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Competitive intelligence Go-to-Market Positioning & messaging Sales Enablement
Research OKRs

1 February 2024 10 min read


THE FIVE STEPS OF THE CONSUMER BUYING PROCESS: EXPLAINED

Customer & Market Research

This post was a collaboration between

Lawrence Chapman, Stevie Langford


 * LAWRENCE CHAPMAN
   
   Lawrence is our Copywriter here at PMA who loves crafting content to keep
   readers informed, entertained, and enthralled. He's always open to feedback
   and would be thrilled to hear from you!
   
   More posts by Lawrence Chapman.


 * STEVIE LANGFORD
   
   As a Senior Copywriter here at Product Marketing Alliance, Stevie loves to
   create content that's captivating, compelling, and informative. She's always
   open to new ideas, so feel free to get in touch!
   
   More posts by Stevie Langford.



 1.  The importance of consumer buying behavior
 2.  What is the consumer buying process?
 3.  The five key stages of the consumer buying process
 4.  Stage 1: Problem recognition
     1. Stage 2: Research, research, research
     2. Stage 3: Considering alternatives
     3. Stage 4: Selection stage
     4. Stage 5: Post-purchase evaluation
 5.  Factors influencing consumer behavior
 6.  Psychological aspects of consumer decision-making
 7.  The role of branding and positioning
 8.  Post-purchase experience and customer satisfaction
 9.  Final thoughts: The role of product marketing in consumer decision-making
 10. Want to learn more?

Do you ever walk into a store, aimlessly fill the cart, and spend your
hard-earned cash without a second thought?

Sure, we may be susceptible to the odd impulse buy, but, overall, many of us
focus on what it is we’re buying, why we need the product, and how the product
will add value to our lives. 

Before arriving at the point of going through the checkout, a buyer embarks on a
decision-making process that you as a product marketer must also understand.

This process works in tandem with consumer behavior, but what is consumer
behavior, and more importantly, why is it applicable to businesses, as well as
the consumer?

Let’s find out.




THE IMPORTANCE OF CONSUMER BUYING BEHAVIOR



Consumer behavior provides an understanding of the people buying your product,
whether they’re individuals, groups of consumers, or organizations.

These behavioral trends provide invaluable insights into the process a buyer(s)
goes through when they’ve decided to invest in your product or service, as well
as how they use and consume your offering to fulfill their needs and
requirements.

The consumer buying process helps companies with the likes of:

 * Consumer differentiation
 * Customer retention
 * Design and implementation of effective marketing
 * Predicting market trends
 * Competitor intel
 * Innovate new products - successfully
 * Enhance customer service
 * Remain relevant




WHAT IS THE CONSUMER BUYING PROCESS?

Otherwise referred to as the consumer decision-making process or buyer funnel,
to name a few, the consumer buying process refers to the stages a customer
experiences throughout their customer journey – from recognizing a need to the
final post-purchase stage (and beyond!). 

It’s a fundamental aspect of product marketing, serving as the cornerstone for
businesses aiming to understand and influence customer behavior. 

There are five steps in the consumer buying process, and the time taken to pass
through each stage is unique for each customer.

For example, a consumer buying a new car may decide to test drive a model
several times, compare and contrast different brands, read reviews, and conduct
thorough research before making a purchase, or deciding to look at an
alternative.

On the other hand, another person may devote their loyalties to a particular
manufacturer, and be willing to invest after taking it for a spin. The point
being, the fluidity of the consumer buying process hinges on the personal
preferences of the consumer – sometimes it’s straightforward, and sometimes it’s
convoluted.

Nevertheless, by comprehending the intricacies of this process you can tailor
your research, strategies, and campaigns to engage with consumers effectively
and enhance overall customer satisfaction and relationships. 

So, what are the stages, what role do they play, and what influence does a
product marketer have at each respective point?




THE FIVE KEY STAGES OF THE CONSUMER BUYING PROCESS

The consumer buying process unfolds through several distinct stages, each
playing a crucial role in shaping purchasing decisions. It typically begins with
problem recognition, followed by an information search, evaluation of
alternatives, and the actual purchase, and concludes with post-purchase
evaluation. 

Recognizing and addressing each stage enables you to strategically intervene,
provide relevant information, build trust, and address concerns right from the
get-go.




STAGE 1: PROBLEM RECOGNITION



Problem recognition marks the initiation of the consumer buying process, where
individuals identify a need or challenge requiring resolution. It’s often
considered the most important point in the process. After all, how can a
consumer be expected to invest in a solution to a problem they’re yet to
identify?

When our vision’s impaired, we buy new glasses, if we can’t sleep in our stuffy
bedroom in the summertime, then we buy a fan, and when you’re sick to death of
plugging the vacuum cleaner, you invest in a cordless alternative.

The common theme: Consumers buy products to solve a problem.

This phase is integral for product marketers, demanding a keen understanding of
consumer pain points. Your role is to delve into the consumer's mindset,
positioning your product as the ideal solution to their identified problem. 

