Stages of Consumer Buying Behavior? Types of Consumer Buying Behavior. Categories That Effect Consumer Buying Behavior. o Personal o Psychological o Social Please Email alex@udel.edu any comments eturn to Sylla!us eturn to "omepage What is Consumer Buying Behavior? #efinition of Buying Behavior$ Buying Behavior is the decision processes and acts of people involved in !uying and using products. %eed to understand$ &hy consumers ma'e the purchases that they ma'e? &hat factors influence consumer purchases? the changing factors in our society. Consumer Buying Behavior refers to the !uying !ehavior of the ultimate consumer. ( firm needs to analy)e !uying !ehavior for$ Buyers reactions to a firms mar'eting strategy has a great impact on the firms success. The mar'eting concept stresses that a firm should create a Marketing Mix *++, that satisfies *gives utility to, customers- therefore need to analy)e the &hat- &here- &hen and ho& consumers !uy. +ar'eters can !etter predict ho& consumers &ill respond to mar'eting strategies. eturn to Contents .ist Stages of the Consumer Buying Process Six Stages to the Consumer Buying #ecision Process */or complex decisions,. (ctual purchasing is only one stage of the process. %ot all decision processes lead to a purchase. (ll consumer decisions do not al&ays include all 0 stages- determined !y the degree of complexity...discussed next. The 0 stages are$ 1. Problem Recognition*a&areness of need,22difference !et&een the desired state and the actual condition. #eficit in assortment of products. "unger22/ood. "unger stimulates your need to eat. Can !e stimulated !y the mar'eter through product information22did not 'no& you &ere deficient? 3.E.- see a commercial for a ne& pair of shoes- stimulates your recognition that you need a ne& pair of shoes. 4. Information search22 o 3nternal search- memory. o External search if you need more information. /riends and relatives *&ord of mouth,. +ar'eter dominated sources5 comparison shopping5 pu!lic sources etc. ( successful information search leaves a !uyer &ith possi!le alternatives- the evoked set. "ungry- &ant to go out and eat- evo'ed set is o chinese food o indian food o !urger 'ing o 'londi'e 'ates etc 6. Evaluation of Alternatives22need to esta!lish criteria for evaluation- features the !uyer &ants or does not &ant. an'7&eight alternatives or resume search. +ay decide that you &ant to eat something spicy- indian gets highest ran' etc. 3f not satisfied &ith your choice then return to the search phase. Can you thin' of another restaurant? .oo' in the yello& pages etc. 3nformation from different sources may !e treated differently. +ar'eters try to influence !y 8framing8 alternatives. 9. Purchase decision22Choose !uying alternative- includes product- pac'age- store- method of purchase etc. :. Purchase22+ay differ from decision- time lapse !et&een 9 ; :- product availa!ility. 0. Post-Purchase Evaluation22outcome$ Satisfaction or #issatisfaction. Cognitive Dissonance- have you made the right decision. This can !e reduced !y &arranties- after sales communication etc. (fter eating an indian meal- may thin' that really you &anted a chinese meal instead. Handout...Pillsbury !"##$s 12<== >s gives the consumer a &ay of communicating &ith the mar'eter after purchase. This helps reduce cognitive dissonance &hen a mar'eter can ans&er any concerns of a ne& consumer. eturn to Contents .ist %ypes of Consumer Buying Behavior Types of consumer !uying !ehavior are determined !y$ .evel of 3nvolvement in purchase decision. 3mportance and intensity of interest in a product in a particular situation. Buyers level of involvement determines &hy he7she is motivated to see' information a!out a certain products and !rands !ut virtually ignores others. "igh involvement purchases22"onda +otor!i'e- high priced goods- products visi!le to others- and the higher the ris' the higher the involvement. Types of ris'$ Personal ris' Social ris' Economic ris' The four type of consumer !uying !ehavior are$ outine esponse7Programmed Behavior22!uying lo& involvement fre?uently purchased lo& cost items5 need very little search and decision effort5 purchased almost automatically. Examples include soft drin's- snac' foods- mil' etc. .imited #ecision +a'ing22!uying product occasionally. When you need to o!tain information a!out unfamiliar !rand in a familiar product category- perhaps. e?uires a moderate amount of time for information gathering. Examples include Clothes22'no& product class !ut not the !rand. Extensive #ecision +a'ing7Complex high involvement- unfamiliar- expensive and7or infre?uently !ought products. "igh degree of economic7performance7psychological ris'. Examples include cars- homes- computers- education. Spend alot of time see'ing information and deciding. 