebuy or modified rebuy situations can jump some stages but the
new task situation needs to go through all these stages. By understanding the
factors that influence the buying centre and buying decision process, marketers
can successfully run the business by gaining competitive advantage.
INTRODUCTION:
Industrial buyers enter into the decision-making process in order to satisfy their
needs. These buyers buy goods or services for manufacturing products,
producing services or reselling the items. This process involves the
organizations establish the need for buying goods and services, find the
alternatives, evaluate them and pick the best one from the alternative brands and
suppliers. The stages of the industrial buying process are problem recognition,
need description product specification, vendor search, proposal request, vendor
selection, purchase-routine selection and post-purchase evaluation. Various
factors influence the industrial buying behaviour is environmental,
organizational, interpersonal and industrial and individual factors. Industrial
buying is the decision of a group of individuals and the purchase can be
classified as straight rebuy, modified rebuy or new task.
Buyers’ characteristics: - Several factors differentiate industrial buyer from
final consumers.
1. Group involvement – As the industrial buyers buy the costlier and more
complex goods, there involved a group of individuals in the decision-
making process.
2. Technical knowledge – The industrial buyers make the purchase
decision because they have quite knowledge about the goods or services
or they may be administered by other skilled competent individuals
based on a group discussion.
 3. Rational motivation – As specified by the skilled and technical nature of
purchaser, industrial buyers are frequently managed by rational
motivations.
Types of buying situation: - There are three major types of buying situation in
industrial buying. They are:-
1. Straight rebuy – In this situation, the buyers repeat the order without
any changes due to the satisfaction they got from previous purchased.
Product and service quality are tried to control by “In” suppliers. In
order to save recording time of purchasing agent, they offer automatic
recording system. For regarding them by the buyers, the “out” suppliers
present something new or manage the dissatisfaction.
2. Modified rebuy – This situation is happened when buyers want to
modify any purchase which can be done through re-evaluating the
available purchase alternatives either in terms of quality or product
type specification. These involve more number of individuals in
decision making than that of straight rebuy. In this situation, the “In”
suppliers may become stressful when they try to protect an account.
But “out” suppliers may see this situation as an opportunity to present a
better offer and get new business.
3. New task – New task situations are the first time purchase of products.
They need to collect information and evaluate them. It consumes time
and effort. Many individuals are involved in decision making if the cost
or risk are higher. It gives threat and opportunity to the “in” suppliers.
While the “out” suppliers enjoy the opportunity to make an entry.

STAGES OF INDUSTRIAL BUYING PROCESS:

There are eight-steps in buying decision process.
 Fig.1 Stages of industrial buying process
1. Problem recognition – Industrial buying starts with a problem
recognition for a product when someone in the organization aware a
difference between the desired state and outcome of affairs. It can be
sensed through external or internal stimuli.
Examples of internal stimuli: -
0. When the organisations want to produce new products, they need new
material and equipments for manufacturing the products.
0. There are requirements for replacement or new parts of machine when it
breaks down.
0. If the purchased goods do not give satisfaction, there needs to search for
other suppliers.
0. Need description – After recognizing the problem, the buyer begins to
determine the characteristics and quantity of the item needed. In buying
standard items like office supplies, the buying process is easier to perform
by the participants in the process and they may be offered by various
homogenous suppliers. For complex items like new weapon system, there
involves the hundreds of people to define the need description of the
qualities and quantities of the required products. In this stage, the
industrial marketers can assist the buyers who do not have knowledge
about the benefits of different product features and can also provide
assistance in defining their needs.
0. Product specification – Once the need has been recognized and
described, the using department identify the specification of the product
which is needed. It includes product attributes, performance,
requirements, service support needs, etc. For buying complex products,
using departments along with engineering experts and financial
executives are included in decision-making. Value analysis or value
engineering is an approach to study the cost and benefits of products. It
determines the performance of the product and availability of better
alternatives. If a product performs its function in the satisfactory manner
 at its minimum cost without losing its quality, it refers to better purchase.
When a company uses value analysis, it will begin to search for new
materials, processes and products to process a better task at the minimum
cost.
0. Vendor search – The buyers now search for the appropriate vendors who
supply specified goods. Vendors who do not meet the required production
capacity or have bad reputation will be avoided. At this stage, the buyers
make a list of qualified vendors and visit to determine their production
facilities. If a buyer is newly entering in the buying task, there will be
more complex and expensive, large amount of time to be consumed for
gathering information and qualifying the suppliers. Appropriate
marketing mix must be applied by the marketer so that prospect buyers
are conscious of the firm as their suppliers.
