Guiding customers in their purchase decision-making process

Prof. Binod Krishna Shrestha

Marketing is everything, else no business and no growth. Marketing starts with identifying target customers and their expectations. The first question that every marketer must answer is ‘are your target customers aware about your brand?’ There are a lot of cases where sellers cannot find buyers and buyers cannot find sellers for a particular brand even if a brand’s functional and emotional features match target customers’ expectations. A memorable, meaningful and likable brand name is must in the first place. A brand name must occupy its space in customers’ mind in order for customers to start decision-making process to purchase a particular brand. Therefore, marketers’ primary activities are to make customers know the brand name and gradually communicate associated features to customers in order to facilitate their brand choice. This is a challenging job because customers are exposed to a large number of brands to decide one among them.

Customers often lack the time to conduct extensive brand research. Instead, they rely on clues and initial information about the purchase purpose to guide their search. They recall a few brand names from memory, forming their awareness set. Marketers must prioritise including their brand in this awareness set. Customers then engage in active information search, drawing on past experiences, seeking advice from friends, or researching online or in-store. They gather information about competing brands that promise to address their purchase needs. Based on this information, they narrow down their options to a few brands for further evaluation, forming their consideration set. Additional research helps customers refine their choices to a final choice set. Only a few brands remain in the choice set for a final purchase decision. If customers are satisfied with their choice, they become repeat buyers and may even influence others to purchase the brand. This detailed process typically occurs for high-priced, complex products in the consumer market and for almost all product categories in the business market.

Figure 1
Successive sets involved in consumer decision making
Total set=> Awareness set =>Consideration set => Choice set=> Choice
Source: Kotler, Keller & Chernev (2022) Marketing Management p 93

This paper documents the actions of approximately 30 marketers from for-profit and nonprofit Nepali organisations regarding how they guide customers through the purchase decision-making process using the framework of successive sets. The organisations primarily operate in domestic and international markets. The information was gathered through semi-structured interviews with Executive MBA students. Their written narratives, presented below, illustrate successful practices in guiding customer purchase decisions. These examples provide valuable insights into current marketing management practices in Nepal.

Awareness set
Increasing brand visibility is a common strategy to place brands in the awareness set of customers. Content marketing has gained popularity among Nepali marketers, with a focus on webinars and blog posts that address target customers’ pain points. Investing in Search Engine Optimisation (SEO) and implementing SEO strategies across online and social media platforms is also a preferred method. Introducing an online ordering system is becoming a popular approach not only for brand visibility but also for tracking customers and collecting marketing and commerce data. Email marketing, push notifications, and offering discounts and vouchers at appropriate times are also considered effective ways to increase brand awareness.

In addition to these digital marketing practices, marketers participate in national and international industry events, award shows, trade shows and networking activities. Distributing calendars and diaries is another common method for expanding brand awareness. Conducting customer research to understand customer preferences and pain points is essential for creating effective brand visibility programmes. Highlighting collaborative partners, participating in corporate social responsibility initiatives, and presenting at conferences are also recognised as ways to include brands in the desired awareness set. Finally, personal visits to potential customers are considered beneficial for increasing brand awareness.

Consideration set
Different social campaigns engaging with the community are introduced to include the brand in the consideration set. Companies emphasise in creating a positive buzz about the products. Overall brand awareness through advertising, organising events, collaborating and partnering with relevant organisations such as intermediaries and supplementary organisations are also popular practices. Some marketers focus on getting more online reviews such as Google review, Tripadvisor, Facebook and Instagram. They respond to the reviews by adjustment in the product features and simply replying to the reviews. These activities engage the customers in the brands, which also help in consideration set.

Marketers emphasise distinctive brand values that address customers’ pain points to enhance their brand’s market positioning. This is often reflected in slogans, stories, testimonials and case studies used in online promotions. These promotional tools highlight distinct product quality, reliable services, and competitive pricing. Showcasing services and benefits, utilising referral programmes, and introducing festival discounts are additional strategies. Building relationships, personalised interaction, and mutual support are also employed by marketers. Dedicated personnel are recruited and assigned for product demonstrations, trials and experiences. These activities generate leads, which can be converted into customers.

Choice set
The ultimate choice set is the final stage of the customer purchase decision-making process. Product recommendations and suggestive selling are crucial activities at this stage. Staff at customer touchpoints must be well-trained in product knowledge and customer service. Product recommendations can guide customers in selecting a particular brand. Some organisations implement feedback mechanisms to collect detailed information and analyse online and social media platforms. This data is used for suggestive selling and offering customer loyalty programmes.

Marketers also focus on building relationships with key decision-makers and ensuring product performance. Customisation of products and services is a common strategy used by marketers wherever possible. Prompt responses to inquiries and effective addressing of concerns are essential. Seamless communication, collaboration, feedback collection and competitive pricing are preferred methods. Establishing long-term partnerships with customers is also beneficial. Tailored sales approaches, personalised solutions, after-sales support, relationship management, and customer satisfaction are important strategies for including the brand in the choice set. Dedicated staff are necessary for both offline and online selling processes, capable of listening, tailoring solutions, offering flexible pricing, and committing to customer satisfaction.

Once the brand successfully enters the choice set, responsible staff should focus on converting the brand proposal into sales. After a successful choice is made, marketers should strive to build further relationships and foster customer loyalty. A customer loyalty programme can drive repeat sales, convert first-time customers into regular customers, and attract new customers.

Reflection
This paper summarises the common methods currently used by Nepali marketers. It highlights the growing popularity of digital marketing practices and data analytics in developing marketing strategies and tactics. Traditional offline marketing remains prevalent among organisations. Organisations operating in the international market, such as IT companies and non-governmental organisations, extensively utilise online marketing to generate customer data, develop brands and communicate with customers. Brick-and-mortar organisations have increasingly incorporated online marketing to guide their customers.

(Shrestha is from Kathmandu University School of Management)

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