W4 - GM - Buying Behavior PDF

Understanding the Marketplace and Customer Value MB 2104 Global Marketing International Business Topics 1. Customer Buying Behavior 2. Business Buying Behavior 3. Understanding Customers through Research Customer Buying Behavior Keywords Four factors that influence consumer buyer behavior...

Understanding the Marketplace and Customer Value MB 2104 Global Marketing International Business Topics 1. Customer Buying Behavior 2. Business Buying Behavior 3. Understanding Customers through Research Customer Buying Behavior Keywords Four factors that influence consumer buyer behavior are: Cultural, Social, Personal & Psychological Stages of consumer buying decision process: Need recognition 🡪 Information search🡪 Evaluation of alternatives 🡪 Purchase 🡪 Post-purchase Consumer Markets and Buyer Behavior Consumer buyer behavior refers to the buying behavior of final consumers -individuals and households- that buy goods & services for personal consumption. These people make up the consumer market. The central question for marketers is: “How do consumers respond to various marketing efforts the company might use?” The Model of Buyer Behavior Characteristics Affecting Consumer Behavior  Characteristics Affecting Consumer Behavior: Cultural Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Measured as a combination of occupation, income, education, wealth, and other variables US Social Class System  Characteristics Affecting Consumer Behavior: Social Groups and Social Networks Membership Groups Aspirational Groups Reference Groups Groups with direct influence Groups an individual wishes Groups that form a and to which a person to belong to comparison or reference in belongs forming attitudes or behavior Characteristics Affecting Consumer Behavior: Social Influencer marketing  Characteristics Affecting Consumer Behavior: Social Family https://youtu.be/sTVzEJX3vqY?si=DkJuYrQM402GFZGN Characteristics Affecting Consumer Behavior: Social Role and Status Characteristics Affecting Consumer Behavior: Personal Family Life Cycle: stages throughout which families pass as they mature over time. Stages in family life cycle: 1.bachelor stage 2.newly married couples, no children 3.full nest 1; youngest child under 6 4.full nest 2; youngest child 6 or over 5. full nest 3; older married couples with dependent children 6.empty nest 1; older married couples no children with them 7. empty nest 1; older married couples no children at home; retired 8.solitary survivor, working 9.solitary survivor, retired Carl and Ellie’s Life Cycle Characteristics Affecting Consumer Behavior: Personal Age and life cycle stage Occupation Economic Situation Lifestyle Personality and life concept  Characteristics Affecting Consumer Behavior: Personal Personality: a person’s unique characteristics that lead to relatively consistent and lasting responses to his environment Self-concept: the self image or general picture that people have of themselves Lifestyle: a person’s pattern of living as expressed in his activities, interests and opinions – Activities (work, hobbies, social events, entertainment, shopping, sports, vacation) – Interests (family, home, job, recreation, fashion, food, media, achievements) – Opinions (themselves, social issues, politics, business, economics, products, future) Characteristics Affecting Consumer Behavior: Psychological Motivation : A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Maslow’s hierarchy of needs explains why people are driven by needs at particular times. Maslow’s Hierarchy of Needs  Characteristics Affecting Consumer Behavior: Psychological Perception: the process by which people select, organize, and interpret information to form a meaningful picture of the world.  Characteristics Affecting Consumer Behavior: Psychological Learning : changes in an individual’s behavior arising from experience Beliefs and Attitudes – A belief is a descriptive thought that a person holds about something – Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea Beliefs vs. Attitudes Beliefs: Attitudes: Contains MSG o Avoid to buy !! o Never use it !! Brain Cancer Beliefs: Attitudes: Contains Probiotic o Buy o Buy o Buy Maintain Health of Good for everybody !! Digestive System Identify the characteristics affecting consumer behavior for these products! Kids Tent Kids Wooden Nike X Indomie Vegetable Peeler Tent Watch Four Types of Buying Decision Behavior  Four Types of Buying Decision Behavior Dissonance- occurs when consumers are highly involved with an expensive, infrequent, or reducing buying risky purchase but see little difference among brands. behavior Complex buying when they are highly involved in a purchase and perceive significant differences behavior among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. Habitual buying occurs under conditions of low-consumer involvement and little significant brand behavior difference. Variety-seeking in situations characterized by low consumer involvement but significant buying behavior perceived brand differences. In such cases, consumers often do a lot of brand switching. The Buying Roles 5 roles people might play in a buying decision ▪ Initiator : who first gives the idea of buying the product or service ▪ Influencer : whose view or advice influences the decision ▪ Decider : who decide on any component of buying decision ▪ Buyer : who makes the actual purchase ▪ User : who uses the product or sevice purchased The Buyer Decision Process The Buyer Decision Process Need recognition is the first stage of the buyer decision process, in which the consumer recognizes a problem or need triggered by: ❑ Internal stimuli : hunger or thirst ❑ External stimuli : advertisement  The Buyer Decision Process Information search Sources of Information Personal sources Family, friends, neighbors, acquaintances Commercial sources Advertising, salespeople, dealer and manufacturer web and mobile sites, packaging, displays Public sources Mass media, consumer rating organizations, social media, online searches and peer reviews Experiential sources Examining and using the product  The Buyer Decision Process Alternative evaluation is Consumer may use Consumers may the stage of the buyer careful calculations buy on impulse and & logical thinking rely on intuition decision process in which the consumer uses information to evaluate Consumers may Consumers may alternative brands in the make buying make buying choice set. decisions on their decisions only after own consulting others The Buyer Decision Process Purchase decision is the buyer’s decision about which brand to purchase. Two factors intercede between purchase intentions and the actual decision: – Attitudes of others – Unexpected situational factors The Buyer Decision Process The Buyer Decision Process Post-purchase behavior is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction. Buyer Decision Process for New Product The adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Stages in the adoption process include: Individual Differences in Innovativeness Business Buying Behavior Keywords Major factors that influence business buyer behavior: Environmental, Organizational, Interpersonal, Individual Business Market The Business Market - all the organizations that buy goods and services to use in the production of other products and services that are sold, rented, or supplied to others. Business markets involve many more dollars and items compare to consumer markets. Business Buyer Behavior Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands. Market Structure & Demand Fewer but larger buyers Derived demand Inelastic demand Fluctuating demand Buyer and seller dependency The Model of Business Buyer Behavior Major Types of Buying Situations Straight rebuy is a routine purchase decision such as reorder without any modification Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers New task is a purchase decision that requires thorough research such as a new product  Participants in Business Buyer Behavior Users are those that will use the product INFLUENCER DECIDER or service. Influencers help define specifications and provide information for evaluating USER BUYER alternatives. Buyers have formal authority to select the supplier and arrange terms of purchase. Deciders have formal or informal power to select and approve final suppliers. GATEKEEPER Gatekeepers control the flow of information. ©2012 Pearson Education Major Influences in Business Buyer Behavior Major Influences in Business Buyer Behavior Environment Factors Demand for Economic Cost of Supply of product outlook money Materials Technology Culture Politics Competition Major Influences in Business Buyer Behavior Organizational Factors Objectives Policies Procedures Structure Systems Major Influences in Business Buyer Behavior Individual Factors Motives Perceptions Preferences Age Attitude Income Education toward risk The Business Decision Process The Business Decision Process Problem recognition occurs when someone in the company recognizes a problem or need. ⮚Internal stimuli - Need for new product or production equipment ⮚External stimuli - Idea from a trade show or advertising General need description describes the characteristics and quantity of the needed item. Product specification describes the technical criteria. Supplier search involves compiling a list of qualified suppliers to find the best vendors Example: Government buying online (E-procurement) Example: Government buying online (E-procurement) Understanding Customers through Research Let’s practice to conduct a marketing research! Objective: to understand characteristics affecting consumer behavior toward leather products Design your questionnaire to collect data: Personal factors: age, social class, and lifestyle Psychological factors: motivation, belief, and attitude Determine your sample Conduct internet survey Advantage? Low cost, non-intrusive, quick response time, ability to target specific populations  Designing a Questionnaire A questionnaire is the vehicle used to pose the questions that the researcher wants respondents to answer. Functions of a questionnaire Translates the research objectives into specific questions Standardizes those questions and the response categories Fosters cooperation and motivation Serves as permanent records of the research Can speed up the process of data analysis Can serve as the basis for reliability and validity measures Ch 11 51  The “Do’s” in Questionnaire Wording Keep it focused on a single topic Please How dorate you each aspectSears? feel about of Sears… IfIfthe you Sears did not repair useservice Sears repair schedule service, was not would convenient you usefor another you, Keep it brief would you consider of notrepair consider service? calling a competing repair organization to fix the problem you have? Keep it grammatically simple When Whensome yougasoline need it, or doelectric-powered you call Sears repair product service? in your house breaks, do you call the Sears repair service? Keep it crystal clear How Howmuch muchdodoyouyou think think youSears wouldcharges have tofor paya to repair have Sears fix somethingservice that needs call? to be repaired? Ch 11 52  The “Do not’s” in Questionnaire Wording Don’t ask leading questions Shouldn’t concerned Do you think infantparents useare car seats caruseful? seats? Don’t ask loaded questions Do Should youcar think seats carbeseats usedare for useful our loved for ones? family members? Don’t ask double-barreled questions Do good you think parents parents and responsible who use carcitizens seats use are car responsible? seats? Don’t use overstated questions Doinfant Do you believe you think children’s car sears car seats can protect are riders useful? from being maimed? Ch 11 53 The Questionnaire Introduction  Questions Flow in a Questionnaire Screens/qualifiers questions – Screening questions are used to ferret out respondents who do not meet research study qualifications – E.g., Have you shopped at Winn-Dixie in the last month? Warm-ups questions – E.g., How many major grocery shopping trips do you do in a month? Transitions prior to major sections – E.g., Did you purchase any cereal on your last trip? – E.g., Do you use coupons for groceries? Major sections – measuring marketing factors in questions – E.g., Rate each of the following aspects of Winn-Dixie on how satisfactory it is for you. Classification and demographic questions Ch 11 – E.g., What is the highest level of education you have earned? 55  Coding the Questionnaire Coding: use of numbers associated with question responses Numbers are preferred for two reasons: – Numbers are easier and faster to keystroke into a computer file. – Computer tabulation programs are more efficient when they process numbers. Ch 11 56 Measurement Scale Types Measurement Scale Types Measurement Scale Types Let’s practice to conduct a marketing research! Objective: to understand characteristics affecting consumer behavior toward leather products Design your questionnaire to collect data: Personal factors: age, social class, and lifestyle Psychological factors: motivation, belief, and attitude Determine your sample Conduct internet survey Advantage? Low cost, non-intrusive, quick response time, ability to target specific populations Group Assignment 1. Design a questionnaire for your potential target market country: Due Thursday at 5 PM 2. Conduct online survey to 30 respondents represent the target market, and then analyze the collected data and report the results: Demographic profile of the respondents Purchase and use behavior toward craft products What is their motivation to purchase and use craft products? What is their belief related to craft products? What is their attitude toward craft products? Use descriptive statistical analysis to calculate the results! Due Tuesday, 1 October 2024 at 10 AM THANK YOU