Chapter 7 Buying Behavior Chapter 7 Buying Behavior o Buying Behavior The decision processes and actions of people involved in buying and using products Involved with buying and using the product Buying a pencil to use at home vs using it in the office o Consumer Buying Behavior The decision processes and purchasing activities of people who purchase product for personal or household use and not for business purposes Not all decisions processed lead to purchases Not all consumer decisions have all 5 steps Involvement o Definition How important is this product degree of interest in or importance of a product o Enduring Involvement Ongoing and long term involvement with a product or product category Keep looking into what you are going to buy Keep a marketing mix that will satisfy customers Example This may be someone who stays connected with technology read the latest magazines and work in a related field o Situational Involvement Temporary or dynamic involvement resulting from a particular set of circumstances You buy what you want without thinking about it too much Levels of Product Involvement o High Involvement Products Visible to others expensive high social risk Customer may have always had the most advance technology read the latest electronic magazines and working a related field o Low Involvement Products Less visible less expensive less social risk Need to buy a new car after getting in an accident They may be really involved with the process at the beginning But then become uninvolved by the end of the process o Will lead to consumer decision making Consumer Problem Solving Strategy o o Routinized response behavior A consumer decision making process used when buying frequently purchased low cost items that require very little search and decision effort Example run out and go buy more Do it out of habit o Limited decision making A consumer decision making process used when purchasing products occasionally or needing information about an unfamiliar brand in a familiar product category Requires time for information gathering and deliberation Limited Problem Solving Examine groceries and use food labels Buying new type of detergent o Extended Decision Making A consumer decision making process employed when purchasing unfamiliar expensive or infrequently brought products Uses criteria and information on deciding new products o Impulse Buying Just buy it without giving it any thought Most consumers occasionally make purchases solely on impulses and not on any basis of any of these decision making processes Consumer Decision Making o Consumer Buying Decision Process and Possible Influences On The Process o Problem Recognition Stage o Occurs when a buyer becomes aware of a difference between a desired state and an actual condition Example When a girl has an old calculator and needs a newer version to run software o Recognition of problem may be sped up by advertising packaging ECT Example Calculator advertising may let students know they need a new one through advertising in a book store Information Search Stage o o Internal search of what we know An information search in which buyers search their memories for information about products that might solve their problem o External Search An information search in which buyers seek information from sources other than their memories o Customers may overestimate friends opinions for products o Repetition increases consumers learning of information When they see it the first time they may not think about it but they alert more as the message is repeated o This may eventually cause wear out Evaluation of Alternatives o Consideration Set ice cream A group of brands viewed as alternatives for possible purchase Look at different brand of ice cream o Evaluative Criteria Objective and subjective product characteristics that are important to the buyer May want a creamier ice cream instead o Framing describing the alternatives and their attributes in a certain manner Influences inexperienced buyers more than experienced If evaluation yields more than one brand the consumer can move to the next stage of the process the purchase o Other issues such as delivery price warranties maintenance agreements installation and credit arrangements are also settled Purchase Stage and Post purchase Evaluation o PURCHASE Chooses product brand Chooses the seller Negotiate the terms Purchase or terminate the process o POST PURCHASE Cognitive Dissonance A buyer s doubts shortly after a purchase about whether the decision was the right one More likely to arise when a person brought an expensive highinvolvement product that lacks some of the desirable features of competing brands Person may attempt to return the product or seek positive information about it to justify choosing it Reduce cognitive dissonance by having salespersons making sure customers are satisfied with their new purchases The Case for Collaborative Consumption o The reinvention of old market behaviors renting lending swapping bartering gifting through technology taking place on a scale and in ways never possible before On Collaboration Consumption o http www ted com talks rachel botsman the case for collaborative consumption h tml o Time Magazine s top 10 Ideas that will change the world o What are the 4 drivers of collaborative consumption o What are the 3 types of systems o Where is collaborative consumption today More examples http www collaborativeconsumption com 2014 01 16 collaborativeconsumption a trend to watch for in 2014 o Drives of Collaborative Consumption A renewed belief in the importance of a community A torrent of peer to peer social networks and real time technologies Pressing unresolved environmental concerns A global recession that has fundamentally shocked consumer behaviors Consumer Buying Decision Process and Possible Influence on The Process o Influencers of the Buying Decision Process o o Situational Influences Because physical surroundings are situational influences retailers spend considerable resources on store interiors and sometimes exteriors to make the customer s experience more favorable o o Physical Surroundings Include atmosphere aromas sounds lighting weather and other factors in which decision process occurs Make environment favorable Marketers go to lengthy efforts and expense to create physical settings that are conductive to making purchases Things such as weathers traffic sounds and orders are not controllable instead marketers try to make customers more