Chapter 3 - Buyer Behavior

							  CHAPTER 3
BUYER BEHAVIOR
   BUYER BEHAVIOR


• Buying Process

• Influences on Buyer Behavior
BUYING PROCESS

   Wants and Needs

 Pre-Purchase Activity

   Purchase Decision

Post-Purchase Evaluation
WANTS AND NEEDS

 • Food trucks at UH

 • Defective goods

 • Safe drinking water

 • Digital wallets
PRE-PURCHASE ACTIVITY

• Relevant information search

• Evaluation of alternative choices
RELEVANT INFORMATION SEARCH


       • Personal Experience

       • External Searches
PERSONAL EXPERIENCE

   • Previous Purchasing

   • Previous Shopping

   • Current Shopping
CURRENT SHOPPING EXAMPLES

      • Buying cars

      • Showrooming

      • Shopping malls
EXTERNAL SEARCHES

  • Formal searches

  • Informal searches

  • Internet searches
FORMAL SEARCHES

  • Magazines

  • Newspapers

  • TV

  • Radio
INFORMAL SEARCHES

    • Friends

    • Family

    • Neighbors

    • Fellow Students
INTERNET SEARCHES

 • Car Buyers

 • Buyer Social Networks

 • Angie’s List

 • Billion Dollar Apps
BUYING A CAR USING THE INTERNET

 • Kelly Blue Book:            www.kbb.com
   Get value of your existing automobile

 • Edmunds:                  www.edmunds.com
   Edmunds has the latest automobile prices for new cars

 • Auto-by-tel:                www.autobytel.com
   You can specify the color and extras you want in a car.
   Retailer pays the commission to Auto-by-tel
BUYER SOCIAL NETWORKS

     • Facebook

     • LinkedIn

     • Twitter
  TWITTER USERS


• 2008      3 Million

• 2010    160 Million
NEW BILLION DOLLAR APPS

       • Pinterest

       • Evernote

       • Rovio
2012 TOP APPS

 • Snap Guide

 • Google Maps

 • Swift Key 3

 • Action Movie FX
         ALTERNATIVE CHOICES

Total Set of Alternatives   All Choices Available

     Awareness Set           Buyer Awareness

     Choice Set (serious)      Three or Four

       Final Choice            Buy / Do Not Buy
PURCHASE DECISION

• Purchase the product

• Do not purchase the product

• Continue pre-purchase activities
POST-PURCHASE EVALUATION

After the buyer actually purchases the
product, the buyer then evaluates how
 satisfied he/she is with the product.
POST-PURCHASE BEHAVIOR


   • Satisfied with purchase

   • Disappointed in product
POST-PURCHASE EXAMPLES

   • Costco return policy

   • Unintended errors

   • Sewell Cadillac
 HOW TO SATISFY CUSTOMERS
    AT SEWELL CADILLAC
• Underpromise and overdeliver

• Give customers what they want

• Assign service advisor to a repeat customer

• When something goes wrong, apologize first, and
  then fix the problem
RESPONSES TO CUSTOMER
     COMPLAINTS

 • Encourage customer complaints

 • Fix any problems first

 • Reward employees who provide
   exceptional customer service
INFLUENCES ON THE
 BUYING BEHAVIOR

• Cultural Influences

• Psychological Influences

• Marketing Influences
  CULTURAL INFLUENCES


Values accepted by a homogeneous group
and transmitted to succeeding generations
MAJOR CULTURAL GROUPS
     IN HOUSTON

      • Hispanic

      • Vietnamese

      • Indian
PSYCHOLOGICAL INFLUENCES

      • Motivation

      • Learning

      • Perception
        MOTIVATION INFLUENCES
         ON BUYER BEHAVIOR


Motivation is a need that is sufficiently pressing to
    direct the buyer to seek some satisfaction

                  • Maslow
                  • Freud
     LEARNING THROUGH
     BUYING EXPERIENCES

• Habitual buyer behavior – Buy a Coke

• Limited buyer behavior – Clothes

• Complex buyer behavior – House
PERCEPTION INFLUENCES ON
     BUYER BEHAVIOR
The level of uncertainty a buyer believes
      exists for a product or service

           • Perceived Risk

           • Perceived Reality
       PERCEIVED RISK


• A level of uncertainty a buyer believes
  exists for a product or service
PERCEIVED RISK EXAMPLES

   • Fear of flying

   • Buying your first house

   • Giving blood
        PERCEIVED REALITY

• If a buyer perceives something to be true,
  then it becomes reality to that buyer
PERCEIVED REALITY EXAMPLES

     • Shell gasoline

     • Proctor & Gamble logo

     • Fresh bread