consumer & business buyer behavior. perception process by which an individual selects,...
TRANSCRIPT
Perception
Process by which an individual selects, organizes, and interprets information to form a cohesive picture about an entity
Perceptions affect consumer behavior However, remember that individuals can
perceive the same entity in different ways
Perception
Selective Attention: Receive some messages and screen out the rest An average person is exposed to 1500 ads or brand
messages a day Most of these are screened out; So, how do marketers
capture mind space? People are more likely to notice stimuli that relate to current
needs People are more likely to notice stimuli they anticipate People are more likely to notice stimuli that deviate relatively
larger than others Marketers must bypass attention filters; provide
unexpected stimuli (salesperson, sudden offers)
Perception
Selective Distortion: Tendency to interpret/distort information to be consistent with prior brand and product beliefs Taste tests: “Blind” taste tests showed equal
split; “Open” tests showed preferences Can work to the advantage of marketers of
strong brands A car may seem to drive smoother A beer may taste better
Perception
Selective Retention: Though people fail to register much information, they retain information that supports their attitudes and beliefs Remember good points about products we like
and forget good points about competing products
Works to the advantage of strong brands Explains why marketers repeat messages – for
reinforcement
Consumer Buying Decision Process
Who Makes the Buying DecisionWho Makes the Buying Decision
Types of Buying DecisionsTypes of Buying Decisions
Stages in the Buying ProcessStages in the Buying Process
Marketers Must Identify and Understand:
Consumer Buying Decision Process
Understand
Buying roles Buying behavior Buying decision
process
Initiator Influencer Decider Buyer User
Consumer Buying Decision Process
Understand
Buying roles Buying behavior Buying decision
process
Complex buying behavior
Dissonance-reducing buying behavior
Habitual buying behavior Variety-seeking buying
behavior
Consumer Buying Decision Process
Understand
Buying roles Buying behavior Buying decision
process
Five stages in the consumer buying process
The amount of time spent in each stage varies according to several factors
Need Recognition
Need/Problem Recognition Can be triggered by internal or external
stimuli Needs become wants, which lead to
behavior Marketing stimuli can stimulate a desire
for information
Information Search (1 of 2)
Sources of information: Internal Sources Personal Sources External Sources
Time, effort and expense dedicated to information search depends on: Degree of risk involved in the purchase Amount of expertise with the product category Actual cost of the search
Evoked set: A narrowed down set of alternatives that the customer is
considering
Customers evaluate products as bundles of attributes Brand attributes Product features Aesthetic attributes Price
Customers place different levels of importance on attributes
Important considerations in the evaluation stage: Products must be in the evoked set Consumers’ choice criteria must be understood Marketing programs must be designed to influence
consumers’ opinions about product or brand image
Evaluation of Alternatives
Purchase intention and the act of buying are distinct concepts
Potential intervening factors between intention and buying (car example): Unforeseen circumstances Angered by the salesperson or sales manager Unable to obtain financing Customer changes mind
Key issues in the purchase decision stage: Product availability Possession utility
Purchase Decision
Four possible outcomes in the postpurchase stage: (1) Delight (2) Satisfaction (3) Dissatisfaction (4) Cognitive Dissonance
Firm’s ability to manage dissatisfaction and cognitive dissonance is: A key to creating customer satisfaction A major influence on word-of-mouth communication
Postpurchase Evaluation
Organizational Buying
Fewer buyersFewer buyers
Larger buyersLarger buyers
Geographically Geographically concentrated buyersconcentrated buyers
Closer relationships with Closer relationships with suppliers/customerssuppliers/customers
Compared to Consumer Markets, Business Markets Have:
Problem/Need Recognition Develop Product Specifications Vendor Identification and Qualification Solicitation of Proposals or Bids Vendor Selection Order Processing Vendor Performance Review
The Business Buying Process
Unique Characteristics of Business Markets The Buying Center Hard and Soft Costs Reciprocity Mutual Dependence
Four types of Business Markets: Producer markets (a.k.a. commercial markets) Reseller markets Government markets Institutional markets
Understanding Business Buying Behavior
Organizational Buying
Buying Situations
Straight rebuy Modified rebuy New task
Routine reorders from approved vendor list
Low involvement, minimal time commitment
Example: copier paper
Organizational Buying
Buying Situations
Straight rebuy Modified rebuy New task
Specifications, prices, delivery terms or other aspects require modification
Moderate level of involvement and time commitment
Example: desktop computers
Organizational Buying
Buying Situations
Straight rebuy Modified rebuy New task
Purchasing a product or service for the first time
High level of involvement and time commitment; multiple influences
Example: selecting a web site design firm or consultant