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buyerbehavBuying Behaviouriour-1207827345126981-8

buyerbehavBuying Behaviouriour-1207827345126981-8

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Published by Shaheer Bokhari
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Published by: Shaheer Bokhari on May 09, 2013
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Buyer Behaviour

The Individual, Risk and Involvement

Objectives of this session:
• • • • • • Some factors affecting buying behaviour B2B buying behaviour ‘Risk’ and Buying Behaviour ‘Involvement’ and Buying Behaviour Buyer behaviour and the DMU Buyer behaviour and communication tasks

Education – Situational: Lifestyle choices – Experience: previous buying experience • Social Factors – Culture.Factors affecting all buying behaviour • Personal Factors – Demographics: Age. Reference Groups • Psychological Factors – Personality Type – Attitudes & Beliefs . Gender. Income. Sub-Culture.

Learning and Persuasion ATTITUDES OPINIONS .Opinions. Attitudes and Beliefs BELIEFS & VALUES Long term and deeply held – almost impossible to change Sets of Attitudes derived from Beliefs – May only be changed over the medium to long term Derived & Received Opinions – may be changed by Experience.

Three B2B factors affecting the purchaser: • As an Individual – Psycho-Social factors • As a ‘Role’ – Expectations and responsibilities of role in DMU • As a Relationship. between: – Buyer & Seller Organisations – Individual and Corporate Image – Individuals involved in DMP .

Extended search for information) – Strategy: • Understand evaluation process of DMP • Inform customers of key purchasing criteria • Competitor comparisons . frequently purchased items) – Strategy: • Maintain quality / value to retain existing customers • Introduce promotions to attract new buyers • Limited Problem Solving: Modified Re-Buy (Less frequent purchase.B2B: DMP and Degree of Complexity • Routine: Straight Re-Buy (Low cost. Higher search for information) – Strategy: • Aid customer search for information • Build confidence in brand • Extensive Problem Solving: Major or New Buy (Expensive or new product area.

Codes of Practice and other agreements – Social and cultural values • Organisational Factors – Corporate values and objectives – Resources and costs – Established procedures • Individual Factors – Interpersonal effects – Relative status of individuals – Personal rewards and incentives .Other influences on B2B purchases • Stakeholder Factors – Stakeholder networks – Long / short term relationship – Unsupported or cooperative relationship – Formalised or casual purchasing process – Legal.

Consequences of incorrect decision ‘Feel good factor’ Fit with corporate / selfimage Time taken on decision Vs other risks • Financial Risk – Affordability and costs of incorrect decision Potential harm to people and equipment • Ego Risk – – • Physical Risk – • Time Risk – .Individual Factors: Perceived Risk • Performance Risk – Will product deliver promised benefit? • Social Risk – – Peer group attitudes.

Situation of the Purchase • • • • • • Relative importance of purchase Relation to other activities Brand and other factors Attitude towards risk taking / risk aversion Other personality factors Prestige / Cost / Social role of product 2. Product Context . Individual Context 3.Risk Contexts 1.

‘Sign’ Value • • Significance of prestige and other factors Pleasure / fun associated with purchase 5. Interest • • • How interested is the individual in the purchase? How does individual respond to risk? How likely is an incorrect decision? 2. Risk Probability 4.Individual Factors: Involvement Theory 1. Risk Importance 3. ‘Hedonic’ Value .

Involvement Theory: Three Perspectives • Cognitive – Perceived relevance to the individual • Predisposition to act – Individual able and resourced to act • Response-based: Purchase as response to stimulus: – Occurrence of perceived problem – Occurrence of marketing message – Other prompt .

Involvement Theory: Degree of Involvement • High Level Involvement – High perceived relevance or risk – Involved search for information – Trial of alternatives only after attitudes and intentions already set • Low Level Involvement – Low cost / risk purchases – Less involved information search – Trial of alternatives before attitudes and intentions established • Zero Level Involvement .

Reprise: Individuals’ concerns within the DMU The Gatekeeper The Initiator The Decider The Buyer The User The Financier Other Influencers .

The Gatekeeper Concerns: “You better have a good reason for disturbing my boss.” .” “Let me prove what a good member of the team I am.

The Initiator Concerns: “I’ve got a problem – Help me!” “Make my job easier!” .

The Decider Concerns: “Why should I risk my job or reputation on you?” “If this thing works. how will I get the credit?” .

” .The Buyer Concerns: “Don’t give me more problems – or any more work – than I have already.

” “I’d like to feel good about using this.The User Concerns: “I just want this to work – first time.” . every time.

The Financier Concerns: “How much?” “What R.I can I expect?” .O.

Influencers Concerns: “If I’m going to be your advocate. don’t make a liar out of me.” .

What effects would you like your communications to have? Knowledge (Think) • Who you are • What you do • Why you are better • How you solve problems • Where to buy (Place) • Benefits / Features • New products / services / offers • New / improved specification Attitudes (Feel) • Brand values / image • What you ‘stand for’ • Brand – Customer relationship • ‘Like’ / ‘Prefer’ (DAGMAR) Behaviour (Do) • Find out more • Visit website / stand / store • See sales representative • Purchase • Provide feedback .

Summary • There are many individual factors which affect B2B as well as B2C buying behaviour • Marketers should accept that their communications can have only limited effect • Understanding customers’ concerns and attitudes to Risk and Involvement is important to creating successful marketing messages • Clear objectives should be set for all communication tasks .

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