chap 3-buyer behaviour
TRANSCRIPT
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BUYER BEHAVIOUR AND
RELATIONSHIPDEVELOPMENT
Chapter 3
Palmer: Introduction to Marketing
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Buyer Behaviour
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UNDERSTANDING BUYING
PROCESSES IS CRUCIAL
� Marketing mix management focuses on
the company's perspective
� But consumers may see the company'soffering quite differently
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Complexity of Buying Behaviour
± What factors motivate an individual to buy?
± How are competing products evaluated?
± Relative importance of each element of the
product offer ± The set of competing products from which
consumers make the final choice
± Who is involved in making the purchase decision?
± How long does the process of making a decisiontake?
± Buyers post purchase actions
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DIFFERENT TYPES OF BUYING
SITUATIONS
� Routine re-buy - almost instinctive
� Modified re-buy - basically similar to
previous purchases, but slightly different� Completely novel - no previous
experience this type of product
� High Involvement products
� Low involvement products
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THE BUYING PROCESS
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NEEDS, WANTS AND DEMAND
� A need refers to something which is
deep rooted in an individual's
personality.� Wants are the culturally influenced
manifestation of a deep-seated need.
� Demand , is the willingness and ability of
buyers to purchase a product that
satisfies their need.
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PHYSIOLOGICAL AND
PSYCHOLOGICAL BASES OF NEEDS
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Sociological influences on needs
� Family
� Peer or reference groups-Direct/Indirect
� Social Class� Culture
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SITUATIONAL FACTORS
INFLUENCING NEEDS
� Our needs are influenced by the
situation in which we currently findourselves.
± Age
± Socio- economic status± Stage in the "family life cycle³Bachelor, Newly Married, Dependent Children, Independent
Children, Retired
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INFORMATION SEARCH
� Where do we seek information aboutneed-satisfying solutions?
± Personal experience
± Word-of-mouth recommendation fromfriends
± Various reference groups may guide us
± Newspaper editorial content anddirectories
± Advertisements
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Perception
� Selective Attention
� Selective Distortion� Selective Retention
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EVALUATION
Total Set
Awareness Set
Consideration Set
Choice Set
Chosen
Product
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THE BUYING DECISION
� Key issues:± Who decides?
± To buy, not buy or to defer a decision?
± When will the product be bought?
± From which retailer?
± How many will be bought?
± Will any optional accessories be bought?
± How will the purchase be paid for?
± Through which distribution channels?
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POST-PURCHASE
EVALUATION
� Did our purchase live up to
expectations?� If not, we could:
± Return the product
± Tell others± Rationalise our thoughts to overcome
"cognitive dissonance"
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THE DECISION MAKING UNIT
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MODELS OF BUYER BEHAVIOUR -
BASIC PRINCIPLES
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PERSONAL AND ORGANISATIONAL
BUYER BEHAVIOUR COMPARED
� F or organisational purchases:
± Two sets of needs are being met rather
than one
± More people are typically involved
± They are more likely to involve formalised
routines
± The buying process typically takes longer ± Different evaluation criteria
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BUYER-SELLER
RELATIONSHIPS
� Try to increase the chances of customers
returning to you rather than to competitors
� Some profitable repeat customers are
particularly sought
� Cheaper to retain customers than to
recruit new ones
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RELATIONSHIP MARKETING AND
TRANSACTIONAL MARKETING COMPARED
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REASONS FOR THE DEVELOPMENT
OF RELATIONSHIP MARKETING
� In competitive markets, a source of profitable differentiation
� Increasing abilities of InformationTechnology
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METHODS USED TO DEVELOP
RELATIONSHIPS
� Aim to move
customers up the
³ladder of loyalty´
by:± customer satisfaction
± added value
± privileges
± loyalty programmes
± barriers to exit