Purchasing Cartier Love Bracelet - Case Study Example

Consumer Purchasing/ Buying Process Name Course Tutor Date Consumer Purchasing/ Buying Process Introduction The decision to buy or consume a product comes from a need created that leads to a demand of the product. Every business operates with the intention that the demand created in the market will enable the business make sales and their products preferred by consumers. However, before establishing a business on selling a particular brand of products to consumers, there has to be a market study that will identify the level of demand among the consumer population as well as the customer preferences. This will help in creation of a brand that not only meets the needs of consumers but also earns the business enough profit for its operations and payment of wages and other operational expenses. According to experts, demand and supply are the greatest determinants of the process of purchasing a product. However, before the nature of market is controlled by the natural forces of demand and supply, the consumer has to develop a need to consume that particular product. A detailed analysis on decision making in the purchasing process of a birthday gift for my sister indicates the entire process through a consumer diary. Consumer diary Identification of the need to give my sister a present for her birthday as a gift Search online for the best gift and presents preferred by ladies especially on their birthdays Settled on buying a necklace for my sister Evaluation of other options of presents and necklaces that ladies love, and gold coated necklaces and rings topped the list. Decision to purchase the necklace Purchasing the necklace and packaging After handing the present, there was an evaluation to assess whether the final consumer of the product derived maximum utility from the product as was satisfied with the necklace. Decision making in the purchasing process In most cases, sellers and retailers conceptualize without understanding the consumer base that consumer buying is a random process. They also perceive that certain products appeal to certain consumers after which there is a purchase or the consumer prefers not to buy the product. Through these perceptions and speculations, retailers approach the consumer market in product and service marketing in a way that is based on trial and error. However, there is a scientific approach to consumer purchasing that explains the behavior of consumers in creating the demand, making the decision to purchase and the actual consumption of that particular product. Demand comes from a decision made by the consumer in preferring a particular brand or product[And12]. The need to buy a product may come from: Wanting to replace an old product More utility in a new product Giving the product as a present to someone Using the product for other important functions that can generate income or more satisfaction generation. Therefore, in purchasing a product, specifically the necklace as the birthday present, six steps are involved in the process, which include need or problem recognition, information gathering or searching, evaluation of the available alternatives, purchasing of the product or service and post-purchase evaluation. Problem Recognition of Need Before deciding to purchase the necklace, there has to be a reason to that what is wanted, where it is wanted, or the perception held on the product is different from the actual purchasing. This means that before any purchase of any product can take place, the consumer has to first believe that the product will serve its purpose in meeting the need created by the customer. The need to buy a product is influenced by perceptions, the environment as well as the social aspects which includes peers, family, friends and the social media. Therefore, it is important to understand that in purchasing, when recognizing the need or problem, the consumer ought to know that desire is different from reality[WDa15]. In some cases, the difference between desire and reality is taken as the ideal problem that the consumer has to struggle with and come up with a decision to purchase a product from the initial step. Need is the most important factor which then leads to the purchase of a product or service. The need to consume a particular product by the consumer is taken as the catalyst which triggers the buying decisions that consumers make when getting into the market[RRy15]. In purchasing a necklace as a birthday gift, the situation is analyzed from the approach of the trigger that has facilitated the decision. The first aspect on the need is created by the situation, which is a birthday. The situation then dictates analysis of the environment, where the consumer has to buy a product, either for self-consumption or for another person. The preference to buy a product or service as a gift for someone else has to include the likes and preferences of that person. The likes and preferences are what create the demand and act as a trigger in purchasing a particular brand of product, where in this case it is the necklace[Lub13]. Therefore, what the sister likes and the nature of necklace that she likes has to be put into consideration as the most important factor before buying the necklace. In this aspect, the consumer understands that the product will suit the situation and the environment, which will then derive utility from the final user of the product or service. For the marketer of retailer, the difference created creates an opportunity to deliver the product to the consumer. Through the indifference, a demand is created which is then filled by the consumer of retailer supplying the commodity or service to the consumer. Through taking time to create a problem or need for the consumer, whether the consumers recognize that the demand exists or not is already a development in the starting process of making a purchase of a particular product[Ric16]. The marketer or retailer has to directly associate the need or problem to consumer to facilitate the decision making process so that there is a consumer preference of that product over the other present in the market or sold by other retailers. Consumers always created demand and it is upon the retailer to read the market trends in order to establish the nature pf demand created so that they can respond with a n appropriate supply method that will then define the nature of the market. The retailer