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Unit 2 Scanning Marketing Opportunities Chapter 7 - Buyer Behavior
Lesson 20 - Factors influencing consumer buyer behavior, buying decision process
In the first chapter we have seen that marketing is consumer centric .In this lesson taking an extension of the same we will see in details why the consumer makes a particular decision of buying. Just imagine that you are a consumer and you have decided to buy say Pepsi. Now what are the various factors responsible for this decision. Along with the external factors there is also an internal factor called as behavior of an individual. In this class we will see in details how the behavior of a consumer influences the decision making process. The study of this is very important for the marketers. Learning Outcomes: „ Meaning of the consumer market and the components of a consumer behavior model „ Factors affecting consumer buying decisions „ Types of consumer buying decisions and steps in consumer decision making process „ Adoption and diffusion process for new products. „ Relation of consumer behavior and marketing strategy „ Meaning of organizational / industrial markets and Difference between consumer and organiza- tional markets „ The different types of organizational consumers and their buying objectives, buying structure, and purchase constraints. The central focus of marketing is the consumer. To devise good marketing plans, it is necessary to examine consumer attributes and needs, lifestyles, and purchase processes and then make proper marketing-mix decisions. The study of Consumer behavior includes the study of what they buy, why they buy, how they buy, when they buy, from where they buy, and how often they buy. An open- minded consumer-oriented approach is imperative in today’s diverse global marketplace so a firm can identify and serve its target market, minimize dissatisfaction, and stay ahead of competitors. Final consumers purchase for personal, family, or household use. Organizational consumers pur- chase for further production, usage in operating the organization, or resale to other consumers. In the above model, marketing and other stimuli enter the customers “black box” and produce certain responses. The consumer receives information from the Marketing and other stimuli. This informa- tion enters in to the buyer’s black box. This is termed as black box of buyers as what ever goes on here results in a particular response i.e. product choice, brand choice etc. The main task of the marketer is to find out what goes on in the black box. in the mind of the consumer, so in that we are dealing with the consumer decision making process which is affected by certain factors that affects
Growing up. the official six social classes in the UK are widely used to profile and predict different customer behavior. For example.Marketing Management its decision. In a group. Sometimes a sub-culture will create a substantial and distinctive market segment of its own. perception and wants from the family and other important groups. In the UK’s socioeconomic classification scheme. In fact. Sub-cultures can include nationalities. Factors affecting consumer behavior Each of these factors is discussed in more detail in the following sections on buyer behavior. For example. religions. social class is not just determined by income. income. such as the groups to which the customer belongs and social status. differences in social class can create customer groups. or groups of people sharing the same geographical location. Social factors: A customer’s buying behavior is also influenced by social factors.101G . wealth and other variables Activity: Take a product of your choice and prepare a marketing strategy taking in to consideration the cultural products. children learn basic values. several individuals may interact to influence the purchase decision. Marketers are always trying to spot “cultural shifts” which might point to new products that might be wanted by customers or to increased demand. Each culture contains “sub-cultures” – groups of people with share values. the cultural shift towards greater concern about health and fitness has created opportunities (and now industries) servicing customers who wish to buy: „ Low calorie foods „ Health club memberships „ Exercise equipment „ Activity or health-related holidays etc. Cultural factors: Cultural factors have a significant impact on customer behavior. Similarly the increased desire for “leisure time” has resulted in increased demand for convenience products and services such as microwave ovens. It is measured as a combination of occupation. racial groups. ready meals and direct marketing service businesses such as telephone banking and insurance. Culture is the most basic cause of a person’s wants and behavior. The typical roles in such a group decision can be summarized as follows: 168 16. education. the “youth culture” or “club culture” has quite distinct values and buying characteristics from the much older “gray generation” Similarly.
