NAME ID MAJOR

: PUTRI ANJATSARI : 014201000052 : MGT-MARKETING

SUMMARY OF CUSTOMER BUYING BEHAVIOR

THE BUYING PROCESS The buying process is the steps costumer go through when buying a product or service, begins when costumer recognize an unsatisfied needs. Need recognition happens straightforwardly when we need something. Types of needs is the needs that motivate customers to go shopping can be classified as utilitarian or hedonic. Utilitarian needs is needs depend on the urgency of an event/activity, while hedonic need is need for entertaining, emotional, and recreational experiences. 4 Examples how retailers satisfy hedonic needs: 1. Stimulation: Retailers and mall managers use background music, visual displays, scents, and demonstration. 2. Status and power: Offering customer services and makes the customer center of attention. 3. Adventure: Constantly changing assortment in order to make customer never know the treasure (discount and low prices goods) they will find. Conflicting needs is the crush condition when customers have multiple needs. Cross-shopping is the pattern buying of both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers. Information Search is happened once costumers identify the needs, they will seek information about retailers, channels, or products. There are two source of information: internal sources and external sources. Internal sources are information in a customers memory, such as name, image, and past experiences with different stores. External sources consist of information provided by ads and other people. The amount of information searched undertaken depends on the value costumer feel they can gain from searching versus the cost of searching.

The multiattribute attitude model is based on the notion that costumers see a retailer, a product, a channel as a collection of attributes or characteristics. The model is designed to predict a costumers evaluation of a product, retailer, on channel on the basis of its performance on relevant attributes and the importance of those attributes to those costumers. Implication for retailers: describes how a retailer can use the multiattribute attitude model to encourage costumer to shop at the retailer more frequently. First, the model indicates what information costumer use to decide which retailer to patronize or which channel to use. Second, it suggests tactics that retailers can undertake to influence costumers store, channel, and merchandise choices. To develop this program, they need to make a market research that contain following information: 1. Alternative retailers that costumer consider 2. Characteristic or benefit that costumers consider when evaluating or choosing a retailer 3. Customers rating of each retailers performance on the characteristics. 4. The importance weights that costumer attach to the characteristics. Getting into the consideration set: Costumers consideration set or the set of alternative that costumer evaluate when making a choice of a retailer patronize. After ensuring the costumers consideration set, use 4 methods to increase the chances that costumer will select it for visit: 1. 2. 3. 4. Increase belief about the stores performance. Decrease the performance beliefs for competing stores in the consideration set. Increase customers importance weights. Add a new benefit.

Satisfaction is a post consumption evaluation of how well a store or product meets or exceeds costumers expectation. TYPES OF BUYING DECISIONS Extended problem solving is a purchase decision process in which customers devote considerable time and effort to analyzing their alternatives. Limited problem solving is a purchase decision process involving a moderate amount of effort and time. This buying process happens when costumer has limited experience and information about product and service so that they tend to believe their own knowledge. Impulse buying or unplanned purchasing is a buying decision made by costumers on the spot after seeing the merchandise.

Habitual decision making is a purchase decision process involving little or no conscious effort. Brand loyalty means that costumers like and consistently buy a specific brand in a product category. Retailer loyalty means that customers like and habitually visit the same retailer to purchase a type of merchandise. SOCIAL FACTORS INFLUENCING THE BUYING PROCESS Family buying decision will considering the whole family members needs Reference groups includes one or more people whom a person uses as a basis of comparison for beliefs, feelings, and behavior. The references affect buying decision by offering information, providing rewards for specific purchasing behaviors, and enhancing a costumers self-image. It also including store advocates costumers who like a store so much that they actively share their positive experience with friends and family. Criteria for Evaluating Market segments: 1. Actionable: the retailer must know what to do to satisfy needs for the costumer in the segment. The fundamental criteria for evaluating a retail market segment are: (1) costumer in the segment must have similar needs, seek similar benefits, and be satisfied by a similar retailing offering and (2) those costumers need must differ from the need of costumer from other segment. 2. Identifiable: the retailer is able to determine which costumers are in the market segment. When it is done, the retailer can determine the segments size and the consumers to whom the retailer needs to target its communications and promotions. 3. Substantial: if a market is too small or its buying power insignificant, it cant generate sufficient profit to support the retailing mix activities. 4. Reachable: the retailer can target promotions and other elements of the retailer mix to consumers in the segment. Approaches for Segmenting Markets 1. Geographic segmentation: groups of costumers according to where they live. 2. Demographic segmentation: groups consumers on the basis of easily measured, objective characteristics such as age, gender, income, and education. 3. Geodemographic segmentation: uses both geographic and demographic characteristics to classify consumers. 4. Lifestyle Segmentation: refers to how people live, how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world in which they live. 5. Buying-Situation Segmentation: buying-situation is such as fill-in versus weekly shopping. 6. Benefit Segmentation: grouping costumers seeking similar benefits.

7. Composite Segmentation Approaches: uses multiple variables to identify customers in the segment according to their benefits sought, lifestyles, and demographic.