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CHAPTER 3. BUYER BEHAVIOR. BUYER BEHAVIOR. Buying Units and Roles Buying Process Influences on Buyer Behavior. BUYING UNIT. # of Consumer Business People Market Market One Individual Purchasing Agent More Family Buying than one Committee. BUYING ROLES.
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CHAPTER 3 BUYER BEHAVIOR
BUYER BEHAVIOR • Buying Units and Roles • Buying Process • Influences on Buyer Behavior
BUYING UNIT # of Consumer Business PeopleMarketMarket One Individual Purchasing Agent More Family Buying than one Committee
BUYING ROLES Buyer Purchaser of the product Influencer Person(s) who influence the sale User Person(s) who use the product
EXAMPLE OF BUYING ROLES Buyer Boyfriend buys perfume for girlfriend at Christmas Influencer Clerk at Marcy’s suggests a brand of perfume User Girlfriend receives the gift from her boyfriend
INFLUENCERS OF THE BUYING PROCESS Doctors Prescription Drugs Executive Secretary Gatekeeper for Vice President Professor College Textbooks
BUYING PROCESS Wants and Needs Pre-Purchase Activity Purchase Decision Post-Purchase Evaluation
WANTS AND NEEDS • Food trucks at UH • Defective goods • Safe drinking water
PRE-PURCHASE ACTIVITY • Relevant information search • Evaluation of alternative choices
RELEVANT INFORMATION SEARCH • Personal Experience • External Searches
PERSONAL EXPERIENCE • Previous Purchasing • Previous Shopping • Current Shopping
CURRENT SHOPPING EXAMPLES • Buying cars • Showrooming • Shopping malls
EXTERNAL SEARCHES • Formal searches • Informal searches • Internet searches
FORMAL SEARCHES • Magazines • Newspapers • TV
INFORMAL SEARCHES • Friends • Family • Fellow Students
INTERNET SEARCHES • Car Buyers • Angie’s List • App Examples
BUYING A CAR USING THE INTERNET • Kelly Blue Book: www.kbb.com Get value of your existing automobile • Edmunds: www.edmunds.com Edmunds has the latest automobile prices for new cars • Auto-by-tel: www.autobytel.com Retailer pays the commission to Auto-by-tel
APP EXAMPLES • Moving • Traveling with kids • Smartphones and Digital wallets
APPS FOR MOVING • Padmapper • Street Advisor • Homesnap • Updater
APPS FOR TRAVELING WITH KIDS • Bag It! • Where’s My Perry • Coloring Farm Touch
ALTERNATIVE CHOICES Total Set of Alternatives All Choices Available Awareness Set Buyer Awareness Choice Set (serious) Three or Four Final Choice Buy / Do Not Buy
PURCHASE DECISION • Purchase the product • Do not purchase the product • Continue pre-purchase activities
POST-PURCHASE EVALUATION After the buyer actually purchases the product, the buyer then evaluates how satisfied he/she is with the product.
POST-PURCHASE BEHAVIOR • Satisfied with purchase • Disappointed in product
POST-PURCHASE EXAMPLES • Costco return policy • USAA • Sewell Cadillac
HOW TO SATISFY CUSTOMERS AT SEWELL CADILLAC • Underpromise and overdeliver • Assign service advisor to a repeat customer • When something goes wrong, apologize first, and then fix the problem
EXPANDING AUTOMOBILE CUSTOMER SERVICE Stage 1 Extend hours of service Stage 2 Provide free loaner car Stage 3 Take loaner car to and from customer’s house
RESPONSES TO CUSTOMER COMPLAINTS • Encourage customer complaints • Fix any problems first • Reward employees who provide exceptional customer service
INFLUENCES ON THE BUYING BEHAVIOR • Social Influences • Perception Influences • Marketing Influences
SOCIAL INFLUENCES • Culture • Reference Groups • Family
CULTURAL INFLUENCES Values accepted by a homogeneous group and transmitted to succeeding generations
CULTURAL GROUPS IN HOUSTON • Hispanic • Vietnamese • Indian
REFERENCE GROUPS Groups to whom a person belongs or is a source of personal standards • Membership Groups • Aspiration Groups • Opinion Leadership
MEMBERSHIP GROUPS • Fellow Students • Churches • Professional Groups
ASPIRATION GROUPS • Country Clubs • River Oaks • Sororities
OPINION LEADERS • Movies Stars • Sports Stars • Business CEO’s
FAMILY Primary group of people which includes parents, spouses, and children • Changing Structure of Families • Changing Family Roles
CHANGING FAMILY ROLES • Buying a Car • Raising Children • Grocery Shopping
PERCEPTION INFLUENCES The level of uncertainty a buyer believes exists for a product or service • Selective Perception • Perceived Risk • Perceived Reality
SELECTIVE PERCEPTION Selective Screens out Exposure Messages Selective Filters Distortion Messages Selective Remembers Retention Messages that Support Beliefs
PERCEIVED RISK • A level of uncertainty a buyer believes exists for a product or service
PERCEIVED RISK EXAMPLES • Fear of flying • Buying your first house • Giving blood
PERCEIVED REALITY • If a buyer perceives something to be true, then it becomes reality to that buyer
PERCEIVED REALITY EXAMPLES • Shell gasoline • Proctor & Gamble logo • Fresh bread