politicians. The groups with whom you interact directly or indirectly influence your purchase decisions and thus their study is of great impor.workers are examples of primary groups. but is not likely to be received as a member.Marketing Management Reference groups As a consumer. is influenced not only by psychological factors. formal or reference group is a very wide one and includes both direct and indirect or group influences. The three types of reference groups appeals most commonly used are: a) Celebrities. Hidden in this appeal is the subtle inducement to the customer to identify himself with the user the product in question. Film stars and sports heroes are the most popular celebrities. neighbors. 16.pastes are examples of products. Primary. A head clerk in an office may act as if he belongs to the top membership and symbolic groups influence consumer behaviors but membership groups have a more direct influence.tance to marketer to understand are: I) Primary and secondary groups: a primary group is one with which an individual interacts on a regular basis and whose opinion is of importance to him. b) Experts. social clubs and societies are other types of formal groups to which individuals may belong. sportsman. your personality and life. shaving cream (Palmolive). Graviera) are advertised using celebrities from the sports and film fields. informal and small groups exert the maximum influence on consumers and are of great interest for marketers.tant. Secondary groups are those with which an individual interacts only occasionally and does not consider their opinion very impor.style. whether small or large. Colgate and Forhans tooth. Soft drink (Thums up). col.leagues and co. Different kinds of groups. group situation with which potential customers can identify are used to promote products and services. and c) The ‘common man’ Celebrities are well known people (in their specific field of activity) who are admired and their fans aspire to emulate their behavior. Another reference group appeal is that which uses the testimonials of a satisfied customer. All workers in a factory qualify for membership to the labor union. A symbolic group is one which an individual aspires to belong to. such as film stars.tants and authors are used for establishing the benefits of the product. lawyer. attitudes and behavior. TV stars. Reference groups are used in advertising to appeal to different market segments. textiles ( Dinesh .strates to the prospective customer that demonstrates just like him uses and is satisfied with the product. Any of these groups can sever as a reference group for a consumer if it serves as a point of reference or comparison ion the formation of the values. accoun. It demon. which use the expert reference groups appeal for promotion. but also by the people around you with whom you interact and the various social groups to which you belong. Meeting your neighbors over lunch once a month for friendly exchange of news is an instance of an informal group. Jaycees are some of the well – known social groups in our society. Indirect reference groups comprise those individuals or groups with whom an individual dews not have any direct face to face contact. family. close friends. In contrast. II) Formal and informal groups: Rotary. toilet soaps (Lux) . Experts such as doctors. A formal group has a highly defined structure. an informal group is loosely defined and may have no specified roles and goals.101G 169 . III) Membership and symbolic groups: A membership group is one to which a person belongs or qualifies for membership. Labor unions. your decision to purchase and use certain products and services. specific roles and authority positions and specific goals. lions.
the latter’s influence is extremely important. Long after an individual has ceased to live with his parents. Husbands now have to shoulder a greater part of the household duties while women are asserting themselves in areas so far treated as the husband’s domain. the same decision. in different families may be made either by the husband or wife. as I unit. Children are also beginning to exert their influence on the family’s purchase decisions. The second type of family is the family of procreation consisting of the consumer’s spouse and children. v) Consumer action groups. where the children are likely to have more updated information about various brands and product attributes.Marketing Management Direct reference groups. different member play different roles. This is especially true in case of products such as television. It is from parents that we imbibe most of our values.tion strategy to suit these differing roles. records. Thus. these lines of tradi. It is a source of major influence on the individual members’ buying behavior. and vi) Work groups. where children continue to live with parents even after attain adulthood. or both may have an equal voice. iv) Formal shopping groups. There are i) The family ii) Friendship groups. The family also plays a role in consumer decision-making. In our country. purchase decisions and behavior can be classified into six categories. We can identify two families which shape an individual’s consumption behavior . stereo music systems.one is the family of orienta. personal computers. their influence of the sub –conscious mind still continues to be great. 170 16. while the husband played a dominant role in the purchased of automobiles and life insurance.tion that is the family in which you are born and consists of your parents. Traditionally. Within the family. The family. which exert a significant influence on consumer’s. But with the emergence of the workingwomen. Marketers are interested in finding out exactly the role played by individual members so that they can appropriately design their promo.tional role demarcation have been getting increasingly blurred. brothers and sisters. Family: The family is the most important of all these groups and we shall discuss it in detail. etc. is an important consumer for many products which are purchased for consumption by all family members. as shown in the following table. beliefs and purchase behavior patterns. attitudes. clothing and other household sundries.101G . is an important of all these groups and we shall discuss it in detail. as a unit. it has been the wife’s role to purchase food. iii) Formal social groups. The family.
