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T3: Understanding Buyer Behaviour (Ch6) (Consumer buying decision process…
T3: Understanding Buyer Behaviour (Ch6)
Model of Consumer Behaviour (p.181)
Consumer buying decision process
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Purchase decision
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Information search
Post purchase behaviour
Problem recognition
Evaluation of alternatives
Consumer
Psychology
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Perception
Learning
Motivation
Memory
Characteristics
Cultural
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Social
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Personal
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Other stimuli
Economic
Technological
Political
Cultural
Purchase decision
Product choice
Brand choice
Dealer choice
Purchase amount
Purchase timing
Payment method
Marketing stimuli
Price
Distribution
Products & services
Communications
Influencing consumer buyer behaviour
Social
References groups
Membership groups (already a member)
Primary groups (informal/continuous)
Family - most important
Family of procreation (spouse / children)
Family of orientation (parents / siblings)
Neighbours
Coworkers
Friends
Secondary groups (formal/less continuous)
Religious groups
Professional groups
Recreation groups / clubs
Aspirational groups (want to be a member)
Eg Exec team
Eg higher social class
Dissociative groups (does not want to be a member, rejects)
References groups have opinion leaders, which marketers must try to identify and reach
Celebrities
Other prominent figures, sport/politics/etc
Cliques (small groups whose members interact frequently)
Can insulate from new ideas
Access points:
Liaisons - shifts ee 2 or more cliques, not part of either
Bridges - part of one group but linked to people in another
Personal
Occupation and economic circumstances
Boom / recession
Certain occupations linked to consumption patterns
Disposable income / borrowing power
Lifestyles
money-constrained
time-constrained
'convenience involvement segment' - e.g. my food bag 'express'
to complicate things, this group also want the illusion that the are NOT time poor
Age and life-cycle stage
Personality and self-concept
traits:
dominance
autonomy
self-confidence
deference
sociability
defensiveness
adaptability
Brand personalities
Categories
Ruggedness
Competence
Passion
Excitement
Peacefulness
Sincerity
Sophisticated
we favour brands that have similar personalities to ours or what we aspire to
These categories do not complete translate across cultures
Core values
deep, long-term and minimally changing values
by appealing to the inner-self, markets hope to influence the outer-self behaviours
Culture
Categories
Subculture
religions
race, etc
nationalities
Geographic regions
Social class (social stratification)
Influences:
Type of advertising that we respond to
Place we feel comfortable buying from
Level of quality and/or price
Choice of product
Seven levels:
Upper
upper uppers
lower uppers
Middle
middle class
working class
upper middles
Lower
lower lowers
upper lowers
Charateristics:
Within each class people behave more similar than between classes, e.g. speech, dress, recreation, etc
Classes are considered inferior/superior to others
Classes are made up of a cluster of variables, not just one, e.g. occupations, income, wealth, education, value orientation, etc
People can move up and down classes, dependent on the rigidity of social stratification in their given society
Broadest and deepest influence
Includes
Preferences
Behaviours
Perceptions
Set of values
Comes from:
Family
Other key institutions (school, church)
Psychological
Motivation
Maslow's Hierachy
Self-esteem needs
Social needs (belonging)
Self-actualisation
Safety needs
Physiological needs
Herzberg's Theory
Application
Remove dissatisfiers / enhance satisfiers
NB: removing a dissatisfier does not make the product a satisfier
Characteristics
Dissatisfiers
Satisfiers
Perception (p.183)
More important than reality as will actually have an impact on behaviour
Sensory marketing - appealing to all senses
Perceptual processes
Selective attention
Due to the volume of ads/brands we are exposed to daily, we filter out most
We are more likely to notice ads/brands that:
We have a current need for
We are expecting
Are large than the norm (I.e. 50% discount rather than 20% discount)
Marketers may use intrusive tactics to mitigate 'selective attention'
Selective distortion
Positive - a good brand name/reputation may make people perceive neutral messages more positively
Negative - a poor or unknown brand name may lead to negative perceptions of neutral or even positive information
Selective retention