in seizing the opportunity of this step has to start with content marketing. This will involve the sharing of testimonials and facts about what the product can provide to the consumer and the level of satisfaction it will achieve on the consumer once the purchase is done[AEi13]. The retailer should also ask questions in order to pull the potential of the consumer into the buying process that will influence a major decision. By doing this, a potential customer is assisted in realizing that they have a need that has to be solved through making a purchase. Information Search or Gathering After developing the need or recognizing the problem, the next step is gathering information about the product or service, which will provide an insight into the nature of product that is most preferred. In the process of information searching and gathering, consumers understand that there is an issue and they have to look for a solution[Per11]. The indifference created is identified as the issue and a solution has to be sought, which is to look for it through collecting and gathering information. Information gathering is most efficient when the product is advertised to the consumer and the consumer base is aware that a particular brand of product actually exists in the market[Pad13]. According to experts, consumers will always prefer a product that they are aware of or a new product that has been advertised to them. if is a new makeup foundation, ladies will crowd wanting to purchase the commodity while other like men will buy it as presents or gifts to someone. The same case applies to the necklace. In buying the necklace for the sister, there has to be sufficient information about the necklace and its advantages, which will formerly convince the consumer to purchase the product. When a consumer recognizes the need to purchase or consumer a particular product or service, there is a target to understand more about the product and this will involve searching for as much information as one can possibly can in order to make a purchasing decision that is based on facts and contentment. There are various sources of information that play an informative role to the consumer before making a purchase. Public sources: This will include newspapers, radio and magazines, which will provide information of a product through advertisements and announcements. Personal sources: This will involve discussing the need of purchasing a necklace as a gift to the sister on her birthday with close friends who have an understanding about presents and gifts preferred by ladies. Family members and coworkers also act as personal sources as well as other acquaintances that understand the product or service. Experimental sources: This comes from the individual’s own experience about the product or service, which will include prior handling of the product. If a necklace was what is preferred by the purchaser, who had bought it before and derived maximum utility from the product, this will then act as an information base in creating a preference to purchase the necklace for the sister. Commercial sources: This involves advertisements in social media and other media platforms, salespeople and other marketing agencies. The packaging of a product also determines the nature of information that it will provide to the consumer since many people often read the package before consuming the product inside[Sve11]. Therefore, packaging of a particular product in many cases prompts people to buy a product either through display, mannequins or props. As a marketer in this step, the best way to market a product to the need of purchasing a product is to establish a brand or that of a client as an industry leader or expert in a specific field, making the consumer understand that by settling to purchase the product, there is guaranteed maximum utility. Consumers have preferences and it is upon the retailer to make the product the most preferred brand by consumers[CAn11]. In the case of purchasing the necklace, information gather through personal sources will act as a preference method because the colleagues will only inform about a product they best understand and have derived utility from it before. Therefore, the retailer has to ensure that the necklace brand is popular among the consumer base so that when information is collected through personal sources, it is the first pop-up option that comes in mind, which will then influence the buying process. Increasing the credibility as a retailer or marketer about a brand to the information search process keeps the business in front of the customer as well as ahead of the competition[Him12]. Therefore, in making a purchase of the necklace, information has to be available about all brands of necklaces and their retailers and marketers as well their locations. Evaluation of Alternatives In the process of information gathering and searching, many options and alternatives are always presented to the consumer. Since most markets are not monopolistic, this means that the brand or product has many manufacturers, retailers or marketers. This dictates the need for the consumer to have a careful look at all the products after which an analysis will be made based on the preference, taste, color and price of the product[JBe14]. Alternatives are made available so that the consumer is able to select a product that efficiently and effectively meets the need created by the indifference in the first process of making a decision in the purchasing process. A consumer has to be sure and certain of the product that will be purchased, which dictates the importance of the step. In the process of evaluating alternatives, preference and taste comes first. The product has to appeal to the consumer that it will meet the ultimate need as well satisfy the demand that has been created. Every individual need created by a consumer results into a macro-demand that then defines the entire market, which is filled with various alternatives that the consumer has to choose from[PLi10]. Therefore, taste and preference have to formally inform this process. The color is the most likely step to follow after taste and preference, where the consumer will analyze whether the color is pleasing enough. Most products come in different colors, a strategy that has been used by retailers and marketers as a market segmentation strategy. The difference in colors presents a need to choose the best alternative that is