0. Proposal request – Commonly with new task and modified rebuy
situations, the buyers invite qualified suppliers. As a response to this,
suppliers sent catalogue or sales representative or detailed written offer
describing the product or service features. The buyers need to access
detailed written offer in case of buying complex or expensive goods.
Then, the buyers select some suppliers to conduct formal presentations.
0. Vendor selection – In this stage, the member of the buying centre make
the vendor choice decision based on the proposals submitted. There are
two possible strategies that a buyer may conduct in decision-making
process of vendor selection i.e.
0. Simultaneous scanning – In this, a buyer at the same time arranges and
review the potential suppliers.
0. Sequential evaluation – A buyer arranges the potential suppliers in
order and then evaluates them one by one until it gets the supplier
who satisfies the purchase needs. Before the final selection, the
buying centre may negotiate with preferred vendors for price
concession, terms, etc
0. Purchase-routine selection – Now, the buyers place an order with the
selected vendors, listing the quantity required, return policies, expected
time of delivery, etc. for MRO items (maintenance, repair and operating
items), the buyers prefer blanket contracts to periodic purchase order
because it is expensive to write a new purchase order each time stock is
needed. Instead the buyers negotiate a contract based on the specified
length of time.
0. Post-purchase evaluation – It is the last stage where it involves the
evaluation of performances of the suppliers by the buyers. During this
stage, buyer or suppliers are providing feedback. This will help to achieve
better performances of both by modifying their own performances.
FACTORS INFLUENCING INDUSTRIAL BUYING BEHAVIOUR:
The four broad categories that influence the industrial buying behaviour are
environmental, organizational, interpersonal and individual.

Fig.2 Factors influencing industrial buying behaviour

1. Environmental factors – These factors consist of
0. Physical: It includes climate and geographical location of the
organization which can affect the industrial buying behaviour. For
example, many companies prefer local suppliers and in case of
international business, they prefer to select domestic suppliers if possible.
0. Technological: The types of goods and services offer to the organization
are defined by the technological development level. Using more
technological advanced equipments influence the quality of buying
process by making complex purchasing and inventory control decision
easier.
0. Economic: Consumer demand, price and wage rates, money and credit
availability, etc. influence the behaviour of the industrial organization.
0. Political: It includes factors such as tariff barriers, country trade
agreements, government attitude towards business, etc.
0. Legal: Local, state, federal legal and regulatory environment influence
the industrial buying. Every organization needs to operate their functions
according to laws enforced by the country.
0. Ethical: In order to be a good relationship to conduct business, buyers and
sellers must show ethical behaviour otherwise, it may negatively
influence the buyers buying behaviour.
0. Cultural: Organizations have established their own corporate cultures that
have different values, habits, customs, norms, etc. These differences
affect the buying behaviour.
0. Organizational factors – The industrial buying behaviour is influenced
by its objectives, procedures, policies etc. There are four sets of
organizational factors –
0. Tasks: The organization conducts the buying task to achieve its
objectives. Further, the goals of the organization affect the buying
behaviour. For example, if company wants to strive as the technological
leaders in its industry, buying task is required to be done in more
scientific way.
0. Structure: The organizational structure i.e. formal and informal structure
affects the purchase decision. It is necessary to understand both these
structures by the marketers to effectively sell to buyers. Another factor
 that influences the buying behaviour is the centralized organization in
which the purchasing authority lies in relatively few individuals who are
in the high position. Further, the organization’s formalization affects the
buying decision as this kind of organization is adhered to the formulated
policies and procedures. And the decision process is likely to done
according to this written guideline. Specialization of an organization also
influence its buying structure as there are various departments which
perform specialize function and more number of individuals are involved
in decision-making process.
0. Technology: Some organization practice science techniques in purchasing
products, including models for inventory control and price forecasting,
computer routines and purchase scheduling charts for identifying order
quantities and buying alternatives.
0. People: People who involved in the buying process will be the major
determinant of the industrial buying process. Marketers need to determine
those people who have the responsibility and authority in buying
decision, in order to influence them to purchase.
0. Interpersonal factors – Interpersonal influence is the influence of one
person on another which is occurred in industrial buying within the
buying centre.
0. The buying centre: The buying centre is the group of individuals in the
organization who participate in buying decision process. The size of this
decision unit may vary on how formalized, centralized and specialized
the organization structure is and how complex and important the buying
is.
