Transcript .ESSENTIAS OF PLANNING - International University College

PRINCIPLES OF MARKETING-A2
Topic 3
Consumer Behaviour
Senior lecturer: A. Popissakov
2009-2010
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1. Consumers’ Buying Models
1.1. Simple Buying Model
1.2. Habitual Buying Model
1.3. Variety Seeking Buying Model
1.4. Organizational Buying Model
1.5. Complex Buying Model
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1.1. Simple Buying Model
“Stimulus – response model” - focuses on
the input (the stimuli) and outcome (the
decision) while the decision making process
is a “Black box”
Product offering
Stimuli -thirst
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Consumer
making
decision
Product sold
or not sold
Black Box
Respond -water
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1.2. Habitual Buying Model
HABITUAL BUYING BEHAVIOR – every
day purchases as:
 newspaper,
 petrol,
 battery for the CD player,
 cigarettes, etc.
People do not think much and buy usually the
brand names.
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1.3. Variety Seeking Buying Model
Buy something just for change as an
alternative of habitual buying model
 breakfast cereal - change toast, ham and
eggs etc.
 Buy a few magazines before a longer train
journey.
This type of buying does not apply to highvalue items.
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1.4. Organizational Buying Model
The particular interaction between different
groups or group members regarding usual
buying of specific products.
A) Family purchase.
B) Company purchase
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A-Family Organizational Buying Model
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B-Company Organizational Buying Model
Three Organizational buying situations:
1. Straight Buying
2. Modified Re-buying
3. New Task
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B-Company Organizational Buying Model
Organizational buying situations:
1. Straight Buying – habitual buying, products
are ordered in routine. (stationery)
2. Modified Re-buying – where there are
requirements for certain type of products or
some alternatives in quality, characteristics,
delivery, etc.
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B-Company Organizational Buying Model
In Modified Re-buying – usually DMU –
Decision Making Unit (or Buying
Committee) is involved.
3. New task – First time buying of a product
for the organisation.
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1.5. Complex Buying Model-needs
Needs: Something basic to people physical,
psychological and social well being.
a) Basic needs. (food, water, shelter)
b) Non-basic needs (love, security, popularity,
safety)
c) Non-recognizable needs (health care in
Africa, sex in prison, terrorism-deny the
need of safety.)
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1.5. Complex Buying Model - wants
Wants: specific needs (preferences) people
prefer to satisfy according their experience,
culture and personality.
 Pizza or soup,
 Jazz or chalga music,
 Plastic chair or wooden chair
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1.5. How needs create wants
It is the recognition of a need that creates a
want.
The person who recognises a need effectively
becomes a potential customer.
Thirst-need
Consumer
making
decision
Black Box
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Water
Coca Cola
Champagne
Large variety of wants
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2.The Decision-Making Process
and its Influencing Factors
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2. Customer Decision Making
Process (Product Acquisition Process)
Can involve some or all of the following
seven stages:
1. Recognition of a need (Motive development)
2. Involvement level,
3. Identification of alternatives (Info gathering),
4. Evaluation of alternatives (Product evaluation)
5. The Purchase Decision,
6. Action (Product acquisition)
7. Post purchase behaviour (Re-evaluation).
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Stage 1. Recognition of a need
The initial step - a prerequisite of further
action.
E.g. A wedding invitation
 Shall I attend?
 What for?
 Shell I meet other people there?
 Do I have enough time?, money for a
present?, suitable dress? ...
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Stage 2. Choice of involvement level
“The buying situation” —how much time
and effort does the need/want justify?
Three types of buying situations can be
identified:
 Extended problem solving,
 Limited problem solving,
 Habitual problem solving.
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Extended problem solving
This situation involves a high degree of
information search, and close examination
of alternative solutions using many choice
criteria.
The purchase of expensive items (cars, video
and audio equipment, houses and expensive
clothing, jewelery)
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Limited problem solving
Many consumer purchases fall into this
category. (spending limited time and
efforts)
They have some experience with the product
in question so that information search may
be mainly internal through memory.
However, a certain amount of external
search and evaluation may take place (e.g.
checking prices) before purchase is made. 20
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Habitual problem solving
Habitual problem solving occurs when a
consumers repeat buy the same product
with little or no evaluation of alternatives.
 They spend almost none time and efforts.
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Stage 3. Identification of alternatives
Information search for similar products
Choice criteria are the various attributes
(and benefits) a consumer uses when
evaluating products and services. They
provide the grounds for deciding to
purchase one brand or another.
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Types of Criteria
Type of
criteria
Technical
Economic
Social
Personal
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Examples
Reliability, Durability, Performance,
Style/looks, Comfort, Delivery,
Convenience, Taste
Price, Value for money, Running costs,
Residual value, Life cycle costs
Status, Social belonging, Convention,
Fashion
Self-image, Risk reduction, Morals,
Emotions
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Stage 4. Evaluation of alternatives
“The evoked set concept”
Those brands which initially come to mind
when considering a purchase are referred to
as the ‘evoked set’.
