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Definition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand:
• • •
why consumers make the purchases that they make? what factors influence consumer purchases? the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies.
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Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. The 6 stages are:
1. Problem Recognition(awareness of need)--difference between the
desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 2. Information search-o Internal search, memory.
may think that really you wanted a chinese meal instead. indian gets highest rank etc.. features the buyer wants or does not want. comparison shopping. the evoked set. After eating an indian meal. 4. method of purchase etc.o External search if you need more information. Return to Contents List Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: . If not satisfied with your choice then return to the search phase.. after sales communication etc. have you made the right decision. This can be reduced by warranties. Purchase--May differ from decision. Rank/weight alternatives or resume search. Marketer dominated sources. A successful information search leaves a buyer with possible alternatives. Can you think of another restaurant? Look in the yellow pages etc. This helps reduce cognitive dissonance when a marketer can answer any concerns of a new consumer. store. Cognitive Dissonance. evoked set is chinese food indian food o burger king o klondike kates etc Evaluation of Alternatives--need to establish criteria for evaluation. want to go out and eat. time lapse between 4 & 5. Friends and relatives (word of mouth).Pillsbury 1-800#s 1-800 #s gives the consumer a way of communicating with the marketer after purchase. May decide that you want to eat something spicy. package. Marketers try to influence by "framing" alternatives. Purchase decision--Choose buying alternative. Handout. product availability. o o 3. includes product. Hungry. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. 6. 5. Information from different sources may be treated differently. public sources etc.
need very little search and decision effort. Limited Decision Making--buying product occasionally. milk etc. Extensive Decision Making/Complex high involvement. perhaps. products visible to others.• • Level of Involvement in purchase decision. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. snack foods. When you need to obtain information about unfamiliar brand in a familiar product category. store personnel etc. expensive and/or infrequently bought products. Requires a moderate amount of time for information gathering. computers. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all). Impulse buying. The reason for the dinner. but limited decision making for someone else. purchased almost automatically. high priced goods. Examples include cars. homes. Go through all six stages of the buying process. education. The purchase of the same product does not always elicit the same Buying Behavior. and the higher the risk the higher the involvement. unfamiliar. Types of risk: • • • Personal risk Social risk Economic risk The four type of consumer buying behavior are: • • • • Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items. Product can shift from one category to the next. friends and relatives. Importance and intensity of interest in a product in a particular situation. Examples include Clothes--know product class but not the brand. no conscious planning. Spend alot of time seeking information and deciding. whether it is an anniversary celebration. Information from the companies MM. . Examples include soft drinks. High involvement purchases--Honda Motorbike. High degree of economic/performance/psychological risk. or a meal with a couple of friends will also determine the extent of the decision making.
Psychological 3. Demographic Factors. MASLOW hierarchy of needs!! .. Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. Handout. Return to Contents List Personal Unique to a particular person. Age etc. making a purchase decision will be affected by the following three factors: 1. Race. not just one. If marketers can identify motives then they can better develop a marketing mix. Actions are effected by a set of motives.From choices to checkout. Young people purchase things for different reasons than older people. Who in the family is responsible for the decision making. Sex..Return to Contents List Categories that Effect the Consumer Buying Decision Process A consumer. Personal 2. Highlights the differences between male and female shoppers in the supermarket.. Return to Contents List Psychological factors Psychological factors include: Motives-- A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal..
It was therefore targeted at consumers whose needs were for either love and Belonging or esteem. The product was not selling well. Nutrament. intensity of input changes (sharp price drop). They would purchase Nutrament as a substitute for a meal. a product marketed by Bristol-Myers Squibb originally was targeted at consumers that needed to receive additional energy from their drinks after exercise etc..o o o o o Physiological Safety Love and Belonging Esteem Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases.. Motives often operate at a subconscious level therefore are difficult to measure. hearing. organizing and interpreting information inputs to produce meaning... IE we chose what info we pay attention to. Handout. . Selective Exposure-select inputs to be exposed to our awareness. BM-S therefore had to redesign its MM to better meet the needs of this target market.. and was almost terminated. More likely if it is linked to an event. a fitness drink. These consumers were at the Physiologicallevel of the hierarchy.Nutrament Debunked. organize it and interpret it. Perception-- What do you see?? Perception is the process of selecting. Their motivation to purchase was completely different to the motivation that B-MS had originally thought. It was determined that the consumers for the product were actually drug addicts who couldn't not digest a regular meal. satisfies current needs. smell and touch. inconsistent with beliefs. Upon extensive research it was determined that the product did sell well in inner-city convenience stores. Selective Distortion-Changing/twisting current received information. taste. Information inputs are the sensations received through sight.
