ch 4 customer buying behaviour
TRANSCRIPT
4.CUSTOMER BUYING BEHAVIOR
STAGES IN BUYING PROCESS
A. Utilitarian Needs (Specific Shopping )
Men Women Child
B. Hedonic Needs (Shopping for Pleasure )
1. Stimulation Child Child ---
2. Social Experience Women
3. Learning New trends Women
4. Self reward
5. Adventure
RESEARCH TECHNIQUES
STAGES IN BUYING PROCESS
1. Need Recognition
A. Types of Needs – 1 Utilitarian Needs (Specific Shopping )
2 Hedonic Needs (Shopping for Pleasure )
•Stimulation
•Social Experience
•Learning New trends
•Status & Power
•Self reward
•Adventure
B. Conflicting Needs
• Cross Shopping – Pattern of buying both premium & low priced
merch
C. Stimulating Need Recognition – Tie with a blazer
STAGES IN BUYING PROCESS CONTI….
2. Information Search
Amount of Info searched
- Influencing factors : a) nature & use of product being purchasedb) characteristics of individual customerc) aspects of market & buying situation
Source of information –Internal /External
Reducing the information search - EDLP
STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute model
I. Beliefs about Performance A. Information about stores selling groceries
Store Characteristic Super Center Supermarket Internet Grocer
Grocery Prices 20% below Avg Avg 10% above Avg
Delivery cost 0 0 10
Total travel time 30 15 0
Typical check out time (Minutes )
10 5 2
No. Of Products ,Brands, & Sizes
40000 25000 20000
Fresh Produce Yes Yes Yes
Fresh Fish Yes Yes No
Ease of Finding Products Difficult Easy Easy
Ease of collecting nutritional information about products
Difficult Difficult Easy
STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute model
I. Beliefs about Performance
B. Beliefs about Stores Performance Benefits
Performance Benefit
Supercenter Supermarket Internet grocer
Economy 10 8 6
Convenience 3 5 10
Assortment 9 7 5
Availability of product information 4 4 8
* 10 = excellent; 1 = poor
STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute model contd…
II. Importance Weights
CHARACTERISTIC
PARENT WITH FOUR CHILDREN
SUPER CENTER
SUPERMARKET
INTERNET GROCER
ECONOMY 4 10 10 8 6
CONVENIENCE 10 4 3 5 10
ASSORTMENT 5 8 9 7 5
AVAILABILITY OF PRODUCT INFORMATION 9 2 4 4 8OVERALL EVALUATION Young Single Woman 151 153 221
Parent with four children 192 164 156
PERFORMANCE BELIEF YOUNG SINGLE
WOMAN
IMPORTANCE WEIGHT
* 10 = very important; 1 = very unimportant
STAGES IN BUYING PROCESS CONTI….
3. Evaluation of Alternatives : The Multi-attribute model contd…
III. Evaluating stores
IV. Implications for retailers-
Getting into the consideration set
Changing performance beliefs
Changing importance weights
Adding a new benefit
STAGES IN BUYING PROCESS CONTI….
4. Purchasing the Merchandise or Service - Retailers preventive measures
a) No stock outs
b) Appropriate return / exchange policies
c) Credit terms
d) Convenient check outs
e) Minimal waiting time at checkout
5. Post purchase Evaluation
TYPE OF BUYING DECISIONS
Extended Problem Solving -
Extended time & effort is invested
Limited Problem Solving -
Moderate time investment. Impulse Buying
Habitual Decision Making -
Little / No effort. Brand Loyalty /Store Loyalty
SOCIAL FACTORS INFLUENCING THE BUYING PROCESS
Family
Reference Group – used as a basis of comparison
for beliefs, feelings & behaviors
Culture – beliefs, moral, values shared by most
members within a society
MARKET SEGMENTATION
Group of customers whose needs are satisfied by a similar retail mix because they have similar needs
Criteria for evaluating Market segments
Actionability - Should clearly indicate what action should be taken to satisfy its needs
Identifiability - Segment size, Target audience to communicate
Accessibility - Ability to communicate to the segment
Size - Target segment should be large enough
MARKET SEGMENTATION CONTI…
Approaches for segmenting Markets
Geographic
Demographic
Geo-demographic
Lifestyle
Buying situation
Benefit segmentation
Composite segmentation approaches
E