The buying decision is at the end of the buyer decision process and refers to the decision to buy goods, services, inventions, companies or other things. The goal of a buying decision is usually to maximize benefits or sales. To understand how to plan marketing and business strategies, it is important to understand the types of buying decisions and the buyer decision process.
Buying decisions related to buying behavior are rational or emotional decisions made individually, collectively, formally, or informally. Buying decision can refer to the final moment in the decision-making process as well as the entire decision-making process from perception to purchase. Buying decision is thus understood synonymously with buyer decision process.
A buying decision can range from shopping in the supermarket to online stores to buying companies or services. For this reason, we do not talk about the buying decision, but distinguish between several types of buying decisions. What all buying decision types have in common: There is an overriding goal for the purchase, which is usually utility or profit maximization. Buying decisions are also characterized by the fact that a written, verbal or tacit purchase agreement is concluded between the parties involved and tangible or intangible goods are acquired in return for payment of the purchase price.
To develop one’s own sales strategies and to understand the buying behavior of customers, a distinction must be made between the following buying decision types:
An extensive, i.e. extended, buying decision is defined as a comprehensive decision-making process. The rational and psychological processes and learning processes involved are deep, complex and anticipatory. Buyers take their time in the buyer decision process, making comparisons, analyses and evaluations to rule out risks and weigh up advantages and disadvantages. In most cases, targeted tangible or intangible goods are characterized by high prices and costs or involve potentially high risks. Examples are the purchase of companies, special equipment, real estate or cost-intensive technologies and special machines.
The limited buying decision is also called a simplified buying decision because the decision-making process is not characterized by complex preliminary considerations or lengthy psychological processes. Buyers are usually familiar with the product or service category, have made a pre-selection or are guided by limited common criteria such as price level, material or awareness of brands and companies (e.g. when buying food, beverages, sanitary products or office supplies). The buyer decision process thus does not necessarily go through every step, is simplified and does not involve high financial risks or burdens.
In habitual buying decisions, decision-making is based on habit and experience. Buyers usually target or automate products, manufacturers or service providers with which they are familiar. Prior actions such as comparisons or research basically do not occur because buying decisions are shaped by known product quality, manufacturer contacts or an optimal price-performance ratio. An example of this is the buying behavior of regular customers or subscribers who remain loyal to a store, manufacturer, product, service provider or brand.
A buying decision is described as impulsive if the purchase is triggered spontaneously, emotionally or by strong stimuli and does not require a lengthy psychological process. Financial or material risks are low. The purchase may be triggered by a sudden feeling of pleasure such as ravenous hunger, emotional triggers, lack of time, urgent need, or external influences such as special offers.
Sellers, businesses or service providers should not leave buying decisions to chance. Those who analyze and evaluate both the types of buying decisions and the phases in the buyer decision process can influence the buying behavior of customers and control it through targeted marketing. Buying decision depend on cultural-social, individual, financial and psychological criteria and factors, depending on the category, situation and person. Nevertheless, they can be divided into essential phases in B2C and B2B situations as well as in e-commerce and stationary retail.
Which phases are involved depends on the phase model used to illustrate the customer journey. The five-phase model according to John Dewey and the Consumer Decision Journey (CDJ) according to McKinsey are among the most established marketing models.
If you want to align marketing and the evaluation of customer behavior with John Dewey’s model, you should consider the following purchase decision phases:
The CDJ model is based on a study by the consulting firm McKinsey and maps the buyer decision process in the following phases:
Another model that defines phases and goals of sales-boosting marketing activities is the AIDA model. It includes the phases and advertising subgoals of attention, interest, desire, and action.
Successfully influencing buying decisions in e-commerce depends heavily on companies knowing where their customer groups are moving, informing and exchanging information online. Anticipatory multi-channel and customer journey strategies can be used to analyze customer buying behavior and improve visibility and reach, e.g. through customer journey mapping, customer profiles or personas and buyer personas as well as through visibility, accessibility and transparent communication. Here, it is important to know what expectations and requirements customers have of e-commerce services and online retailers.
The fact that more and more customers are making buying decisions online, makes a sustainable digital sales strategy including conversion rate optimization and CRM in e-commerce indispensable and represents a clear competitive advantage in view of the digital information overload.
As special features of the online buyer decision process, the following customer expectations and criteria for a positive buying decision should be noted in particular:
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The process of buying decision is influenced by various factors. If you familiarize yourself with criteria for a buying decision, you can use them in marketing or circumvent them, depending on the situation, to ensure an optimal customer journey and increase turnover rates.
The following influencing factors should be considered:
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