Buying Decision Process, Market Segmentation, and Consumer Behavior

This report delves into the intricacies of the buying decision process, outlining the stages a consumer undergoes from recognizing a need to making a purchase and evaluating the outcome. The report uses a personal example of buying a car to illustrate these steps, contrasting the traditional funnel model with the modern customer journey. Furthermore, the report explores market segmentation, a crucial aspect of marketing strategy, focusing on consumer markets. It breaks down various segmentation methods, including demographic, geographic, behavioral, and psychographic segmentation, providing examples of how each is applied. The report emphasizes the importance of understanding these segmentation techniques to effectively target specific consumer groups and gain a competitive advantage in the market. Overall, the analysis offers a comprehensive overview of consumer behavior and marketing strategies.

Buying decision process
There are six steps/ stages of the buying decision process. I have recently bought a car for which
I went through all the stages before making the actual purchase.
Problem/need recognition
The first step is to recognize your need or want for a product. For example, in my case, I realized
the need for a car.
Information search
Next step is to search for all information regarding the product from the market. For example, in
my case, I went through various online and print media advertisements, to know the various
models available for cars and their relative prices. Also, I gathered information regarding the
dealers dealing with selling of cars, and the models of the cars which I can afford and also I
searched for financing options like from where can I get a car loan.
Evaluation of alternatives
On the basis of the information gathered, the customer needs to evaluate and compare among
various alternatives available. For example, in my case, I evaluated various alternatives as to
which model of the car is satisfying all my needs.
Purchase decision

This is the stage where the customer takes the decision of buying the product out of all the
available alternatives. For example, in my case after going through all the alternatives, I selected
a particular model of car to be purchased.
Purchase
The actual purchase is made, once the final purchase decision is being made by the
customer. For example, in my case, the car I decided to buy out of all other options
available, I bought that car now.
Post-purchase behavior
After the purchase, the customers compare the products with the expectations they had
previously in mind with the product, and on the basis of that, either they will be satisfied or
dissatisfied. For example, in my case, I am quite satisfied with the purchase as I analyzed that my
car meets all the expectations that I had in mind while buying it.
Model adopted as compared to "The new customers' journey."
Unlike the new customers' journey, I have adopted the traditional funnel model, where I had
made a list of various brands, their prices offered for the product and then shortlisting them on
the basis of my needs.

Market segmentation
It means to subdivide a market on the basis of some common, similar, or kind traits. For
example, in our case, we are taking cosmetics as a product. The purpose of this segmentation by
the marketer is to target a particular segment or section for maximum sale and to gain
competitive advantage. All the marketing strategies are then based upon these segments.
Our focus is on consumer markets rather than business markets
Demographic segmentation
It means dividing the target market on the basis of gender, income, age, education, etc. It plays a
major role while formulating a segmentation strategy. Some products are meant for young people
whereas some for old age, some for females and some for males. Thus, before channelizing our
energy, it is important to segment the market accordingly. For example, in our case, for
cosmetics, we have to focus more on the female section of the society.
Geographic segmentation
Here the market is segmented on the basis of geographic area. For example, the marketer may
choose to have a market for his product in particular country, and not in others. For example, in
our case, the marketer can choose a particular country where his cosmetics will be sold and
countries where its selling is restricted.
Behavioral segmentation
This means to segment the market on the basis of buying behavior of customers. For example, in
our case, the marketer may notice a behavioral pattern of buying cosmetics. Let’s say earlier
there was demand for glossy lipsticks and now matte lipsticks are in demand.

Psychographic segmentation
It means to segment the market on the basis of different personality traits, attitudes, values,
interests, and lifestyles of customers. For example, in our case, some people might not use
cosmetics for which animal testing is done.