Whether your company’s making flat-screen TVs, state-of-the-art coffee machines,
or mobile phones with “the most impressive, sophisticated megapixel camera," as
a PMM pro, you need to use your skills and step into the mind of your
prospective customer and position your product as the go-to option on the market
that’ll solve their worries just like that. 

To drive potential customers through the buyer’s journey, you need to research
their purchasing habits and buyer behaviors and use your findings to craft
messaging and communication that’ll resonate with respective personas,
establishing your product as the ultimate answer to their concerns. 



💡
There are a ton of marketing automation tools out there to give consumers the
support they need at every stage of their customer journey, with plenty of
PMA-approved resources available in the PMA tech stack. 



You may not think marketing automation is your cup of tea, but with research
revealing humans have a shorter attention span than a goldfish (no, we’re not
kidding), we strongly suggest using these tools to enhance your customer
onboarding experience and support your customers through the recognition phase
and beyond.




STAGE 2: RESEARCH, RESEARCH, RESEARCH



The research process is where consumers actively seek information about products
or services recognized during problem recognition. 

They’ll typically search both online and offline, as well as internally and
externally, intending to collect information on the products or services
identified at the preceding problem recognition point. This might involve
anything from exploring a multitude of online reviews to seeking advice via word
of mouth (WOM).

Unsurprisingly, much of the consumer research is completed online, so businesses
need to ensure they invest time, effort, and resources in their SEO (search
engine optimization) to enhance their online exposure and brand presence.

But consumers don’t only turn to the powers of the World Wide Web during the
search process, with word of mouth regarded by many as the most powerful form of
advertising. Previous experiences or testimonials from family and friends are
often cited as a key factor behind a person being persuaded or dissuaded from
choosing one brand, instead of another.



💡
Ensuring your product is visible and positively represented online is vital.
Businesses need to invest time, effort, and resources in SEO to enhance their
online exposure and brand presence. You should also encourage testimonials,
reviews, and case studies, and leverage them as powerful endorsements that’ll
contribute to the consumer's decision-making process.




STAGE 3: CONSIDERING ALTERNATIVES

After visiting their chosen sources, your customers will now be at a stage where
they’ll have earmarked a few options, before deciding where to invest.





Let’s use the classic running shoe comparison as an example. After visiting
their chosen sources, your customers will now be at a stage where they’ll have
earmarked a few options – and are evaluating which product aligns best with
their needs – before deciding where to invest.

They’ll have taken into account factors such as cushioning, comfort, and the
protection the shoe gives the foot. 

And let’s not forget the price!

When a consumer is making their buying decision, they’ll always be looking for
the best product they can get, at the best price. Evaluating alternatives allows
the consumer to conclude which option would suit their needs and address their
pain points before they make a final selection.



💡
For savvy product marketers, this stage emphasizes the importance of product
differentiation. Crafting messages that highlight your product's unique selling
points becomes crucial in influencing consumer decisions. 



This is the stage where effective product marketing can tip the scales in your
favor by demonstrating why your product stands out among the alternatives.




STAGE 4: SELECTION STAGE



This is it – crunch time.

Having identified their problem, searched for available products, and compared
and contrasted the options on the table, it’s time for the consumer to decide
which product they’re going to buy.

Product marketers play a pivotal role in this stage. You need to ensure that
your product is not only considered but chosen. Factors like negative reviews,
reluctance to invest, poor customer onboarding, company location, and reputation
can influence the consumer's decision. 

All going well, this is the point your hard work pays dividends and you convert
the lead into a customer. That said, it’s not always plain sailing, with
multiple factors contributing to a consumer taking their custom elsewhere. 

This could be attributed to the likes of:

 * Negative reviews
 * Reluctance to invest
 * Poor customer onboarding
 * Company location
 * Poor reputation




STAGE 5: POST-PURCHASE EVALUATION



The post-purchase evaluation is very much what it says on the tin: It’s the
reflective phase where customers assess how useful their new investment is, and
whether or not their new investment has fulfilled the expectations they had
during the pre-purchase stages. 

Positive post-purchase experiences can transform customers into brand
ambassadors. If you have a satisfied customer who becomes an ambassador, they’ll
promote your product and serve as an influencer for prospective customers…
Remember the importance of word-of-mouth marketing we spoke about?



👀
Wouldn’t it be awesome if we could line our customers up and read all of their
minds? Imagine the insights you could collect to influence your entire product
marketing strategy! Competitive Intelligence Certified might not be magic, but
it's the next best thing.




FACTORS INFLUENCING CONSUMER BEHAVIOR

Consumer behavior is a complex interplay of many different factors – both
internal and external, and each factor can significantly influence the
customer’s decision-making process. 

Internal factors encompass things like personal preferences, attitudes, and
perceptions, while external factors include the likes of cultural norms and
economic considerations. Recognizing the interconnectivity of these elements is
key when you’re seeking to understand and predict consumer behavior. 



