Chap 3-Buyer Behaviour

8/8/2019 Chap 3-Buyer Behaviour

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BUYER BEHAVIOUR AND

RELATIONSHIPDEVELOPMENT

Chapter 3

Palmer: Introduction to Marketing



Buyer Behaviour



UNDERSTANDING BUYING

PROCESSES IS CRUCIAL

� Marketing mix management focuses on

the company's perspective

� But consumers may see the company'soffering quite differently



Complexity of Buying Behaviour

± What factors motivate an individual to buy?

± How are competing products evaluated?

± Relative importance of each element of the

product offer ± The set of competing products from which

consumers make the final choice

± Who is involved in making the purchase decision?

± How long does the process of making a decisiontake?

± Buyers post purchase actions



DIFFERENT TYPES OF BUYING

SITUATIONS

� Routine re-buy - almost instinctive

� Modified re-buy - basically similar to

previous purchases, but slightly different� Completely novel - no previous

experience this type of product

� High Involvement products

� Low involvement products



THE BUYING PROCESS



NEEDS, WANTS AND DEMAND

� A need refers to something which is

deep rooted in an individual's

personality.� Wants are the culturally influenced

manifestation of a deep-seated need.

� Demand , is the willingness and ability of

buyers to purchase a product that

satisfies their need.



PHYSIOLOGICAL AND

PSYCHOLOGICAL BASES OF NEEDS



Sociological influences on needs

� Family

� Peer or reference groups-Direct/Indirect

� Social Class� Culture



SITUATIONAL FACTORS

INFLUENCING NEEDS

� Our needs are influenced by the

situation in which we currently findourselves.

± Age

± Socio- economic status± Stage in the "family life cycle³Bachelor, Newly Married, Dependent Children, Independent

Children, Retired



INFORMATION SEARCH

� Where do we seek information aboutneed-satisfying solutions?

± Personal experience

± Word-of-mouth recommendation fromfriends

± Various reference groups may guide us

± Newspaper editorial content anddirectories

± Advertisements



Perception

� Selective Attention

� Selective Distortion� Selective Retention



EVALUATION

Total Set

Awareness Set

Consideration Set

Choice Set

Chosen

Product



THE BUYING DECISION

� Key issues:± Who decides?

± To buy, not buy or to defer a decision?

± When will the product be bought?

± From which retailer?

± How many will be bought?

± Will any optional accessories be bought?

± How will the purchase be paid for?

± Through which distribution channels?



POST-PURCHASE

EVALUATION

� Did our purchase live up to

expectations?� If not, we could:

± Return the product

± Tell others± Rationalise our thoughts to overcome

"cognitive dissonance"



THE DECISION MAKING UNIT



MODELS OF BUYER BEHAVIOUR -

BASIC PRINCIPLES



PERSONAL AND ORGANISATIONAL

BUYER BEHAVIOUR COMPARED

� F or organisational purchases:

± Two sets of needs are being met rather

than one

± More people are typically involved

± They are more likely to involve formalised

routines

± The buying process typically takes longer ± Different evaluation criteria



BUYER-SELLER

RELATIONSHIPS

� Try to increase the chances of customers

returning to you rather than to competitors

� Some profitable repeat customers are

particularly sought

� Cheaper to retain customers than to

recruit new ones



RELATIONSHIP MARKETING AND

TRANSACTIONAL MARKETING COMPARED



REASONS FOR THE DEVELOPMENT

OF RELATIONSHIP MARKETING

� In competitive markets, a source of profitable differentiation

� Increasing abilities of InformationTechnology



METHODS USED TO DEVELOP

RELATIONSHIPS

� Aim to move

customers up the

³ladder of loyalty´

by:± customer satisfaction

± added value

± privileges

± loyalty programmes

± barriers to exit

Chap 3-Buyer Behaviour

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