0. Buying-centre roles: Members in the buying centre play certain roles such
as initiators, influencers, deciders, buyers and gatekeepers.
0. Power relationship: Power is the most important determinant of an
individual’s influence in a buying centre. The purchasing agents are
highly involved in buying decision than other executives. So, the vendor
should determine the powerful influential factors in the buying centre for
making buying decision. A challenge faces by the marketers is to
determine the power relationship in a prospect’s buying centre.
0. Individual factors – People involved in the industrial buying are
influenced by their own feelings, thoughts, action, etc.
0. Motivation: Motivations of the members in the buying centre are difficult
to determine and they are classified as task related and non-task related.
The motivation’s basic rule is that the buyers behave selfishly in order to
maximize their gain and minimize their losses in the purchase.
0. Perception: Different individuals perceive a thing differently. The
perceptions of the members of industrial buying centre are important to
marketers so as to effectively develop the marketing strategies. The two
significant dimensions of this element are –
 0. Perceptions of selling firm’s products and people.
0. Perception of their own roles in the buying centre.
iii. Learning: When a buyer is satisfied with his buying decision, the
degree of repeatedly making the same decision will increase in the
future at similar situations. Thus, learning occurs. This kind of
buying decision reduces the organization’s risk of failure.
Conclusion
Industrial buyers do not purchase goods or services for personal consumption
but to satisfy the needs for manufacturing products. To purchase the
requirements, they go through a buying process that includes eight stages viz.
problem recognition, need description, product specification vendor search and
so on. The buying decision is taken by the members in the buying centre.
Factors like environmental, organizational, interpersonal and individual
influence the industrial buying behaviour. The marketers must understand these
factors in order to succeed in the industrial market.
Glossary:
Competitive advantage: An organization which outperforms its competitors.
External stimuli: It refers to the outside influences.
Internal stimuli: It is the buyer’s perception and experience.
In-suppliers: Those suppliers who have already known to a company and from
them, the company will buy with confidence.
Marketing mix: A combination of 4Ps (price, promotion, product and place)
used to promote the company’s brand or product.
Marketing strategy: It is a long-term plan to achieve a sustainable competitive
advantage.
Out-suppliers: These are suppliers with whom the buying company does not
have any dealings before and hence they are taken as risky.
Potential suppliers: Any suppliers that response to the invitation to tender.
Skilled-competent individuals: Those who have the capability of doing
something efficiently and successfully.
Tariff barrier: It refers to a barrier to trade between certain countries which
abnormally levied high taxes by government.
FAQs:
Q.1 What are the stages of industrial buying process?
Ans: The stages of industrial buying process are problem recognition, need
description, product specification, vendor search, proposal request, vendor
selection, purchase-routine selection and post-purchase evaluation.
Q.2 What is straight rebuy?
Ans: In straight rebuy, the buyers repeat the order without any changes due to
the satisfaction they got from previous purchased. Product and service quality
are tried to control by “In” suppliers. In order to save recording time of
purchasing agent, they offer automatic recording system. For regarding them by
the buyers, the “out” suppliers present something new or manage the
dissatisfaction.
Q.3 Explain the proposal request stage of industrial buying process?
Ans: Commonly with new task and modified rebuy situations, the buyers invite
qualified suppliers. As a response to this, suppliers sent catalogue or sales
representative or detailed written offer describing the product or service
features. The buyers need to access detailed written offer in case of buying
complex or expensive goods. Then, the buyers select some suppliers to conduct
formal presentations.
Q.4 What are environmental factors that affect the industrial buying behaviour?
Ans: The environmental factors that affect the industrial buying behaviour are
physical, technological, economic, political, legal, culture and ethical.
Q.5 What involves in the need description stage of industrial buying process?
Ans: After recognizing the problem, the buyer begins to determine the
characteristics and quantity of the item needed. In buying standard items like
office supplies, the buying process is easier to perform by the participants in the
process and they may be offered by various homogenous suppliers. For complex
items like new weapon system, there involves the hundreds of people to define
the need description of the qualities and quantities of the required products. In
this stage, the industrial marketers can assist the buyers who do not have
knowledge about the benefits of different product features and can also provide
assistance in defining their needs.
Q.6 Give two organizational factors that influence the industrial buying
behaviour.
Ans: i)Tasks: The organization conducts the buying task to achieve its
objectives. Further, the goals of the organization affect the buying behaviour.
