Chapter - III Consumer Buying Behaviour

Transcription

1 Chapter - III Consumer Buying Behaviour Introduction: The review of literature forms the base for the thesis work, as consequential analysis and its prospect results are depends on it. This topic aims to provide an overview of the research done on the consumer buying behaviour and satisfaction level in marble and granite with respect to Muscat region. Customer is the King of the market and every marketer aims at identifying the buying behaviour and to increase the satisfaction level by fulfilling the needs and wants of consumer. Basically, consumer buying behaviour concept explains about how the individuals, groups or organizations do selection, buying, using or disposing of the ideas, goods and services, their experiences for the satisfaction of need and want. Figure No. 3.1 Theoretical framework of consumer buying behavior Analysis of consumer Buying Behaviour Marketing Research Marketing Strategies Customer relationship Marketing Mix Competitive Advantage To understand the consumer buying behaviour the managers of marketing should try to analyze the various aspects related to it. This will help to define strategy and plan the route map of achieving organizational goals and objectives. Marketing strategy need to be developed by keeping in view the long term growth and earning profits by retaining the existing customers and attracting the potential customers.

2 The consumer buying behaviour concept has been considered in many disciplines like psychology, sociology, political science, economics, agriculture, marketing and food sciences. This concept has been researched and explored by many of them to study different techniques and methods. It has been entrenched in the marketing discipline due to which it has been shaped in to the modern marketing concepts for the use of organizations in the present context Meaning of Consumer: Consumer is the person who purchases the goods or services in the view of consumption and not for the immediate sale or manufacturing. Purchase of consumer involves satisfaction wants or needs. There are various situations or alternatives prevailing in the market environment which the consumer needs to analyze or evaluate in order fulfill his/her desires. After the analyzation, the consumer interprets the various elements of the market environment and takes the decision for the best suited ones with the aim of fulfilling the needs and wants in the process of purchase of goods or services. Consumer can be any natural person, group or an organization who are involved in the process of buying the goods and services for the personal use. Consumers are mainly influenced by the marketing strategies applied by the organization in the form of advertisings, promotional tools, etc Meaning of Buying Behaviour: Buying behavior of the customer is nothing but decision making process or the acts that are involved in buying and using of the purchased goods. The more the number of buyers of the product, the more is the success of the firm who produce them. For a company to manufacture the good or service that is desired by the customer, for that the company should first analyze the needs of the customer. Company should undertake a survey to understand the needs of the customer and should manufacture the goods which best satisfies such need. Customer usually goes for those products which are available in the market by analyzing the alternatives available. It is important that the marketers try to understand of:

3 what is the need of the customer, where there is a greater need of that particular good or service, when the good has to be introduced in the market, and, How is the customer reacting towards that particular good or product? For selling a product to a consumer it is essential that a relationship should be established between both the seller and the consumer. For building such a relation it is highly important for the seller to understand the consumer needs in perfect so as to satisfy them which would benefit both of them. An improper understanding of the needs of the consumer would leave the company in loss since no consumer would go for the purchase of such good or service. In such a state the consumer would go for the product manufactured from some other company in order to satisfy his need. The above description clearly states that only those companies will service in the market which best satisfies the customer needs Meaning of Consumer Buying Behaviour: Consumer buying behaviour concept has been argumentative from the past for so many periods. Many researchers have undertaken the research to identify, analyze, observe and find the outcomes of the study to understand the determinant of the product price effect over the product quality of consumer buying behaviour. The necessity of marketer reviews has been for the consumer buying behaviour towards psychological aspect than the societal aspect. According to some authors the consumer s psychological effect on the product defines the purchasing power of the consumer because relatedly there should be necessity and validity with reliability of the product purchased. Subsequently, the consumer will be quiet aware of the price and varieties available with the retailers. Also, convenience in buying the product will motivate the consumer to prefer the product more often without much choice because this generates pre - decision timing of solid consumer buying behaviour with the link of Wish purchasing Behaviour of the customers Types of consumers: a) Personal Consumer:

