CHAPTER 3 BUYER BEHAVIOUR

part two: making sense of markets

an opening challenge

The Apprentice is a BBC television programme in which young business people compete for a job with Lord Sugar. In one episode, the teams were asked to sell expensive lollipops at a zoo. One contestant’s approach was to hand a lollipop to a small child, ask if the child liked it/wanted it – and then charge the parents. What do you think of that idea?

agenda

• consumer decision making– process– organisational decisions

• influences on buyer behaviour– internal– external

• organisational decision making

buyer decision processneed or problem

infosearch

evaluation ofalternatives

purchasedecision

post-purchaseevaluation

purchase

need or problem recognitionAQ – re-set figure text

information search

• personal sources– e.g. family, friends

• commercial (supplier) sources– e.g. websites, adverts, product literature

• third-party sources– e.g. reviews, articles, blogs

evaluating alternatives

criteria:• performance• financial• social• personal

purchase decisionAQ – re-set figure type

post-purchase evaluation

• three likely outcomes:– disappointment– satisfaction– delight

• post-purchase dissonance• marketing’s role continues post-purchase

consumer buying situations

• routine problem solving– regular purchases, low risk– e.g. drinks, sweets, bread

• limited problem solving– less frequent purchases, greater risk– e.g. laptop, phone

• extended problem solving– rarely purchased, high risk– e.g. flat, car

levels of involvement

• the level is affected by:– self-image– perceived risk– social factors– hedonism

need/problemrecognition

informationsearch

evaluation ofalternatives

post-purchaseevaluation

purchasedecision

level of involvement

major

extensive

many considered

extensive

slow

high

minor

limited

fewconsidered

limited

rapid

low

actualpurchase plannedmay change at pos

buyer behaviour types

complex variety-seeking

dissonance-reducing habitual

high involvement low involvement

differencesbetweenbrands

high

low

internal influences on buying behaviour

• personality• perception• learning– behavioural– cognitive

• motives• attitudes and beliefs

external influences on buying behaviour

• culture• reference groups– membership groups– aspirational groups– disassociative groups

• social networking media• family• buying roles (decision-making unit)

the decision to purchase a new product

awareness

interest

evaluation

adoption

trial

(Strong, 2007)

product adoptionAQ – re-set figure type and slightly increase size of innovators

triangle

increased complexity of organisational decisions

• buy in larger quantities• negotiate harder on delivery terms• expect reduced prices for bulk buying• may require tailored products• are harder to please• more people involved in making the decision• longer, more complex procedures

organisational buying situationsAQ – re-set figure type

the buying centre

gatekeeper

initiator

buyer

influencer

decider

user

financer

purchasedecision

the buying process

• problem recognition• general need description• product specification• supplier search• proposal solicitation• supplier selection• order• performance review

summary

• individuals make buying decisions– not markets– not organisations

• individuals vary– personality, motives, attitudes, beliefs, perception, culture– role in decision-making unit or buying centre– adopter category

• buying decision processes vary– high or low involvement?– consumer or organisation?

reference

Strong, E.K. (2007) The Psychology of Selling. New York: McGraw-Hill.