Buying behaviour Flashcards
What are the reasons for product purchasing by organisations? B2B
- For use in the operation of a business or organization.
- To manufacture other products
- For resale to others
What are the reasons for product purchasing by consumers? B2C
•For personal or household use
What is consumer behaviour?
- The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs or wants.
- How consumer physchology impacts their attitudes, beliefs and behaviours
What is the consumer decision-making process?
1• Need recognition 2•Information search 3•Evaluation of alternatives 4•Purchase 5•Post-purchase evaluation of alternatives
What is the need recognition stage? and application in sport
•Buying process starts - recognize problem/need
•Need triggered by stimuli
-Internal stimulus: normal needs, hunger
-External stimulus: love new sports car- triggers buying one
• Like other services problem is in a sense need for more excitement or opportunity to enjoy something in sport e.g. to go watch a match unless buying sports products
What do marketers need to understand from the need recognition stage?
- Identify situation that trigger need
- Develop strategies that trigger interest
- Important with discretionary purchase
What is the information search stage? and application to sport
Identifying alternative ways of problem solution through an internal and external search. Aim is to build up up an array of brands that may provide a solution to the problem called the awareness set.
e.g. if sport event- search may be which match to watch your team
What is the importance of information search for marketers?
- Consumer’s other brands in awareness set - competition
- Identify sources & importance
- Prepare effective communications for target market
What is the evaluation of alternatives stage? and sport example
Value judgment process - conscious & rational in order to turn awareness set into evoked/choice set (brands that will be seriously considered)
e.g. which match ill be best to watch
What are consumers evaluation thought process in the evaluation stage?
- Try to satisfy a need
- Look for certain benefits in solution
- Each with attributes, benefits sought
- Time spent evaluating depends on the involvement of product
What are some evaluation of alternative criteria?
- Technical-e.g. Reliability, Durability, Performance
- Economic-e.g.Price, Value for money, Running costs
- Personal-e.g.Self-image, Risk reduction, Ethics
- Social-e.g. Status, Social belonging, Fashion
What are the intervening factors between the evaluation of alternatives and the purchase decision?
•Attitudes of others:
- Intensity of other’s attitude
- Motivation to comply with other’s wishes
•Unanticipated situational factors-game postponed due to weather, time/money constraints
What is the post-purchase behaviour stage?
Level of satisfaction/dissatisfaction felt by consumers after buying their product.
What are some sources in the information search stage?
- Commercial-ads
- Public
- Personal-family and friends
- Experiencial-demo-racket
What are some post-purchase actions?
- Buy again if satisfied with product/service
- Abandon/return product if dissatisfied
- Public action - complain, go to lawyer
- Private actions - stop buying or warn friends
What influences consumer purchasing behaviour?
- Buying situation
- Personal influences
- Social influences
How does the buying situation effect consumer behaviour?
The type of product will effect whether there is:
•Extended problem-solving
•Limited problem-solving
•Habitual problem-solving
How does perception as part of personal influences affect consumer behaviour?
- The way we select, organize & interpret information to create meaning.
- Depends on physical stimuli, surrounding & internal conditions
- Same reality – perception varies e.g. opinion of sales person
- Perceptions affect’ actual behaviour
What are some impacts of varying perception on consumer behaviour?
- Selective attention-Most stimuli screened out
- Selective distortion-Interpret to fit preconception
- Selective retention-Retain information - supports attitudes & beliefs
How can firms use selective attention for consumer behaviour?
market products based on stimuli people notice:
• Relate to a current need
• Size, colour and movement
• Deviations are large
How can marketers use selective distortion to affect consumer behaviour?
- Prevent neutral or ambiguous brand information
* Make it positive
How can marketers use selective retention to affect consumer behaviour?
- Advantage of strong brands
* Repeat messages to target market
What is Maslow’s hierarchy of needs?
A motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid with self at the top, then social and bottom physical.
What is the importnance of culture in detemrining conusmer behviour?
• Fundamental determinant of a person’s wants and behaviours acquired through socialization processes with family and other key institutions e.g. subcultures of religion
What example of a social factor affects consumer behaviour?
REFERENCE GROUPS
• Influence attitudes or behaviour directly or indirectly
TYPES:
-Primary (Family, friends, neighbours, and co-workers)
-Secondary (Religious, professional, and trade-union groups)
How does reference groups impact consumer behaviour?
- Expose new behaviours & lifestyles
- Influence attitudes & self-concept
- Pressures to conform - Affect product choices
What is organisational buying?
Decision making process where formal organizations establish need for purchased products & services & identify, evaluate & choose among alternative brands & suppliers
What are some organisational buying characteristics?
- Nature and size of customers-small volume, large firms
- Complexity of buying-requires time and expertise
- Reciprocal buying-powerful buyers may negotiate seller to buy some of their products aswell
- Economic and technical choice criteria-reality is less so as people still make decisions
- Risks-big investments
- Derived demand from consumers
- Negotiations-e.g. price
What are the three types of buying situation for B2B?
- STRAIGHT REBUY reorders on a routine basis
- MODIFIED REBUY modify product, prices etc.
- NEW TASK buys product for the 1st time-takes the most time and most people
What is the decision-making unit for organisational buying and components?
- The stakeholders involved in the decision making or organisational buying
- Initiator-begin the purchase process.
- Influencer-supply info and advice e.g accountants/consultants
- Buyer
- User-
- Gatekeeper-control the flow of information to the buying centre e.g. secretaries
What are the buying phases for organisational buying?
- Recognition of a problem (need)
- Specification and quantity of needed item
- Information search
- Acquisition and analysis of proposals
- Evaluation of proposals and selection of supplier
- Selection of an order routine
- Feedback and evaluation
Explain the Specification and quantity of needed item stage of B2B behaviour?
DMU draws up a description of what is required
Explain the information search in B2B/
- Buyer identifies appropriate suppliers:
- Trade directories
- Contacts with companies
- Trade advertisements & shows
• Marketers put products, prices online
Explain the Acquisition and analysis of proposals stage of B2B?
- Qualified suppliers - submit proposals
- A few make formal presentations
- Written proposals - marketing documents - describe value & benefits to customer
Explain Evaluation of proposals and selection of supplier(s) stage in B2B?
•Desired attributes & importance
-Supplier-evaluation model
•Buying centers to decide number of suppliers
Explain the selection of an order routine in B2B?
•After selection - negotiates final order
- Listing technical specifications
- Quantity needed
- Expected time of delivery, return policies etc
How are suppliers performance reviewed in the performance evaluation of B2B?
- Contact end users for evaluations
- Rate on criteria - weighted score
- Aggregate poor performance cost - get adjusted costs of purchase & price
How can buying behaviour being affected in the sport industry both for B2B and B2C?
• Economically and politically-economic downturn can cause government spending on sport to be cut so less consumption of sports products if sport participation goes down
How does the buying situation affect the buying phases of the business in B2B?
The simpler the buying situation e.g. straight rebuy-the fewer stages the organisation has to go through
