Download - Consumer Behaviour-lec 5
-
8/9/2019 Consumer Behaviour-lec 5
1/34
Consumer & BusinessBuyer Behaviour
Chapter 5 & 6
-
8/9/2019 Consumer Behaviour-lec 5
2/34
Agenda
Consumer Market and Major Factors that InfluenceConsumer Buying Behavior Consumer Buying Decision Process
Adoption and Diffusion Process for New Products
Business Market and Major Factors that InfluenceBusiness Buyer Behavior Business Buying Decision Process
Term Project and Term Project Proposal
Next Class
-
8/9/2019 Consumer Behaviour-lec 5
3/34
Two Types of Markets
Consumer
Business
-
8/9/2019 Consumer Behaviour-lec 5
4/34
Think about Starbucks
Why are consumers willing to pay $2.00 for a cup ofcoffee?
Who are Starbucks target markets?
What is the marketing
communication message
Starbucks wants to convey?
Why has Starbucksbeen successful?
-
8/9/2019 Consumer Behaviour-lec 5
5/34
Understanding the Consumer Market
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
BuyersBlack
Box
Buyer
Characteristics
BuyingDecision
Process
BuyersResponses
Product choice
Brand choice
Dealer choicePurchase timing
Purchase amount
Marketing and
other stimuli
-
8/9/2019 Consumer Behaviour-lec 5
6/34
Traditional factors affecting
consumer purchasing behaviors
Demographics (age, gender, income, etc.)
Heredity and home environment
Family life cycle
Life changing events
Cultural environment
Social environment
Situational environment
Psychological Factors
-
8/9/2019 Consumer Behaviour-lec 5
7/34
Maslows Hierarchy of Needs
Different types of needs drivebehaviour to satisfy those needs in an
order of precedenceMost basic needs
fulfilled first
Physiological
Self-Actualization
Esteem
Social
Safety
-
8/9/2019 Consumer Behaviour-lec 5
8/34
Think about a specific major purchase
youve made recentlyWhat buying process did you follow?
What major factors influenced your decision?
-
8/9/2019 Consumer Behaviour-lec 5
9/34
Consumer Decision-Making Process
Problem
Recognition
InformationSearch
Evaluation
of
AlternativesPurchase
Decision
Postpurchase
Evaluation
-
8/9/2019 Consumer Behaviour-lec 5
10/34
Information Search
Two ways of gathering information:
1. Internally
2. Externally
Types of info sources: Commercial Public Personal Experiential
-
8/9/2019 Consumer Behaviour-lec 5
11/34
-
8/9/2019 Consumer Behaviour-lec 5
12/34
The Purchase Decision
Decision to purchase a particular product may
be based on several factors:Attitudes of Others
Unexpected Situational Factors
What other factors influence the PurchaseDecision?
-
8/9/2019 Consumer Behaviour-lec 5
13/34
Postpurchase Evaluation
Evaluation of product performance
Cognitive dissonance
Impacts future purchases
Impacts word-of-mouth/communication
-
8/9/2019 Consumer Behaviour-lec 5
14/34
Stages in the New Product Adoption
Process
Adoption process:
the mental process through which an individualpasses from first hearing about an innovation tofinal adoption
Consists of 5 Stages (These are exactly asthey indicate): Awareness Interest Evaluation Trial Adoption
-
8/9/2019 Consumer Behaviour-lec 5
15/34
New Product Adoption Rates
Time of adoption of innovations
2.5%Innovators
34%
Earlymajority
34%
LatemajorityEarly
adopters
13.5%
16%Laggards
Source: Free Press, a Division of Simon & Schuster, fromDiffusion of Innovations, Fourth
Edition, by E.M. Rugers, 1983.
-
8/9/2019 Consumer Behaviour-lec 5
16/34
Influences on the Rate of Adoption
Relative advantage How much better than existing alternatives?
Compatibility Fit current values and experiences?
Complexity Ease of understanding?
Divisibility Can it be tried on a limited basis?
Communicability Can the innovation be observed and communicated?
-
8/9/2019 Consumer Behaviour-lec 5
17/34
Two Types of Markets:
Consumer
Business
-
8/9/2019 Consumer Behaviour-lec 5
18/34
BUSINESS BUYING DECISIONS
-
8/9/2019 Consumer Behaviour-lec 5
19/34
Distinguishing Characteristics of
Business Markets
Concentrated Demand Derived Demand
Purchasing Professionals
Multiple Buying Influences
Close Buyer-Seller Relationships
-
8/9/2019 Consumer Behaviour-lec 5
20/34
Business-to-Business Buying
Process
Identification of a need
Establishment of specifications Identification of alternatives
Identification of vendors
Evaluation of vendors Selection of vendors
Negotiation on purchase terms
-
8/9/2019 Consumer Behaviour-lec 5
21/34
Influences on the Business Buying
Organization Buying centre, structure and systems, resources,
goals, environment and policies Individual
Position, age, education, social situation, attitudeabout risk, etc.