preferred or will be preferred by the final consumer of the product[Pau12]. The price is the final consideration, where the consumer has to analyze whether the purchase is actually possible depending on its price and the money available or set aside for purchasing the product. Different alternatives have different prices and it is upon the consumer to decide on the price in relation to the quality of the product. in many cases, low prices go with low quality while high quality goods attract high prices. However, retailers and marketers vary their prices depending on various factors which include demand, the cost of operation the buying price from the manufacturer, value addition through packaging, advertising costs as well as other costs that may affect the final price[Edg14]. In some cases, retailers may also want to vary the price in order to market that particular product or brand. When purchasing the necklace for the sister, the first consideration is whether the sister will like a necklace or not. The decision to buy the necklace means that from the process of information gathering, there was a decision to buy a necklace. This is defined as the preference, where the necklace was the most preferred among other gifts that could be given to the sister on her birthday. The color followed, where the gold coated necklace came out as the preferred alternative as the definite color that could derive maximum utility. At this stage, even though there is surety that the necklace demanded is of gold coating, there might be a need to still compare other alternatives to check for variations in order to make sure that the decision made in purchasing the necklace is right. The last step will be price, where the price of the necklace has to be pocket friendly without compromising on its quality. Therefore, the best alternative of the retailers will be considered where the price is friendly and the necklace is of quality and of preferred taste and color by the final consumer[VSa14]. To retailers, this is a crucial step because it involves marketing and making the brand stand out as the most preferred alternative among the other competing products. It is essential to create a platform where customers can compare the prices easily and by doing this, the process of marketing will not only be simplified but also it will lead to the establishment of a trusted consumer relationship, especially in the stage of evaluation of alternatives. Purchase Decision The step falls almost in the middle of the process and determines whether the other two process will be possible or not. The decision to buy comes from evaluation of the best alternative, which is achieved after information collection and gathering about the product or service. At the point of the step of decision to purchase, the consumer has already analyzed and explored multiple options through available information. It is assumed that the customer has understood the pricing and payment options. At this stage, the customer is only deciding whether to move forward with the purchase or not[Placeholder2]. The decision to make the purchase will determine the next step, which is making the actual step and a positive decision is made to consume the product, then a purchase will be made. However, if there is a negative force that is most likely to inform the customer otherwise about making the purchase, then the purchasing process will end at this stage. This is because no purchase will be made despite the fact that the customer has all the facts needed to make the purchase of the product push though. Therefore, this step is a great determiner and retailers often work in contemplation because the customer can easily walk away without making a purchase. The retailer in this step has to set up a marketing game that will have a positive effect when it comes to the consumer making the decision to buy a particular product or brand. This is made possible once the retailers provide a sense of security while at the same time reminding the customers the reasons they wanted to make the purchase in the first place[Dor15]. By reminding the customer of the reason, the need is aroused and a demand created because the customer will develop a positive aspect in purchasing the product for the situation or event. During this stage, providing as much information about the product in relation to the need that was created in the first step of the process alongside why the brand is the most preferred alternative, will make the need look essential to the customer. This will ultimately prompt the purchase of the product. However, if the consumer walks away without making the purchase, this is the time to bring the customer back. This is done through retargeting and sending of messages to customer either by mail or any other communication platform, which will remind them of the need to purchase the product and why they needed to make the purchase after the evaluation of alternatives to finally settle on the product or retailer[HJo12]. To the retailer, the fourth step is by the most important step in the consumer buying process because this is where profits are either made or lost. In buying the necklace, the decision to buy the product has already been influenced by seeking information about all alternatives alongside their prices, which have to be in tandem with the taste and preferences of the final consumer of the product. This step is important because it will determine whether the necklace will actually be bought or a further evaluation will be conducted. When deciding to purchase the necklace, as a consumer, there is still room to gather as much information that is needed especially from the marketers or salespeople, who will provide an insight[Por08]. However, there has to be a forethought on the basic reason for purchasing the necklace, where in this case it is a once-in-a-year event. This then makes it essential to purchase the necklace after careful analysis of the color and preference as well as price. Purchase The need has been created, research about the product has been done and completed and the customer has finally decided to make a purchase. In this step, it is assumed that the customer has all the information needed about the product as well as understands all the risks involved before making the purchase. It is also assumed that the customer has already understood the price variations of different stores that stock the