III
The Buying Behavior of Consumers
The retail buying process, and those involved, play an important role in the value chain as they
ultimately determine which products and brands are made available to the consumer. Historically
role of retail buying has been to make decisions about which products to buy and which suppliers to
buy from, but now the retail buying process is also increasingly involved in generating revenue from
these purchases. The ―modern‖ retail buyer is now involved in activities previously undertaken by
the commercial, operational and sales functions eg product development, market analysis, sales
forecasting and range, assortment, and brand management.
o Buying Process
A customer goes through a number of stages as shown in the following figure before actually
deciding to buy the product. However, customers get to know about a product from each other. Smart
retail managers therefore insist on recording customers‘ feedback upon using the product. They can
use this information while interacting with the manufacturer on how to upgrade the product.
Customer Buying Process Identifying one‘s need is the stimulating factor in buying decision. Here,
the customer recognizes his need of buying a product. As far as satisfying a basic need such as
hunger, thirst goes, the customer tends to decide quickly. But this step is important when the
customer is buying consumer durables. In the next step, the customer tries to find out as much
information as he can about the product. Further, the customer tries to seek the alternative
products. Then, the customer selects the best product available as per choice and budget, and
decides to buy the same.
Buying Situations
One of the most common themes in the retail buying literature is the exploration of the role of the
retail buyer and the tasks involved in the retail buying process. The general assumption is that the
decision making process entails a series of clearly defined stages or ―buy-phases‖ involving a range
of tasks which lead to an eventual decision. These stages are typically regarded as part of a linear,
sequential process and comprise various forms of:
11) problem recognition (through internal or external stimuli);• product specification;• supplier
search;• supplier choice;• supplier evaluation;• supplier selection;• order specification;• and
performance review.
The number and nature of these stages varies with the buying situation or ‗buy-class‘. All of the
stages will feature in the case of a ‗new-task‟ buy, (i.e. when both the product being purchased is
new and the potential supplier is not known), but when products are re- bought some of the stages in
the sequence are un-necessary. For example, in the case of a „modified re-buy‟, when the same item
is required but a new supplier is sought, or in the case of a ‗straight re-buy‟, where the same
product is bought from the same supplier.
o Buying Centers
Webster and Wind call the decision-making unit of a buying organization the buying center. It
consists of "all those individuals and groups who participate in the purchasing decision making
process, who share some common goals and the risks arising from the decisions."!7 The buying
center includes all members of the organization who play any of seven roles in the purchase decision
process.
Initiators-Users or others in the organization who request that something be purchased.
Users-Those who will use the product or service. In many cases, the users initiate the buying
proposal and help define the product requirements.
Influencers-People who influence the buying decision, often by helping define specifications and
providing information for evaluating alternatives. Technical personnel are particularly important
influencers.
Deciders-People who decide on product requirements or on suppliers.
Approvers-People who authorize the proposed actions of deciders or buyers.
Buyers-People who have formal authority to select the supplier and arrange the purchase terms.
Buyers may help shape product specifications, but they play
their major role in selecting vendors and negotiating. In more complex purchases, buyers might
include high-level managers.
Gatekeepers-People who have the power to prevent sellers or information from reaching members
of the buying center. For example, purchasing agents, receptionists, and telephone operators may
prevent salespersons from contacting users or deciders.
Several people can occupy a given role such as user or influencer, and one person may occupy
multiple roles. A purchasing manager, for example, often occupies the roles of buyer, influencer,
and gatekeeper simultaneously: She can determine which sales reps can call on other people in the
organization; what budget and other constraints to place on the purchase; and which firm will
actually get the business, even though others (deciders) might select two or more potential vendors
that can meet the company's requirements