For example, if company wants to strive as the technological leaders in its
industry, buying task is required to be done in more scientific way.
ii)Structure: The organizational structure i.e. formal and informal structure
affects the purchase decision. It is necessary to understand both these structures
by the marketers to effectively sell to buyers. Another factor that influences the
buying behaviour is the centralized organization in which the purchasing
authority lies in relatively few individuals who are in the high position. Further,
the organization’s formalization affects the buying decision as this kind of
organization is adhered to the formulated policies and procedures. And the
decision process is likely to done according to this written guideline.
Specialization of an organization also influence its buying structure as there are
various departments which perform specialize function and more number of
individuals are involved in decision-making process.
Q.7 What are the interpersonal factors that affect the industrial buying
behaviour?
Ans:The interpersonal factors include the buying centre, buying-centre role and
power relationship.
Q.8 Explain the perception of individual factors affect the industrial buying
behaviour.
Ans: Different individuals perceive a thing differently. The perceptions of the
members of industrial buying centre are important to marketers so as to
effectively develop the marketing strategies. The two significant dimensions of
this element are –(a)Perceptions of selling firm’s products and people
(b)Perception of their own roles in the buying centre.
Q.9 What is new task buying situation?
Ans: New task situations are the first time purchase of products. They need to
collect information and evaluate them. It consumes time and effort. Many
individuals are involved in decision making if the cost or risk are higher. It
gives threat and opportunity to the “in” suppliers. While the “out” suppliers
enjoy the opportunity to make an entry.
Q.10 What is modified rebuy situation?
Ans: This situation is happened when buyers want to modify any purchase
which can be done through re-evaluating the available purchase alternatives
either in terms of quality or product type specification. These involve more
number of individuals in decision making than that of straight rebuy. In this
situation, the “In” suppliers may become stressful when they try to protect an
account. But “out” suppliers may see this situation as an opportunity to present
a better offer and get new business.
REFERENCES:
 Kotler, P. (1993). Marketing Management: Analysis, Planning,
Implementation, and Control (7 ed.). New Delhi: Prentice Hall Pvt. Ltd.
th

Kotler, P., & Armstrong, G. (1996). Principles of Marketing (7 ed.). New

th

Delhi: Prentice Hall Pvt.Ltd.

Loudon, D. L., & Della Bitta, A. J. (2002). Consumer Behaviour: Concepts and
Applications (4 ed.) New Delhi: Tata McGraw-Hill Publishing Company
th

Limited.
Saxena, R. (2016). Marketing Management (5 ed.). Chennai: McGraw Hill
th

Education.
Sontakki, C. N. (2004). Marketing Management [In the Indian Background],
Ludhiana: Kalyani Publishers.
Consumerism and public issues, Types of buying behaviour, Different types
of buying motives, Consumer market in India

OBJECTIVES
Understanding types of buying behaviour and buying motives is a power
marketing tool for marketers. More the marketers understand why people buy
certain products, better they will be able to implement marketing mixes for their
products to gain more consumers. There are four types of buying behaviour viz.
Complex buying behaviour, variety-seeking buying behaviour, dissonance-
reducing and habitual buying behaviour. The two major types of buying motives
can be classified viz. product motives and patronage motives. There would be
no consumerism if the business companies do not conduct the unfair trade
practices. In order to bring the desired outcome of consumerism, there is the
necessity for combining the efforts of consumers, business and government to
protect the consumer rights.
INTRODUCTION
The marketers need to understand the degree of involvement of consumers in a
buying decision-making process in terms of information searching, evaluation
of alternatives and awareness of differences among brands. This helps the
marketers to develop marketing strategies which enable the consumer to
differentiate the brand features, benefits, etc. Buying motives refer to the
consumers’ desires, feeling and considerations which motivate the consumer to
buy particular products. That’s why; the knowledge of buying motives of
consumer will help the marketers to determine the consumers’ attitude while
purchasing particular products. There are two main types of buying motives viz.
Product motives and patronage motives. The evolution of consumerism in USA
can be studied in three phases. In Indian market, consumers’ rights are exploited
by marketers because they are unaware of their rights. There comes the
necessity to educate them for full exercising of their rights.
CONSUMERISM AND PUBLIC ISSUES
Philip Kotler asserts that “consumerism is not limited to organized efforts only
but, is a social movement seeking, redress, restitution and remedy for
dissatisfaction that they have accumulated in the acquisition of their standard of
living”. Harper W. Boyed and David say the consumerism as “the dedication of
those activities of both public and private organizations which are designed to
protect individuals from practices that impinge upon their rights as consumers”.