product and relates the purchase to the situation, preference, environment and price. By deciding to purchase the product or service, the customer is already taking the risk into account and is definite on what is to be purchased. Retailers and marketers assume that during this stage, the customer is making the purchase based on prior experience with this exact decision or experience[CAn12]. The customer is informed through the advertisements and marketing strategies that have been put in place by retailers but the product or service and therefore, want to try it out. All the stages involved in the consumer purchasing process that lead to a conversion have been completed. However, it should be noted that the stage does not signify a sure thing that customer will make the purchase, although it is appropriated that there is a 90% likelihood that the customer will buy the product or service[Pay13]. Purchasing the necklace at this stage is much easier because all the alternatives have been evaluated and the best selected. However, there should be a consideration whether the product will efficiently and effectively meet the desired need of the sister. As a birthday present, the decision to buy the necklace will depend on the perception the sister will have once she receives the present. This is almost the last step of the consumer purchasing process and care has to be taken in order to ensure that the necklace is of quality. The purchasing step presents the actual opportunity for the consumer to determine whether the product is as actual as that advertised or seen during the information gathering stage[CAn12]. Therefore, there should be a comparison on the quality, color and texture of the product, which will then lead to the actual purchasing of the necklace. As a birthday present, the features should suit all the descriptions gathered during the information collection stage. This is to ensure that the product derives maximum utility from the end user, who is the sister celebrating the birthday. For marketers and retailers, the process of marketing a product at this stage is straightforward as it should be kept simple. The product should also be tested in various platforms, the most preferred being online marketing to assess its simplicity and adaptability into the consumer market[Nel11]. In this step, the retailer should understand whether there are too many steps involved or the availability of the product as well as the time taken for the product to get to the consumer. This is most common for products that are advertised and sold online. After making the purchase, the retailer has to do an extra task of ensuring that the product gets to the end user within the stipulated time in the agreement to which both the retailer and consumer ascent[Ric13]. Although it is certain that the product is likely to end at the hands of the customer, the retailer should take this as an opportunity to market the product and make it a preference for the next available customer. At this stage, it is important to issue out enough information on why the product is the best and why by settling to purchase the product is the best decision[Placeholder1]. When this is done especially when purchasing the necklace, a consumer appeal is created, which leads to trust and there is likelihood of getting more customer since birthdays are seasonal events but have a positive demand correlation because there is a propensity to consume the product. Post-Purchase Evaluation Post-purchase evaluation refers to the customer analysis that is conducted where there is an assessment whether the product was useful to the end consumer or not. Although it is the last step in the consumer purchasing process, it holds a great deal in determining whether the customer will make subsequent purchases[Owe14]. After a purchase has been made, it is inevitable that the consumer has to decide whether the product satisfied their needs with the decision made to purchase the product. this then results to an evaluation. This is the stage where revenues and customer loyalty is created or lost. If a customer feels as though an incorrect decision was made by purchasing the product, a return could take place, especially in stores where they accept the product and give back the money to the customer. This is normally mitigated by identifying the source of dissonance in the product and offering another alternative in exchange that is much simple and straightforward or most likely to suit the customer’s taste and preference[Gil16]. However, even though a customer may be satisfied with the product or the decision to purchase the product, whether a future purchase of the brand will be made is still in question. Therefore, it is critical for retailers and marketers to send follow-up surveys and emails to thank the customer for making the purchase. After buying the necklace, the nature of post-purchase evaluation that will be conducted will be derived from the reaction of the sister upon reception of the birthday gift as well as what the other friends will say about the necklace. Evaluating the last stage is important because it will determine whether the other friends present in the event will want to buy the same product, either for themselves or for someone else as a present or gift. Satisfaction will only be achieved once the sister will have a positive perception about the necklace and collection of views from other people who have seen it in order to determine whether it is worth the price that it was purchased. In conclusion, a detailed analysis on decision making in the purchasing process of a birthday gift for my sister indicates the entire process through a consumer diary. Taking effort to understand the six stages in the consumer buying process reveals the various aspects involved in each step and how they individually influence the decision made by the customer in making a purchase. An analysis of the steps ensures that all marketing and purchasing strategies are well addressed in order to lead to higher conversions and long-term customer loyalty. Therefore, in purchasing the necklace, it is critical to consider each step in the entire process, beginning with need or problem recognition, information collection and searching, evaluation of all the available alternatives, purchasing decision, the actual purchase and lastly conducting a post-purchase evaluation. 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