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Buyers Decision Process

• How can packaging affect every stage of the buyer decision process? Explain and give examples • What is the role of packaging in the following three types of buyer decisions: – Routine response behavior – Limited problem solving – Extensive problem solving • Give examples

Model of Buyer Behavior

The Buyer Decision Process The Fishbein Model (1963) Ao = ∑ b a i-1 i i N where Ao = attitude towards brand bi = belief that brand possesses attribute i ai = evaluation (good vs bad) of attribute i N = number of salient attributes .

Buyer Decision Process .

1. Packaging Helps Consumers to Recognize the “Problem” • “Time to buy more” reminder • In-store attraction – Impulse buy – Package appears in ads – The package is a 3-D point of purchase (POP) ad .

2. Packaging Aids In-Store Information Source • List or illustrate features. benefits • Position in evoked set .

price • Attraction • Shows that a brand possesses a salient attribute . usage rates. features • Sizes. Packaging Provides a Basis for Evaluating Alternatives • Show similarities and differences • Relative importance of attributes.3.

Ao = ∑ b a i-1 i i N • Toothpaste package attributes: – “Whitening” – “Breath” – “Flavor” – Easy to open – Easy to close – Easy to dispense – Recyclable .

Evaluate Alternatives .

4. Packaging Affects the Moment of Purchase Decision • • • • Previous stages Shelf appeal Brand trust reduces risk Self expression .

Purchase Decision .

Packaging’s Postpurchase Role • Instructions • Convenience (opening. using. reclosing) • Appropriate for use occasion • 800-number—encourage complaints • Lifestyle fit • Foster brand loyalty • Disposal acceptability • Time to buy more .5.

Postpurchases .

Buyer Decision Process .

Types of Buying Decisions • Routine response behavior – T..P. car . milk • Limited problem solving – Follow recipe. small appliances • Extensive problem solving – Computer.

Routine Response Buying Behavior • • • • • Low cost products Frequent purchases Low consumer involvement Little thought or search time Familiar product class and brands • More point of purchase (POP) packaging involvement: – Recognize brand or need – Attract attention (impulse buying) – Brand loyalty .

Point of Purchase (POP) • POP is growing in importance – Smaller advertising/promotional budgets that accompany recessions – Efficiency in targeting consumers at the time of purchase – Decline of network TV viewership and newspaper readership .

1% of the $240 billion spent on ads) • The Buyers Report predicts that it will grow to almost 20% in the next 5 years (Source Digital Output 2004) . Cont • POP Advertising Institute: in-store advertising accounts for 53-60% of consumer purchases • International Point of Purchases Cap I Institute: 72% of purchase decisions are made at the point of purchase • 2002 POP Buyers Report: annual POP spending is estimated at over $17 billion (7.POP.

shelf and floor decals (can be tied with vehicle decals) • An integral part of the marketing mix • Go up and come down quickly and easily • Safe • Attention getting • Purchase motivating . window.Demands of POP • Retailers want customized POP. differentiating them from competitors • Wall.

POP Examples .

POP Examples .

Types of Buying Decisions • Routine Response • Limited problem solving • Extensive problem solving .

Limited Problem Solving • Mid-price • Some purchase experience and familiarity • Limited thought and search • Some packaging involvement (depends on product type) – Package explains – Product attributes & differentiation – Package features may solve a problem like opening. dispensing. cooking or reclosing .

Extensive Problem Solving • • • • Expensive products Infrequent purchasing High consumer involvement Extensive thought and search time • Unfamiliar product class and brands • Less packaging involvement – Information for self service shopping • Product attributes & differentiation – Post-purchase info. instructions. confidence .

Model of Buyer Behavior .