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1:42PM Thursday 04 December, 2008
'Blogs Central
Blog Central: Smart Advice Michelle Hamer challenges small business owners to be smarter. Through her programs, she works with clients to sharpen their skills and to think beyond the square. Michelle is owner of Smart Advice and holds community roles with organisations such as the Foundation of University of the Sunshine Coast, Lifeline Council and SC Area Consultative Committee.

To buy or not to buy?

July 9 | Michelle Hamer

Have you considered what happens when someone is mulling over buying something?

Research tells us there are five steps that shoppers (unconsciously, I suspect) go through when making the buying decision:

1. The recognition of a need or problem to be solved.

In a consumer market, this need could be sparked by three reasons. The purchase could be:
a. A planned shop to solve a problem, such as buying a dress for an upcoming party;
b. A social shop to interact with people; or
c. An everyday incremental shop, such as grocery shopping.

Point: What need or problem does your product solve?

2. After recognising the need, the shopper (if continuing the decision process) searches for product information that will help resolve the problem or satisfy the need.

Point: How do you make shoppers aware of your product?

3. Now the shopper has found the possible products, this step involves the evaluation of the various products.

Point: How do you help shoppers differentiate your product from the competitors?

4. Purchase the product. Now this should be an easy step but sometimes it can be influenced by the mood of the person doing the transaction, the availability of the product, etc.

Point: How easy is it to take this step in your business?

5. Post-purchase evaluation. Depending upon the reason for the shop and the money involved, this may not be a factor.

Point: Do you need to be following up with shoppers on their purchase?

An interesting exercise to do on each of your product lines is to take a piece of paper and draw a 2 x 5 table. In the left column, list each of the five steps (one per cell) and in the right column write your answers to how these steps should be completed in your business.

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