Buyer Behavior in Marketing Strategy

BUYER BEHAVIOR IN MARKETING STRATEGY

(John A. Howard, 2nd ed.)

Consumer behavior

”Consumer behavior is the study of

how consumers differentiate

among products, why people buy

and consume products, and the

way they think and act when

buying and consuming.”

Key concepts

• product categories

• product life cycle (PLC)

• customer decision model (CDM)

Key concepts (cont’d)


”group of brands that serve the same

generic needs and are perceived

similar.” (simplifying)



Key concepts


”group of brands that serve the same generic needs and are perceived similar.” (simplifying)


1. introduction

2. growth

3. maturity


Consumer Decision Model

Problem solving

• Extensive (EPS)

• Limited (LPS)

• Routine (RPS)

connected to Stage of PLC, Amount

of Information, Speed of Decision

Complex factors

• evoked set (or consideration set)

• brand loyalty (repeat purchases,

nonrecursivity)

• habitual purchasing (routine

problem solving) vs. variety

seeking (heterogeneity)

Critique

• explicit focus on corporate USA – big corporations

– consumer power

• lack of service focus

• hasty generalizations – ”all judgments about the quality of each [instant

coffee] brand had largely been made: consumers already had formed an image of each brand.” (impossible?)

– compare: ”Consequently, the product sat on shelves unsold. The company had not provided the amount of information – through advertising – that the consumer required.”

• outdated examples (GM)

More critique

”Not all new products conform to

this theoretical life cycle [PLC], but

most do, so (...) it is a highly useful

description.”

– NO! Most new products DIE.

– Hence, it is useful if you have tons

of products and tons of money; if

not, it gives you ZERO help.

However… (the positive)

• very good methodological

implications; practical

walkthrough of measurements

• involvement of psychology

• not only praising quantitative

approach, but actually

recommending a synthesis

Thanks!

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Buyer Behavior in Marketing Strategy

Education

Transcript of Buyer Behavior in Marketing Strategy