4 This type of consumer does the purchase the goods or services to fulfill /satisfy his or her own needs, for the own use, household purpose or may be for family members or friends. b) Organizational Consumer: These consumers can be an institution, a non-profit organization, partnership firms, a company, a government organization, or private organizations who purchase the goods or services to run the organization Concepts of consumer buying behaviour: Figure No.3.2 Concepts of buying behaviour as per the marketing Concepts of Consumer Buying Behaviour Production Concept Product Concept Selling Concept Marketing Concept a) Production concept: Production oriented Strategy The word production itself explains about the manufacturing or producing of goods or rendering services to the customers in bulk or large quantity. According to this concept the large production goods was leading to low cost of production due to which in the market the goods were made available to the consumers at low price, but at the same time the quality of the goods were not up to the standard level. Similarly, one more significant factor is availability of the product at reasonable rates without much waiting period to get the product in the market. There is always flow of goods in the market for the consumers to satisfy their wants and needs. Based on the above criteria the complete concentration of the manufacturers was on large scale production. b) Product concept: Product Oriented Strategy

5 The production concept has been later replaced by the product concept. According to this concept the consumer started converting needs into wants it means availability of the product wasn t the criteria but the same product the consumer was expecting of better quality, best features and functionality. Subsequently, the consumer didn t concentrate on the price and quantity consequently quality has been considered more significant factor. This resulted due to increase in competition, more supply and less demand of the product. In this concept the marketer was approaching the consumer with the best quality manufactured product. c) Selling concept: Sales oriented Strategy According to this concept the marketer s complete aim is to sell the product which is in stock. All the efforts have been by the sellers only to sell the product to the consumers irrespective of the price or quality. This concept derived based on the product and production concept. All the sales promotion tools and techniques were implemented to sell the product and increase the demand. Here, the consumer needs and wants were not still considered at the time of sales process. Ultimately the goal was influencing and persuading the customer to buy the product which the manufacture / seller have manufactured. d) Marketing Concept: Consumer Oriented Strategy According to this concept manufacturers were fully focusing on marketing the product which means it begins right before the product has be manufactured and continuous even after the sales has been taken place. It means the marketers have started identifying, analyzing and summarizing the consumers wants and needs and accordingly the manufacturing of the product was taking place. Consequently, the marketer believed and focused on what consumer wants to fulfill his or her needs. For this purpose the research was undertaken to make the task easier. This concept has given rise to the understanding of consumer buying behaviour Consumer buying process: Consumer need and want is the base for the modern marketing concept this is because it is the key concept for the survival, profit an growth of the company in this competitive world where capability to recognize and satisfy the needs superior and quicker. Motivation is

6 the source for the consumer needs which directs the demand and the consumer buying behaviour in the purchasing process. (Kotler, 2004) stated that the first step in understanding the concept of buying behaviour is the Stimulus/Motivational Response Model which has been displayed in the figure no. 3.3 Figure No. 3.3 Stimulus/Motivational Response Model (Black-Box) Marketing Stimuli Product Price Place Promotion Other Stimuli Economic Technological political Cultural Environmental Buyer qualities Personal Psychological Social Cultural Buyer decision process Problems Recognition Information search Evaluation of alternatives Purchase decision Post purchase Buyer decision Product choice Brand choice Dealer choice Purchase time Purchase place This model explains that the environmental and marketing motivations both pass into the conscious level of the consumer. Here the personalities or features and decision making process lead to the purchase decision. The most important criteria the marketer should analyze as to what transpires the consciousness of the consumer among the external stimuli arrivals and the decision process of buyer. Black Box a model emphasized by many authors in the context of the consumer buying behaviour which includes the features of buyer and the decision making process. In this market motivation/stimuli act as the input to the Black Box and the buying decision process where buying decision process will be the output of the buyer. This model expresses the consumer buying behaviour influential features like culture, social, personal and psychological. One of the most generalized and convinced models of the consumer buying behaviour with respect of all the possible factors are measured. Figure No. 3.4 Model of Buying Behaviour

