mt 212 5 buyer behaviour

8/3/2019 MT 212 5 Buyer Behaviour

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MARKETING RESEARCH

‘Buyer Behaviour’



Buyer Behaviour - processes / influences

– Importance of understanding buyerbehaviour

– How marketing influences it

– Models

– Consumer Behaviour

– Organisational behaviour



EXPERIENTIAL V. TRADITIONALMARKETING

TRADITIONAL MARKETING focusing on functional features andbenefits which supplement a products basic function.

EXPERIENTIAL MARKETING creates different experiences forcustomers through appropriate use of the marketing mix.

– (these replace functional values)

“The degree to which a company is able to deliver a desirable customer experience will largely determine its success.” Schmitt (1999)



WHAT IS BUYER BEHAVIOUR?

“Processes involved when individuals or

groups select, purchase, use or dispose of

products, services, ideas or experiences to satisfy needs.” (Solomon 2002)

• What affects/ conditions it?



Marketing factors influencingbehaviour

• Product/service itself…. Benefits/use

• Economic nature of product.. Luxury v.Necessity

• Price/value

• Packaging

• Place/channels of distribution

• Staff/service

• Corporate image / reputation

• Media

• After sales service/added value



Consumer buying behaviour-influences on decision process

Materialinfluences

DemographicsSituational

factorsInvolvement

Socialfactors Family

Social classCulture

Psychologicalfactors

PerceptionMotives

ExperiencePersonality

CONSUMER DECISION

MAKING PROCESS



Grocery buying behaviour model (Greenland and Davies 1993)

ENVIRONMENTAL FACTORS Economy Legislation Technology

Society Competitive Political

Groceryselection

Personal

factors Taste/preference

Attitude to cookingBudget concernsSpecial occasionsTime/convenience

Health concernsReligion/beliefs

Mobility, etc

Behaviour factors

Who: in-store/householdWhen: freq/timingWhere: retailer/loyalty

How: recall/payment

Supplier factors

Store design / Range / Packsize / Packaging / Storagequalities / Brands / Price /

Promotion / Advertising, etc.



Consumer buying behaviour-key questions

WHO isimportant

WHEN do theybuy

WHERE

do theybuy

WHAT arethe choicecriteria

HOW

they buy

Customers



HOW - Consumer individual decision making process

1. AWARENESS

2. INFORMATION

3. DECISION & Evaluation

4. ACTION (5. Post purchase evaluation / satisfaction)



1. Awareness - Problem recognition

• Consumer purchase is a response to a„problem‟(?) a „challenge‟

– No ‘need’ then no ‘problem’ & no purchase

• Producer needs to be aware of this, andassess it as an opportunity

• Power of marketing communications

– Ability to satisfy need & need beingimportant enough



2. Information Search to aid decision making

– Internal: retrieving from memory

– External: when internal memory insufficient

• Need to assess risk & level of involvement ~ extent ofsearch e.g., Monetary, Social - kids trainers for school

• Marketers facilitate information research on eg.

packaging PR

price promotions advertising

store placement



3. Decision - Evaluating alternatives

• What are the evaluation / choice criteria?

• Decision making rules – non compensatory: eliminate brand if has

low performance/lacks a particular feature

– compensatory: offsetting weaknessesagainst strengths to arrive an overall opinion



4. Purchase processes Experiences at point of sale / channel

In store/ warehouse/ site

compared to „at home‟ (mail order / on- line)

– Shopping motives / behaviour

• reasons/motives for using channel

• maximising chance of impulse purchase



5. Post purchase processes

– Consumers aim to maximise satisfaction

and convince themselves they’ve made theright choice

• „Ads‟ reinforcing purchase decision • After sales service(s)

• Replacement process



WHO - Consumer buyingbehaviour

The buying centre roles:

Initiator eg mother Influencer neighbour

Decider sister

Buyer father

User child



WHERE - Supermarket buyingTricks of the trade:

• Entrance on LHS / layout / pattern & lighting

• Fresh foods at entrance + selective lighting

• Bakery smells pumped in • Essentials maximum distance from entrance,

dispersed & not at eye level

• Wider aisles slow speed, narrow faster

• Music slow tempo slows shoppers down

• High margin goods hi profile positions/ morespace /slow trolley speed



WHAT - Home shopping motives

Next Directory: reasons for using:

1. Hassle free shopping

2. Getting the right item

3. Transaction efficiency

4. Wide range

5. Best buy

6. Recreational experience

7. Incentive/added value

Greenland and McGoldrick 1990

Convenience working women

Price/recreation full time mothers



ORGANISATIONAL BUYING

Key characteristics:

– derived demand

– Decision Making Unit > complexity

– risks / more rational .. Strict criteria

– negotiation

– economies of scale/reciprocal buying

– cooperation on product development



WHO - Organisational buyingbehaviour

The buying centre roles:

Initiator

Influencer Gatekeepers

Decider/approver

Buyer

User in the organisation



Organisational buying behaviour

- case study: – Division of global chemical co’

– Supplies raw material

– Wants to expand customer base– Needs to understand buying process

• 100 respondents involved with supplier selection

– Europe

– Americas

– Asia



HOW & WHO

• 75% decision made in conjunction with others

– Mean no of key decision makers = 4

• Most frequently mentioned job functions:

•

Production• Purchasing

• Research and development

• Quality control

• Product testing

• Technical support

• Product supplier approval



Involvement with suppliers

50

75

80

55

0 20 40 60 80 100

Making up/deciding

order

Quality assurance

Product

testing/approval

Negotiating best

value

% Yes

Base: 100

Purchasing

Production



Additional products/services supplied

ADDITIONAL SERVICES Co’s

n=100Research & technical back up/support 40

Product development support 32

Product testing support 30

Testing to European or int’l standards 25

Environmental advice testing 23

None of these 12

1/2 buy other products/services from suppliers



DMU information sources

• Most frequent sources:

– Experienced representatives

– Colleagues

– The Internet

–

Specialist/trade magazines/directories– Conferences

• Key areas for improving/enhancing

communication– More frequent communication/updates

– Personal visits



WHAT Key reasons for main supplier

‘It’s a trade off between low prices, value for money.There’s a limit on technical performanceand provided they meet that we go for the cheapest.’

Top ten attributes ranked in order of

importance1. Being reliable

2. Meeting the specifications (i.e., consistent)

3. Delivery accuracy

4. Having reliable sales representatives

5. Rapid response to queries6. Having technically knowledgeable sales rep’s

7. Being flexible in approach (price, prod’, etc.)

8. Performance e.g., adhesion/flexibility/ strength

9. Being open to negotiation on price

10. Regular updates on new products and services



Implications

–Identify key individuals

involved•Informationneeds/requirements

–Design most effectiveproduct/service mix



Overview

• Necessity to understand customer behaviour

– Appreciate stages in buying decisions

– Understand major factors influencing

consumer/organisational buying behaviour

• Marketers who understand buyer behaviour:

– design more effective marketing programmes – give increased customer satisfaction

mt 212 5 buyer behaviour

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