 PC = IBM,
 soft drink = Coca-cola,
 sport car = Ferrari,
 copy machine = Xerox, etc.
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Evoked set concept
Strong application of Evoked Set leads to
Generic use of brand names:
 Aspirin,
 Linoleum,
 Hover,
 Cellophane,
 Nylon,
 Escalator, etc.
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Silent-Non silent Attributes
For buying decision process customers
compare the specific differences between
products.
2 groups
 Silent attributes (Obvious): fuel injection,
electric windows, sun-roof.
 Non-silent attributes: driving safety, antirust body coating, less repair inconvenience.
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Stage 5. The Purchase Decision
 Timing and location on purchase – shop
location and working time
 Payment of purchase - installment
payment, acceptance of credit cards.
 Quantity decisions – associated items
• camera + film,
• electrical toy + batteries
• Laptop + bag + mouse
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Stage 6. Action
Actual buying or non buying.
 Last moment cancellation:
a) poor service (not polite, very crowded, poor
ventilation)
b) extra pay for plastic bag
c) invoice not available at the moment
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Stage 7. Post purchase behaviour
the final stage needed to resolve anxieties
about choice made.
 There is not full 100% rational purchase
decision.
 There is always compromise of price,
quality, timing, place etc.
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Post purchase behaviour
To decrease doubt of the buyers that they have
made the best choice the vendors approach
customers with after-sale services like:
 no objection return policy,
 call out service,
 free phone help service,
 good instruction manuals, etc.
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3. Influence on Consumer Behaviour
The buying decisions are not generally made
on the basis of logical economic criteria.
It is considerably more difficult to identify the
factors or variables which affect buying
decisions.
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3.1 Personal Buying Decision Variables
These variables can be grouped under the
following three categories
A. Psychological variables,
B. Demographic variables,
C. Social variables.
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A. Psychological variables
Motivation – The Maslow’s hierarchy of
needs.
Level 5
NB
Level 4
L e v e l 3
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Maslow’s Pyramid of needs
Level 1 Physiological needs – survival-food
and drink, recuperation-sleep, procreationsex.
Level 2. Safety needs: Physical protection,
Well-being, Health, Fitness
Level 3. Social needs: Friendship, Love,
Social status, and Esteem
Level 4. Personal needs: Achievements, Self
esteem, Fun, Freedom
Level 5. Self-actualisation: Creative
potential, Talent, and Contribution to
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society.
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Maslow’s Pyramid of needs
Maslow initial approach was that the
individual could achieve each levels need
sequentially. One after the other.
However he recognised that in reality people
can try to meet needs from different levels
simultaneously.
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Maslow’s Pyramid of needs
Example: Procter & Gamble initial promotion
for baby Pampers was “Saves you time and
trouble” – appeals at physiological level 1
(need for rest of mothers).
 Later changed to “Keeps your baby dry and
happy” appeals to the higher level 2 (safety
needs of babies) and was more effective.
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B. Demographic variables
important variables from person’s
demographic profile that affect individual
buying behaviour.
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Age
Sex
Stage in life cycle (Family life cycle)
Income:
Education:
Occupation:
Religion:
Ethnic background, etc.
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B. Demographic variables
Age: Age groups as potential buyers of certain
products
 Baby market (0-3)
 Youth market (5-12)
 Teenage market (13-22),
 Middle age,
 Elderly M.-mobility aids for very elderly
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B. Demographic variables
Sex groups as potential buyers :
 Female dominated markets:
cloth industry, cosmetics, grocery shopping
 Male dominated markets
insurance, finance and banking, car repair
/accessories, sport ware/
 Unisex market
blue jeans, T-shirt, books/magazines, fast
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food, music, recreation/entertaiment
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C. Social variables
important social and personality influence
variables that affect individual buying
behaviour - 2 Groups:
1. Psychographic Factors
2. Preference Groups
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1. Psychographic Factors
 Social class: Upper class, Upper-middle,
Middle, Lower-middle ….
 Personality: Ambitious, self-confident,
aggressive, introverted, extroverted, etc.
 Lifestyle: Conservative, liberal, health and
fitness orientated, adventuresome, etc.
 Family background: Family tree roots,
political views, how education is valued etc.
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3.2. Preference Groups
People are associated within following groups
according their preferences or social status:
Primary preference group
Secondary reference group
Aspirational groups
Dissociative groups.
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Primary preference group
those groups to which the person is
considered to be a full member (immediate
family, close friends or co-workers).
A purchase in a primary group directly affect
the other member of the group
e.g. – family holidays, London City dress
code
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Secondary reference group
Contacts are more formal and less continuous
(trade unions, professional associations,
religious organisations).
The purchases within these groups do not
automatically affect the others but
considerable attitude is expected to be given
to the product selected.
E.g. Casual menswear
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Aspirational groups
those of which a purchaser would like to be
considered a member.
 Football fans
 Party members
 to have the same brand of tennis racket as a
famous tennis star.).
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Dissociative groups
those of which the customer would prefer not
to be associated.
(Viagra users, homosexuals)
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The End
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