Evolution of consumerism:
Consumerism is first started in USA. Its evolution can be analysed in three
stages.
1. Around 1900 – The business company had done the packaging of meat
in the unhealthiest way that affected the consumers’ health. And by
adopting manipulative devices, many companies produced dangerous,
unwanted products and sold them to consumers. Thus, consumers began
to feel disapproval. So, in order to preserve the consumers’ interests,
they start campaign.
2. Around 1930 – During this period, people became more aware of
standards of good quality. Even though, consumerism did not evolved as
a prominent movement. But the government set up Miller-Tiching Act
1936 to control certain marketing mal-practices.
3. 1960’s – In this period, consumerism reached its height. To safeguard
the consumers’ rights with respect to false advertising and unhealthy
packaging of foods and other products, Late Former President Kennedy
enacted a legislation in1962. Various legislations are also enacted by
government to control pollution.
Rights of consumers:
The former president of USA, Late President John F. Kennedy formulated four
fundamental rights of consumers.
0. The right to safety: Consumer has the right to safeguard themselves
against the goods which are hazardous to health or life.
0. The right to be informed: This implies the right to get the information
which is adequate, accurate, up-to-date, etc. about the product or service
that the consumer is buying.
 0. The right to choose: Every consumer has the right to choose from a wide
range of products at competitive prices. This right can be effectively
exercised in a competitive market.
0. The right to be heard: The appropriate forums must receive the
grievances, complaints and interests.
In addition to these four rights, there are:
v. The right to seek redressed: Against the unfair trade practices or
dissatisfactory services, consumer has the right to seek redressal for
his/her genuine grievances.
v. The right to basic needs: Government of the country must provide the
basic human needs to the fellow citizens such as pure air unadulterated
food, safe-drinking water, etc.
v. The right to consumer education: This right refers to acquire
knowledge and information. Consumer needs to be educated to exercise
the other rights.
Benefits of consumerism:
1. Consumer education: A well organized consumerism informs and
educates consumer for making better buying decision.
2. Liason with government and the producer: In a country where the
consumerism is in its early stage, government plays main role in
meeting consumer needs. The consumer organizations act as a liason
between the government authorities and the manufacturers which
eventually give advantage to consumers.
3. Product research and inform the consumers: Product research helps
consumer to acquire more knowledge on various attributes of the
product like utility value, prices, competing brands, etc.
Public policy and consumer protection:
‘Truth-in-lending law’ had passed particularly for the low-income consumers
who purchase frequently on credit to let them know how much they are being
charged as rate of interest. Rather than the rate of interest that being paid, these
low-income consumers were more aware of size and frequency of installments
repayments. This make the policy makers feel the need to inquire the consumer
habits, attitude and behaviour before passing the consumer legislation. Further,
“The Clayton Act” gives an opportunity for the person who suffered loss and
damage due to the marketing mal-practices, to seek compensation for their
inconveniences. The Mass Media Bureau of The Federal Communication
Commission (FCC) is set up by the Communications Act of 1934 to control the
United States communication industry by imposing rules on obscene
programming, commercial aimed at children and political ads. Moreover, the
cable television consumer protection and competition act of 1922 is established
by FCC’s cable services bureau to manage cable companies’ prices and
business practices.
The Federal Trade Commission (FTC) enables to search for affirmative
disclosures to control the commercial communications substance and maintain
broad powers to define and control unfair or false advertising claims.
The U.S consumerism movement gives main focus on determining the
marketing system is conducting effectively to meet the consumer wants or not.
While supporting increased FTC enforcement of business compliance in order
to safeguard the consumer, these consumer advocates feel the need for more
strict regulations.
TYPES OF BUYING BEHAVIOUR
Consumer buying behaviour depends on the types of product that he wants to
purchase. As the buying decision becomes more complex and is buying more
expensive product, the number of participants involved in decision-making
process is also more. These are four types of buying behaviour based on the
buyer’s involvement level and presence of various brand differences.
1. Complex buying behaviour: Consumers show complex buying
behaviour, when they buy highly expensive, risky and self-expressive
products and unfamiliar products. At this purchase, they are highly
involved in the purchase and conscious of the presence of brand
differences. In this, the consumers have no prior knowledge about the
product. So, they need to collect information from other. The consumers
in this kind of buying behaviour go through a learning process by
developing beliefs, attributes and relating a best choice of product. To
understand the behaviour of the consumer during information gathering
and evaluation is the important task of marketers in order to differentiate
their brand’s features for gaining competitive advantage. The marketers
also need to motivate their salesperson and the consumer’s family,
friends, acquaintances, etc. to influence the selection of the brand.
