01 Buyer Behavior

7/28/2019 01 Buyer Behavior

1/12

BUYER BEHAVIOURDR EARL STEVENS, OCTOBER 2009

1. Sales Training

9/06/2013 1


2/12

Buyer Behaviour - Introduction

An important part of the marketing process is to understand why a customer orbuyer makes a purchase.

Without such an understanding, businesses find it hard to respond to the customersneeds and wants.

Marketing theory traditionally splits analysis of buyer or customer behaviour into twobroad groups for analysis Consumer Buyers and Industrial Buyers: Consumer buyers are those who purchase items for their personal consumption

Industrial buyers are those who purchase items on behalf of their business ororganisation

Businesses now spend considerable sums trying to learn about what makescustomers tick. The questions they try to understand are:

Who buys?

How do they buy?

When do they buy?

Where do they buy? Why do they buy?

Our challenge is to understand how customers might respond to the differentelements of the marketing mix that are presented to them.

If we can understand these customer responses better than the competition, then itis a potentially significant source of competitive advantage.

9/06/2013 2


3/12

Buyer Characteristics Affect Buyer

Behaviour

9/06/2013 3


4/12

Buyer Behaviour - Cultural Factors

Cultural factors have a significant impact oncustomer behaviour.

Culture is the most basic cause of a personswants and behaviour. Growing up, children learnbasic values, perception and wants from thefamily and other important groups.

Marketing are always trying to spot cultural

shifts

which might point to new products thatmight be wanted by customers or to increaseddemand.

Each culture contains sub-cultures groups ofpeople with share values.

Sub-cultures can include nationalities, religions,racial groups, or groups of people sharing thesame geographical location. Sometimes a sub-culture will create a substantial and distinctivemarket segment of its own.

Similarly, differences in social class can createcustomer groups.

Social class is not just determined by income. Itis measured as a combination of occupation,income, education, wealth and other variables:

9/06/2013 4


5/12

Buyer Behaviour - Social Factors A customers buying behaviour is also influenced by social factors, such as the

groups to which the customer belongs and social status.

In a group, several individuals may interact to influence the purchase decision.

The typical roles in such a group decision can be summarised as follows:

9/06/2013 5

The person who first suggests or thinks of the idea ofbuying a particular product or service

Initiator

A person whose view or advice influences the buyingdecision

Influencer

The individual with the power and/or financial authority tomake the ultimate choice regarding which product to buy

Decider

The person who concludes the transaction

Buyer

The person (or persons) who actually uses the product or

service

User


6/12

Buyer Decision-making Process

9/06/2013 6

Needs Recognition &Problem Awareness

Information Search

Evaluation ofAlternatives

Purchase

Post-PurchaseEvaluation


7/12

Buyer Sources of Information

9/06/2013 7

Family, friends, neighbours etcPersonalsources

Advertising, salespeople, retailers,dealers, packaging, point-of-sale displays

Commercialsources

Newspapers, radio, television, consumerorganisations, specialist magazines

Public

sources

Handling, examining, using the productExperiential

sources


8/12

Buyer Behaviour- five stages in the process of adoptinga new product

9/06/2013 8

Awareness

The customer becomes aware of the new product, but lacksinformation about it

Interest

The customer seeks information about the new product

Evaluation

The customer considers whether trying the new productmakes sense

Trial

The customer tries the new product on a limited or smallscale to assess the value of the product

Adoption

The customer decides to make full and/or regular use of thenew product


9/12

Another Model The Stimulus Response

Model

9/06/2013 9

Marketing Stimuli

Other Stimuli

Product

Price

Promotion

Place

PoliticalEconomic

Social

Technological

Buyer

Characteristics

Buyer Decision

Making Process

Buyer Responses

Product Choice

Brand Choice

Retail Choice

Dealer Choice

Purchase Timing

Purchase AmountPurchase

Frequency


10/12

The Process Of New-product Adoption

A marketing team looking to successfully introduce a new product or service should think

about how to help customers move through the five stages.

For example, what kind of advertising or other promotional campaign can be employed to

build customer awareness? If customers show a desire to trial or sample a product, how can

this be arranged effectively?

Research also suggests that customers can be divided into groups according to the speed

with which they adopt new products. Rogers, in his influential work on the diffusion of innovations, suggested the following

classification:

9/06/2013 10


11/12

Some Familiar New Products

9/06/2013 11


12/12

END

01 Buyer Behavior

Documents

Transcript of 01 Buyer Behavior