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MKT4010

Lecture 6

Analysing Consumers Needs,Expectations and Buying

Patterns

Marketing Strategy for

Management

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To understand the process arising from the simple act ofbuying a product or service

To identify the key factors that influence the buying

decision process

The characteristics of organisational buying, who buys andhow

To provide a framework for understanding how marketerscan influence the buying decision process

Aims

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Product

Price

Place

Promotion

EconomicTechnological

PoliticalCultural

Other stimuliMarketingStimuli

Buyers blackbox

Buyer

CharacteristicsBuyer

decisionprocess

Buyersresponses

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

Consumer Behaviour

A Simple BlackBox Model.

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Whobuysand forwhom?

How dotheybuy?

When dotheybuy?

What are

theirchoice

Criteria?

Wheredo

theybuy?

Customers

Dimensions of ConsumerBehaviour: The Key

Questions

Consumer Behaviour

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Five Roles identified(Blackwell et al., 2000)

Initiator (begins process)

Influencer (persuades others) Decider (Power/funds)

Buyer (conducts transaction)

User (actual consumer/user of product)

Who Buys?

Consumer Behaviour

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Problem recognition

How they buy : One ClassicModel of Buying Behaviour

Evaluation of alternatives

Information search

Purchase decision

Post purchase behaviour

Engel-Kollat-Blackwell, 1968

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Reduce the awareness set (solutions) to

a smaller set of brands

Produce an evoked set: a shortlist of brands forcareful evaluation

Rank the evoked set through an applicationof criteria

Evaluation of Alternativesand Purchase

Consumer Behaviour

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Criteria

Technical Economic Social Personal

ReliabilityDurability

PerformanceStyle/looks

ComfortDelivery

ConvenienceTaste

PriceValue formoney

Runningcosts

Residualvalue

Life stylecosts

Status

Socialbelonging

ConventionFashion

Self-imageMorals

Emotions

Choice Criteria used whenevaluating Alternatives

Consumer Behaviour

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ActualPerformance ? ExpectedPerformance

MarketingImplications:

Reinforce wisdomof decision

Solve problem at root

CognitiveDissonance

Cognitive DissonanceHigher when:Expensive productMany Alternatives

Irrevocable Decision

Post-Purchase EvaluationConsumer Behaviour

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Influences on ConsumerBehaviour

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Extended

Problem

Solving

Habitual

Problem

solvingLimited Problem

solving

The BuyingSituation

Consumer Behaviour

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Influences

values, attitudes, beliefs, opinions, perception

motivation, concept of Self

The subconscious (Freud)

marketing and the subconsciousHierarchy of needs (Maslow)

physiological, safety, security, status, self-becomingneeds

Demography

Personal/Psychological Factors

Consumer Behaviour

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Reference groups

Roles andfamily

Social

Classes

Male head of household?

Changing family structures

Strong identification

Opinion leaders

Similar social rank

Common behaviour

Affects product quality/quantity

Culture and Sub-culture Values, generational

Social FactorsConsumer Behaviour

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Organisational Buying Some

Characteristics

Organis/nal

purchas

es

Lengthy

negotiation

s

M

ore

people

involved

Econ

omic/

Tech

nical

cr

iteria

Small

numbe

r

Of

custom

ers

Largertransacti

ons

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Buying Centre

Users Final users

Buyers

Select suppliers and

negotiate terms

Influencers

specifications

and alternatives

Deciders

Choose products and suppliers

Gatekeepers Control flow of information

Who buys

OrganisationalBehaviour

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Performance Feedback and Evaluation

Organisational Decision Making

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The black box model

Factors influencing the buying process

Difference between consumer buying behaviourand organisational buying behaviour

The buying decision making process

Note: Surgery seminar session next week:Final Clarification on DVD case studies

Summary

AnyQuestions?