Texas State University Account Planning Blog: Consumer Loyalty and Readiness Status

by Tara Davis, Eric Garza, Yenny Ruiz

Buyer Readiness encompasses six decision-making stages through which consumers normally pass on their way to making a purchase. Those six steps are awareness, knowledge, liking, preference, conviction, and purchase.

Awareness. Before a consumer can purchase an item, he or she must know that the product exists. Just knowing that a product exists is not enough for most people to make a purchase.
Knowledge. Some consumers may seek to expand their knowledge of the product by going online or talking to sales associates and friends.
Liking. At this point, some consumers still are not ready to make a purchase. They need develop a positive feel about the product.
Preference. Chances are the product being considered by the consumer has competitors. The consumer will compare each product’s benefits to come to a preference.
Conviction. By now, the consumer is closer to making a purchase but may still need conviction. The client has to be reassured that this product is the best one for him or her.
Purchase. Sometimes, the consumer needs an extra push to make the purchase. This is when trial offers and discounts help seal the deal. The larger the purchase, the longer a consumer takes in each step.

Buyer readiness is similar concept to that of AIDA, which is Awareness, Interest, Desire and Action, except buyer readiness encompasses two additional steps.

Team Smoking Aces conducted an buyer readiness interview. Rodney, the interviewee, took his time going through the steps leading up to the purchase of a Mossy Oak $75 hunting rain coat.

Loyalty Status is broken down into six categories based on user status.

Sole users are the most brand loyal and require the least amount of advertising and promotion. They go for the same brand without much thought. Example: people who only drink Coca Cola.

Semi-sole users typically use Brand A but have an alternative selection if it is not available or if the alternative is promoted with a discount. Example: people who typically drink Coca Cola but will have Dr. Pepper at a restaurant that does not carry Coke.

Discount users are the semi-sole users of competing Brand B. They don't buy Brand A at full price but perceive it well enough to buy it at a discount. Example: people who buy Sam’s Cola but will buy Coca Cola if there is a price cut on it.

Aware non-users use competitive products in the category but haven't taken a liking to Brand A. Example: people who drink soda but don’t have a favorite brand.

Trial/reject users have purchased a brand but were unsatisfied with the product. Example: people who bought Coke because of the advertising for it but did not like the taste of the product.

Repertoire users perceive 2 or more brands to have superior attributes and will buy at full price. They are the primary brand switchers and respond to persuasive advertising based on fluctuating wants and desires. Example: people who drink both Coke and Dr. Pepper and switch from one to the other because one has a cooler ad.

Interviews

An example of a sole user is Luis. Team Smoking Aces interviewed him about his brand loyalty to True Religion Jeans. He is so hooked on the brand, that if True Religion were to raise the price on their jeans, he would still buy them.

Here is an example of a discount user. Smoking Aces interviewed Rene at the San Marcos (Texas) Outlet Mall. The team found out that he had taken a special trip to San Marcos from Guadalajara, Mexico to take advantage of the discounts offered at the outlets. This interview was conducted in Spanish and translated here with English subtitles.