Buying Motives & Comparison Shopping

1. Buying Motives & Comparison Shopping Introduction to Business & Marketing

2. Today’s Objectives • Understand consumer buying motives. • Compare 11 common buying motives based on consumer reasoning • Practice comparison shopping in order to determine the best buy among products and services.

3. The Main Idea • Customers buy products and services to satisfy their needs and wants • The rational behind making a purchase is different depending on the product or service

4. Buying Motives Reasoning vs. Emotion

5. BUYING MOTIVES • A salesperson must know what motivates customers to buy • Rational Motives – conscious, logical reason for a purchase • Emotional Motives – a feeling experienced by a customer through association with a product • Patronage Motives - a reason to purchase from a specific place of business

6. RATIONAL BUYING MOTIVES • Health • Comfort • Quality • Safety/Protection • Price • Gain • Economy • Convenience

7. RATIONAL BUYING MOTIVES • Price: the purchase is a good value and priced attractively • Ex: buying groceries or home products • Gain: the purchase will earn money • ex: buying a computer to expand a business • Economy : the purchase will help save money • ex: buying an economy car to save money on gas • Convenience: To save time and to make things easier • ex: a GPS system in your car

8. RATIONAL BUYING MOTIVES • Health: a purchase made to improve your health • ex: joining a health club to get into shape • Comfort: a purchase made to be physically comfortable • ex: owning a down comforter  • Quality: a purchase made based on quality or service • ex: buying organic produce • Safety & Protection: a purchase made to feel safe • ex: an alarm system in your home

9. EMOTIONAL BUYING MOTIVES • Prestige • Recognition • Affection/Love • Variety • Recreation

10. EMOTIONAL BUYING MOTIVES • Prestige: a purchase made based on desire to look and feel important • ex: owning valuable jewelry, designer handbag • Recognition: The desire to be noticed • ex: a tattoo • Affection & Love: a purchase for those we care about • ex: flowers or an engagement ring • Variety: a purchase made to have change in our lives • ex: owning the same shirt in 5 different colors • Recreation: spending money on activities we enjoy • ex: lift ticket for snowboarding

11. BUYING MOTIVES WORKSHEET

12. Savvy Shoppers • Take their time before purchasing • Research and plan purchase • Time their purchase for best pricing • Avoid peak seasons • Avoid impulse buying • Stick to a list

13. Comparison Shopping Smart shoppers know how to…

14. Compute per unit cost What’s the better deal? • Sometimes prices vary by size • Read labels for the size/weight of each product • Figure out how much you are paying per unit • Peanut Butter – Brand A • 8 oz. • $1.60 per jar • Peanut Butter – Brand B • 20 oz. • $3.00 per jar

15. Compare Sales • Promotional Sales • Limited-time offer that may happen once or on a recurring basis • “30% off entire store – this week only!” • Store coupons • Clearance Sales • Final offer used to quickly sell the remaining stock of products • “30% off the lowest marked price”

16. Research Products Types of Merchants • Full-service • Discount • Specialty • Outlet • Supermarket • Warehouse • Convenience Stores

17. Review Assurances • Warranties • Costco vs. Best Buy • Guarantees • Satisfaction Guarantee?

18. Buying Motives Activity • Review the 13common buying motives we discussed • Using either magazine clippings and poster board or a Power Point slide, find an image of a product a consumer might buy based on each buying motive