2. Dissonance reducing buying behaviour: This happen when a consumer
is highly involved in a purchase of expensive, infrequently or risky
product but he knows little about the brand differences. In this case, the
consumers buy quickly, not realizing the differences among brands,
which may be due to the good price or the convenience of buying at the
time or place. After making the purchase, the consumers may feel
cognitive dissonance when they notice certain features are not meet up to
their expectation or knowing favourable features of other products. Then,
the consumers begin to search more information to justify their decision
in order to reduce dissonance.
 3. Habitual buying behaviour: It occurs where there are low consumer
involvement and little brand differences. For example, buying Colgate
toothpaste. It involves low consumers involvement in buying process as
they directly reach the shop and select for the brand. If they have been
repeatedly purchasing the same brand, it turns out a habit. Such buying
behaviour is usually occurred when buying a low-cost, frequently
purchased and low risky products. The consumers do not pass through
the learning process. They do not give much effort or time on searching
information about the brands, evaluating and making buying decision.
On the other hand, they are the passive recipients of information through
mass media, television, etc. which make them familiar with the brand. In
this type of buying behaviour, marketers take the opportunity by using
price and sales promotion to boost their market.
4. Variety-seeking buying behaviour: This type of buying behaviour is
characterized by low consumer involvement but sees the large brand
differences. In this case, the consumers are not buying the same brand
again but prefer to buy the different types of brands i.e. they are brand
switchers. That means they do not have brand loyalty. This does not
mean that they are not satisfied with the product but to remove the
boredom of using a same brand of a product over a long period of time.
Moreover, switching between the brands does not affect much on the
price. For example, buying shampoo sachet.
TYPES OF BUYING MOTIVES
Buying motives are the motives that drive a consumer to buy product. Prof. D.J.
Duncan says buying motives are “those influences or considerations which
provide the impulse to buy, induce action or determine choice in the purchase of
goods or services”. The buying motives are basically classified into two types:
0. Product motives
0. Patronage motives
0. Product motives: - Product motives are those motives which induce an
individual to purchase a particular product by considering the product’s
attributes like size, colour, design, price, form, etc. It can further divided
into:
0. Emotional product motives: These motives are those which persuade an
individual to purchase product without logical analysis and evaluating the
product’s features and its alternative brands. Consumers buy products
which are emotionally attached with them such as the product that
signifies hi their social status, ego, self-esteem, personality, etc. and the
products that deliver their feeling of love and affection to family, friends,
etc.
 0. Rational product motives: An individual carefully analyse the various
product attributes. In this case, the individual extensively search for the
information and number of alternatives available. Then, he does a rational
evaluation in order on all the alternatives base on the various benefit
attributes of the product. After performing the procedure, he decides the
product to be bought.
b. Patronage buying motives: These motives influence the consumer to
purchase product from a particular shop. These can also be classified as:
0. Emotional patronage motives: These motives make an individual to buy
product from a particular shop without thinking much on purchasing from
other shops. He may directly goes to the most preferred or favourite shop
to buy product. The six kinds of emotional patronage buying motives are
habit, prestige, recommended by others, limitation, ambience of shop and
showcase of products.
0. Rational patronage motive: An individual is said to be motivated by
rational patronage motives if he buys products from a particular shop
after a careful analysis and evaluating the alternatives. Because of the
availability of variety of products, assuring after sales services, offering
latest designs, etc., he may choose the shop.

CONSUMER MARKETS IN INDIA

Consumerism in India is mainly caused by rising prices, poor product
performance and service quality, fraudulent advertising and product shortage.
For redressing grievances, the consumer needs to go through an effective
organization. Through legislation action, government provides the consumer
needs. Indian government passed certain laws such as The Prevention of Food
Adulteration Act 1954, The Essential commodities Act 1955, Weights and
Measures Act 1958, The Monopolies and Restrictive Trade practices Act 1969,
Drugs and Cosmetics Act 1940, Packaged Commodities Act 1975 and
Consumer Protection Act 1986.
Several problems are faced by Indian consumer. To protect the consumer rights,
the involvement from the government and consumer movement are required.
Unique problems of Indian consumers:
0. Consumerism in India is still in its early stage and not well-organised.
Most of the Indian consumers are not aware of their rights.
0. The high rate of ignorant and illiteracy among the Indian consumer gives
the opportunity to marketers to exploit the consumer rights.
