Consumer Buying Behavior Cont.

Consumer Buying Behavior 2

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Page 1: Consumer Buying Behavior 2

Consumer Buying


Page 2: Consumer Buying Behavior 2

Types of Buying Decisions

Extended Problem SolvingHigh financial or social risk

Limited Problem SolvingSome prior Buying Experience

Habitual Decision MakingStore Brand, Loyalty

Page 3: Consumer Buying Behavior 2

Extended Problem Solving

In this process customers spend a lot of time and effort evaluating

alternatives and researching the desired product

Page 4: Consumer Buying Behavior 2

Customers tend to engage in extended problem solving when a purchase involves a lot of risk or uncertainty.

Types of Risks Include:• Financial Risks• Physical Risks

• Social Risks

Page 5: Consumer Buying Behavior 2

Retailers can assist consumers in Extended Problem solving by:

• Providing a lot of information• Having helpful and informative salespeople• Having informational in-store displays• Having salespeople demonstrate features and answer questions

Retailers can also reduce risks by:

• Offering a money back guarantee• Offering easy return of merchandise

Page 6: Consumer Buying Behavior 2

Limited Problem Solving

In this process consumers spend a moderate amount of time and effort analyzing alternatives, but also rely on their prior experience with the product or service

Page 7: Consumer Buying Behavior 2

Retailers can assist consumers in Limited Problem Solving by:

Providing a positive experience

– Make sure customer is satisfied– Provide good service– Have a large selection of quality items– Offer rewards for loyal customers– Have convenient locations

Page 8: Consumer Buying Behavior 2

Habitual Decision Making

When the product is not important to the customer and they make the

purchase with little or no effort the customer is performing Habitual

Decision Making

Page 9: Consumer Buying Behavior 2

Habitual Decision Making usually involves customer loyalty to a Store or Brand.

Brand Loyalty• Customer is committed to a specific brand

• Will shop at a different retailer to get specific brand• Reluctant to try a different brand

Store LoyaltyCustomer habitually visits the same store

Reluctant to try a different store

Page 10: Consumer Buying Behavior 2

Social Factors Influencing the Buying Process

Page 11: Consumer Buying Behavior 2

How Family Influences the Buying Decision

• Purchases are for the entire family• All family members have opinions about products• Retailers try to satisfy needs of all family

members– Example: playrooms at IKEA, books and games provided

at Hyatt Hotels, Seating areas with TV's in malls

Page 12: Consumer Buying Behavior 2

Reference Groups

A reference group is one or more people whom a person uses as a basis of comparison for beliefs,

feelings, and behaviors

A reference group can affect the buying process by:• Offering information (directly and indirectly)

• Enhancing a consumers self-image

Retailers often try to reach store advocates that are part of reference groups to encourage consumers to frequent their store.

Page 13: Consumer Buying Behavior 2


Culture is the meaning, beliefs, morals, and values shared by most members of a society.

Two commons types of cultures are:

Individualism – consumers tend to rely on their own inner standards and beliefs

Collectivism – consumers tend to shop in groups and put more value on products used in a public manner