Theory question 101
ProductMr John, the purchasing officer of Ajax Ltd, bought an industrial printer for his company's use and packs of noodles for his daughter's birthday party.
(a) Identify the two types of products bought by Mr. John. (b) State four differences between the two types of products bought by Mr John. (c) Explain the five stages in decision making process that Mr John would have followed in the purchase of the noodles.
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(a) The printer is an industrial product; the noodles are a consumer product.
(b) Any four: industrial goods are bought to produce/run a business, consumer goods for personal use; industrial buyers are few, consumer buyers many; industrial goods are usually costly and durable, noodles cheap and used up quickly; industrial buying is done by trained specialists after careful evaluation, consumer buying is often routine or impulsive; industrial demand is derived and inelastic, consumer demand more elastic; industrial goods use short/direct channels, consumer goods long channels; industrial goods often need technical after-sales service.
(c) Need recognition: he realises noodles are needed for the party.
Information search: he finds out about brands, prices and where to buy.
Evaluation of alternatives: he compares brands on taste, price and pack size.
Purchase decision: he buys the chosen brand.
Post-purchase behaviour: he judges whether the noodles satisfied the guests, which decides whether he buys the brand again.
Apply the stages to the noodles, not the printer.