buyer behavior

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Buyer Behavior Buyer Behavior Decision-Making Unit Decision-Making Unit Purchasing Unit Purchasing Unit Consuming Unit Consuming Unit our marketing strategy just got more our marketing strategy just got more complicated complicated

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Page 1: Buyer Behavior

Buyer BehaviorBuyer Behavior

Decision-Making Unit Decision-Making Unit

Purchasing Unit Purchasing Unit

Consuming UnitConsuming Unit

……our marketing strategy just got more our marketing strategy just got more complicatedcomplicated

Page 2: Buyer Behavior

Buyer BehaviorBuyer Behavior

Consumer Buying ProcessConsumer Buying Process

Need arousalNeed arousal

triggering cuetriggering cue

internal or externalinternal or external

Search and Evaluation Search and Evaluation

information gathering and processinginformation gathering and processing

build confidence to make purchase decisionbuild confidence to make purchase decision

Page 3: Buyer Behavior

Buyer BehaviorBuyer Behavior

Consumer Buying Process Consumer Buying Process (cont..)(cont..)

PurchasePurchase

overcome the risk of purchaseovercome the risk of purchase

a transitory statea transitory state

Cognitive DissonanceCognitive Dissonance

post-purchase feedbackpost-purchase feedback

seek reassurance, information to justify purchaseseek reassurance, information to justify purchase

key to brand loyaltykey to brand loyalty

Page 4: Buyer Behavior

Buyer BehaviorBuyer Behavior

Learning ModelsLearning Models

Stimulus ResponseStimulus Response

change behavior from experiencechange behavior from experience

habits formed through repetitionhabits formed through repetition

CognitiveCognitive

experience not necessary for learningexperience not necessary for learning

Page 5: Buyer Behavior

Buyer BehaviorBuyer Behavior

Buyer Behavior ModelBuyer Behavior Model

““Black Box”Black Box”

Internal versus External ModelsInternal versus External Models

……psychological versus sociologicalpsychological versus sociological

Page 6: Buyer Behavior

Internal (psychological)

External(sociological)

culture

social class

reference groups

family

marketing mix

needs

motives

wants

awareness perception attitude preference

behavior

learning

personality

Buyer Behavior Model

Page 7: Buyer Behavior

Buyer BehaviorBuyer Behavior

Attitudes are anchored in behavior.Attitudes are anchored in behavior.

There are two ways to change attitudes:There are two ways to change attitudes:

……directly through awareness and perceptiondirectly through awareness and perception

… …indirectly through learning and the feedback loop.indirectly through learning and the feedback loop.

Page 8: Buyer Behavior

Buyer BehaviorBuyer Behavior

MotivationMotivationweight or importance of a needweight or importance of a need

rational motivesrational motives

economy, efficiency, dependabilityeconomy, efficiency, dependability

emotional motivesemotional motives

attract opposite genderattract opposite gender

care of loved onescare of loved ones

fear of rejectionfear of rejection

Page 9: Buyer Behavior

Buyer BehaviorBuyer Behavior

Motivation Motivation (cont..)(cont..)

use of emotional motives in marketinguse of emotional motives in marketing

““The Thing”The Thing”

Page 10: Buyer Behavior

Buyer BehaviorBuyer Behavior

AwarenessAwareness

yes or noyes or no

key first stepkey first step

““top-of-mind” awarenesstop-of-mind” awareness

Page 11: Buyer Behavior

BehaviorBehavior

Awareness (cont.)Awareness (cont.)

enter information searchenter information search

can come from internal or external triggering cuecan come from internal or external triggering cue

more receptive to marketing information flowsmore receptive to marketing information flows

Page 12: Buyer Behavior

Buyer BehaviorBuyer Behavior

PersonalityPersonality

pattern of characteristics unique to individualpattern of characteristics unique to individual

persists across broad spectrum of situationspersists across broad spectrum of situations

not a reliable predictor of buying behaviornot a reliable predictor of buying behavior

Page 13: Buyer Behavior

Buyer BehaviorBuyer Behavior

PerceptionPerception

process by which one receives, interprets, responds to process by which one receives, interprets, responds to stimulistimuli

selective perceptionselective perception

cross-sensory perceptioncross-sensory perception

subliminal perceptionsubliminal perception

Page 14: Buyer Behavior

Buyer BehaviorBuyer Behavior

Perception Perception (cont..)(cont..)

perceived riskperceived risk

performance riskperformance riskWill it function?Will it function?

psychological risk (psycho-social risk)psychological risk (psycho-social risk)Will it enhance well being?Will it enhance well being?

Page 15: Buyer Behavior

Buyer BehaviorBuyer Behavior

AttitudesAttitudes

Evaluative organization of beliefs, motives, attributesEvaluative organization of beliefs, motives, attributes

Attitude change is a key goal in marketingAttitude change is a key goal in marketing

Cognitive dissonance is inconsistent with behaviorCognitive dissonance is inconsistent with behavior

Cognitive, Affective, BehavioralCognitive, Affective, Behavioral

Page 16: Buyer Behavior

Buyer BehaviorBuyer Behavior

Sociological InfluencesSociological Influences

reference groupsreference groupsinfluence attitudes, perceptions, motivesinfluence attitudes, perceptions, motives

reduce riskreduce risk

primary versus secondaryprimary versus secondary

formal versus informalformal versus informal

aspirant versus disassociativeaspirant versus disassociative

opinion leader/celebrity effectsopinion leader/celebrity effects

Page 17: Buyer Behavior

Buyer BehaviorBuyer Behavior

Sociological Influences Sociological Influences (cont..)(cont..)

Social ClassSocial Class

lifestyle divisions of society based on occupation, wealth, lifestyle divisions of society based on occupation, wealth, power, educationpower, education

in U.S., largest class is not the lowestin U.S., largest class is not the lowest

individual perceptions are one social class higher than individual perceptions are one social class higher than realityreality

Page 18: Buyer Behavior

Buyer BehaviorBuyer Behavior

Sociological Influences Sociological Influences (cont...)(cont...)

CultureCulture

set of learned responses from a societyset of learned responses from a society

enculturation versus acculturation enculturation versus acculturation

Page 19: Buyer Behavior

Industrial Buyer BehaviorIndustrial Buyer Behavior

The industrial buying process looks different but:The industrial buying process looks different but:

…….it is just more complex with renamed buying situations.it is just more complex with renamed buying situations

Step 1(Needs) is split into three steps, 1, 2, 3,Step 1(Needs) is split into three steps, 1, 2, 3,

Step 2 (Search/Evaluation) becomes steps 4, 5, 6,Step 2 (Search/Evaluation) becomes steps 4, 5, 6,

Step 3 (Purchase) is step 7,Step 3 (Purchase) is step 7,

Step 4 (Cognitive Dissonance) is step 8 but is Step 4 (Cognitive Dissonance) is step 8 but is more deliberate more deliberate and intensive.and intensive.

Instead of convenience and shopping goods, it is called Instead of convenience and shopping goods, it is called “new task” and “straight rebuy.”“new task” and “straight rebuy.”

Page 20: Buyer Behavior

Buyer BehaviorBuyer Behavior

Innovation Process

Bell-shaped (normal) curve of the Innovation Process is the origin of the logistics or “S”- shaped curve. The latter is the first integral of the normal curve..This is also the basis for the Boston Consulting Group Model.

Innovators – 2.5%Early Adopters – 13.5%

Early Majority – 34%Late Majority – 34%

Laggards – 16%

If you are a fan of statistics, you will have noticed that the percent classifications of the Innovation Process are standard deviation percentages.