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Marketing Analysis: Consumer Buyer Behaviour

Marketing Analysis: Consumer Buyer Behaviour. Jonathan Freeman. Buyer Behaviour Goals. To understand: Models of consumer purchase decision processes. Influences on purchase decisions: What How Marketing implications of the models. Definitions Dibb, Simkin ,Pride and Ferrell.

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Marketing Analysis: Consumer Buyer Behaviour

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  1. Marketing Analysis:Consumer Buyer Behaviour Jonathan Freeman

  2. Buyer Behaviour Goals To understand: Models of consumer purchase decision processes. • Influences on purchase decisions: • What • How • Marketing implications of the models.

  3. DefinitionsDibb, Simkin ,Pride and Ferrell • Consumer Buyer Behaviour: “The decision processes and acts of individuals involved in buying and using products.”

  4. Influence purchase probabilities. Develop more effective or efficient marketing mixes. Identify market segments, emerging markets and competitive threats. Why do businesses need to know about their customers?

  5. One Relevant Question: • How do customers decide what to buy?

  6. INPUT INFORMATION PROCESSING DECISION PROCESS INFLUENCES A Model of Consumer Behaviour • Environmental • Influences • Culture • Social Class • Personal • Family • Situation Exposure Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Evaluation Stimuli: Marketer Dominated & Other Attention Memory Internal Search Comprehension • Individual • Differences • Resources • Motivation & • Involvement • Knowledge • Attitudes • Personality, Values • & Lifestyle Acceptance Retention Dissatisfaction Satisfaction External Search From: Consumer Behavior (1994). James F. Engel, Roger D. Blackwell & Paul W. Miniard. 7th. Edition. Dryden Press.

  7. Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Evaluation A Model of the Buying Decision Process: CONSUMERS

  8. Environmental Influences Culture Social Class Personal Family Situation Individual Differences Resources Motivation & Involvement Knowledge Attitudes Personality, Values & Lifestyle Influences on the PDP

  9. Marketing Influences:The Marketing Strategy. • 4Ps + TM • Product • Price • Promotion • Place integrated to serve a • Target Market

  10. Influences on the Extensiveness of the BDP • Riskiness • Personal relevance • Time Leads to a BDP Continuum

  11. Buying Decision Process Continuum Mid-Range Problem Solving Extended Problem Solving Limited Problem Solving

  12. The full process may not be followed Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Evaluation

  13. First Purchase.Extended Problem Solving • Involves all the stages of the PDP • Detailed & rigorous • Preconditions: • Involvement high • Strong differentiation • Time available

  14. First Purchase.Extended Problem Solving • Implications: • In marketing communications argumentation is likely to be more effective than presentation. • Buyers are more likely to notice brand differences

  15. First Purchase.Limited Problem Solving • IS and EA stages limited or missed • Preconditions: • Constrained resources • Low motivation/involvement • Limited perceived differentiation

  16. First Purchase.Limited Problem Solving • Implications: • When involvement is low presentation is more effective than argumentation. • Search limited to known brands; unknown brands are doomed. • Distribution and POP advertising crucial. • Satisfaction leads to habitual purchase out of inertia.

  17. First Purchase.Mid-Range Problem Solving • Between EPS and LPS

  18. Buyer Decision Process: Model and Continuum PR IS EA P PPE EPS PR is ea P PPE MRPS LPS PR is ea P PPE PR P PPE Habit

  19. Buyer Decision Process: DYNAMICS PR IS EA P PPE EPS All else equal, the tendency is for decision-making to become habituated with repetition. PR is ea P PPE MRPS LPS PR is ea P PPE PR P PPE Habit

  20. Buyer Decision Process: Strategic Implication PR IS EA P PPE EPS There’s an advantage to being first in a new market. PR is ea P PPE MRPS LPS PR is ea P PPE PR P PPE Habit

  21. Repeated Purchases • Repeated purchasing tends to habitual decision-making • However, repeated problem-solving can occur e.g. when: • Buyer dissatisfied • Supplier is out of stock

  22. Habitual Decision-Making Reflects either Brand Loyalty or Inertia • Brand Loyalty • Reflects High involvement and perceived differentiation • Highly desired by marketers! • Inertia • Brand switching easily induced by price competition or new claim from competitors

  23. Special Categories of Purchase Decisions • Impulse buying • Variety-seeking

  24. % of Potential Market at each Stage Period 1 Period 2 20 15 10 5 5 30 25 25 5 5 Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Evaluation Models can be diagnostic.

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