Chapter 4 – Influences on Consumer Behaviour

1 Define the dimensions of consumer buyer behaviour

  1. Who is important in the buying decision
  2. How do they buy
  3. What are their choice criteria
  4. Where do they buy
  5. When do they buy

 

2 Describe the role of the buying centre (who buys) and its implications

Some  consumer purchases are made by a group – such as a household. This is a form of buying centre where decisions on purchases may be made by the interactions of the 5 roles:

  1. Initiator: the one who begins the process and my gather info
  2. Influencer: typically gather the info and try  to impose their choice criteria on the group
  3. Decider: the one with [power and financial authority to make the purchase happen
  4. Buyer: the one that conducts the transaction
  5. User: the one that actually consumes or uses the product

Once the buyer centre can be identified persuasive communications can be targeted towards it. It can be used as a form of segmentation to target different family members.

3 Describe the consumer decision-making process (how people buy)

  1. Need recognition/problem awareness: problem recognition in consumer mind (it’s broken or absent from my life), increase relative importance in consumer mind, be fully aware of their needs, eradicate need inhibitors (reasons to hesitate and not buy), stimulate the urge (emotionally, psychologically, technologically)
  2. Information search: Reports, blogs internet searches – all can be seeded with your marketing mix

Evaluation of alternative: thin out the population to a small selected sample of similars


3. The actual purchase: influences of brand is an attitude based on a set of beliefs – it will affect the final decision

(http://en.wikipedia.org/wiki/Theory_of_reasoned_action)

4. Post purchase evaluation of the decision: Cognitive dissonance is buyer uncertainty that they made the right choice. If left unresolved it may  impact on their purchase  preference next time. Phone them and ask them is everything OK?

4a) Discuss the marketing implications of need recognition,

The marketing manager must understand the customer needs so that they can take competitive advantage over others vying for the same piece of business. The track is as follows: Problem recognition in consumer mind (it’s broken or absent from my life), increase relative importance in consumer mind, be fully aware of their needs, eradicate need inhibitors (reasons to hesitate and not buy), stimulate the urge (emotionally, psychologically, technologically)

4b) Marketing implications of information search,

We need to know where customers are looking for their information and make sure we have brand presence there

4c) Marketing implications of evaluation of alternatives,

Provide lots of info surrounding the positive consequences of buying – case study’s, recommendations etc.. Printed media is useful due to the level of detail that can be delivered. Sales force deliver the verbal detail on their attributes, features and benefits

4e) Marketing implications of post-purchase stages

Products and services must meet and exceed customer expectation, Cognitive dissonance is buyer uncertainty that they made the right choice. If left unresolved it may impact on their purchase  preference next time. Phone them and ask them is everything OK?

5 Compare the differences in evaluation of high- versus low involvement situations

High involvement has extensive customer evaluation prior to purchase:

  1. Personal belief about perceived consequences of buying the brand (label junky)
  2. The importance that others put upon buying the brand (peer pressure)
  3. Attitude to brand (like/dislike)
  4. Subjective norms – how they think others will approve/disapprove of their purchase

Low involvement has basic inquiry by the customer using simple choice tactics to reduce time and effort. It can lead to habitual purchase patterns that can be exploited

  1. Awareness of product
  2. Trial without any real detailed thought
  3. Satisfaction leads to repeat purchase

6 Describe the nature of choice criteria (what are used) and their implications

They are the various attributes of a product that a consumer uses when making an evaluation:

  • Technical: is the product or service reliable?
  • Economic: how much does it cost, are their cheaper similes out there?
  • Social: does this improve my social status, is it bling, does it say I’m better off than most?
  • Personal: does it make me feel better about myself?

The implications of identifying the choice criteria are to aid product design and to influence the marketing mix that is used to amplify certain choice criteria.

7a) Explain the influences on consumer behaviour—the buying situation

  1. Extended problem solving: provide information rich marketing mix, salesman should adopt problem solution approach to selling
  2. Limited problem solving: Non brand aligned customers should be stimulated to conduct a search. If already buying the brand then the offer of a warranty should be used to reduce the risk of brand switching
  3. Habitual problem solving: Repetitive advertisements are used to reinforce the already favourable attitudes

7b) Explain Personal influences

  1. Information processing
    1. Perceptual processes: selective attention (aligning the marketing message with current beliefs and attitudes), selective distortion (credible information from reliable sources) and selective attention (eye catching)
    2. Learning processes: Conditioning (Quality associated with the brand will carry over to the brand. Freebies give sense of feel good , sporty promotions add energy etc..), Cognitive learning (Statements made in an advertisement will be remembered, allowing the viewer to make up their own mind also positively influence the outcome of a campaign)
  2. Motivation
    1. Physiological needs:
    2. Belongingness and love:
    3. Esteem and status:
    4. Self actualization:
  3. Beliefs and attitudes – The consequence of a positive or negative set of beliefs about a product become an attitude. This in turn affects choices. The influencing of beliefs directly affect what we purchase
  4. Personality – the type of person that you want to buy into your brand may be in the advert. Identifying with that personality creates a favourable opinion of the brand
  5. Lifestyle – segmented and targeted ruthlessly GenX, Golden Oldies, Yummy Mummies, MILF’s
  6. lifecycle and age – Tastes change and personal circumstances do likewise.

7c) Explain social influences

  1. Culture: Tastes and rate of consumption vary – Ramadan, Easter, Xmas, Halal, nudity
  2. Social class: a good one for segmentation
  3. Geodemographics: location is a key attribute in the segmentation and placement of marketing mix
  4. Reference groups: Leaders in a group are targeted to make others follow

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