Posted in Marketing and Strategy Terms, Total Reads: 541
Definition: Planned Buying
Planned buying refers to the purchase of a product by customer after a lot of analysis i.e. pros and cons of product, which is a time taking process. By the time customer is ready to purchase he or she has a lot of information about the product and has every reason on why the product he or she will be purchasing is best suited for him or her. Generally planned buying happens when someone aspires to purchase a valuable product.
Impulse buying is just the opposite of planned buying. Here, the customer has very little information about a product. Neither the customer had a prior aspiration to purchase the product nor he or she had any intention to buy the product at that moment of time. It happens all of a sudden. The reasons for such buying can be due to better persuading capabilities of the salesforce which made customer realize his or her latent demands. Also it can be due to heavy discounts which the customer couldn’t resist himself or herself from purchasing the product.
People knowingly or unknowingly do a lot of planned buying but still marketers are still to figure out which customers and which products comes under planned buying category. For example, when a middle class individual aspires for his first four wheeler, he/she initially collects information about various cars for days long. He/she browses web, asks for suggestions from others, visit showrooms, talk to satisfied customers etc. before deciding any car. This is an example of planned buying.
Advantages of planned buying
• Helps making smarter buying options
• Helps in avoiding impulse spending
• Prevents from guilty feeling after spending
• Helps in providing better idea about the product buying
• Gives a wide variety of products to choose from.
Planned buying varies from culture to culture, region to region and product to product. So its difficult to speculate what customer wants. Therefore, in order to understand a customer style, marketers need to come up with better elevator pitch, better products, better services etc.