Why Customers Buy and Use

1
Why Customers Buy and Use

• Psychological characteristics
• Motivation
• Learning
• Personality
• Attitudes

• Decision making
• Recognition of need
• Search for information
• Evaluate alternatives
• Make purchase

Experience
2
So, What Motivates?

• State of tension, dissatisfaction
• Satisfy lower level needs first
• Many needs learned through socialization
• Rational
• Emotional

3
Learning

• Cognitive thought and awareness
• Behavioral association with past events
• Motivation needs and goals
• Cue shows a way toward a goal
• Response
• Negative/Positive reinforcement

4
Learning

• Classical conditioning
• Pair with something that brings positive feelings
• Instrumental conditioning
• Cause Effect

5
Attitudes

• Enduring disposition
• Cognitive component
• Affective component
• Behavioral component
• Centrality
• Intensity

6
Types of decisions

• Complex Decision
• Recognition of need
• Information search
• Evaluation of alternatives
• Purchase decision
• Post-evaluation

• Simple Decision
• Recognition of need
• Evaluation of alternatives
• Purchase decision
• Post-evaluation

7
Consumer Recognizes Need

• Latent needs
• Unmet needs
• Problems
• Magnitude of difference between have and need
• Importance
• Adequate definition

8
Motivating Consumers

• Finding the correct appeal
• Rational
• Emotional
• Conflicting motives
• Approach/approach
• Approach/avoidance
• Avoidance/avoidance

9
Information Search Processing

• Internal and external
• Processing
• Exposure
• Attention
• Perception
• Retention
• Retrieval application

10
Identifying Alternatives

• How much to search
• Cost in time and money
• Internal information
• Risk of making wrong decision
• Ability to make a choice
• What is the consumer looking for
• Ideal
• Evaluation of individual brand

11
Theory of Reasoned Action

• Best predictor of behavior is intention to act
• Why will the consumer act?
• Consumers beliefs
• Relevant others opinion about behavior
• Change consumer attitude to product
• Change product to match the consumer attitude
  toward it

12
Purchase and After

• Simplify the act of buying
• Package, make it available
• 300 AM? Dell Computer
• Cognitive dissonance
• At time of purchase
• After purchase

13
Organizational Purchases

• Many people involved
• Subject to both rational and emotional factors
• Technical factors present
• More time to make the decision
• Organizations have unique characteristics

14
Managing the Product

• What is being sold?
• Whats the buyer like?
• What changed?
• Message
• Product

15
Marketing Communications

• Advertising
• Public Relations
• Publicity
• Community Relations
• Sales Promotions

• Customer Relations
• Customer Meetings
• Sales Force
• Collateral
• Trade Show
• Internet
• Telemarketing

16
Marketing Communications
Internal
External

• Employees
• Stockholders
• Departments

• Customers
• Resellers
• Companies
• Other
• Government agencies
• Experts

17
Human Communications

• Beginning, middle and end
• No intent required
• Process p. 245

18
Types of Communication

• Interpersonal
• Organizational
• Public
• Mass
• Persuasive

19
Characteristics of the Source

• Highly credible source tend to create an
  immediate change in attitude
• Expertise
• Honesty
• Attractiveness
• Power of the source
• Word-of-mouth

20
Message Variables

• Whats said
• Non-verbals
• Readability
• Order
• Repetition
• Counter arguments

21
Content

• Rational
• Emotional
• Hope
• Fear
• Humor
• Sex
• Music

22
Audince

• Think specifically in terms of the audience
• Level of understanding
• Environmental setting
• Focus of attention
• Needs, wants
• Ability to process complex in formation

23
Advertising

• Non-personal, paid for by advertiser
• Directed to target audiences
• Large group of people
• Has specific objectives
• Improved recall
• Change attitude
• Product sampling

24
Classification

• Audience
• Advertiser
• Intention or objective
• Product advertising
• Institutional advertising

25
Function of Advertising

• Unfortunately, it does not produce immediate
  buyers

26
Advertising Weak Force

• Stimulates existing
• memory
• Reminds
• Seldom convinces

27
Measurement of Advertising

• One simply cannot discount or control packaging
  or
• trade dress or shelf position or in-store signage
  or the distribution channel
• or even the history and experience of the
  consumer enough to isolate the
• single and individual effects of advertising.
• International Journal of
  Advertising, Determining How Brand Communication
  Works in the Short and LongTerms, 1998

28
Strong Force Brand Experience

• Use
• Observation
• Trial
• Demonstration
• Vicarious -
• Experience

29
Total Brand Communication

• sales promotion
• direct marketing
• public relations
• publicity
• events marketing
• brand experience
• research advertising

30
PG Bounty Kitchen Towels Most Irritating
Advertisement of1999

• "Pan-Europeanisation in above-the-line
  communication is a
• waste of time. Anyone chasing the holy grail of
  an ad which will
• appeal to a Brit, a German and Frenchman is a
  jerk."

31
Steps to Making Purchase

• Unaware
• Aware
• Knowledge
• Liking
• Prefer
• Conviction
• Buy

32
The PersuasiveHierarchy of Effects Model --
Strong, or Persuasive Theory
Action Desire Interest Attention
Awareness
33
Message to HeadsIncentive to Hands

• Messages ideas, concepts and information
  delivered to consumers.
• Incentives immediate response generators,
  typically for purchase.

International Journal of Advertising, 1998
34
Advertising Players

• Multinational Ad Agencies
• Local Agencies
• In-house agencies
• Client-agency relationship

35
Intel Inside Marketing

• What is the role of the advertising agency?
• What is the Intel advertising message?
• How did Intel extend its budget?