How why people buy
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How & Why People Buy. People buy according to a Hierarchy of Needs(Maslow) Self-actualization Self-esteem/Ego Social Safety Physiological. How & Why People Buy.

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How & Why People Buy

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How why people buy

How & Why People Buy

  • People buy according to a Hierarchy of Needs(Maslow)

  • Self-actualization

  • Self-esteem/Ego

  • Social

  • Safety

  • Physiological


How why people buy1

How & Why People Buy

  • Values/Lifestyle influence buying behavior

  • VALS instrument classifies buying behavior based on resources and primary motivation

  • Three frames of reference:

  • Principle- Thinker, Believer

  • Status- Achiever, Striver

  • Action- Experiencer,etc


How why people buy2

How& Why People Buy

  • Buying behavior depends on the nature of the purchase

  • 1. Routine- repeat purchase with no new information

  • 2. Modified- repeat purchase with some new information(product characteristics,etc)

  • 3. New- first time purchase, new technology & uses, require learning/assessment


Buyers can be grouped into market segments

Buyers can be grouped into Market Segments

  • Segments can be based on Values(VALS) or other characteristics such AS:

  • 1. Demographics-age,income for consumers: type &size of farm/business

  • 2. Psychographics- values, attitudes

  • 3. Benefits- nature of product and what it does for the purchaser(perceived in nature)


A look at large farm purchaser behavior

A Look At Large Farm Purchaser Behavior

  • Purdue Study of Large Farms(website)

  • Large Commercial Farms are one segment of farm types(List of farm types)

  • Commercial buying behavior differs from consumer buying


Delineation of market segments research techniques

Delineation of Market Segments-research techniques

  • Market segments can be derived by:

  • 1. Ex ante delineation- classification based on characteristics

  • 2. Ex post- classification based on customer responses/statistical derivation using SPSS or other programs based on homogeneous grouping of responses(Lab project)


Examples of statistical segmentation of markets

Examples of Statistical Segmentation of Markets

  • GMO foods

  • Natural food buying

  • Shopping behavior

  • Other


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