Professional Documents
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Discussion Slide
Consumer purchase process Consumer buying environment Traditional factors affecting consumer buying Recent trends in consumer behavior
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BUYER BEHAVIOR
At the end of this module, the learning outcomes are: Understand the buying decision-making process Learn how attitudes and values influence buyer behaviors. Discuss how traditional factors and new trends affect purchasing decisions
BUYER BEHAVIOR
Suggested readings: Integrated advertising, promotion and Marketing communications by Clow and Black, Chapter 3, 9th edition.
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Information Search
Internal search Evoked set External search
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BUYER BEHAVIOR
Internal search What he can think Eliminate bad experiences How to become part of consumer alternatives Price, communication Make first and best choice
External Search
Ability to search Motivation
Level of involvement Need for cognition Shopping enthusiasm
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BUYER BEHAVIOR
If uncertain from internal resources External sources Variety of sources Friends, relatives Time depends on three factors Ability Motivation Costs and benefits
BUYER BEHAVIOR
Motivation Determined by consumers Level of involvement Need for cognition Level of shopping enthusiasm
BUYER BEHAVIOR
Involvement How far task is relevant to consumer needs Soap versus Car
BUYER BEHAVIOR
Need for cognition Personality characteristic Enjoy mental activities High need for cognition Gather more information and search thoroughly
BUYER BEHAVIOR
Shopping enthusiasm
BUYER BEHAVIOR
Costs and Benefits Higher perceived benefits increase the need of search. How to reduce risk Higher perceived risk means looking for additional information
BUYER BEHAVIOR
Three factors important in the information search process Attitudes Values Cognitive mapping
BUYER BEHAVIOR
Attitudes Can be influenced by marketing communication Mental position taken towards a topic Can drive consumer purchase decisions Cadburys Dairy Milk Choclate
BUYER BEHAVIOR
Values Strongly held beliefs Build attitudes Tend to be enduring and normally from during childhood
BUYER BEHAVIOR
Tata Tea Voting issue Sahara Patriotism Bharat Hai Hamara Hum Hai Sahara
BUYER BEHAVIOR
Cognitive Mapping How information is stored Coca Cola Thanda Matlab Coca Cola Short memory Repetition
BUYER BEHAVIOR
Evaluation of alternatives Evoked Set Method The Multiattribute Approach Affect Referral
BUYER BEHAVIOR
Evoked Set Method Brands considered in a purchase situation Two sets Inept set Inert set
BUYER BEHAVIOR
Inept set Brands Not considered Negative feelings
BUYER BEHAVIOR
Inert set Aware Neither negative or positive feelings
BUYER BEHAVIOR
Goal of marketing Communication Help place the brand in the evoked set Fiats attempt
BUYER BEHAVIOR
The Multiattribute Approach Promoting high-involvement products Consumer attitude towards a brand is determined by Brands performance on attributes Importance of each attribute to consumer Marutis approach Kitna Datee Hai
BUYER BEHAVIOR
Affect Referral Consumers choose brands that they like the best or the ones Have developed emotional connections Not on attributes but feelings Coke with happiness The most successful brand are those that establish emotional bonds with consumers.
BUYER BEHAVIOR
Bonds lead to Brand loyalty Brand equity Reduces brand parity This means consumers do not have to evaluate alternatives because of their bond with the brand.
BUYER BEHAVIOR
Trends in the consumer buying environment Age Complexity Gender Complexity Individualism Active, busy lifestyles Cocooning Pleasure Pursuits Health Emphasis
BUYER BEHAVIOR
Age Complexity Growth of children Young age Even middle age people want to look young
BUYER BEHAVIOR
Gender Complexity Roles are blurred Single, divorced, late marriage Marketing communication aims at women buying Scooty Hero Pleasure
BUYER BEHAVIOR
Individualism Divorces Customers want products to be developed for them Nike asking consumer to design their own shoes
BUYER BEHAVIOR
Active, busy lifestyles Giving up materialism for vacation Use of microwave Increasing trend of replace One-stop shopping outlets
BUYER BEHAVIOR
Cocooning Busy and hectic lifestyles Retreat and cocoon in their homes Gadgets Divorcees, remarried Tend to shop sitting at home Amazon.com
BUYER BEHAVIOR
Pleasure Pursuits Stressful lives Go for expensive holiday Indulgence Sale of luxury holidays
BUYER BEHAVIOR
Health emphasis Health awareness Saffola Talking about health benefits Not alienate existing customers Coke, Diet Coke
Quantity of needed product / Service*. PHASE 3 :- Developing specifications of the product*. PHASE 4 :- Searching & Qualifying Suppliers. PHASE 5 :- Obtaining & Analyzing suppliers offers* PHASE 6 :- Evaluating & Selecting Suppliers. (shown on next slide) PHASE 7 :- Selecting an order routine PHASE 8 :- Post Purchase evaluation * These are in addition to five stages of consumer buying decision process.
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SERVICE
FLEXIBILIY TOTAL
20
10 100
0.7
0.4
14.0
04.0 61.5
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Buygrid Framework
BUYPHASES New Task 1. Problem Recognition 2. Characteristics of Product 3. Product Specification 4. Supplier Search Yes Yes Yes Yes BUYCLASSES Modified Rebuy May Be May Be May Be Yes Straight Rebuy No No No No
Yes
Yes Yes Yes
Yes
Yes Yes Yes
May Be
No May Be Yes
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Postpurchase Evaluation
Evaluation of product performance. Cognitive dissonance. Impacts future purchases. Impacts word-of-mouth communications.
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Diffusion Process
The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.
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Adoption Process
The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.
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Rapid diffusion
High compatibility
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Adopter Categories
A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.
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Adopter Categories
Laggards
16%
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