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8/12/2019 Class 7 and 8 Slides
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1
Buyer Behaviour
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Consumer Buying?
???
8/12/2019 Class 7 and 8 Slides
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Influences on thePurchase
Decision Process
Influences on thePurchase
Decision Process
ConsumerPurchaseDecisionProcess
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Factors influencing Consumer Behaviour
A Systems View (Input Process Output)
Marketing
ProductPrice
PromotionDistribution
OtherEconomic
TechnologicalPolitical
Social/Cultural
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount
Buyer Influences
CulturalSocial
Personal
Psychological
Decision MakingProcess
Problem RecognitionInfo SearchEvaluation
Purchase / ChoicePost-purchase
Marketing &Other Stimuli
BuyersBlack Box
BuyerResponses
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Consumer Purchase Decision ProcessConsumer Purchase Decision Process
ProblemRecognition
ProblemRecognition
InformationSearch
InformationSearch
Evaluation ofAlternatives
Evaluation ofAlternatives
PurchaseDecisionPurchaseDecision
Post PurchaseBehavior
Post PurchaseBehavior
8/12/2019 Class 7 and 8 Slides
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Maslows Hierarchy of Needs
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INFORMATIONSEARCH
The Classic Decision Making ModelNEED/PROBLEMRECOGNITION
Internal search
Past experiences
External search
Personal: family, friends, reference
group Commercial: advertising, promotional
brochures, packaging, sales people, in-store displays
Public: government agencies, consumerinterest groups, Choice
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INFORMATIONSEARCH
The Classic Decision Making ModelNEED/PROBLEMRECOGNITION
EVALUATION OFALTERNATIVES
Formation of Evoked Set
(A group of Relevant Brands)
Evaluation criteria
Cost attributes
i.e. purchase price, operating costs,
Performance attributes
i.e. quality of materials, functionalperformance, efficiency, safety
Social attributes Reputation of brand, popularity with
friends/family, style, fashion
Availability attributes
Carried by local stores, credit terms, qualityof service, delivery time
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INFORMATIONSEARCH
The Classic Decision Making ModelNEED/PROBLEMRECOGNITION
EVALUATION OFALTERNATIVES
PURCHASEDECISION
Selection: A Mental Winner
Purchase: A Physical Winner
Guess where the money is ?
Goal: Translate Selection into
Purchase
Interference between intention topurchase and actual purchase
Out of stock
Special displays
Promotions
Opinions of others
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Post Purchase
Cognitive DissonanceCognitive Dissonance
??Did I make a good decision?Did I make a good decision?Did I buy the right product?Did I buy the right product?Did I get a good value?Did I get a good value?
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INFORMATIONSEARCH
The Classic Decision Making ModelNEED/PROBLEMRECOGNITION
EVALUATION OFALTERNATIVES
PURCHASEDECISION
POST-PURCHASEBEHAVIOUR
Evaluation of the gap betweenconsumers expectations and reality
Satisfaction
repeat purchase
brand loyaltypositive word-of-mouth
Dissatisfaction
negative word-of-mouth
Cognitive dissonance
Buyer discomfort caused by post-purchaseconflict
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RELATION!I"
"#R$!AE
"RE%EREN$E
$ONIDERATION
&NO'LED(E
A'ARENE
I(NORAN$E
INFORMATION
SEARCH
NEED/PROBLEMRECOGNITION
EVALUATION OFALTERNATIVES
PURCHASEDECISION
POST-PURCHASEBEHAVIOUR
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Low Involvement Decision Making Model
PURCHASEDECISION
POST-PURCHASEEVALUATION
Different Need/Problem Recognition
Solution costs less
Many (equally good) alternativesolutions
Frequent purchasing Familiar product and brands
Low perceived importance
Reduced decision making time
Different decision making model:Low Involvement Decision Making
NEED/PROBLEMRECOGNITION
& brief internal search
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Low Involvement Decision Making Model
PURCHASEDECISION
POST-PURCHASEEVALUATION
Low Involvement Decision Making
- NOT
Think - Feel - Do - BUT
Think - Do - Feel
Different Hierarchy of Effects
NEED/PROBLEMRECOGNITION
& brief internal search
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RE)"#R$!AE
TRIAL
A'ARENE
I(NORAN$E
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What is Organizational Buying?
Organizational buying refers to the decision-making process by which formal organizationsestablish the need for purchased products andservices, and identify, evaluate, and chooseamong alternative brands and suppliers.
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Organisational Buying Behaviour
MarketingProduct
PricePromotionDistribution
PeopleProcesses
Physical evidence
OtherEconomic
TechnologicalPoliticalCultural
Product or ServiceChoice
Supplier Choice
Order quantities
Delivery termsand times
Service terms
Payment terms
Interpersonal and
Individual influences
OrganisationalInfluences
Buying Centre
Decision MakingProcess
Marketing &Other Stimuli
BuyersBlack Box
BuyerResponses
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Organisational Decision Making Process
ProblemRecognition
General NeedDescription
ProductSpecification
SupplierSearch
ProposalSolicitation
SupplierSelection
Order-RoutineSpecification
PerformanceReview
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Buying Centre
Gatekeepers
Initiators
Buyers
Influencers
Deciders
Users
Approvers
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Power in the Buying CentreReinforcement Power
Referent Power
Legitimate Power
Expert Power
Information Power
Departmental Power
The ability to give rewards or punishment
The attractiveness/charisma of the person
The authority granted by the persons position
A persons knowledge of the situation
A persons access to and control of information
The relative importance of departments withinthe organization
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Session Take Away
The basis for Marketing Strategy
Research on Potential Customers: Needs/Wants
Research on Existing Customers: Decision Making