💡
Campaigns resonate most when they speak to both inner desires and outer
influences – addressing attitudes while acknowledging social norms, and
appealing to perceptions while considering economic realities.



By dissecting these influences, you can tailor your strategies to resonate with
the target audience effectively and foster deeper connections which (hopefully)
turn into brand loyalty and advocacy.




PSYCHOLOGICAL ASPECTS OF CONSUMER DECISION-MAKING

Consumer decision-making extends far beyond surface-level needs and wants. It’s
shaped by, you guessed it – the human brain; the nuanced mechanisms of our
psyche. 

If you’re seeking unwavering brand loyalty, you need to peel back the layers and
examine the implicit perceptions, attitudes, motivations, and values that could
be guiding each customer’s purchase.

What values could color a consumer's view of a product? How do entrenched
attitudes influence receptivity to messaging? What desires or goals could spur
engagement with your brand? 

By probing these psychological dimensions, you can align positioning and
messaging, and create impactful campaigns.




THE ROLE OF BRANDING AND POSITIONING

As you likely know, in today’s market, product quality and features aren’t
always enough to sway a customer. Long-term loyalty stems from making that
emotional connection. 

Meticulous and creative branding goes way beyond a logo or tagline. A brand
should represent the total experience a customer has with a product – effective
branding weaves together the right messaging, imagery, and associations, and
constructs and solidifies them in the minds of the consumer.

This means weaving your purpose, values, and personality into your branding, so
you can resonate on a deeper level, and become much more than a commodity. 

This ties in with your positioning – ensuring your brand is clear, seamless,
consistent, and differentiated from your competitors. Leaning too heavily on
features alone leaves you at risk of being replaceable. 




POST-PURCHASE EXPERIENCE AND CUSTOMER SATISFACTION

The customer journey doesn’t end at checkout. The consumer buying process is
just that: An ongoing process. If you want conversions and long-lasting loyalty,
don’t overlook this stage.  

Attentive PMMs understand that how a customer feels after a purchase can make or
break the relationship. Providing stellar customer service, checking in on
satisfaction, and surprising with loyalty perks can transform an experience from
just transactional into something personal. It shows that your cares lie beyond
revenue.

Don’t forget – satisfied customers often become vocal champions, generating
word-of-mouth.




FINAL THOUGHTS: THE ROLE OF PRODUCT MARKETING IN CONSUMER DECISION-MAKING

Product marketing is a linchpin in the consumer decision-making process,
orchestrating a strategic tie between the product and its potential consumers. 

From the initial stages of creating awareness to the post-purchase phase,
product marketing shapes how consumers perceive and engage with a product. 

Effective product marketing transcends simple promotional tactics and focuses on
creating a compelling narrative that aligns the product seamlessly with the
consumer's lifestyle, solving their problems, addressing their needs, or
enhancing their experiences.

Throughout the consumer buying process, your strategies will evolve to cater to
each stage uniquely. 




WANT TO LEARN MORE?

Wouldn’t it be awesome if we could line our customers up, throw on a pair of
magic goggles, and read all of their minds? Imagine the insights you could
collect to influence your entire product marketing strategy!

Well, we might not have magic but we do have a Consumer Psychology Certified
course to help you… which is pretty much the same thing.

Led by Alex Chahin, VP of Marketing at Titan, you’ll learn how to tap into
consumer psychology and reap the rewards of applying knowledge around behavioral
economics to your product marketing strategies.

By the end of this course, you'll:

✅ Have a definition of consumer psychology in marketing and how advertising
affects consumer behavior.

✅ Better understand how to group pain and gain points.

✅ Understand how personal factors and individual differences affect people's
buying choices.

✅ Be able to identify what your customer’s default action is.

And much more...

Enroll today






LIKE WHAT YOU SEE? THEN CHECK OUT TONS MORE.

From exclusive content by industry experts and an ever-increasing bank of
templates, to 100s of hours’ worth of PMM presentations and mentors, our
membership plans are packed with awesome product marketing resources.

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resources. No topic missed. No page unturned.

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Shopify, this course has one goal in mind...

To empower generations of PMM leaders.
Forge your own path, supercharge your career, become a leader.

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This post was a collaboration between

Lawrence Chapman, Stevie Langford


 * LAWRENCE CHAPMAN
   
   Lawrence is our Copywriter here at PMA who loves crafting content to keep
   readers informed, entertained, and enthralled. He's always open to feedback
   and would be thrilled to hear from you!
   
   More posts by Lawrence Chapman.


 * STEVIE LANGFORD
   
   As a Senior Copywriter here at Product Marketing Alliance, Stevie loves to
   create content that's captivating, compelling, and informative. She's always
   open to new ideas, so feel free to get in touch!
   
   More posts by Stevie Langford.



Get product marketing insights


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The five steps of the consumer buying process: Explained


Product Marketing Alliance was founded in February 2019 with a mission of
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