7 High Involvement Low Involvement Significant Difference among Brands Complex Buying Behaviour Variety Seeking Behaviour Few Differences among Brands Dissonance- Reducing Buying Behaviour Habitual Buying Behaviour Consumers decision making changes based on the type of the product purchase which is accordingly as per the need. The marketer should be aware of the same for the organization profits and growth. The decisions with regard to buying soap, bat, mobile phone or car is different and it changes. Usually, the complicated and highly expensive product need more deliberate involvement of the buyer. As shown in the figure no. 3.6 of buying behaviour types of consumer is depended on the degree of buyer involvement and differences of degree among the various brands. 3.8: Stages in buying decision process: Consumer buying behaviour can be viewed in three separate interconnecting stages in the form of Inputs, Process and the outputs which are illustrated in the figure no.: 3.5 a) Input Stage: In this stage the consumer needs to get the information from the external sources which include enterprise or firms marketing efforts factors to communicate about the goods and services. These factors are Products, Promotion, Price and Place/Channel of distribution. It consists of socio cultural environment factors like family, friends, neighbors, social class, culture, sub culture, other communication sources members. These input source factors influences the consumer for the purchase with respect to what to buy, how to use, etc. Figure No. 3.5 Model of Consumer Buying Decision Process

8 Input External Influence Firms Marketing Efforts a) Product b) Price c) Promotion d) Place or channels of Distribution Socio Cultural Environment a) Family b) Social Class c) Sub culture and Culture d) Informal sources e) Other non commercial sources Process Consumer Decision Making Need Recognition Pre purchase Search Evaluation of alternatives Psychological field: a) Motivation b) Perception c) Learning d) Personality e) Attitudes Experience Output Post Decision Behaviour Purchase a) Trial b) Repeat Purchase Post Purchase Evaluation b) Process Stage: In this stage the consumers take the decision of buying which is based on psychological factors like their motivation, perception, learning, personality and attitude. These factors will help the consumer to process the inputs from the input stage. Need is recognized by the consumer and the same is evaluated with the possible alternatives by the consumer with regard to the experienced gained by him / her c) Output Stage: This stage is post purchase behaviour stage where the consumer starts evaluating the purchase decision and process. Here the consumer can go for trial purchase or repeat sales depend on the promotional tools used by the marketer. If the consumer is satisfied with the

9 trial offer then he /she might opt for repeat sales. Trial purchase is an exploratory segment of the purchase decision. But in all the items or for every purchase trial purchase may not be possible or get opportunity. At this point the consumer may prefer product, price or quality in the process of making decision. A consumer s post purchase evaluation is the significant part because this evaluation is done on the basis of their own expectations. The possible result of this analysis is as follows: i) Actual performance matches the expectations Neutral Feelings ii) Performance may exceed the expectation Positive disconfirmations of the expectation Leads to Satisfaction iii) Performance many be below expectation Negative disconfirmation of the expectation Leads to Dissatisfaction Consequently, post purchase evaluation will make the consumer analyze with the reassurance that their selection is right. This process is referred to Post Purchase Cognitive Dissonance Stages - Consumer Buying Decision Process: a) Problem / Need Recognition Stage: This is the first stage in the consumer buying decision process where generally consumer either recognizes or identifies the problem of need and accordingly move ahead to search or identify the related product necessary for him or her. In the product of marble and granite the consumer will identify the need of using the processed marble or granite which can be either for internal or external purpose in the construction. b) Information Search Stage: This is the second stage where the consumer start searching for the information of the product which is required for the satisfaction of wants or needs. This recognition is based on the need which is identified in the first stage.