3nformation from the companies ++5 friends and relatives- store personnel etc. @o through all six stages of the !uying process. 3mpulse !uying- no conscious planning. The purchase of the same product does not al&ays elicit the same Buying Behavior. Product can shift from one category to the next. /or example$ @oing out for dinner for one person may !e extensive decision ma'ing *for someone that does not go out often at all,- !ut limited decision ma'ing for someone else. The reason for the dinner- &hether it is an anniversary cele!ration- or a meal &ith a couple of friends &ill also determine the extent of the decision ma'ing. eturn to Contents .ist Categories that &ffect the Consumer Buying 'ecision Process ( consumer- ma'ing a purchase decision &ill !e affected !y the follo&ing three factors$ 1. Personal 4. Psychological 6. Social The mar'eter must !e a&are of these factors in order to develop an appropriate ++ for its target mar'et. eturn to Contents .ist Personal Ani?ue to a particular person. #emographic /actors. Sex- ace- (ge etc. Who in the family is responsi!le for the decision ma'ing. Boung people purchase things for different reasons than older people. Handout...(rom choices to chec)out... "ighlights the differences !et&een male and female shoppers in the supermar'et. eturn to Contents .ist Psychological factors Psychological factors include$ *otives!! ( motive is an internal energi)ing force that orients a personCs activities to&ard satisfying a need or achieving a goal. (ctions are effected !y a set of motives- not Dust one. 3f mar'eters can identify motives then they can !etter develop a mar'eting mix. +(S.EW hierarchy of needsFF o Physiological o Safety o .ove and Belonging o Esteem o Self (ctuali)ation %eed to determine &hat level of the hierarchy the consumers are at to determine &hat motivates their purchases. Handout...Nutrament 'ebun)ed... %utrament- a product mar'eted !y Bristol2+yers S?ui!! originally &as targeted at consumers that needed to receive additional energy from their drin's after exercise etc.- a fitness drin'. 3t &as therefore targeted at consumers &hose needs &ere for either love and Belonging or esteem. The product &as not selling &ell- and &as almost terminated. Apon extensive research it &as determined that the product did sell &ell in inner2city convenience stores. 3t &as determined that the consumers for the product &ere actually drug addicts &ho couldnCt not digest a regular meal. They &ould purchase %utrament as a su!stitute for a meal. Their motivation to purchase &as completely different to the motivation that B2+S had originally thought. These consumers &ere at the Physiologicallevel of the hierarchy. B+2S therefore had to redesign its ++ to !etter meet the needs of this target mar'et. +otives often operate at a su!conscious level therefore are difficult to measure. Perception!! What do you see?? Perception is the process of selecting- organi)ing and interpreting information inputs to produce meaning. 3E &e chose &hat info &e pay attention to- organi)e it and interpret it. 3nformation inputs are the sensations received through sight- taste- hearing- smell and touch. Selective Exosure2select inputs to !e exposed to our a&areness. +ore li'ely if it is lin'ed to an event- satisfies current needs- intensity of input changes *sharp price drop,. Selective !istortion2Changing7t&isting current received information- inconsistent &ith !eliefs. (dvertisers that use comparative advertisements *pitching one product against another,- have to !e very careful that consumers do not distort the facts and perceive that the advertisement &as for the competitor. ( current example...