Marketing 101: The Buyer Decision Process: Evaluation of Alternatives

In my examination of the Buyer Decision Process, I've started by exploring the first two stages: Need Recognition and Information Search.  Need Recognition refers to the instance when a consumer recognizes that a need, or problem exists that needs to be satisfied, ie: I need a new refrigerator.  If the need is strong enough, an Information Search is usually initiated.  As a consumer does more research they will inevitably become aware of competing brands and products that are available for purchase.  It is at this point that the Evaluation of Alternatives begins.  An Evaluation of Alternatives is the stage of the buyer decision process in where a consumer uses the information gathered in the Information Search to evaluate alternative brands in the product category.

So how does a consumer choose among these alternatives?  The truth is that there are several processes at work inside the consumer's mind, forming beliefs and attitudes about all of the products to choose from.  However these processes all "evolve" based on the individual's buying situation.  The situation evolves from the set of attributes the consumer is choosing to evaluate products by.

Let's say a consumer is evaluating the attributes of a groups of computers. They have identified four attributes: performance, design, price, and value.  During the evaluation the consumer will place different levels of importance with each attribute based off of what is most important to them.  The consumer will "evaluate" each brand and form beliefs on how each brand rates on each attribute.  The consumer may turn to friends and family, consult consumer reviews, or discuss their situation with sales people during the Information Search.

We know that all brands vary in their degree of appeal to each consumer.  A consumer may buy a brand based on a single attribute, or a number of them.   If during the Information Search you were able to deduce how a consumer assigned value to each attribute you could predict the buying behavior more accurately.  Marketers must study buyers to discover how they actually evaluate brand alternatives.  If you know how your target customer's evaluation process occurs, you can take steps to influence the buying decision early on and lead the buyer to purchase much faster.

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Marketing 101: The Buyer Decision Process - Information Search

In my last posted I started to discuss the Buyer Decision Process.  Simply defined, it's conducted by a consumer before, during, and after the purchase of products and services. The process consists of five defined steps or stages that typically occur in a certain order: Need recognition > Information Search > Evaluation of Alternatives > Purchase Decision > Post-Purchase Behavior.

Need Recognition refers to the instance where a consumer recognizes that a need or problem exists that needs to be satisfied.  Need Recognition is usually triggered by an internal stimuli when a particular need, such as hunger or thirst, rises to a high enough level to become a drive.  Once the need has been identified and has become a drive, the pursuit of information begins.

Information Search
Information Search is the second stage of the buyer decision process.  In this stage consumers are driven (by their drive) to search for more information related to their need.  If the drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then, barely collecting any information, or skipping this stage altogether.  If the drive is not strong, the consumer will usually store their need in memory and begin an information search.  As a consumer does more research they will inevitably become aware of competing brands and products that are available for purchase. 

Appliances are a product category where consumers conduct lots of research and there is ample competition.  Let's say a consumer needs to replace their refrigerator.  Because the most effective sources of information tend to be personal in nature, a consumer might start their information search by asking members of their friends and family social and cultural groups what refrigerators they would recommend.  Next, the consumer will typically begin to use commercial sources of information to "fill in the blanks", such as advertisements, editorial reviews, and in-store sales staff.

Marketers must design their marketing mix to make target customers aware of their brand in the midst of all of this "noise".  Ad messaging must address the typical needs, lifestyle aspirations and answer the common questions of their target demographics.  Sales staff must be properly trained and incentivized so that in-store touch points are as successful as possible.  If a marketing mix is properly created, it can help accelerate consumers quickly past the Evaluation of Alternatives stage and towards the Purchase Decision.


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Brand Assessment

Last week I discussed the details of Brand Architecture.  Before I talk about further evaluating a Brand Architecture, I wanted to explore the Brand Assessment.  The data gained from researching and evaluating your brand in an assessment is a key requirement before considering any future change in your Brand Architecture.  If you don't know anything about your brand in the marketplace, you cannot make any intelligent decisions about it's direction in the future.

There are two key parts to a Brand Assessment: the Brand Essence and the Brand Communication.  

When reviewing your Brand Essence it is important to determine:

• Awareness: Are you known in the marketplace?
• Favorability: How do people feel about you?
• Function: What benefits do you provide your customers?
• Key Driver: What prompts consumers to engage with you?
• Support: What "backs up" your key function in the marketplace?
• Differentiation: What distinguishes you in the marketplace from everyone else?
• Personality: What compelling attributes define you?
• Quality: What is the quality of your brand in the marketplace?

When reviewing your Brand Communication, you should review:

• Messaging: What messages are the most compelling to your current and potential customers?
• Name: How effective is your current name in the marketplace?
• Logo: How effective is your current logo in the marketplace?

The amount of detailed, reliable data you can collect on each of these areas will help you determine the direction your brand should go in the future.

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