non – neces. durables such as re. . they can successfully market those products and services whose consumption is dictated by the group norms.tising. recreation .frigerators. Status: Each role that a person plays has status. house appliances care. However. Thus in different social positions you play different roles. Roles: An individual may participate in many groups.Spend maximum on home purchases.sary appliances etc. cars. Spend on educa. His position within each group can be defined in terms of the activities he is expected to perform. household head still working. gas stoves. You are probably a manager. Group norms: Are the norms of a group are the implicit rules of conduct and behavior that are expected of its member. in certain multinational companies in India.health care.People buy and use products that reflect their status. Spend on furniture. rather than going to Mussoorie or Ooty.sions. education. less influenced by advertising. bicycles. vacations etc.Spend on travel.S. If marketers can identify the various groups to which potential consumers belong. buy large sized packages. toys such as tricycle. Empty nest II: olderMarried. . . at home you play the role of spouse and parent. Status is often measured by the degree of influence an individual exerts in the behavior and attitude of others. the norm for office wear includes a full – sleeved shirt and tie. for a holiday. Each of these roles influences your purchase deci. He may go to Europe or U.Some wives return to work. Better financial position. buy TV.Few financial burdens. no children at home. Spend on rent. various kinds of foods.Better off financially than they will be in near future. Interested in new products and influenced by adver. no children living at home.Financial position still better. For instance. very basic kitchen equipment and furniture. baby foods. not with standing the terrible heat condition.tion. 16. head retiredSolitary survivor: in Labor force Solitary survivor: Retired . . self – improvement. which is the relative prestige accorded by society. The managing director of a company may drive a Mercedes to communicate his status in society. cough medications.101G .A. food . recreation and leisure time accessories such as stereo systems. unmarried people living away from home Young newly married:No children Full nest I: Youngest child under 6 Full neat II: Youngest couples with dependant children Full neat III: Old married couples with dependant children Empty nest I: olderMarried couples. home – improvement . and when in your work situation you play that role.Marketing Management Stage in family life cycle Buying or behavior pattern Single stage Young. more tasteful furniture. . wife is usually working highest purchase rate.
and status.peoples activities. Life Style: Our life styles are reflected in our personalities and self-concepts.tions of these dimensions. a marketer can generate motivation. and emotional stability are selected personality traits. Economic and emotional motives are possible. This method is called as the psychographics-which is the analysis technique used to mea. Occupation And Income: Today people are very concerned about their image and the status in the society which is a direct outcome of their material prosperity. autonomy. Personality: personality is the sum total of an individual’s enduring internal psychological traits that make him or her unique. and desires that impel a person to or away from certain actions. these change by situation and over time. The life cycle is an orderly series of stages in which consumer attitude and behavioural tendencies evolve and occur because of developing maturity. same is the case with any consumer. 172 16.sure consumer lifestyles. adaptabil.ity. There is a method of measuring a consumer’s lifestyle. The profession or the occupation a person is in again has an impact on the products they consume. defensiveness.101G . Primary needs or motives are the physiological needs.Marketing Management Personal Factors: Age and Life cycle Stage:Like the social class the human life cycle can have a significant impact on consumer behaviour. interests and opinions. We need to know what a life-style is made of. Then based upon the combina. By appealing to motives (reasons for behavior). income. Each person has distinct motives for purchases. When a need is sufficiently pressing. Motivation: Motivation involves the positive or negative needs. consumers are classified. Marketers often define their target market in terms of the consumers present lifecycle stage. accessories and possessions. experience. Self-confidence. all our needs can be classified into two categories—primary and secondary. Consumer needs and motivations: We all have needs we consume different goods and services with the expectation that they will help fulfill these needs. goals. The concept of lifecycle as applied to marketing will be discussed in more details. sociability. which are difficult to describe measure lifestyle analysis has proven valuable in segmenting and targeting consumers according to their lifestyle classification. The status of a person is projected through various symbols like the dress. I would like to cite one example which I have come across was the a company had organized this study to identify the market segments of their place for the television sets. it directs the person to seek its satisfaction. It is a person’s mode of living as identified by his or her activities. interest and opinions. It is known as motive. dominance. Unlike personality typologies.
