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Chapter 7

Chapter 7. Analyzing Consumer Markets and Buyer Behavior. Buyer ’ s characteristics Cultural Social Personal Psychological. Buyer ’ s decision process 1.Problem recognition 2.Information search 3.Evaluation 4.Decision 5.Post purchase behavior. Buyer ’ s decision

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Chapter 7

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  1. Chapter 7 Analyzing Consumer Markets and BuyerBehavior

  2. Buyer’s characteristics Cultural Social Personal Psychological Buyer’s decision process 1.Problem recognition 2.Information search 3.Evaluation 4.Decision 5.Post purchase behavior Buyer’s decision 1.Product choice 2.Brand choice 3.Dealer choice 4.Purchase timing 5.Purchase amount Marketing stimuli Product Price Place Promotion Other stimuli Economic Technological Political Cultural A Model of Consumer Behaviour

  3. Major Factors Influencing Buying Behaviour • Cultural factor • Social factor • Personal factor • Psychological factor

  4. Subculture Culture Social Class Cultural Factors Buyer

  5. Social Factors • Reference groups -- (membership groups;non-membership groups: aspirational and disociative groups) • Family -- (family of orientation, family of procreation) • Roles and status

  6. Personal factors • Age and Stage in Life cycle • Occupation and Economic circumstance • Lifestyle • Personality and Self-concept

  7. Personality and self-concept • Personality: what u r • Self-image: the way u see yourself • Actual self-concept (how u see yourself) • Ideal self-concept (how you’d like to see yourself) • Others-self-concept (how u think others see you)

  8. Psychological factors Motivation Perception Beliefs & Attitudes Learning

  9. Motivation • 3 Theories of Motivation • Freud’s Theory of Motivation • Maslow’s Theory of Motivation • Herzberg’s Theory of Motivation

  10. Freud’s Theory of Motivation • Assumption: the real psychological forces shaping people’s behavior are largely unconscious. • Hence, a person cannot fully comprehend his or her own motivations.

  11. Maslow’s Theory of Motivation • Helps you answer a question of why you have different needs at different times. • Answer: Human needs are arranged in hierarchy, from the most urgent to the least urgent.

  12. Self- actualization (self-development and realization) 5 Esteem need (self-esteem, recognition) 4 Social needs (sense of belonging, love) 3 Safety needs (security, protection) 2 Psychological needs (food, water, shelter) 1 Maslow’s Heirarchy of Needs

  13. Herzberg’s Theory of Motivation • 2-factor Theory • Dissatisfierse.g., absence of basic factors, poor performance on service, etc. • Satisfiers (motivator of buying)

  14. Perception • Selective Attention: selectively pay attention • Selective Distortion: twist info in a way that support your fixed idea • Selective Retention: selectively retain info

  15. Learning • When people act, they learn. • Learning involves changes in an individual’s behavior arising from experience. • Generalization: u assume that all similar pdts which come from the company that u have had a good/bad experience are also good/bad. • Discrimination

  16. Beliefs and Attitudes • Beliefs: descriptive thoughts, no emotion • Pizza Hut delivers its product within 30 mins. • Attitudes: positive or negative evaluations, emotional feelings • Pizza Hut provides the quickest and best service in pizza industry.

  17. Buying Process • Buying Roles • Buying Behavior • Buying Process

  18. Buying Roles • Initiator: suggesting the idea of buying the product • Influencer: viewing or advisinginfluences the decision • Decider: deciding on any component of a buying decision • Buyer:making the actual purchase • User: consuming the product/services

  19. Significant differences between brands Few differences between brands Four Types of Buying Behavior Complex Buying Behavior Variety- Seeking Behavior High Involvement Low Involvement Dissonance- Reducing Buying Behavior Habitual Buying Behavior

  20. Complex Buying Behavior • Significant differences between brands • Product is expensive, bought infrequently, risky, highly self-expressive. • Consumers don’t know much about the product category. • e.g., passenger cars, pianos

  21. Dissonance-Reducing Buying Behavior • High-involvement purchase • Few differences between brands • Expensive, infrequent, and risky buying • e.g., Mattress(Dunlop vs Slumberland), Furniture(Index vs SB furniture)

  22. Habitual Buying Behavior • For low-cost, frequently purchased products • Few differences between brands • Brand familiarity rather than Brand conviction • Use price and sales promotion to stimulate product trial • e.g., sugar, milk, salt, cooking oil, etc.

  23. Variety-seeking buying behavior • Low-involvement • Significant brand differences • A lot of brand switching • e.g., shampoo, confectionery, etc.

  24. Information search Evaluation of alternatives Purchase decision Post purchase behavior Consumer’s Buying Process Problem recognition

  25. 1. Problem Recognition • A buyer must sense a differencebetween his or her actual state and a desire need. • The need can be aroused by internal or external stimuli.

  26. 2. Information Search • Sources of info: • Personal sources (e.g., word of mouth) • Commercial sources • Public sources (e.g., ABAC poll) • Experimental sources (e.g., a test drive)

  27. Decision Total Set Choice Set Aware- ness Set Consid- eration Set Decision Making Set

  28. 3. Evaluation of Alternatives • Identify attributes of the products • Assign weights to each attribute • Find perceived value of each attribute for a particular brand • Sum up the points

  29. 3. Evaluation of Alternatives (2) • Evaluate the attributes of a product • Available strategies to stimulate interest • Modify the product(Real Repositioning) • Alter beliefs about the brand(Psychological repositioning) • Alter beliefs about the competitors’ brands(Competitive Depositioning) • Alter the important weights • Call attention to neglected attributes

  30. Attitude of others Purchase decision Purchase intention Unanticipated situational factors 4. Purchase Decision Evaluation of alternatives

  31. 5. Postpurchase Behavior • Postpurchase Satisfaction • Pospurchase Actions • Exit option • Voice option • Postpurchase Use and Disposal

  32. To be (re)sold Give it away Rent it Get rid of it temporarily Loan it To be used Trade it Get rid of it permanently Direct to consumer Sell it Use for original purpose Through middleman Keep it Convert to new purpose Throw it away To intermediary Store it How Customers Use orDispose of Products Product

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