Buyer Behavior

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					Consumer Behavior


  Purchase Decisions
Purchase and Consumption Decisions

  Product purchase decisions
     Whether or not to buy the product or service?
  Brand purchase decisions
     What brand or model to purchase?
  Outlet purchase decisions
     What store or outlet to patronize?
  Payment purchase decisions
     How to pay for the goods or service?
Decision-Making Processes
 Extended Decision-Making
    Homes, cars, insurance, appliances, furniture,
     medical care, educational programs.
 Deliberate Choice Process
    Furnishings, clothes, gifts, small appliances and
     equipment, personal services.
 Routine Purchase Process
    Stock food items, household goods, toiletries,
     cleaning supplies.
 Impulse Buying Decisions
    Small ticket novelties, candy, gum, snack foods,
     beverages, fast food.
Four Views of Consumer Decisions
 The Economic View
    The “rational” consumer with perfect knowledge and
     accurate judgment of alternatives.
 The Passive View
    The consumer buyer submits to the persuasive
     presentation of marketers and sales people.
 The Cognitive View
    The consumer seeks or receives information that is
     processed to reach a deductive conclusion.
 The Emotional View
    The consumer responds to symbols that evoke inner
     drives, feelings, and mood states.
Product Factors
Increasing Information Search
        Long Interpurchase time
        Frequent product changes
        Frequent price changes
        Volume purchasing
        High price
        Many alternatives
        Much variation
Consumer Factors
Increasing Information Search
        High education
        High income
        Up-scale job
        Under 35 years
        Low dogmatism
        Low-risk perceiver
        High product involvement
Situational Factors
Increasing Information Search
         Experience
            First-time buyer
            No past experience
            Bad past experience
         Social Acceptability
            Product is gift
            Socially visible goods
         Value-Related Factors
              Discretionary purchase
              Mixed product attributes
              Family disagreement
              Deviation from referents
              Ecological danger
              Conflicting information
Definitions of “Innovation”

 Firm-Oriented Definitions
   Based on newness to the firm.
 Product-Oriented Definitions
   Based on new product attributes.
 Market-Oriented Definitions
   Based on proportion who have purchased.
 Consumer-Oriented Definition
   Based on consumer judgment of newness.
Influences on Diffusion

       Relative advantage
       Compatibility
       Complexity
       Trialability
       Observability
Influences on Diffusion
Innovation Characteristics

          Consumer-Dependent
             Relative advantage
             Compatibility
             Perceived risk
             Complexity
             Effect on other innovations
Influences on Diffusion
Innovation Characteristics

          Consumer-Independent
             Trialability
             Divisibility
             Reversibility
             Realization
             Communicability
             Form of innovation
Influences on Diffusion
Consumer Characteristics

          Psychological Variables
                Perception
                Motivation
                Personality
                Value orientation
                Beliefs
                Attitudes
                Previous experience
Influences on Diffusion
Consumer Characteristics

          Demographics
                Age
                Education
                Occupation
                Income
Influences on Diffusion
Propagation Mechanisms


            Types
               Marketer-controlled
                versus nonmarket-
                controlled
               Personal versus
                impersonal
Influences on Diffusion
Propagation Mechanisms


            Characteristics
                 Credibility
                 Clarity
                 Source similarity
                 Informativeness
The Diffusion Curve
The Diffusion Curve
Innovators — 2.5% — Venturesome
   Very eager to try new ideas; acceptable if risk is daring; more
   cosmopolite social relationship; communicates with other
   innovators




    Innovators



         2.5%
The Diffusion Curve
Early Adopters — 13.5% — Respect
    More integrated into local social system; the persons to check
    with before adopting a new idea; greatest number of opinion
    leaders; role models




    Innovators

                  Early
                 Adopters
         2.5%    13.5%
The Diffusion Curve
Early Majority — 34% — Deliberate
    Adopt new ideas just prior to the average time; seldom hold
    leadership positions; deliberate for some time before
    purchasing




    Innovators

                  Early      Early
                 Adopters   Majority
         2.5%    13.5%       34%
The Diffusion Curve
Late Majority — 34% — Skeptical
    Adopt new ideas just after the average time; adoption may be
    economic necessity and from peer pressure; approach
    innovation cautiously




    Innovators

                  Early      Early      Late
                 Adopters   Majority   Majority
         2.5%    13.5%       34%         34%
The Diffusion Curve
Laggards — 16% — Traditional
   Last people to adopt an innovation; most parochial in outlook;
   oriented toward the past; suspicious of the new




    Innovators

                  Early      Early      Late
                 Adopters   Majority   Majority   Laggards
         2.5%    13.5%       34%         34%        16%
Innovation Adoption Process
   AWARENESS — Consumers learns the
    brand name and product attributes.
   INTEREST — Consumers relate the
    product benefits to their own needs.
   EVALUATION — Consumers compare
    the goods with existing alternatives.
   TRIAL — Consumers obtain direct or
    vicarious product experience.
   ADOPITON — Consumers choose the
    innovation as a permanent solution.
Innovation Decision Process
  KNOWLEDGE — Exposure and some
   knowledge of function.
  PERSUASION — Favorable or
   unfavorable attitudes are formed.
  DECISION — Choice to adopt or to reject
   innovation.
  IMPLEMENTATION — Innovation is put
   into use by consumer.
  CONFIRMATION — Seeks reinforcement
   of decision or possible reversal.
Relative Information Importance


                      Awareness




                                              Evaluation




                                                                           Adoption
                                  Interest




                                                             Trial
               High



                                             Personal and
                                             interpersonal
                                             sources
  Importance




                                                                     Impersonal
                                                                     mass-media
                                                                     sources
               Low
Five Forms of Purchase Risk
   Monetary Risk
      The chance the product or service will not perform its
       function or serve its purpose.
   Functional Risk
      The chance the product or service will not perform its
       function or serve its purpose.
   Physical Risk
      The chance the product or service will injure or damage
       person or property.
   Social Risk
      The chance the goods will embarrass or humiliate
       consumers or cause rejection.
   Psychological Risk
      The chance the purchase will lead to feelings of
       weakness, stupidity, or self-indulgence.
Determinants of Response to Risk
  Risk Capital
     What the buyer can afford to loose without experiencing
      serious harm or catastrophic consequences.
  Consumers’ Vulnerability
     The availability or lack of a particular type of risk capital
      possessed by the consumer.
  Risk Inherent in Product
     The attributes or characteristics of the product that
      intensify a particular type of consumer risk.
  Alleviation Methods
     The means by which the marketer and/or the consumer
      can reduce or manage the perceived risk.

				
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posted:9/16/2011
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