 0. Due to the hoarding, black marketing, profiteering and corruptions,
Indian consumers face critical imbalances in the demand and supply of
essential commodities that leads to shortage of such commodities.
0. Instead a view to serve the people with correct information, the marketers
advertises their products with a view to sell their products faster at
maximum profit.
0. The lack of proper information easily fall the consumer to victims who
buy sub-standard, inferior or defective products.
0. The legal procedure in Indian takes time. Due to this season, many
consumers escape from this legal action. They are ignorant of the easy
procedures under the Consumer Protection Act.
0. The formulated laws to protect the consumers’ interests are not
effectively implemented and imposed to get the determined objectives.
Consumer exploitation in India:
The consumers are exploited in various ways. Some of the examples are:-
0. Consumers are deceived with fraud advertisement.
0. Goods and services are highly priced.
0. Goods are short of their weights.
0. The profiteers generate artificial scarcity to make illegitimate profits.
0. Offensive behaviour of rationing shops regulated by government.
Besides, consumerism in India is different from western countries. The
followings are the some of the major problems of consumers’ exploitation.
0. Pricing: Pricing theory suggest that the price is based on the quality and
quantity of the product but in real practice, price is fixed by the
producers in a way that they raised the price up to 10% - 20% of the real
price.
0. Adulteration: Marketers aim to get more benefits. That’s why they
adulterate the products which cause harm to consumers.
0. Duplication: There are duplicates for every type of products. Consumers
who are not familiar with the products can be easily deceived by the
marketers. Some Indian manufactures mark their products as “Made in
Japan” or “Made in USA”, etc.
0. Artificial demand: When the stocks are in large quantity, the marketers
intentionally put the board “No Stock” in their shop to enable the product
may sell in higher price.
0. Sub-standard: Once, the intermediaries or the manufacturers get the
popularity for the product, they incline towards the making of more
profits by reducing the quality and the quantity of the products. If a
consumer gets a defective product, he cannot return it as the bill is not
made or even though the bill is provided, they imprint the words like
 “goods once sold will not be return”. Therefore, such products are not
accepted by the seller to return.
CONCLUSION
As the consumerism evolved, consumers become more conscious about their
rights. Understanding various types of buying motives will help the marketers to
develop sales promotion programmes to motivate and retain their consumer.
Consumers show different buying behaviour while purchasing different
products. Depending upon the degree of involvement of consumer in the buying
decision and consciousness of availability of differences among the brand, types
of buying behaviour are divided into 4 types. As the consumers in India are
mostly ignorant and illiterate, they can easily be fallen to victims of unfair trade
practices. The Indian Government has made laws to protect consumers. Thus, it
is required to educate the consumers about their rights.
GLOSSARY
Brand loyalty: Tendency of the consumers to continuously purchase one;s brand
over another.
Brand switcher: It is the consumer buying habits of choosing another brand
instead of their usual brand.
Competitive advantage: An organization which outperforms its competitors.
Cognitive dissonance: It is the feeling of consumer that experiences the tension
or anxiety at the post-purchase.
Consumer-oriented: An approach to sales and customer relations focus on
helping customers to satisfy their long-term needs and wants.
Competitive price: It is the price of a product that sets at the same level as one’s
competitors.
Low consumer involvement: The degree of involvement of consumer in the
buying decision process is low.
Products attributes: The characteristics of a product that influence consumer
decision-making process.
Marketing mix: A combination of 4Ps (product, place, price and promotion)
used to promote its brand or product.
Marketing strategy: Long-term planning of an organization to achieve
sustainable competitive advantage.
FAQs
Q.1 Ho many buying behaviour are there? Name them.
Ans: There are four types of buying behaviour. They are complex buying
behaviour, dissonance reducing buying behaviour, habitual buying behaviour
and variety-seeking buying behaviour.
Q.2 Differentiate complex and habitual buying behaviour.
Ans: Complex buying behaviour occurs when the product to be bought is
expensive, risky and self-expressive products while habitual buying behaviour
happens when a consumer is buying low price, low risky and frequently
purchased products.
The former involves extensive search of information whereas the later involves
no search of information.
In complex buying behaviour, consumers are conscious of presence of brand
differences while in habitual buying behaviour, consumers are not aware of the
brand differences.
Q.3 What is dissonance reducing buying behaviour?