+C3 and (T;T...do you ever get confused? Selective Retention2emem!er inputs that support !eliefs- forgets those that donCt. (verage supermar'et shopper is exposed to 1G-=== products in a shopping visit lasting 6= minutes20=H of purchases are unplanned. Exposed to 1-:== advertisement per day. CanCt !e expected to !e a&are of all these inputs- and certainly &ill not retain many. 3nterpreting information is !ased on &hat is already familiar- on 'no&ledge that is stored in the memory. Handout...South +frica ,ine.... Pro!lems mar'eting &ine from South (frica. Consumers have strong perceptions of the country- and hence its products. +bility and -no,ledge!! %eed to understand individuals capacity to learn. .earning- changes in a personCs !ehavior caused !y information and experience. Therefore to change consumersC !ehavior a!out your product- need to give them ne& information re$ product...free sample etc. South (frica...open !ottle of &ine and pour itFF (lso educate american consumers a!out changes in S(. %eed to sell a &hole ne& country. When ma'ing !uying decisions- !uyers must process information. "no#ledge is the familiarity &ith the product and expertise. 3nexperience !uyers often use prices as an indicator of ?uality more than those &ho have 'no&ledge of a product. %on2alcoholic Beer example$ consumers chose the most expensive six2pac'- !ecause they assume that the greater price indicates greater ?uality. $earning is the process through &hich a relatively permanent change in !ehavior results from the conse?uences of past !ehavior. +ttitudes!! Ino&ledge and positive and negative feelings a!out an o!Dect or activity2 may!e tangi!le or intangi!le- living or non2 living.....#rive perceptions 3ndividual learns attitudes through experience and interaction &ith other people. Consumer attitudes to&ard a firm and its products greatly influence the success or failure of the firmCs mar'eting strategy. Handout....ldsmobile..... Eldsmo!ile vs. .exus- due to consumers attitudes to&ard Eldsmo!ile *as discovered !y class exercise, need to disassociate (urora from the Eldsmo!ile name. Exxon Jalde)2nearly 4=-=== credit cards &ere returned or cut2up after the tragic oil spill. "onda 8Bou meet the nicest people on a "onda8- dispel the unsavory image of a motor!i'e rider- late 1K:=s. Changing mar'et of the 1KK=s- !a!y !oomers aging- "ondas mar'et returning to hard core. To change this they have a ne& slogan 8Come ride &ith us8. (ttitudes and attitude change are influenced !y consumers personality and lifestyle. Consumers screen information that conflicts &ith their attitudes. #istort information to ma'e it consistent and selectively retain information that reinforces our attitudes. 3E !rand loyalty. There is a difference !et&een attitude and intention to !uy *a!ility to !uy,. Personality!! all the internal traits and !ehaviors that ma'e a person uni?ue- uni?ueness arrives from a personCs heredity and personal experience. Examples include$ o Wor'aholism o Compulsiveness o Self confidence o /riendliness o (dapta!ility o (m!itiousness o #ogmatism o (uthoritarianism o 3ntroversion o Extroversion o (ggressiveness o Competitiveness. Traits effect the &ay people !ehave. +ar'eters try to match the store image to the perceived image of their customers. There is a &ea' association !et&een personality and Buying Behavior- this may !e due to unrelia!le measures. %i'e ads. Consumers !uy products that are consistent &ith their self concept. /ifestyles!! ecent AS trends in lifestyles are a shift to&ards personal independence and individualism and a preference for a healthy- natural lifestyle. .ifestyles are the consistent patterns people follo& in their lives. EL(+P.E healthy foods for a healthy lifestyle. Sun tan not considered fashiona!le in AS until 1K4=Cs. %o& an assault !y the (merican (cademy of #ermatology. Handout...Here Comes the Sun to Confound Health Savvy /otion *a)ers.. Extra credit assignment from the ne&s group- to access Jalue and .ifestyles *J(.S, Program- complete the survey and Email alex@udel.edu the results. This is a survey tool that mar'eters can use to !etter understand their target mar'et*s,. eturn to Contents .ist Social (actors Consumer &ants- learning- motives etc. are influenced !y opinion leaders- personCs family- reference groups- social class and culture. .pinion leaders!! Spo'espeople etc. +ar'eters try to attract opinion leaders...they actually use *pay, spo'espeople to mar'et their products. +ichael Mordon *%i'e- +c#onalds- @atorade etc., Can !e ris'y...