10 For the purchase of marble or granite the consumer will start enquiring the marketers or suppliers, searching over the internet, visiting the enterprises, going through catalogues, magazines, newspapers and various other promotional tools. Also the consumer may consider family, friends or social circle advices to get the required product for the satisfaction of needs. c) Evaluation of alternatives Stage: Evaluation stage is basically the comparison or evaluation the various alternatives available which the consumer has come across during the search process. Commonly, the consumer may have come across some products which need to be evaluated before purchase to understand the pros and cons of the each identified product to suit his or her requirement. d) Purchase Stage: In this stage the consumer may opt for the evaluated product that he would intensify to purchase. Here, there may be one or two reasons for not buying the product. First one is the opinion of the peer group for the purchase and the uncertain circumstances like financial risk or loss due to the purchase of the product. e) Post Purchase Stage: This is the last stage after the purchase stage. In this stage the consumer may forgo the disagreement of the product which makes him feel about the other product better. In such a situation the marketer should understand the dissonance of the consumer evaluation and try to educate and make him believe of feel better about the product. This will enhance the satisfaction of the consumer, spreads the good word about the company and also it may increase frequency of repeat purchases.

11 Figure no. 3.6 Flow chart of Stages in Consumer buying Decision Process Start / Customer Problem or Need Recognition Stage Information Search Stage Evaluation of Alternatives Stage No Purchase Decision? Yes Purchase Post Purchase Stage End / Satisfaction / Repeat purchase 3.10 Factors/Attributes affecting Consumer Buying Behaviour: Majorly the decision making process of the consumer is influenced by the factors or features given below:

12 Personal Psychological Social To achieve the target market, the marketer need to understand and be aware of these above factors and should prepare a suitable marketing strategy Personal: Every person in the world is unique based on his characteristics. Personal factors include following: a) Demographic factors: Age Sex Race Nationality b) In the family which person is the most influential member in the decision making process. c) For example in some products the thinking of youth is distinctive than the old generation people. d) Thinking of a male person also differs in comparison to the female person Psychological factors: The factors comprised here are: a) Motives: These are the internal drives that influence and energize the person s actions in the direction of satisfying the needs and wants for the achievement of goal. Actions and movements of the person are stimulated by the motives which are more than one. The marketer should analyze these motives in order to develop a marketing strategy using the tools of marketing mix. Maslow s Need Hierarchy Theory of Motivation defines that needs of the person are hierarchical in nature. Once the basic needs of a person are fulfilled only he/she moves to the next need. The marketer should determine the level of Need to understand the person motivations at that level of purchase for the satisfaction.

13 In the purchase of Marble and Granite being a stone product it can be considered for the shelter which comes under basic need but this need even varies at the each level of hierarchy. Normally for the construction there is a requirement of tiles, kitchen top, steps and raisers, etc. This requirement changes according to the financial status, social status, environmental factors, etc. Therefore, the companies should identify these needs and their motivations towards purchase of the marble or granite. Figure No. 3.7 Maslow s Need Hierarchy Theory of Motivation Self Actualisation Needs Esteem Needs Love And Belonging Needs Safety Physiological Needs b) Perception: It refers to the way we look or see or perceive the things or the product. It influences the buyer behaviour for the generation of the meaningful information based on the inputs received in the process of selection, organizing and interpretation. Depends upon the choice of information the selection, organization and interpretation tends to change. The inputs of the data are received through the sensory organs these are the vision, taste, touch, smell and hearing. i) Selective Exposure: Selection of the inputs needs to be exposed for the awareness/knowledge. It s probably linked to the events which satisfy the current needs and the intensity/strength of the inputs changes the prices. In the marble and granite technical information, colour, shades durability and its benefits will act as the inputs for the consumer.

14 ii) Selective Distortion/Alteration: Making the changes in the currently received information will indicate inconsistency in the beliefs/ideas. In the case of relative/comparative advertisement the advertisers should consider the perception of the consumers towards the advertisement because most of the buyers may not distort/alter the evidences or realities and recognize that the advertisement has been for the competitors. During the advertisement of stone products all the marbles and granite looks are same but the marketer should try to influence by explaining the origin of marble and granite related to its prices and other value added services. iii) Selective Retention/Remembering: It means the consumer memorize or recall only the ideas/inputs that support truths/beliefs otherwise they may tend to forget those which doesn t. To retain the product details of marble or granite in the minds of consumer the marketer should display the products which are cache and simple to explain. For example decorative items of stone products may attract the consumer; tiles are easy to understand because they are used for the floor or wall claddings, etc. Appeal and the similarity of the stone product is the perseverance of the consumers and the same is retained in the memory. c) Ability and Knowledge: Knowledge is the information acquired through learning or experience whereas the ability indicates the capacity of the person to learn. Both the terms are almost interrelated. Here the companies or marketers should analyze the individual person ability to acquire the knowledge. Learning or Knowledge gets changed according to the person s experience and the information gathered in the form of inputs. To influence or modify the buying behaviour of the buyer the companies should make understand and plan the necessary marketing strategy accordingly. For example: Free Samples, Exhibitions, Seminars, Demos, etc.

