Chapter 3 buyer behaviour

1. part two: making sense of markets Chapter 3 buyer behaviour

2. an opening challenge The Apprentice is a BBC television programme in which young business people compete for a job with Lord Sugar. In one episode, the teams were asked to sell expensive lollipops at a zoo. One contestant’s approach was to hand a lollipop to a small child, ask if the child liked it/wanted it – and then charge the parents. What do you think of that idea?

3. agenda • consumer decision making • process • organisational decisions • influences on buyer behaviour • internal • external • organisational decision making

4. buyer decision process need or problem info search evaluation of alternatives purchase decision purchase post-purchase evaluation

5. need or problem recognitionAQ – re-set figure text

6. information search • personal sources • e.g. family, friends • commercial (supplier) sources • e.g. websites, adverts, product literature • third-party sources • e.g. reviews, articles, blogs

7. evaluating alternatives criteria: • performance • financial • social • personal

8. purchase decisionAQ – re-set figure type

9. post-purchase evaluation • threelikely outcomes: • disappointment • satisfaction • delight • post-purchase dissonance • marketing’s role continues post-purchase

10. consumer buying situations • routine problem solving • regular purchases, low risk • e.g. drinks, sweets, bread • limited problem solving • less frequent purchases, greater risk • e.g. laptop, phone • extended problem solving • rarely purchased, high risk • e.g. flat, car

11. levels of involvement • the level is affected by: • self-image • perceived risk • social factors • hedonism

12. low level of involvement high minor major need/problem recognition limited extensive information search few considered many considered evaluation of alternatives rapid slow purchase decision may change at pos planned actual purchase limited extensive post-purchase evaluation

13. buyer behaviour types high involvement low involvement high complex variety-seeking differences between brands dissonance- reducing habitual low

14. internal influences on buying behaviour • personality • perception • learning • behavioural • cognitive • motives • attitudes and beliefs

15. external influences on buying behaviour • culture • reference groups • membership groups • aspirational groups • disassociative groups • social networking media • family • buying roles (decision-making unit)

16. awareness interest evaluation trial adoption the decision to purchase a new product (Strong, 2007)

17. product adoptionAQ – re-set figure type and slightly increase size of innovators triangle

18. increased complexity of organisational decisions • buy in larger quantities • negotiate harder on delivery terms • expect reduced prices for bulk buying • may require tailored products • are harder to please • more people involved in making the decision • longer, more complex procedures

19. organisational buying situationsAQ – re-set figure type

20. the buying centre initiator user influencer purchase decision gatekeeper decider financer buyer

21. the buying process • problem recognition • general need description • product specification • supplier search • proposal solicitation • supplier selection • order • performance review

22. summary • individuals make buying decisions • not markets • not organisations • individuals vary • personality, motives, attitudes, beliefs, perception, culture • role in decision-making unit or buying centre • adopter category • buying decision processes vary • high or low involvement? • consumer or organisation?

23. reference Strong, E.K. (2007) The Psychology of Selling. New York: McGraw-Hill.