Chapter 3 Chapter Overview Consumer purchase process Consumer buying environment Trends in consumer behavior Business buying center BtoB purchasing process Chapter Overview Common Purchase Reasons ID: 614147
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Slide1
Buyer Behaviors
Chapter 3Slide2
Chapter Overview
Consumer purchase process
Consumer buying environment
Trends
in consumer behaviorBusiness buying centerB-to-B purchasing process
Chapter OverviewSlide3
Common Purchase Reasons
Products/services provide utility
To satisfy physical needs
To satisfy psychological needs
To satisfy social needsTo satisfy emotional needsSlide4
3-
4
Consumer Decision-Making Process
Fig. 3-1Slide5
Information Search
Internal search
Known sources
Low-risk, low involvement
External searchLess-frequent purchaseGreater social/financial importanceSlide6
External Search
Ability to search
Education, pre-existing knowledge
Motivation
Level of involvementNeed for understanding (cognition)Shopping enthusiasmPerceived cost vs. Perceived benefitSlide7
Consumer Values
Attitudes shaped by personal values.
Values are strongly held beliefs.
Values contribute to attitudes.
Personal valuesComfortable lifeEquality, FreedomHappiness Personal accomplishmentSlide8
Affective
Cognitive
Conative
Consumer Attitudes
Attitudes drive purchase decisions.Marketing communications attempts to influence attitudes. Slide9
Attitude
Affective
Feelings or emotions about the object, topic, or idea.
Cognitive
Mental images, understanding, interpretationsConativeIntentions, actions, behavior3 Components:Slide10
Attitude Sequence
Cognitive
Affective
Conative
(Think, feel, do )Affective Conative Cognitive(Feel, do, think )
Conative Cognitive Affective
(Do,
think, feel )Slide11
Simulations of knowledge structures and memories
Assumptions, beliefs, interpretations
Marketing messages aim to:
Strengthen current linkage
Modify current linkageCreate a new linkageCognitive Mapping (CM)Slide12
Principles concerning processing of information and cognitive mapping:
CM enhances movement from short-term to long-term memory.
Repetition
is necessary to establish new linkages.
Once linkage exists, difficult to modify or create new linkages.Slide13
“Establish a new linkage as alternative to salt”
Strengthen linkage
Modify linkage
Create new linkage
Role of Marketing Messages in Cognitive Mapping
Fig.
3-5
Marketing
MessageSlide14
Information Processing
Elaboration Likelihood Model (ELM)
Hedonic, Experiential Model (HEM)Slide15
Occurs along two routes:
Central Route
Cognitively processes a message with a high degree of attention to core elements of the message
(uses cognitive skills)
Peripheral RouteAttention paid to marginal cues imbedded in the message (repetition important) Music, actors, background of an ad Information ProcessingSlide16
ELM
Consumers pay attention to
Prices
Product qualityCompany/brand attributes HEMConsumers pay attention to
Emotions
Feelings
Fun
New or unusual experiences
Slide17
3-
17
Information
Search
Evaluation ofAlternatives
ProblemRecognition
Evoked set
Multiattribute
Affect referral
F
ig
3 . 6
Evaluation of AlternativesSlide18
Evoked set method
Evoked set
Inept set
Inert set
Multiattribute methodBased on beliefs about a brand’s performance on product attributes and the importance of each attribute. (High involvement)Affect referralChooses brand liked, without evaluation of other brands or attributes
Evaluation of AlternativesSlide19
Evoked Set
The set of brands
and purchase locations
that meet both the objective and subjective requirements of the consumer.
Development of the evoked set begins during the internal search.Inclusion in the evoked set is a major goal of marketers.Slide20
Factors Affecting Consumer Purchasing Behaviors
Demographics (age, gender, income, etc.)
Heredity and home environment
Family life cycle
Life changing eventsSocial/Cultural environmentSituational environmentUnplanned/impulse/variety alternativesSlide21
Age complexity
Gender complexity
Individualism
Active, busy lifestyles
CocooningPleasure bingesHealth Emphasis Consumer TrendsSlide22
Postpurchase
Evaluation
Evaluation of product performance.
Cognitive dissonance.
Impacts future purchases.Impacts word-of-mouth communications.Slide23
Business-to-Business
Buyer Behavior
Users
Buyers
InfluencersDecidersGatekeepersA simplistic view of the
Buying CenterSlide24
1. Problem recognition
2. General need description
3. Product specification
4. Supplier/Source search
8. Evaluate performance
7
. Make the transaction routine
6
. Selection
5. Proposal Solicitation
Traditional
BtB
Buyer Behavior ProcessSlide25
Total
Offering
CREATES
PERCEIVES
ADDED VALUE
Direct Activities
Support Activities
Creation and Perception of Value
Buying CenterSlide26
Individual Factors
Business-to-Business Buying Center
Personality
Roles and perceived roles
MotivationLevels of powerAttitude towards riskLevels of cognitive involvementPersonal objectives
Can be summed up as……Slide27
Needs of the job function
Needs of the organization
Personal needs
3 Primary Roles of Buying Center MembersSlide28
Straight
rebuy
Modified
rebuy
New taskTypes of B-to-B SalesSlide29
Based on Customer needs related to economic utility
Multi-distribution
Multiples of same channel design to reach intended intensity of distribution
Dual distribution
Unique channel designs for different target marketsDual/Multiple ChannelsSlide30
Dual Distribution
Manufacturer
Small user/ Retailer
Large end user
Distributor
Unique channel designs for different target marketsSlide31
Multi-Distribution
Multiples of same channel design to reach intended intensity of distribution
Manufacturer
Retailer
Retailer
Retailer
Retailer
Retailer