[7] Buying Behaviour

Question 1

What are Paradigms of choice?

Answer 1

Types of processes/patterns used by customers when choosing to buy a product

Research shows that customers choose products based on different types of patterns (or “paradigms”)

Differ across products/within product lines

Question 2

Cognitive paradigm of choice

Choice process[4]

Types of products[1]

Egs x3

Answer 2

Very rational (i.e. a lot of thinking involved)
Extensive decision-making process
Several steps involved
Lengthy and time consuming; requires a lot of effort

Important for first time purchases (high emotional and/or financial impact)

Car, House, Retirement Plan

Question 3

Reinforcement paradigm of choice

• Assumption x2
• Choice Process x2
• Type of Products
• Egs x4

Answer 3

Assumes that purchase is a learning process with modified response to opportunities, rewards and costs present in the consumer environment.

Marketers influence the decision by changing customer’s situation

Induced by the environment (external stimuli influence the decision)

Previous experience can also influence the decision

Repeat purchases (lower emotional/financial impact)

-Restuarant, Clothes, Perfume, Watch

Question 4

Habit paradigm of choice

• Choice Processes x2
• Type of products
• Egs x3

Answer 4

Not much thinking involved, if at all
May be unconscious
-Purchases made out of routine/high frequency repeat purchases
-Eg: Milk, Bin Bags, Gum

Question 5

2 opposit schools of thought in buying behaviour research, explain each

Answer 5

Cognitivism: Decisions and, thus, behaviour are based on a maximum reliance on cognitive structures (reasoning

Behaviouralism:
Decisions and consequently behaviour are the outcome of a stimulus-response relationship

Question 6

2 types of reinforcing, explain

Answer 6

Classical conditioning or stimulus-response, based on Pavlov experiments on dogs
stimulus-response

Operant conditioning (trial and error):
Reinforcement (pos/neg) i.e. presenting something positive or withdrawing something negative to induce a certain behaviour
Punishment i.e. presenting something negative to induce a certain behaviour

Question 7

Reinforcing EGs:

• Posi
• Neg
• Punishment

Answer 7

• buy one, get one free
• 70% off sales
• clamping, parking fines

Question 8

Characteristics of organisational buyers [7]

Answer 8

Fewer customers

The purchases are in large quantities

Close relationships and service are required

The organisational buyers are trained professionals in purchasing

Several persons in organisation influence purchase

Buying occurs in direct dealing with manufacturers

Reciprocal Trading

Question 9

Participants in the organisational buying process - Decision Making Unit (DMU) [5]
explain and eg for each

Answer 9

• Decider; those who have authority to select the supplier/model (e.g. production managers)
• Initators; those who begin the purchase process (e.g. senior management)
• Gatekeepers; those who control the flow of information (typically purchasing staff)
• Influencers; those who provide information and add decision criteria throughout the process (e.g. financial managers, consultants)
• Users; those who actually use the product (e.g. machine operators)
• Buyers; those who have the authority to make contractual arrangements (typically the purchasing department)