Environmental Demand for the product, other external
environmental factors (i.e., regulatory, technology,competition)
-
8/9/2019 Consumer Behaviour-lec 5
22/34
Types of Purchasing Decisions
Straight Rebuy Buying Situation Routine Response Behavior
Modified Rebuy Buying Situation Limited Problem Solving
New Task Buying Situation Extensive Problem Solving
-
8/9/2019 Consumer Behaviour-lec 5
23/34
Characteristics of the
Three Types of Buying Decisions
Newness of Problem or NeedNewness of Problem or Need
Information RequirementsInformation Requirements
Information SearchInformation Search
Consideration of New AlternativesConsideration of New Alternatives
Multiple Buying InfluenceMultiple Buying InfluenceFinancial RisksFinancial Risks
StraightStraight
RebuyRebuy
LowLow
MinimalMinimal
MinimalMinimal
NoneNone
Very SmallVery SmallLowLow
Routineresponse
ModifiedModified
RebuyRebuy
MediumMedium
ModerateModerate
LimitedLimited
LimitedLimited
ModerateModerateModerateModerate
Limitedprob.
solving
NewNew
TaskTask
HighHigh
MaximumMaximum
ExtensiveExtensive
ExtensiveExtensive
LargeLargeHighHigh
Extendedprob
solving
-
8/9/2019 Consumer Behaviour-lec 5
24/34
Multi-Attribute Model
Assessment ofAssessment ofProduct or SupplierProduct or Supplier
Performance (P)Performance (P)
Assessing the RelativeAssessing the RelativeImportance of EachImportance of Each
Characteristic (I)Characteristic (I)
The base scoreThe base score
The weightThe weight
-
8/9/2019 Consumer Behaviour-lec 5
25/34
Example of the Multi-Attribute Model
Process
Vinyl Fabric Nylon Velvet Fabric
Characteristi
c
Performa
nceScore
Importanc
eWeight
PxI Performa
nceScore
Importanc
eWeight
PxI
Comfort 5 9 45 8 9 72
Durability 7 8 56 8 8 64
Guarantee 7 8 56 8 8 64
Price 10 6 60 1 6 6
Evaluation
Score
217 206
-
8/9/2019 Consumer Behaviour-lec 5
26/34
Examples of Buying Motives:
Psychological or Functional?
A girl wants to remember her grandmother
on her birthday.Her primary motive is?
Psychological
-
8/9/2019 Consumer Behaviour-lec 5
27/34
Examples of Buying Motives:
Psychological or Functional?
A homemaker needs a new washing
machine and has had good experiences withMetro.
Her primary motive is ?
Functional
-
8/9/2019 Consumer Behaviour-lec 5
28/34
Examples of Buying Motives:
Psychological or Functional?
A teacher wants to buy a practical car to be
used for family transportation.Her/His primary motive is ?
Functional
-
8/9/2019 Consumer Behaviour-lec 5
29/34
Examples of Buying Motives:
Psychological or Functional?
A career woman always buys J. clothes.
Her primary motive is?
Psychological
http://www.lizclaiborne.com/product/index.jsp?productId=2179527&cp=1986587.1988213&parentPage=family -
8/9/2019 Consumer Behaviour-lec 5
30/34
Examples of Buying Motives:
Psychological or Functional?
An overweight 40 year old man wants toloose weight so that he can reduce his bloodpressure.
His primary motive is?
Functional
-
8/9/2019 Consumer Behaviour-lec 5
31/34
Examples of Buying Motives:
Psychological or Functional?
A homeowner needs to mow their lawn.
Their primary motive is?
Functional
-
8/9/2019 Consumer Behaviour-lec 5
32/34
Consumer Buying Behavior
Competency
Functional Motive Psychological Motive
The price is 40 cents offthe regular price
It never needs ironing
Diamonds are forever
Serving you since 1971
Ninety-day warranty
-
8/9/2019 Consumer Behaviour-lec 5
33/34
Consumer Buying Behavior
Competency
Functional Motive Psychological Motive
Running shoe with built-inarch
Its all the ragecolored
action wear and style
Wheatiesthe breakfast of
champions!
Steel-belted radial tires
warranted for 40,000 miles
A watcha gift she will
treasure always
-
8/9/2019 Consumer Behaviour-lec 5
34/34
Thanks