Lecture 3_Buying Process

8/13/2019 Lecture 3_Buying Process

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UYING PROCESSFacilitator: Ardhendu Shekhar Singh


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SESSION PLAN

Recap

Buying process

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BUYING PROCESS

Is the process a consumer/organization goes

through to make decisions regarding the

purchase, use, and disposal of goods and

services.

Individual

Organizational

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COMPARISON OF INDIVIDUAL AND

ORGANIZATIONAL BUYING

Actors

Processes

Motive

Volume

Number of customers

Location (concentrated/dispersed)

Distribution

Negotiation

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PROCESS STAGE (SIMKIN, 2000)

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ADOPTION PROCESS FOR NEW

PRODUCTS

Stages in the Adoption Process

Awareness

Interest

Evaluation Trial

Adoption

AIDA (Awareness, Interest, Desire, Action)

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LEVELS OF ADOPTION

PercentageofAdopters

Time of AdoptionEarly Late

Innovators

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

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FACTORS INFLUENCING CONSUMER BUYING

PROCESS

There are two main influences on

consumer purchasing behaviour: Internal characteristics that determine

behaviour - psychological and personal.

External influences where the behaviouroccurs - culturaland social.

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PSYCHOLOGICAL INFLUENCES

1. Motivation 2. Perception

3. Learning

4. Beliefs and Attitudes

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1. MOTIVATION

When a consumer indicates an interest

in buying a product, there are a number

of questions we might ask.

Why is he/ she interested ?

What is the person really seeking?

What needs is he/ she trying to satisfy?

We have many needs at any given time.

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MOTIVATION THEORIES

Sigmund Freud assumed that people are

generally unaware of the real psychological

forces shaping their behaviour. He sees a

person as growing up with many needs thatare never fully controlled.

This theory suggests that buyers dont always

know what motivates a particular purchase, so

a marketer may need to undertake greater in-

depth research to find an appropriate answer.

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CONTD

Abraham Maslow sought to explain why peopleare driven by particular needs at particular

times.

Why does one person spend much time and

energy on personal safety, while another person

tries hard to gain the esteem of others?

He concluded that human needs are arranged ina hierarchy, from the most urgent (basic) need,

to the least urgent.

Herzbergs two factor (hygiene and

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MASLOWS HIERARCHY OF NEEDS

Self-actualization

Esteem

Social

Safety

Physiological

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2. PERCEPTION

The process by which we

Select; Organise; and Interpret information

A motivated person is ready to act. How thatperson acts will be influenced by his or her

perception of the situation.

Two people with similar motivation, and inthe same situation, might act quite differently

because they each have a different

perception of the situation.

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PERCEPTUAL PROCESSES

Selective Exposure is the message noticed?

we respond only to certain influences

Selective Distortion adapt information to suit, tobetter match our beliefs about a product

Selective Retention retain only supportinginformation that reinforces attitudes and beliefs

Subliminal PerceptionSubliminal perception occurswhenever stimuli presented below the threshold orlimen for awareness are found to influence thoughts,feelings, or actions.

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3. LEARNING

When people act, they learn.

Learning describes changes in an individual'sbehaviour arising from experience.

Learning occurs through the interplay of drives;stimuli; cues; responses; and reinforcement.

The significance of learning theory to marketers

is that they can build demand for a product byassociating it with strong drives, using motivatingcues and providing positive reinforcement.

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4. BELIEFS AND ATTITUDES

People acquire their beliefs and attitudes

through acting and learning. This will then

influence their individual buying behaviour.

A belief is a descriptive thought or conviction

that a person has about something; it involves

having a specific opinion.

Incorrect beliefs about a products features or

its brand image can reduce product sales.

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4. CONTD

An attitude describes a persons relatively

consistent evaluations, feelings and

tendencies towards an object or idea.

People retain attitudes towards a wide

range of objects, including business firmsand their particular products.

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PERSONAL INFLUENCES

A buyer's decisions are also influenced

by personal characteristics such as:

Age and life-cycle stage

Occupation

Level of Education

Economic situation

Personality and Self Image

Consumer lifestyle

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CULTURAL INFLUENCES

Cultural factors have the greatest level

of influence on consumer behaviour.

Because of this, marketers need tounderstand the role played by:

Culture.

Cultural diversity.Social class.

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SOCIAL INFLUENCES

Household types: changing lifestyles and

family roles can affect buying decisions.

Groups:Membership groups to which we belong.

Reference groups that influence our attitudes.

Opinion leaders who have significant influence

Roles and Status within society

will vary with each situation

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CONSUMER BUYING ROLES

Buyingdecision

Initiator

Influencer

DeciderBuyer

user

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TYPES OF BUYING BEHAVIOR

Consumer decision making will vary withthe type of product to be purchased

Complex Buying BehaviorExpensive, risky purchase; perceiveddifferences between products

Dissonance-Reducing Buying BehaviorExpensive, risky; difficult to differentiatebetween the products

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CONTD.

Total setawareness setconsideration

setchoice setdecision

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TYPES OF ORGANIZATIONAL BUYING

Straight rebuy/regular

Modified rebuy

New buy

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SHETH, 1973

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FACTORS INFLUENCING ORGANIZATIONAL

BUYING PROCESS (WEBSTER AND WIND, 1972)

Environmental

Organizational

Interpersonal

Individual

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ENVIRONMENTAL

Competition

Legal

Economic

Sociocultural

Technological

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ORGANIZATIONAL

Objective

Purchasing policies

Resources

Buying center structure

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INTERPERSONAL

Cooperation

Conflict

Power relationship

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INDIVIDUAL

Age

Educational level

Job status

Personality

Income

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DISPOSAL OF PRODUCTS

Obsolete

Not satisfied

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Documents

Lecture 3_Buying Process