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CHAPTER 3

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  1. CHAPTER 3 BUYER BEHAVIOR

  2. BUYER BEHAVIOR • Buying Units and Roles • Buying Process • Influences on Buyer Behavior

  3. BUYING UNIT # of Consumer Business PeopleMarketMarket One Individual Purchasing Agent More Family Buying than one Committee

  4. BUYING ROLES Buyer Purchaser of the product Influencer Person(s) who influence the sale User Person(s) who use the product

  5. EXAMPLE OF BUYING ROLES Buyer Boyfriend buys perfume for girlfriend at Christmas Influencer Clerk at Marcy’s suggests a brand of perfume User Girlfriend receives the gift from her boyfriend

  6. INFLUENCERS OF THE BUYING PROCESS Doctors Prescription Drugs Executive Secretary Gatekeeper for Vice President Professor College Textbooks

  7. BUYING PROCESS Wants and Needs Pre-Purchase Activity Purchase Decision Post-Purchase Evaluation

  8. WANTS AND NEEDS • Food trucks at UH • Defective goods • Safe drinking water

  9. PRE-PURCHASE ACTIVITY • Relevant information search • Evaluation of alternative choices

  10. RELEVANT INFORMATION SEARCH • Personal Experience • External Searches

  11. PERSONAL EXPERIENCE • Previous Purchasing • Previous Shopping • Current Shopping

  12. CURRENT SHOPPING EXAMPLES • Buying cars • Showrooming • Shopping malls

  13. EXTERNAL SEARCHES • Formal searches • Informal searches • Internet searches

  14. FORMAL SEARCHES • Magazines • Newspapers • TV

  15. INFORMAL SEARCHES • Friends • Family • Fellow Students

  16. INTERNET SEARCHES • Car Buyers • Angie’s List • App Examples

  17. 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 Retailer pays the commission to Auto-by-tel

  18. APP EXAMPLES • Moving • Traveling with kids • Smartphones and Digital wallets

  19. APPS FOR MOVING • Padmapper • Street Advisor • Homesnap • Updater

  20. APPS FOR TRAVELING WITH KIDS • Bag It! • Where’s My Perry • Coloring Farm Touch

  21. 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

  22. PURCHASE DECISION • Purchase the product • Do not purchase the product • Continue pre-purchase activities

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

  24. POST-PURCHASE BEHAVIOR • Satisfied with purchase • Disappointed in product

  25. POST-PURCHASE EXAMPLES • Costco return policy • USAA • Sewell Cadillac

  26. HOW TO SATISFY CUSTOMERS AT SEWELL CADILLAC • Underpromise and overdeliver • Assign service advisor to a repeat customer • When something goes wrong, apologize first, and then fix the problem

  27. EXPANDING AUTOMOBILE CUSTOMER SERVICE Stage 1 Extend hours of service Stage 2 Provide free loaner car Stage 3 Take loaner car to and from customer’s house

  28. RESPONSES TO CUSTOMER COMPLAINTS • Encourage customer complaints • Fix any problems first • Reward employees who provide exceptional customer service

  29. INFLUENCES ON THE BUYING BEHAVIOR • Social Influences • Perception Influences • Marketing Influences

  30. SOCIAL INFLUENCES • Culture • Reference Groups • Family

  31. CULTURAL INFLUENCES Values accepted by a homogeneous group and transmitted to succeeding generations

  32. CULTURAL GROUPS IN HOUSTON • Hispanic • Vietnamese • Indian

  33. REFERENCE GROUPS Groups to whom a person belongs or is a source of personal standards • Membership Groups • Aspiration Groups • Opinion Leadership

  34. MEMBERSHIP GROUPS • Fellow Students • Churches • Professional Groups

  35. ASPIRATION GROUPS • Country Clubs • River Oaks • Sororities

  36. OPINION LEADERS • Movies Stars • Sports Stars • Business CEO’s

  37. FAMILY Primary group of people which includes parents, spouses, and children • Changing Structure of Families • Changing Family Roles

  38. CHANGING FAMILY ROLES • Buying a Car • Raising Children • Grocery Shopping

  39. PERCEPTION INFLUENCES The level of uncertainty a buyer believes exists for a product or service • Selective Perception • Perceived Risk • Perceived Reality

  40. SELECTIVE PERCEPTION Selective Screens out Exposure Messages Selective Filters Distortion Messages Selective Remembers Retention Messages that Support Beliefs

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

  42. PERCEIVED RISK EXAMPLES • Fear of flying • Buying your first house • Giving blood

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

  44. PERCEIVED REALITY EXAMPLES • Shell gasoline • Proctor & Gamble logo • Fresh bread