Consumers will remember more positive things about a brand they like than a brand they don't like or don't know
As such, advertisers need to repeatedly get their message in front of their target segment
Learning (p.186) (changing behaviour due to experience)
Involves:
Drives
Stimuli
Cues
responses
positive reinforcement
Outcomes:
Generalisation - i.e. my HP computer is good, so HP must make good printers
Discrimination - recognise differences ee similar stimuli and adjust responses accordingly, e.g. I like that HP feature, but can't be sure the same feature in Dell will be as good
Emotions
Memory
Research suggests high repetition of uninvolving, unpersuasive ads will be LESS effective than less repetition of a better ad
Retrieval
Memory can become crowded and brands can get mixed up
time and memory decay - once in LTM however, decay is slow
More connected cues the better when it comes to accurate recall
Consumer buying decision process (p.190)
Evaluation of alternatives
Can be entrenched and limit trying new options
Expectancy-Value model can help - see p.192-3 for details
influence by attitudes and beliefs
Purchase decision
Decision made and intention to buy formed
Good purchase experience will lead to:
Loyalty
Reduce potential post-purchase dissonance
Satisfied customer
Plenty of factors can still derail the purchase at this point
Attitudes of others
How intense is the other persons view
How much influence does the other person have over the decision maker
Unanticipated situational factors
Perceived risk
Functional risk
Physical risk
Financial risk
Social risk
Psychological risk
Time risk
Degree of perceived risk will vary with:
Amount of money at stake
Amount of attribute uncertainty
Level of consumer self-confidence
Consumers will develop routines to reduce their own risk profile, but marketers must also find ways to address and reduce risk
Information search
Some brand awareness will exist
Some info source awareness will exist
From personal, commercial, public, and/or experiential
Two phases
Heightened attention - simply more receptive to external stimuli
Active information search - actively sourcing info
Search dynamic funnel
Consideration set - options that fit the consumers initial criteria
Choice set - once more info is gatherer, options that remain good contenders
Awareness set - options the consumer is aware of
Decision - ?
Total set - ALL options available
Market partitioning
identifying the hierarchy for consumer decision making
examples might be price / type / brand / quality / service / etc
Distributors can influence which type is prominent depending on how they organise the products in their shop or website, i.e. by brand, size, colour, purpose, type, etc
Marketers also need to identify which of their competition will make it to the choice set with them so they can differentiate their offering
Marketer needs to ensure their brand is prominent in search areas
Post purchase behaviour
Satisfied or dissatisfied - important to monitor and understand this
Also important to understand how consumers use and dispose of the product
Using indicators for replacement cycles
Supporting environmental practices
The gap ee expectations and reality will lead to positive or negative outcomes
The mind-set of the consumer will determine if they magnify or manage their expectations and related satisfaction or dissatifaction
Problem recognition
Can be triggered by internal or external stimuli
Difference ee current state and desired state
Once triggered, the need becomes a 'drive' and open to external stimuli to offer a solution
Marketers need to find ways to increase motivation/drive so consumers seriously consider a purchase, esp for luxury items.
A marketing planner must have a marketing tactic in place throughout each of these stages of the process.
Low involvement consumer decision making
The premise is to crowd the competitors out, never be out of stock, and always have something to suit the mood of the consumer
Where a product range has low decision making needs, I.e. chocolate bars, milk, etc, variety is often the tactic used
Framing is vital to the decision making process, allowing value to be increased or decreased based on the frame the product is provided in
From T3.4 video
CEOs/CMOs who use 'Voice of the Customer' (VoC) programmes are 68% more successful than their peers
VoC ideally measures customer needs, expectations and aversion to your product/brand
VoC is also ideally NOT just retrospective, but forward thinking and planning, addresses customer needs pre-emptively.
VoC programmes are relatively new (4yrs) and have had some challenges during implementation and integration into the businesses using them, as with most change initiatives