The man wearing a threepiece tweed suit may be seeking to fulfill his status need or his ego need by impressing his friends and family. the different levels of needs have been depicted as being watertight compartments. such as the need for air.g.g.ent levels of needs. which we have developed in response to the individuals’ psycho. since no need is ever totally satisfied.101G 173 . MASLOW’S HIERACHY OF NEEDS How does the Hierarchy Work? „ „ „ „ „ „ A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e. or bananas brocade sari or silk kimonos are expressions of our acquired needs.munication) Esteem needs are about being given recognition for a job well done. shelter) Once these physiological needs have been satisfied. The secondary needs may include the need for power. affection.logical mike.sally applicable the theory of hierarchy of needs can be ranked in order of importance from the low biological needs to the higher level psychological needs. They reflect the fact that many people seek the esteem and respect of others. In figure below. clothing is a primary need for all of us. There is always scope for further fulfill. shelter and sex. protective clothing) as well as protection against unemployment. All human needs can be classified in to five hierarchical categories and his this hierarchy is univer.up and his relationship with other members of the society. status etc. but in reality there is always overlap amongst the differ. working with colleague who support you at work. The second. prestige. Each leveled of need is fulfilled people keep moving on the next higher level of need.Marketing Management which we are born with. Clothing. But the need for three piece tweed suit. food. food. water. learning. These would include the need for love and belonging (e.ment. teamwork.this is often measured by the extent of success and/or challenge at work 16. A promotion at work might achieve this Self-actualization is about how people think about themselves . loss of income through sickness etc) Social needs recognize that most people want to belong to a group. they are no longer a motivator. The individual moves up to the next level Safety needs at work could include physical safety (e.g. com.ary needs are our acquired needs. esteem.
Maslow’s hierarchy of human needs helps us understand consumer motivations. Activity: Considering Maslow’s Hierarchy of Needs theory. perfume are bought primarily because they serve social needs. it may drive us crazy.. 174 . sounds. The message is clear . its package. which evokes the most favorable perception in the maximum number of consumers. brand name. color. In this context.Marketing Management Maslow’s model has great potential appeal in the business world. size. For example. refrigerator. which are of immediate interest to the marketer. the implication is that he has to carefully and accurately identifies his potential customers since other customers are not at all likely to notice the stimuli. but rather they are recognized. The different sights. organizes and interprets thes3e stimuli in his own individual manner based in his needs. the marketer has to ensure that the stimuli are interesting enough to attract and hold their attention. then they can decide on suitable rewards. This is because of your selective exposures. interpreted and retained in the consumer memory. fancy house and cars are bought mainly to serve ego and self. mouth and skin. security services are purchased because the fulfill safety needs. you would like to ensure that the consumers do not ignore the stimuli. a bicycle is also purchased for use in competitive sport. Still another customer segment buys a bicycle for converting into a rickshaw or bicycle cart for selling fruits. vegetables etc. Perception: The second major psychological factor that influences consumer behavior is perception. most personal care products such as soap. you suddenly seem to notice more than the usual number of advertisements pertaining to that specific product. For the marketer. it fulfils the need of a health aid. If we were to analyze and interpret each one of these stimuli. burglar alarms. But we al have an in. which relate to their immediate needs.. smells. Having identified the potential customers. Selective exposure: you must have noticed that when you are on the look out for purchasing a specific product. which you are providing. selective distortion and selective retention. Each person recognizes. fragrance. nose. For instance.ment can find out which level each employee has reached. toothpaste.. television or any other high value product or services.built screening system which helps us to ‘select’ and recognize’ only the relevant stimuli and ignore all the others. feel. taste of your product. expensive clothing. Perception can be described as “how we see the world around us”. As a person involved in marketing. tastes and sensations that we feel are known as stimuli. you are providing stimulus to your consumers through the physical shape. It is useful for the marketer who can identify what generic level need his product is capable of fulfilling and accordingly position his product and back it up with relevant marketing inputs. Your interest is to the stimuli so that you can highlight that particular stimulus