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Discuss all stages of the buyer decision process for this organization current products using the example of a target consumer.
Explain the stages of the new product buyer decision process and how the company would approach each group of consumers.
Discuss how online shopping has changed in the business-to-business, that is businesses that sell to other businesses, market using an example
The buyer decision process outlines the steps a consumer goes through before, during, and after making a purchase. The process differs slightly when a consumer considers a new, innovative product versus an established, current product.
We will use the example of Tesla Motors and a target consumer interested in purchasing a current product, the Tesla Model 3.
| Stage | Description | Tesla Model 3 Consumer Example |
|---|---|---|
| 1. Need Recognition | The buyer recognizes a problem or need triggered by internal stimuli (e.g., thirst) or external stimuli (e.g., advertising). | The consumer's old gas car is getting expensive to maintain, or they are reading news about climate change and internalize a need for a more sustainable, technologically advanced vehicle. |
| 2. Information Search | The consumer searches for information regarding solutions. Sources can be personal (friends), commercial (ads), public (media), or experiential (test driving). | The consumer researches electric vehicle (EV) options: they read reviews on Edmunds, compare ranges on Tesla’s website, watch YouTube videos, and ask EV-owning friends about charging infrastructure. |
| 3. Evaluation of Alternatives | The consumer weighs the pros and cons of the brands and products found during the search based on key attributes and perceived value. | The consumer compares the Tesla Model 3 against alternatives like the Hyundai Ioniq 6 and the BMW i4, weighing attributes like range, charging speed, self-driving capability, price, and brand status. |
| 4. Purchase Decision | The consumer forms a purchase intention, usually choosing the most preferred brand, but external factors (e.g., price changes, urgency) may intervene. | The consumer decides the Model 3 offers the best combination of performance, technology, and access to the Supercharger network, leading them to place the deposit and finalize the order online. |
| 5. Post-Purchase Behavior | The consumer takes action based on satisfaction or dissatisfaction. Satisfaction leads to repeat purchases and positive word-of-mouth (WoM). | The consumer is highly satisfied with the performance and low maintenance costs. They join Tesla online forums, recommend the car to colleagues, and are likely to purchase future Tesla software upgrades or new models. |
When a product is truly new or innovative (like the original iPhone or a revolutionary new drug), consumers move through five stages of adoption (awareness, interest, evaluation, trial, adoption). Companies approach different consumer groups based on where they fall on the diffusion of innovations curve.
| Adoption Stage | Description | Company Approach to Consumer Groups |
|---|---|---|
| 1. Awareness | The consumer becomes aware of the new product but lacks information about it. | Innovators: The company focuses on media releases, niche publications, and tech blogs to inform the earliest adopters who seek cutting-edge information. |
| 2. Interest | The consumer seeks information to learn more about the new product's features and benefits. | Early Adopters: The company targets them with detailed content, webinars, and demonstrations showing practical applications and performance benefits. |
| 3. Evaluation | The consumer considers whether trying the new product makes sense and is worth the risk. | Early Majority: The company uses testimonials, case studies, and credible reviews from early adopters to show reliability and reduce perceived risk. |
| 4. Trial | The consumer tries the new product on a small scale to improve their estimate of its value. | Late Majority: The company offers limited-time trials, money-back guarantees, or low-cost entry points to overcome skepticism and lower the cost of failure. |
| 5. Adoption | The consumer decides to make full and regular use of the new product. | Laggards: The company focuses on low prices, simple messaging, and peer pressure (showing that 'everyone else is using it') to overcome their resistance to change. |
Online shopping, particularly the rise of sophisticated e-commerce platforms, has fundamentally changed the B2B market by making the process more efficient, transparent, and consumer-like (B2C-like).
Key Changes:
Increased Price Transparency and Competition: Buyers no longer rely solely on sales reps for quotes. Dedicated B2B platforms allow purchasing managers to instantly compare prices, features, and lead times across multiple global suppliers, leading to greater competition and more informed purchasing decisions.
Self-Service and Reduced Sales Cycle: The traditional B2B sales cycle involved numerous meetings with sales reps. Now, buyers perform much of the information search, evaluation, and even preliminary purchasing through supplier websites, portals, and specialized B2B marketplaces. This shortens the sales cycle and reduces the reliance on face-to-face interaction until the final negotiation stage.
Complex Catalog Management and Custom Pricing: Modern B2B e-commerce sites can handle complex features like custom catalogs, contract-specific pricing, volume discounts, and integration with the buyer's own Enterprise Resource Planning (ERP) system, something simple websites could not manage before.3
Example: A Hospital Purchasing Medical Supplies
Before Online Shopping: A hospital's purchasing manager would contact several surgical supply sales representatives, wait for individual quotes, compare bulky paper catalogs, and submit a manual Purchase Order (PO) via fax or email. This process was slow and opaque.
With Online Shopping (e.g., using a dedicated B2B medical marketplace):
The purchasing manager logs into a secure online portal with the hospital's negotiated contract pricing pre-loaded.