Knowledge is the familiarity with the product and expertise.000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned.free sample etc.. on knowledge that is stored in the memory. Attitudes-- ..open bottle of wine and pour it!! Also educate american consumers about changes in SA. need to give them new information re: product.. Need to sell a whole new country.. because they assume that the greater price indicates greater quality. Problems marketing wine from South Africa. Interpreting information is based on what is already familiar. buyers must process information. Exposed to 1.. Can't be expected to be aware of all these inputs. changes in a person's behavior caused by information and experience.. Non-alcoholic Beer example: consumers chose the most expensive sixpack. When making buying decisions..500 advertisement per day. Handout.do you ever get confused? Selective Retention-Remember inputs that support beliefs.... A current example. Average supermarket shopper is exposed to 17. and certainly will not retain many. South Africa. Consumers have strong perceptions of the country.Advertisers that use comparative advertisements (pitching one product against another).MCI and AT&T. and hence its products. Therefore to change consumers' behavior about your product.South Africa wine. Ability and Knowledge-- Need to understand individuals capacity to learn.. Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior. forgets those that don't. have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Learning...
When purchasing a product there several processes. for impulse low frequency purchases e.. which consumers go through. For high value items like a DVD player or a car or other low frequency purchased products this is the process we would take. Sources of information could be family.. What’s the solution? Yes go out and purchase a new one.living. Problem/Need Recognition How do you decide you want to buy a particular product or service? It could be that your DVD player stops working and you now have to look for a new one. 1.Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible. confectionery the process is different.. 2. These will be discussed below..Drive perceptions Individual learns attitudes through experience and interaction with other people.g. all those DVD films you purchased you can no longer play! So you have a problem or a new need. Consumer Buying Behaviour What influences consumers to purchase products or services? The consumer buying process is a complex matter as many internal and external factors have an impact on the buying decisions of the consumer. Information search So we have a problem. living or non. but which brand? Shall we buy the same brand as the one that blew up? Or stay clear of that? Consumer often go on some form of information search to help them through their purchase decision. neighbours who may . However. our DVD player no longer works and we need to buy a new one. friends.
it is therefore just as important for manufacturers to advertise for the sake of their . Manufacturers of products clearly want recent consumers to feel proud of their purchase. This means that consumers know what features from the rivals will benefit them and they attach different degrees of importance to each attribute. which for some consumers can be as just as rewarding as actually purchasing the product. 4. Toshiba or Bush? Consumers allocate attribute factors to certain products. So what DVD player do we purchase? Shall it be Sony. or over the phone. For example sound maybe better on the Sony product and picture on the Toshiba .have the product you have in mind. or read specialist magazines like What DVD? to help with their purchase decision. but if the decision falls between the Sony DVD or Toshiba then which one shall it be? It could be that the a review the consumer reads on the particular Toshiba product may have tipped the balance and that they will purchase that brand. 3. but picture clarity is more important to you then sound. You may even actually examine the product before you decide to purchase it. alternatively you may ask the sales people. Purchase decision Through the evaluation process discussed above consumers will reach their final purchase decision and they reach the final process of going through the purchase action e.g. Purchase of the product can either be through the store. almost like a point scoring system which they work out in their mind over which brand to purchase. Consumers usually have some sort of brand preference with companies as they may have had a good history with a particular brand or their friends may have had a reliable history with one. The process of going to the shop to buy the product. or dealers. Evaluation of different purchase options. the web. Post Purchase Behaviour Ever have doubts about the product after you purchased it? This simply is post purchase behaviour and research shows that it is a common trait amongst purchasers of products.