of combination of stimuli. These are selective exposure. Perception helps to explain the phenomenon of why different individuals respond differently to the same stimulus under the same condition. every hour of our life we are being bombarded with a variety of stimuli. And luxury products such as jeweler.actualization needs. price and manufacture’s image. advertisement and commercials. a bicycle serves a recreational/ leisure need while for a third segment. shaving cream. All the time we are receding messages through our five organs viz. values and expectations and this is known as perception. be it camera. give some examples of how marketers appeal to basic human motivations. The same products can be sold to entirely distinct customers segments provided the marketer can correctly identify the need which the products is fulfilling. there are three aspects of perception. As a marketing manager. Since each individual’s needs. ears. selects. Products such as food and clothes are bought to fulfill physiological needs. motive and expectations are unique therefore each individual’s perception is unique. People are more likely to notice stimuli. eyes. Everyday. Insurance. generally consumers tend to perceive the quality of performs on the basis of package.if manage.
You are more likely to remember the positive feature of brand ‘A’ pressure cooker since they help reassure you that the decision. A belief is a descriptive thought that a person has about something. Learning: A newborn infant’s sucking at the feeding bottle is instinctive behavior. neutral.101G . Success cannot normally be attained without posi. This is known as ‘generalization’ of response. An outer-directed person is interested in pleasing the people around him or her.ments about the product. and then the changes are that she would like to use it as often as possible. A person may believe that a certain coking oil ‘X’ has the lowest fat content and is best for health. the process is known as selective distortion. Positive feedback about pressure cooker from a friend. the same housewife wants to buy an electric oven. Since you have already made your decision you would seek only that information which reinforces the correctness of your decision. The housewife’s response to pressure cookers has been reinforced.Marketing Management Selective Distortion: let us suppose you have decided to purchase a specific brand “A” of pressure cooker. Thus making the consumer ‘learn ‘ that the brand is good and worth patronizing.ness. Much of an adult’s human behavior sis leaned behaviors. An inner-directed person is interested in pleasing him. a special introductory price offer are all examples of cues which influence a housewife’s response to the motive for buying a pressure cooker. If you hear some positive remarks made about brands ‘B’ you would tend to find some shortcoming or flaw in that brand so that you so not feel that you have made a wrong decision by buying brand ‘A’ when you attempt to fit information to suit your join ideas or personal meaning. At some later stage. A housewife has the need is strong enough to propel her to take action it becomes a motive. Since she has had a positive experience with brand ‘A’ pressure cooker. 16. people. which she sees and hears.window. responses and reinforcements. and in the future may buy another one. Learning refers to the skill and knowledge gained from past experience that we apply to evaluate future decisions and situations. where and how the housewife responds. The beliefs constitute the brand image about the brand. services. seeing it on display in a show. This belief may be based on some real facts or it may merely be a notion or opinion that the person has.tive consumer attitudes. a marketer may find that his message is often not received in the intended manner but different consumers twist it in different ways. or negative feelings about goods. she may infer that the companymanufacturing brand ‘A’ also makes good electric ovens and choose it over other brands. Selective retention: people forget much of the stimuli which they receive3 and only retain that information which reinforces their clause and decision. was correct. firms. Thus. and/or institutions. and unique. Class-consciousness: Is the extent to which a person seeks social status. Beliefs & Attitudes: Attitudes or opinions are positive. but a five year old clamoring for chocolate or chewing gum is the result of learned behavior. because it implies that consumers can be made to learn the desired behaviors through in interplay of motives. products attract this person with social visibility. Suppose the housewife buys the pressure cooker and is satisfied with its performance. A marketer can build up demand for his brand by associating it with strong motives. issues. using the appropriate stimuli and cues and providing positive reinforcement. cues. The stimuli are the various advertise. well-known brands. The marketer must ensure that consumers have relevant and correct information about the brand to facilitate formation of a positive brand image. which you have made. stimuli. The motive is directed towards the stimulus object – a pressure cooker.or her. Cues are minor stimuli that determine when. This is a very significant factor marketer.
