30082735 Purchase Proccess Post Purchase Behaviour

8/3/2019 30082735 Purchase Proccess Post Purchase Behaviour

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Purchase Process&Post Purchase Behavior


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Consumer Purchasing Process.

purchase - the acquisition of something for payment;"they closed the purchase with a handshake."

It consists five steps

Recognition of an unsatisfied needs.

Information Search

Evaluation of alternatives Purchase decision.

Post purchase behavior.


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Key Terms

Buying Behavior

The decision processes and acts of people involvedin buying and using products

Consumer Buying Behavior

Buying behavior of people who

purchase products for personaluse and not for business purposes


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Consumer Decision-Making

Process

PostpurchaseBehavior

Purchase

Evaluationof Alternatives

Information Search

Need Recognition

Cultural, Social,Individual andPsychological

Factorsaffect

all steps


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1. Need Recognition

Preferred State

Marketing helps

consumers recognize(or create) an imbalance

between present statusand preferred state

When a current product isnt

performing properly

When the consumer is runningout of an product

When another product seems

superior to the one currently used.


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2. The information search stage

An internal search involves thescanning of one's memory to recall previous

experiences or knowledge concerningsolutions to the problem-- often sufficient forfrequently purchased products.

An external search may be necessarywhen past experience or knowledge is

insufficient, the risk of making a wrongpurchase decision is high, and/or the cost ofgathering information is low.

Personal sources(friends and family)

Public sources (ratingservices like Consumer

Reports)

Marketer-dominated

sources (advertisingor sales people)

The evoked set: a group ofbrands from which the buyer can

choose


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Determinants of External Search


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3. Evaluation of Alternatives

Product Choice

Brand Choice Dealer Choice

Purchase Timing

Purchase Amount.


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4. Purchase

Choosing the product or brand to be boughtbased on the outcome of the evaluationstage

The choice of seller may affect the final

product selection.Factors such as terms of sale, price,

delivery, and warranties may affect thesale.


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Can minimize through:Effective Communication

Follow-upGuaranteesWarranties

Under promise &Over deliver

Cognitive Dissonance

?Did I make a good decision?Did I buy the right product?

Did I get a good value?

5. Post Purchase Behaviour


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Post - Purchase Behaviour

Satisfaction

Actions Use and Disposal.


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Corporate Purchasing Process.

All production firms have the need ofsupplies of materials and services from

external sources. This makes purchasing,one of the most significant functions ofany Production Manager.

Purchasing function may include the purchase ofRaw Materials.

In simple words we can say thatPurchasing is the act of exchange of goodsand services for money or moneys worth.


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Definition

According to LEVIS:-

Purchasing is the acquisition bymanufacture

of any necessary primary materialsuppliers, equipments by any method

whatsoever.


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Objectives

Purchasing items with right price.

Purchasing items with right quality. Purchasing items at right time.

Purchasing items from right source.

Purchasing items of right quantity.


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Steps Of Purchasing Procedure

The purchasing generally comprises the followingsteps:

1) Recognition of the need2) Selection of the supplier3) Placing the purchase order4) Follow up of the order5) Receiving and inspection of the materials6) Payment of the invoice7) Maintenance of the records & Maintenance of the

vendor relations.


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PURCHASE SYSTEMS

Pre-purchase System.

Ordering System Post Purchasing System.


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Pre-purchase System:

Includes making requisitions, requirementprogrammes,selection of suppliers, obtainquotations and evaluating them.

Ordering System:Once the decision on supplier & the rates arefinalized the order is placed with the selected

supplier. The next task is to place the Order.


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Order form Contains.

Purchase Order reference number

Description Of materials & detailed spcs.

Quality Required and Delivery Schedule.

Price and Discounts.

Shipping Instructions.

Location Where Matls. Are to be shipped. Signature Of materials Manager.

Detailed Terms Of Conditions.


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Post Purchase System

Includes follow-up procedure, receipt and

checking invoices. Whole sys operates in probabilistic condition.

Once items are received, they are checkedfor quality, quantity, specifications etc.

Invoices are also checked for correct tallywith PO details.


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Special Purchase Systems

Forward Buying

Tender Buying Blanket Order

Zero Stock

Rate Contract


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Forward buying

the purchasing period say 1 yr. will be taken in advance andCommitment is made for qty, rate, delivery schedulebyconsidering availability of funds and the requirements.

Used for public buying to avoid favourism to a specific vendor.

Tender Buying: Preparing Bidders list

Advertising tenders

Receiving bids

Evaluating Bids

Placing of orders with bidders with lowest cost.


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Blanket Order

Organization will enter in to agreement with its

supplies to receive items for a required qty at aparticular rate over a period of time.

Zero Stock :

JIT and Zero inventory concept Suppliers near to plant are considered.

Organization even provide technical know-how,QC support etc. to its suppliers.


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Rate Contract

Very much used in public sector and Govt.

departments The suppliers are on rate contract with DGS&D

for a specific period.

Organization can place orders to straight awaywith such firms without going through the lengthyprocedure of purchasing.


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Aspects Of Purchase Management

Price forecasting

Purchasing of capital equipments International purchasing

Public buying


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Price Forecasting

Its prediction of future prices

It helps in buying materials in right time and of right qty.

Especially while impact of seasonal variation is present.Methods.

Charting method

Moving average method

Regression methods Exponential smoothing method


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Purchasing Of Capital Equipments

These are having very less frequency.

As having huge capital outlay under fixed Over heads, acareful ansys should be done before buying these items.

Various Approaches:

Pay back period method

Rate of Return method

Present worth method

Annual equivalent method

Future worth method


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Options

Purchase of new equipment

Purchased of used equipments Leasing


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Public Buying

Here the centralized buying concept waspromoted to satisfy the demand of theorganizations like defense, Railways, Post &telegraphs, State govts, public sector & quasipublic bodies through DGS&D which is the

centralized purchasing organization of India.


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Can minimize through:Effective Communication

Follow-upGuaranteesWarranties

Under promise &Over deliver

Cognitive Dissonance

?Did I make a good decision?Did I buy the right product?

Did I get a good value?

5. Post Purchase Behaviour


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Post Purchase Behavior

This refers to the behavior of a consumer after purchasing a product.They may be satisfied or dissatisfied with it. Thissatisfaction/dissatisfaction will result in certain consequences.

They first exhibits a behavior and latter tries to justify it by forming anattitude in self justification.

If satisfied..He would regularly buy the product and develop a loyalty. Also there

exist positive word of mouth.

If Dissatisfied..He would stop buying the products, there is no loyalty building. Alsothere exist negative word of mouth. He feels mental tension also.


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Continue..

If Dissatisfied..

He would stop buying the products, there isno loyalty building. Also there exist negativeword of mouth. He feels mental tension also.

This is known as Cognitive dissonance or Post

purchase dissonance.

It refers to the anxiety or doubts theconsumer have after making purchase.


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30082735 Purchase Proccess Post Purchase Behaviour

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