15 At the time of purchase the buyers should be educated regarding the product by giving the necessary information. Knowledge is the understanding, expertise and familiarity about the product. This will help the consumer to make the comparison with the competitor s product, negotiate the price and get the best quality of the product. Unawareness or not experienced consumer may prefer only price as the value for the quality. d) Attitudes: Feelings of negative and positive of the object or activity could be tangible or intangible also it can be living or non-living which drives the perceptions. Attitude is learnt by an individual either by interacting with any other persons or through experience. Firm s marketing strategy success or failure is highly influence by the consumer s attitude. This is an important factor of the consumer buying behaviour. Lifestyle and the personality are the stimuluses of the consumer attitude or attitudes. Sometimes seen data or information may disagree with the attitude. Falsify or modify the data for the consistency and choose to retain the data which basically influences the attitude. The variance between intension and the attitude for the buying is ability to buy. e) Personality: Individual s inner quality which makes the person unique and different from others is appeared due to the own experience or the heredity. Given below are some qualities or traits of an individual or customers: i) Self Confidence ii) Motivator iii) Authoritativeness iv) Workaholics v) Friendly nature vi) Introvert vii) Extrovert viii) Competitiveness ix) Aggressive x) Ambitious

16 xi) Compulsive xii) Adaptability xiii) Dogmatism Quality of an individual influences the behaviour of a person. Companies or organization make an effort to match the product image with the perceived image of the consumer to achieve the targets by attracting them. The relationship between personality and the buying behaviour are not much strong this is because of the non-reliable measures. f) Life styles: In the present situation there is an increase in the standard of living which has affected the health and life style of an individual especially in respect of urban population. Life styles are the regular unique structure which most of the follow in their life. For example many of ladies started working in offices which has brought the change in the dressing style and other cosmetic items usage. Life styles are the indicators of the trend in the market. In Muscat many people are leaving in the best life style. Accordingly the taste of the customers is also influencing in the purchase of marble and granite. The consumer s choice is quiet stylish in the internal structure of the villas or buildings Social Factors: Man is a social animal who stays in the society and influenced by the behaviour of the society. The influence on the customer buying behaviour is also based on the social factors. Culture, Sub culture, social class, person s family, reference group put a great impact on the consumers motives, needs and wants. Given below are the Social Factors which are as follows: a) Leaders Opinion: Big companies are putting the efforts to attract the customers towards their product with the help of celebrities who act as brand ambassador for that product and convey or pursue the customer for the purchase of the product. They market or promote the product on behalf of the company. This will enable the consumer to retain the customer their favorite celebrity in the mind.

17 b) Role of family members and their influences: Role is the position of the person for doing the things which are expected in the society or group. In this world a people are playing many roles like father, son, employee, brother, husband, etc. These individual roles tend to change many a times which need to be considered by the marketer for the promotion of the product in a way keeping the updates of the same. Family one of the basic and most important groups need to be considered by the marketers: Consumer behaviour is influenced by the family. Major decisions are taken by the family members. Family member preferences and roles are very important for the children growth and their future this enable either in rejection, acceptance or alteration. Family actions are based on the values of culture and social which is the combination of the family relations and the individualistic approach towards decision making process. The life cycle of the family is mostly dependent on the each stage which reflects the decision making process on the each individual and also generates demand based on this stage: Bachelor Stage Newly Married Couples young, without children Full Nest I, Youngest children below Six (6) Full Nest II, Youngest children Above Six (6) Full Nest - III, Married couples with the dependent children Empty Nest I, Old married Couples, Having No children staying with, Head in the working potential. Empty Nest II, Older Married Couples with no children residing with them, Head in the retirement stage. Independent Stayer with working potentials. Independent Stayer in the retirement stage. divorce family life cycle with no children