Factors affecting the process are a consumer’s demographic. PROBLEM AWARENESS: During problem awareness. people. it must be determined whether the shortage or unfulfilled desire can be satisfied by any alternative.At any point in the process. Attitudes get settled into specific patterns and are difficult to change.101G . Physical. person. STIMULUS: A stimulus is a cue or drive meant to motivate a person to act.As risk increases. other times. attitude develops over the time with each fresh knowledge input. services. evaluation and tendency towards a particular idea or object. he or she will go on to the next step in the decision process. Sometimes. It is easier to market product that fits in well with the existing patterns of attitudes rather than change the attitudes to fit a new product concept. A stimulus can be any of the following: Social. A prospective consumer may be exposed to any or all of these types of stimuli. and psychological characteristics. INFORMATION SEARCH: Information search involves listing alternatives that will solve the problem at hand and a determination of the characteristics of each. social.Marketing Management Attitude is a person’s enduring feeling. place. Many consumers are hesitant to react to unfulfilled desires because there are risks and the benefits may be hard to judge. only a few steps are utilized . The decision process consists of six basic stages (the next six sections). It consists of the process itself and factors affecting the process. If a person is sufficiently stimulated. Commercial. organizations. the consumer recognizes that the good. it may be ended. or idea may solve a problem of shortage or unfulfilled desire. Search can be internal and/or external . Once the information search is completed. 176 16. organization. STEPS IN CONSUMER DECISION MAKING PROCESS The final consumer’s decision process is the way in which people gather and assess information and make choices among alternative goods. and ideas. all six stages in the process are used. Starting from childhood. Noncommercial. service. the amount of information sought also increases. places. experience and influence.
and thought. Terms. They are then ranked and a choice made. often subconsciously. Demographic. POST-PURCHASE BEHAVIOR: Frequently.With low-involvement purchasing. There are three ways in which the decision process may be used. Regularly pur. 16. Extensive decision-making: Occurs when a consumer makes full use of the process. and so on. EVALUATION OF ALTERNATIVES: The alternatives are evaluated on the basis of the consumer’s criteria and the relative importance of these criteria. It enables a consumer to minimize risk.portant. B. Brand loyalty is the consistent repurchase of and preference toward a brand. and time pressure. Buying one item may lead to the purchase of another. and post-purchase advertisements. By understanding how these factors affect decision making. the consumer engages in post-purchase behavior. PURCHASE . The consumer has some experience. Re-evaluation of the purchase occurs when the consumer rates the alternative selected against performance standards. Availability.chased items are bought in this manner. can be reduced by follow-up calls. and psychological factors affect consumer decision making. a consumer will make a purchase. doubt that a correct purchase decision has been made. Seven useful sources are provided. evaluation. The thoroughness with which the process is used depends on the amount of experience. social. TYPES OF DECISION PROCESSES The decision process is used each time a good or service is bought. the importance of the purchase. Purchase decisions remaining at this stage center on The place of purchase. a firm can fine-tune its strategies to cater to the target market.Marketing Management The Internet has become a major source for consumer shopping information. time. Cognitive dissonance. or support in return of ownership of a specific good. the performance of a specific service. but the consumer does not need to spend a great deal of time on any of them.101G 177 . If the above elements are acceptable.The purchase act involves the exchange of money or a promise to pay for a product. Perceived risk is high and time pressure is low. Routine decision-making: involves habitual behavior and skips steps in the process. the consumer minimizes decision making for those goods and services perceived to be socially and/or psychologically unim. complex items with which the consumer has little or no experience. and post-purchase behavior are normally omitted. FACTORS AFFECTING THE FINAL CONSUMER’S DECISION PROCESS A. It is used for expensive. Several differences between consumers in industrialized nations and those in less-developed and developing ones are cited by the text. Information search. Limited decision making: takes place when each step of the process is used. extended warranties.
