consumer buying behavior 2

Consumer Buying

BehaviorCont.

Types of Buying Decisions

Extended Problem SolvingHigh financial or social risk

Limited Problem SolvingSome prior Buying Experience

Habitual Decision MakingStore Brand, Loyalty

Extended Problem Solving

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

alternatives and researching the desired product

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

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

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

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

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

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

Social Factors Influencing the Buying Process

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

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.

Culture

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