18 In today s context many families are having minimum two income generating members due to whom there is a shift in the decision maker also there is not much time spending moments with the children by the family who led to influence the family units in buying decision process. Not only elders but children do have their own money for the spending which is considered by the many consumer products marketers for their promotion. Due to which in many advertisements children play role in pursuing the buyer families for the purchase. c) Reference groups Man living in society among the group by considering the value, attitude and behaviour of the society for the decision making. The extent of these factors is influenced by the group members in the buying decision process. Families, friends, unions, organizations, alliances, corporate institutions, etc., mostly create an impact on the individual attitude, values, perceptions, behaviour either positively or negatively. Membership Group (Belongs/Fit into) Attractions of the consumers are based on the group he or she belongs to the reference members group. During the make of the product the marketer concentrates on the approval of the product by the society members and not on the individual base. Aspiration Group - (Wishes to belong/fit into) Disassociate Group (Who do not wish to belong/fit into) The extent of the reference group which the consumer belongs to create an impact on the purchase decision of the individual receptiveness and also it influence the involvement force in the group. d) Social Class: A group of people who possess the same positions/ranks in the society with respect to culture, attitude, values, etc. Muscat being considered a high class society having education, occupation, employment, wealth, income, cast, creed, race, traditions, culture, values, properties/possessions, ethnic group(arab, Baluchi, African, Indian, Sri Lankan, Pakistani, Bangladeshi), etc. These factors have an impact in many ways on the lives of the people

19 residing in that country. There are people belongs to upper upper class, upper middle class, Upper lower class, Middle class, Working class and lower class. The social class factor determines the way people purchase the product in respect of type, quantity, quality and its use. Whereas lower class does not spare much time in shopping or pre-purchase data collection. Store concentration is mainly attracting the high class customers. These customers are engaged sometimes in window shopping or regular shopping. Social class, family and reference groups create an impact on the buying behaviour of the consumer in a large extent which is mostly based on the culture, traditions and values. e) Culture and Sub Culture: Culture can be defined as the value, attitude and idea that have been accepted by the similar group of individuals living the society which has been transferred from the past generation to the next generation people/individuals. It also regulates what should be advertised and sold in the market. It determines the way people live in society with regard to eating habits, wearing clothes, residing, travelling, watching, entertainment, etc. Cultural values of Muscat are fine health, education, business, uniqueness, delightful moments, etc. These factors are affecting the social life and international market on a big role. Culture of Omani is having Omani tea in the morning, eating dates, wearing white clothes, living simple life with high class approach. This indicates the different people in society live with the diverse cultural values. The division of the culture can be seen in Subcultures: i) Geographical Regions ii) Characteristics/Features of Human like age, ethnic group (Arabs, Baluchi s, Indians, Pakistanis, Bangladeshi, Africans), etc. Culture mainly has effects on the people behaviour with regard to what is bought, when they bought, how much has been bought, etc.

20 Keeping the above factors base a Generalized Consumer Buying Decision Process has been constructed by the authors. This model has been presented in the figure no. 3.4 Figure No. 3.8 Generalized Model of Consumer Buying Decision Process Source: (David and Bitta, 2002) In the present context with regard to consumerism it has been significantly stated that the consumers are the future who will be more demanding, critical and skeptical. Marketers attempt in understanding the aspect of consumer buying behaviour will lead the business into profits otherwise there is less chance of success in the present market Types of Consumer Buying Behaviour: a) Complex Buying behaviour: This type of buying behaviour includes high involvement buying products like marble or granite for wall cladding or kitchen top. To purchase such kind of products buyer may not be aware of what attributes to be considered due to which he/she may does the research. In such