+ichael Mac'son...EM Simpson...Chevy Chase 0oles and (amily 1nfluences!! ole...things you should do !ased on the expectations of you from your position &ithin a group. People have many roles. "us!and- father- employer7ee. 3ndividuals role are continuing to change therefore mar'eters must continue to update information. /amily is the most !asic group a person !elongs to. +ar'eters must understand$ o that many family decisions are made !y the family unit o consumer !ehavior starts in the family unit o family roles and preferences are the model for childrenCs future family *can reDect7alter7etc, o family !uying decisions are a mixture of family interactions and individual decision ma'ing o family acts an interpreter of social and cultural values for the individual. The /amily life cycle$ families go through stages- each stage creates different consumer demands$ o !achelor stage...most of BA(#6=1 o ne&ly married- young- no children...me o full nest 3- youngest child under 0 o full nest 33- youngest child 0 or over o full nest 333- older married couples &ith dependant children o empty nest 3- older married couples &ith no children living &ith them- head in la!or force o empty nest 33- older married couples- no children living at home- head retired o solitary survivor- in la!or force o solitary survivor- retired o +oderni)ed life cycle includes divorced and no children. Handout...%,o 1ncome *arriages +re No, the Norm Because 4 income families are !ecoming more common- the decision ma'er &ithin the family unit is changing...also- family has less time for children- and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt. *Children influence a!out N16= !illion of goods in a year, Children also have more money to spend themselves. 0eference 2roups!! 3ndividual identifies &ith the group to the extent that he ta'es on many of the values- attitudes or !ehaviors of the group mem!ers. /amilies- friends- sororities- civic and professional organi)ations. (ny group that has a positive or negative influence on a persons attitude and !ehavior. Membershi grous *!elong to, (ffinity mar'eting is focused on the desires of consumers that !elong to reference groups. +ar'eters get the groups to approve the product and communicate that approval to its mem!ers. Credit Cards etc.FF Asiration grous *&ant to !elong to, !isassociate grous *do not &ant to !elong to, "onda- tries to disassociate from the 8!i'er8 group. The degree to &hich a reference group &ill affect a purchase decision depends on an individuals suscepti!ility to reference group influence and the strength of his7her involvement &ith the group. Social Class!! an open group of individuals &ho have similar social ran'. AS is not a classless society. AS criteria5 occupation- education- income- &ealth- race- ethnic groups and possessions. Social class influences many aspects of our lives. 3E upper middle class (mericans prefer luxury cars +ercedes. o Apper (mericans2upper2upper class- .6H- inherited &ealth- aristocratic names. o .o&er2upper class- 1.4H- ne&er social elite- from current professionals and corporate elite o Apper2middle class- 14.:H- college graduates- managers and professionals o +iddle (mericans2middle class- 64H- average pay &hite collar &or'ers and !lue collar friends o Wor'ing class- 6<H- average pay !lue collar &or'ers o .o&er (mericans2lo&er class- KH- &or'ing- not on &elfare o .o&er2lo&er class- GH- on &elfare Social class determines to some extent- the types- ?uality- ?uantity of products that a person !uys or uses. .o&er class people tend to stay close to home &hen shopping- do not engage in much prepurchase information gathering. Stores proDect definite class images. /amily- reference groups and social classes are all social influences on consumer !ehavior. (ll operate &ithin a larger culture. Culture and Sub!culture!! Culture refers to the set of values- ideas- and attitudes that are accepted !y a homogenous group of people and transmitted to the next generation. Culture also determines &hat is accepta!le &ith product advertising. Culture determines &hat people &ear- eat- reside and travel. Cultural values in the AS are good health- education- individualism and freedom. 3n american culture time scarcity is a gro&ing pro!lem. 3E change in meals. Big impact on international mar'eting. Handout...Will British ,arm up to iced tea? %o...!ut that is my opinionFF...Tea is a part of the British culture- hot &ith mil'. #ifferent society- different levels of needs- different cultural values. Culture can !e divided into su!cultures$ o geographic regions o human characteristics such as age and ethnic !ac'ground. 3E West Coast- teenage and (sian (merican. Culture affects &hat people !uy- ho& they !uy and &hen they !uy. %nderstanding &onsumer Buying Behavior offers consumers greater satisfaction '%tility() *e must assume that the comany has adoted the Marketing &oncet and are consumer oriented)