Models of buying behaviour, customer type and choice criteria the decision making process. Influences on buyers. Customer Types Organisational Customers
Purchase:
For use in the operation of a business or organisation. To manufacture other products For resale to others
Private Consumers
Purchase:
For personal or household use
ORGANISATIONAL PRODUCT
CONSUMER PRODUCT 2 Understanding Customers How do they buy? What do they buy? Customers Who buys? Where do they buy? When do they buy? Why do they buy? Cultures? Factors Buyers Consider Price Performance / reliability Availability / delivery Other users experience Guarantees / warranties / After sales service Payment terms Image Experience Kotler &Armstrong p122 The buyers Black Box Factors influencing consumer behaviour Buyer Psychological Personal Social Cultural Culture
Sub Culture
Social Class Reference Groups
Family
Roles & Status Age & life cycle Occupation Economic Situation Lifestyle Personality & self concept Motivation Perception Learning Beliefs & attitudes Kotler &Armstrong p123
Centerparcs Centerparcs target their adverts at mothers who may act as initiators in the decision to purchase a family holiday. Buying A Mobile phone What are you likely to do before you buy? 7 Influences on Consumer Purchasing Behaviour information processing motivation beliefs and attitudes personality lifestyle lifecycle culture social class geodemo- graphics reference groups Personal influences Social influences Consumer The buying situation Choice Criteria used when Evaluating Alternatives 5 Technical- Reliability Durability Performance Style/looks Comfort Delivery Convenience Taste
Economic- Price Value for money Running costs Residual value Life style costs Social- Status Social belonging Convention Fashion Personal- Self-image Risk reduction Morals Emotions Decision- Making Process Need Recognition/ Problem Awareness Information Search Evaluation of Alternatives Purchase Post-purchase evaluation Engel, Blackwell and Miniard (1990) Does it vary -fmcg, consumer durables
Complex Buying Situations
Variety Seeking
?
Habitual Information Search Personal sources family, friends, neighbours, acquaintances Commercial Sources advertising, salespeople, dealers, packaging, displays Public Sources mass media, consumer rating organisations Experimental Sources handling, examining, usage The Evoked Set Evaluation of Alternatives Purchase Decision / Post purchase Decision Mobile phones? The Times (2012) Business briefing, 26.11. p38-39 Summary The above models are useful but need to be adapted to the marketers products/services Knowing about consumer behaviour and the key factors they consider puts the marketing person in a stronger position The organizational market is probably bigger than the consumer market, more professional and involves more people but demand in most cases is derived e.g. the demand for house bricks is derived from the demand for Further reading Jobber and Ellis-Chadwick ch4