01 buyer behavior
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BUYER BEHAVIOURDR EARL STEVENS, OCTOBER 2009
1. Sales Training
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Buyer Behaviour - Introduction
An important part of the marketing process is to understand why a customer orbuyer makes a purchase.
Without such an understanding, businesses find it hard to respond to the customersneeds and wants.
Marketing theory traditionally splits analysis of buyer or customer behaviour into twobroad groups for analysis Consumer Buyers and Industrial Buyers: Consumer buyers are those who purchase items for their personal consumption
Industrial buyers are those who purchase items on behalf of their business ororganisation
Businesses now spend considerable sums trying to learn about what makescustomers tick. The questions they try to understand are:
Who buys?
How do they buy?
When do they buy?
Where do they buy? Why do they buy?
Our challenge is to understand how customers might respond to the differentelements of the marketing mix that are presented to them.
If we can understand these customer responses better than the competition, then itis a potentially significant source of competitive advantage.
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Buyer Characteristics Affect Buyer
Behaviour
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Buyer Behaviour - Cultural Factors
Cultural factors have a significant impact oncustomer behaviour.
Culture is the most basic cause of a personswants and behaviour. Growing up, children learnbasic values, perception and wants from thefamily and other important groups.
Marketing are always trying to spot cultural
shifts
which might point to new products thatmight be wanted by customers or to increaseddemand.
Each culture contains sub-cultures groups ofpeople with share values.
Sub-cultures can include nationalities, religions,racial groups, or groups of people sharing thesame geographical location. Sometimes a sub-culture will create a substantial and distinctivemarket segment of its own.
Similarly, differences in social class can createcustomer groups.
Social class is not just determined by income. Itis measured as a combination of occupation,income, education, wealth and other variables:
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Buyer Behaviour - Social Factors A customers buying behaviour is also influenced by social factors, such as the
groups to which the customer belongs and social status.
In a group, several individuals may interact to influence the purchase decision.
The typical roles in such a group decision can be summarised as follows:
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The person who first suggests or thinks of the idea ofbuying a particular product or service
Initiator
A person whose view or advice influences the buyingdecision
Influencer
The individual with the power and/or financial authority tomake the ultimate choice regarding which product to buy
Decider
The person who concludes the transaction
Buyer
The person (or persons) who actually uses the product or
service
User
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Buyer Decision-making Process
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Needs Recognition &Problem Awareness
Information Search
Evaluation ofAlternatives
Purchase
Post-PurchaseEvaluation
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Buyer Sources of Information
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Family, friends, neighbours etcPersonalsources
Advertising, salespeople, retailers,dealers, packaging, point-of-sale displays
Commercialsources
Newspapers, radio, television, consumerorganisations, specialist magazines
Public
sources
Handling, examining, using the productExperiential
sources
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Buyer Behaviour- five stages in the process of adoptinga new product
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Awareness
The customer becomes aware of the new product, but lacksinformation about it
Interest
The customer seeks information about the new product
Evaluation
The customer considers whether trying the new productmakes sense
Trial
The customer tries the new product on a limited or smallscale to assess the value of the product
Adoption
The customer decides to make full and/or regular use of thenew product
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Another Model The Stimulus Response
Model
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Marketing Stimuli
Other Stimuli
Product
Price
Promotion
Place
PoliticalEconomic
Social
Technological
Buyer
Characteristics
Buyer Decision
Making Process
Buyer Responses
Product Choice
Brand Choice
Retail Choice
Dealer Choice
Purchase Timing
Purchase AmountPurchase
Frequency
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The Process Of New-product Adoption
A marketing team looking to successfully introduce a new product or service should think
about how to help customers move through the five stages.
For example, what kind of advertising or other promotional campaign can be employed to
build customer awareness? If customers show a desire to trial or sample a product, how can
this be arranged effectively?
Research also suggests that customers can be divided into groups according to the speed
with which they adopt new products. Rogers, in his influential work on the diffusion of innovations, suggested the following
classification:
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Some Familiar New Products
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END