21 a situation marketers can educate or make aware the consumer regarding the product attributes, should motivate sales personnel to influence the consumer in buying the product as per the brand choice. b) Variety Seeking behaviour: The type itself indicates the products where the consumers prefer variety while buying the product like biscuits. Consumers often switch brands of such category because it requires low involvement during the purchase decision making. Marketer should develop habitual buying by keeping the product always in stock or marinating of stock near to payment counters or making of frequent reminders for the purchase. For such products marketer will influence the buyer by using promotional tools like discount, coupons, free samples, variety offers, etc. c) Dissonance Reducing Buying Behaviour: This type of buying behaviour is applicable to the high involvement goods like purchase of marble or granite tiles or slabs which are quiet costly and self-expressive. In such a case the buyer may compare the similar products with the competitor one as per the price range of the product. After purchasing the product sometimes the consumer may feel dissonance or disagreement for the brand after hearing the advantages of the competitor brand or disadvantages of the product purchased. In this situation the marketer should supply the belief and evaluation to make the consumer feel good about the product or brand chosen by him or her. d) Habitual Buying Behaviour: This type of buying behaviour is applicable to the low involvement products like salt or floor cleaner. In such type of brands the consumer preference for the buying of the goods is due to habits of choice and not due to strong brand loyalty towards that brand. They act as unreceptive listeners for the information provided by the enterprises through advertisements. Continuous advertisement increases the brand familiarity among the brands of frequent use rather the brand - Conviction. To motivate such customers marketers should try to use sales promotion tools like Buy one Get One Free to attract for the purchase.

22 (Solomon, 2002), Buyer Decision Process can be referred to as the decision making process carried on in respect of the potential market transaction before, during and after the buying of the goods or services Organizational buying process: Consumer buying behaviour is not only concerned with the ultimate consumer but it also takes into consideration the organizational customer who makes the purchase from the manufacturers, wholesalers or agents for making the product available to the final consumer. It s significant to understand the concept of business buying stages because the firm has to market the product with least difficulty level and in an appropriate manner. Firms buying stages are almost similar to that of the consumer buying process stages. These stages are problem / Need recognition stage, development of the product according to the need to rectify the problem, Search of the convincible products, Selecting of the Suppliers / Vendors, Ordering of the products, and at the end evaluation of the product and the vendor performance. Purchase of B2B products is not much easier it s a risky venture. The reason for it is the involvement of huge investment. Any wrong decision in respect of the product choice or service, quantity, quality, agreements or contracts conditions, payment terms, etc. may makes venture risky at sometimes. The most significant distinction in B2B and B2C is the buyer or the purchaser of the product or service which determines the nature and stages in buying behaviour process because here both are having different needs Stages in Organizational buying Process: Following are the stages list included in B2B buying process: Step 1: Recognition of the problem / Need Construction Marble and Granite Flooring, wall cladding or kitchen top installation, introduction of new product, machine installation or breakdown, etc.

23 Step 2: Development of the product according to the requirements for solving the problem Assessment of the problem or need and determining of the rectification essential components in order to rectify or solve it. Step -3: Exploration and Evaluation of the potential products or the suppliers. Searching the business directory and looking into firm s files, contacting the suppliers for the information, request for the proposal from the suppliers, broachers and other trade publications. Conducting of benefit analysis: Evaluating the benefits of the buying potentials, assessing the quality, material, description, addition or deletion of the product for saving the cost, etc. Conducting of Supplier Analysis: Systematic and prescribed evaluation of the present and potential supplies, quality, service delivery, overall performance and reliability, etc. Step -4: Selection of the product and Vendor and Product Ordering: Based on the Step 3 further findings are done to get the results. For one product the company can go for various vendors because the multiple sources will help to reduce the degree of risk like scarcity, strikes and lockouts, insolvent, etc. The firm can even choose one vendor which is referred to as Sole sourcing. Commonly this type is not much encouraged due to monopolistic behaviour. This is also not very much possible due to development of the communication and constancy among the purchaser and the vendor. Step -5: Evaluation of the product and Performance of the Vendor: Evaluation can be done through comparison of the product features with the alternatives available in the market for the product.