Also characters have an influence on buying decision. These factors will influence their purchase behaviour however other factors like groups of friends.recent purchaser so consumers feel comfortable that they own a product from a strong and reputable organisation. Reference groups are particular groups of people some people may look up towards to that have an impact on consumer behaviour. a child is influenced by their parents. Peoples social status will also impact their behaviour. i. what influences you before you buy a product or service? Your friends.e. attitudes and beliefs (AIO) . your upbringing. do consumers have a secure job and a regular income to spend on goods? Marketing and advertising obviously influence consumers in trying to evoke them to purchase a particular product or service. What is their role within society? Are they Actors? Doctors? Office worker? and mothers and fathers also? Clearly being parents affects your buying habits depending on the age of the children. a role model or influences from certain groups? Culture is one factor that influences behaviour. your culture. sister and other family member who may teach them what is wrong or right. Whether the person is extrovert (out . So they can be simply a band like the Spice Girls or your immediate family members. the type of job may mean you need to purchase formal clothes. Opinion leaders are those people that you look up to because your respect their views and judgements and these views may influence consumer decisions. The economical environment also has an impact on consumer behaviour. which helps them develop these opinions. The lifestyle of someone who earns £250000 would clearly be different from someone who earns £25000. Factors influencing the behaviour of buyers. the income which is earned has an impact. Just think. This limits post purchase behaviour. You feel reassured that you own the latest advertised product. the media. Simply culture is defined as our attitudes and beliefs. Consumer behaviour is affected by many uncontrollable factors. or people they look up to may influence their choices of purchasing a particular product or service. So it maybe a friend who works with the IT trade who may influence your decision on what computer to buy. They learn about their religion and culture. But how are these attitudes and beliefs developed? As an individual growing up. brothers.
Maslows concept suggests that needs change as we go along our path of striving for selfactualisation. He set out his answer in a form of a hierarchy.learnmanagement2. where the priority lay with job security and the knowing that an income will be available to them regularly. For further information on motivation theory please visit www. So Maslows concept is useful for marketers as it can help them understand and develop consumer needs and wants.going and spends on entertainment) or introvert (keeps to themselves and purchases via online or mail order) again has an impact on the types of purchases made. Supermarket firms develop value brands to meet the psychological needs of hunger and thirst. Harrods develops products and services for those who want have met their esteem needs. He suggests individuals aim to meet basic psychological needs of hunger and thirst. The point of self-actualisation is down to the individual. status sometimes drives people. There are four typical types of buying behaviour based on the type of products that intends to be purchased. the need to have a good job title and be recognised or the need to wear branded clothes as a symbol of status. Esteem need is the need for status and recognition within society. Self-actualisation the realisation that an individual has reached their potential in life. Maslow’s Hierarchy of Needs Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in life to achieve. Complex buying behaviour is where the individual purchases a high value brand and seeks a lot of . the need to belong or be loved is a natural human desire and people do strive for this belonging. marketing is about meeting needs and providing benefits.com Types of buying behaviour. When this has been met they then move up to the next stage of the hierarchy. safety needs. Social needs come in the next level of the hierarchy. when do you know you have reached your point of selffulfilment? But how does this concept help an organisation trying to market a product or service? Well as we have established earlier within this website.
because the purchase is expensive or infrequent.information before the purchase is made. Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. There is little difference between existing brands an example would be buying a diamond ring. • Purchase decision. Habitual buying behaviour is where the individual buys a product out of habit e. a daily newspaper. • Evaluation of purchases. sugar or salt. • Culture has an impact on the company. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings! Dissonance reducing buying behaviour is when buyer are highly involved with the purchase of the product.g. • Post purchase behaviour. þÿ Search . there is perceived little difference between existing diamond brand manufacturers. To summarise: • There are five stages of consumer purchase behaviour • Problem/Need Recognition • Information search. • Marketers should take into account Maslows hierarchy of needs.
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