Ans: Dissonance reducing buying behaviour happens when a consumer is
highly involved in a purchase of expensive, infrequently or risky product but he
knows little about the brand differences. In this case, the consumers buy
quickly, not realizing the differences among brands, which may be due to the
good price or the convenience of buying at the time or place. After making the
purchase, the consumers may feel cognitive dissonance when they notice certain
features are not meet up to their expectation or knowing favourable features of
other products. Then, the consumers begin to search more information to justify
their decision in order to reduce dissonance.
Q.4 Define consumerism.
Ans: Consumerism is not limited to organized efforts only but, is a social
movement seeking, redress, restitution and remedy for dissatisfaction that they
have accumulated in the acquisition of their standard of living.
Q.5 What are the consumer rights?
Ans: The consumer rights are:
1. The right to safety
2. The right to be informed
3. The right to choose
4. The right to be heard
5. The right to seek redressal
 6. The right to basic needs
7. The right to consumer education
Q.6 What are the benefits of consumerism?
Ans: Benefits of consumerism are:
1. Consumer education: A well organized consumerism informs and
educates consumer for making better buying decision.
2. Liason with government and the producer: In a country where the
consumerism is in its early stage, government plays main role in
meeting consumer needs. The consumer organizations act as a liason
between the government authorities and the manufacturers which
eventually give advantage to consumers.
3. Product research and inform the consumers: Product research helps
consumer to acquire more knowledge on various attributes of the
product like utility value, prices, competing brands, etc.
Q.7 Give 3 unique problems of Indian consumers.
Ans: 3 unique problems of Indian consumers:
0. Consumerism in India is still in its early stage and not well-organised.
Most of the Indian consumers are not aware of their rights.
0. The high rate of ignorant and illiteracy among the Indian consumer gives
the opportunity to marketers to exploit the consumer rights.
0. Due to the hoarding, black marketing, profiteering and corruptions,
Indian consumers face critical imbalances in the demand and supply of
essential commodities that leads to shortage of such commodities.
Q.8 What is emotional product motives?
Ans: The emotional product motives are those which persuade an individual to
purchase product without logical analysis and evaluating the product’s features
and its alternative brands. Consumers buy products which are emotionally
attached with them such as the product that signifies hi their social status, ego,
self-esteem, personality, etc. and the products that deliver their feeling of love
and affection to family, friends, etc.
Q.9 Explain the evolution of consumerism.
Ans: Consumerism is first started in USA. Its evolution can be analysed in three
stages.
1. Around 1900 – The business company had done the packaging of meat
in the unhealthiest way that affected the consumers’ health. And by
adopting manipulative devices, many companies produced dangerous,
 unwanted products and sold them to consumers. Thus, consumers began
to feel disapproval. So, in order to preserve the consumers’ interests,
they start campaign.
2. Around 1930 – During this period, people became more aware of
standards of good quality. Even though, consumerism did not evolved as
a prominent movement. But the government set up Miller-Tiching Act
1936 to control certain marketing mal-practices.
3. 1960’s – In this period, consumerism reached its height. To safeguard
the consumers’ rights with respect to false advertising and unhealthy
packaging of foods and other products, Late Former President Kennedy
enacted a legislation in1962. Various legislations are also enacted by
government to control pollution.
Q.10 Give some examples of consumer exploitation in India.
Ans: The consumers are exploited in various ways. Some of the examples are:-
0. Consumers are deceived with fraud advertisement.
0. Goods and services are highly priced.
0. Goods are short of their weights.
0. The profiteers generate artificial scarcity to make illegitimate profits.
0. Offensive behaviour of rationing shops regulated by government.
REFERENCES
Monga, G.S., & Anand, S. (2003). Marketing Management. New Delhi: Deep &
Deep Publications PVT. LTD.
Nair, S.R. (2003). Consumer Behaviour in Indian Perspective. Mumbai:
Himalaya Publishing House.
Pillai, R.S.N., & Bagavathi (2014). Modern Marketing: Principles and
Practices. New Delhi: S. Chand & Company PVT.LTD.
Sontakki, C. N. (2004). Marketing Management [In the Indian Background],
Ludhiana: Kalyani Publishers.
Varshney, R. L., & Gupta, S. L. (2005). Marketing Management: Text and
Cases (An Indian Perspective) (3 ed.). New Delhi: Sultan Chand & Sons.
rd

Links:
http://www.mbaskoool.com/business-concepts/marketing-and-strategy-terms/
15980-buying-motive.html
http://www.kullabs.com/classes/subjects/unit/lessons/notes/note-detail/5928
http://consumeraffairs.nic.in/organisation-and-units/division/consumer-
protection-unit/consumer-rights