but lacks information about it (2) Interest . It may have been available for some time. 2. Differences in decision making among consumers in different countries. travelers consult friends and relatives. and psychological factors.the customer considers whether trying the new product makes sense (4) Trial .101G . They may feel perceived risk. They may feel shopping is an unpleasant experience.” who enjoy shopping and like to price bargain. Satisfied consumers discuss their experiences with far fewer people than dissatisfied ones. and travel magazines. The impact of demographic. 3. The hidden nature of many elements.the customer tries the new product on a limited or small scale to assess the value of the product (5) Adoption . but many potential customers have not yet adopted the product nor decided to become a regular user of the product” Research suggests that customers go through five stages in the process of adopting a new product or service: these are summarized below: (1) Awareness . The subconscious performance of the process. They may expect prices to fall. They may not know how to gather adequate information. 1. 178 16. social. CUSTOMER BUYING PROCESS FOR NEW PRODUCTS How do customers approach the process of buying a new product? How does this differ from the process for buying a product. 4.Marketing Management The text explains how Gateway generates and sustains customer loyalty. which the customer has bought before? What does a “new product” mean? A new product can be defined as: “A good. For several reasons.the customer decides to make full and/or regular use of the new product What is the role of marketing in the process of new-product adoption? A marketing team looking to successfully introduce a new product or service should think about how to help customers move through the five stages. LIMITATIONS OF THE FINAL CONSUMER’S DECISION PROCESS 1. Some studies the ratio is 3:11. They may need advice from others. 4.” These may be the reasons for this: They don’t think they have time to devote to the decision. When acquiring information for a leisure trip. the Internet. 3. 2. Nearly a third of Chinese consumers are “enthusiastic shoppers. MARKETINGAPPLICATIONS OF THE FINAL CONSUMER’S DECISION PROCESS There have been many studies on the marketing implications of the final consumer’s decision process.the customer becomes aware of the new product. service or idea that is “perceived” by some potential customers as new. “substantial time often elapses between the time people recognize the need for a product and the time they actually purchase it. They may expect improved products to be introduced later.the customer seeks information about the new product (3) Evaluation . a travel agent.
Marketing Management For example. less well off and lower on the socioeconomic scale. if at all) tend to be older. Points to remember: 16. Conversely. in his influential work on the diffusion of innovations.ers who buy first are likely to be significantly different from those who buy the product much later. the “laggards” (those who adopt last. This needs to be borne in mind when developing the marketing mix. less intelligent. intelli.gent. suggested the following classification: The “innovators” (those who adopt new products first) are usually relatively young. It follows from the above model that when a business launches a new product or service.101G 179 . what kind of advertising or other promotional campaign can be employed to build customer awareness? If customers show a desire to trial or sample a product. lively. Rogers. and socially and geographically mobile. the custom. how can this be arranged effectively? Research also suggests that customers can be divided into groups according to the speed with which they adopt new products. They are often of a high socioeconomic group (“AB’s”).
Marketing Management 180 16.101G .
Marketing Management 16.101G 181 .
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