Buyer Behavior

1
Buyer Behavior

• Chapter 3

2
Chapter Overview

• Consumer purchase process
• Consumer buying environment
• Recent trends in consumer behavior
• Business buying center
• B-to-B purchasing process

3
Apples iPhone
New Product Introductions

• Innovators
• Early adopters
• Early majority
• Late majority
• Laggards or nonadopters

4
Common Reasons Purchases Are Made

• Products/services provide utility
• To satisfy physical needs
• To satisfy psychological needs
• To satisfy social needs
• To satisfy emotional needs

5
Consumer Decision-Making Process
6
Information Search

• Internal search
• Evoked Set
• External search

7
External Search

• Ability to search
• Motivation
• Level of involvement
• Need for cognition
• Shopping enthusiasm
• Perceived cost
• Perceived benefit

8
Consumer Values

• Attitudes shaped by personal values.
• Values are strongly held beliefs.
• Values contribute to attitudes.
• Personal values

Comfortable life Equality Excitement Freedom Happi
ness Inner peace Personal accomplishment
9
Attitude
3 Components

• Affective
• Feelings or emotions about the object, topic, or
  idea.
• Cognitive
• Mental images, understanding, interpretations
• Conative
• Intentions, actions, behavior

10
Attitude Sequence

• Cognitive ? Affective ? Conative
• (Think, feel, do)
• Affective ? Conative ? Cognitive
• (Feel, do, think)
• Conative ? Cognitive ? Affective
• (Do, think, feel)

11
Cognitive Mapping

• Simulations of knowledge structures.
• Linkages and levels
• Marketing messages and linkages
• Strengthen current linkage
• Modify current linkage
• Create a new linkage

12
Principles concerning processing of information
and cognitive mapping.

• Cognitive mapping enhances movement of messages
  from short-term memory to long-term memory.
• Most persuasive messages reinforce current
  linkages.
• Repetition is necessary to establish new
  linkages.
• Difficult to modify or create new linkages.

13
Information Processing

• Elaboration Likelihood Model (ELM)
• Central route
• Peripheral route
• Hedonic, Experiential Model (HEM)
• Central route
• Peripheral route
• Route depends on
• Motivation
• Ability

14

• ELM and HEM
• Information Processing occurs along two routes
• Central Route
• Cognitively processes a message with a high
  degree of attention to core elements of the
  message (uses cognitive skills)
• Peripheral Route
• Attention paid to marginal cues imbedded in the
  message (repetition important)
• Music, actors, background of an ad

15

• ELM
• Consumers pay attention to
• Prices
• Product quality
• Company/brand attributes

• HEM
• Consumers pay attention to
• Emotions
• Feelings
• Fun
• New or unusual experiences

16
Evaluation of Alternatives

• Evoked set method
• Evoked set
• Inept set
• Inert set
• Multiattribute method
• Based on beliefs about a brands performance on
  product attributes and the importance of each
  attribute to the consumer.
• Affect referral
• Chooses brand liked, without evaluation of other
  brands or attributes

17
Evoked Set

• The set of brands and purchase locations that
  meet both the objective and subjective
  requirements of the consumer.
• Development of the evoked set begins during the
  internal search.
• Inclusion in the evoked set is a major goal of
  marketers.

18
Traditional factors affecting consumer purchasing
behaviors

• Demographics (age, gender, income, etc.)
• Heredity and home environment
• Family life cycle
• Life changing events
• Social/Cultural environment
• situational environment

19
Family Life Cycle

• Single
• Newlyweds
• First families
• Divorce and mixed families
• Full nest
• Empty nest
• Remaining partner

20
TrendsConsumer Buying Environment

• Age complexity
• Gender complexity
• Individualism
• Active, busy lifestyles
• Cocooning
• Pleasure binges
• Health Emphasis

21
Alternative Purchase Decisions

• Temporary change in consumers situation.
• Desire for variety.
• Impulse purchase.
• Marketing communication material.
• Influence of friend or relative.

22
Postpurchase Evaluation

• Evaluation of product performance.
• Cognitive dissonance.
• Impacts future purchases.
• Impacts word-of-mouth communications.

23
Business-to-BusinessBuyer Behavior
A simplistic view of the Buying Center

• Users
• Buyers
• Influencers
• Deciders

Gatekeepers
24
Individual FactorsBusiness-to-Business Buying
Center

• Personality features
• Roles and perceived roles
• Motivational levels
• Levels of power
• Attitude towards risk
• Levels of cognitive involvement
• Personal objectives

25
Types of B-to-B Sales

• Straight rebuy
• Modified rebuy
• New task

26
Dual/Multiple Channels

• Based on Customer needs related to economic
  utility
• Multi-distribution
• Multiples of same channel design to reach
  intended intensity of distribution
• Dual distribution
• Unique channel designs for different target
  markets

27
Dual Distribution
Unique channel designs for different target
markets
28
Multi-Distribution
Manufacturer
Retailer
Retailer
Retailer
Retailer
Retailer
Multiples of same channel design to reach
intended intensity of distribution
29
Business to Business Decision Process