24 The achieved results or findings can be considered for buying decisions in the future. It is mostly considered for the new task or product whereas other stages are randomly considered either to buy modified one or direct re purchase Comparison between Consumer Buying Decision Process and Organizational Buying Decision Process: It s important to understand the variances between consumer and organizational buying decision process because the kind of products, quantity, perspective of buyers etc. differs in the process of buying and decision making. Table No. 3.1 Comparison between Consumer Buying Decision Process and Organizational Buying Decision Process Sr. Consumer Buying Decision Organizational Buying Basis No. Process Decision Process 1. Planning: Consumer decision in the course of purchase prefers impulse/instinct buying. Customers are buying for selfconsumption so their quantity is much lower than that of organizational buying. They even do less spending on the products shopping and sometimes take less time to think for the purchase decision. In the organization most of the decision in respect of the purchase is an advance planning. Purchase of the goods or rendering of services are in bulky. Huge amount investment is done for the buying of the products hence high is the risk in such a case. Product is bought after the viewing of all the terms and conditions, payment settlement criteria, technical

25 2. Decision Making: A consumer may be interested in the marble tiles or kitchen top which will be purchased in smaller quantity according to the family member s choice. In this situation to fulfill the exact need and satisfy the consumer, the plan should be in advance with the understanding of the buying decision factors of the consumer. Here, the final choice may of the family head but it is influenced by the various members of the family which is based on the culture, society, taste, preferences, standard of living, financial status, etc. specifications, etc. In the organization marble and granite tiles will be purchased after looking into technical specifications, availability of the material in a required quantity, delivery service, payment terms, etc. because the purchase manager is buying or taking decision on the behalf of the company. So, for the organization there should be structured plan with the offer of impulse buying. The decision of the purchase manager or representative goes through the official channel with the proper approvals of the company. 3. Support: In the case of consumer support contract are important but not to the extent level as the organization. The consumer requires only up to certain level which is important for the final use of the product. In the organizational purchase the firms may need support agreements/contracts for the particular type of products. For example if marble and granite slabs are purchased by the company it requires proper warranty or guarantee, maintenance, delivery service, storage, etc. of the product

26 which could be for some years. This also written in a specific order prescribes as per the company laws Consumer buying behaviour for marble and granite: Consumer buying behaviour for marble and granite is based on the certain factors like the price, quality, and features of the product and frequency of visit to the enterprise, promotion of the product through various sources like, newspapers, magazines, internet, word of mouth, publicity, etc. which is related to the communication factor. In certain aspects like selecting the floor marble of residential buildings, the decision is mainly influenced by the family member interest towards the product. Sometimes society view and its related environment factors are considered. Commercial buildings related products decision is majorly taken by the managers or the concern departments. Also for the purchase of Omani marble government has made the rule of purchasing local product up to certain percentage, change of marble once in every ten years, affordability, available in large quantity are all the factors which are influencing the consumers buying behaviour in the Muscat region. At the time of purchase of marble and granite consumers are looking into design, pattern, colour, consistency, durability, climatic conditions, water absorption level, etc. which are the characteristics of the products influencing the buying behaviour in perspective of satisfying the wants. For granite apart from the above factors the consumers are even interested in country of origin because it is being imported from other countries mainly from china, India and other Asian countries. Brand name and trend are not much considered, but price, quality and convenient location are the significant factors which are influencing the buying behaviour of the consumers. Customer loyalty is basically depends on the fulfillment of the wants which are making the customer to come again and make the potential customer aware about the product. This has been observed among the Muscat companies.

27 From the gender point of view largely decision are taken by the male members due to the culture and tradition of Muscat region and most of the females are housewives. Presently, artificial marble is being used by many companies due to its customized molding, patterns and colour Conclusion: Considering the above factors of consumer buying behaviour the companies or marketers need to develop the concept of marketing strategy which is mainly consumer oriented because this will enable the understanding of the buying behaviour and can bring greater satisfaction to the consumers and the marketers. Hence, consumer buying factors have been appropriately identified and understood for the analyzation in the research study.