Chapter 3 - Buyer behaviors Flashcards
Explain the 5 steps in the consumer decision-making process
Problem / need recognition
=> New friend who enjoys biking and invites you to begin regularly riding with him / her, “You need a bike!”
Information search
=> You typically first search internally (think about which bike), but as you don’t know anything about bikes, you search externally
Evaluation of alternatives
=> You have decided to choose between Trek & Specialized and are considering several different models
Purchase
=> You plan to the local bike shop to purchase, but a promotion leads you to an online store, where you purchase with credit card
Post-Purchase Evaluation
=> After enjoying the ride, receiving complements, you may be more or less loyal (buying the same brand from the same shop again)
Describe the 3 types of consumer needs
Physical
=> walking, eating
Social
=> movie, activities together
Psychological
=> feeling fat, sadness
2 common need triggers
Running Out
=> Running out of something (facilitating reordering increases customer retention)
Advertising may try to trigger needs from any of the 3 sources
=> Physiological
=> Social “Are you beach body ready ?”
=> Psychological
Discuss the roles of recalled brands in internal search
Consumer with a recognized need thinks about brands that he/she has purchased previously
=> Set of recalled brands is usually small
Discuss the roles of recalled experiences in internal search
Consumers may also think about most salient past experiences with one or more of these brands
=> If good past experiences are recalled, he/she may decide to purchase the same brand again
=> Since internal search precedes external search
=> Brand awareness & recall are very important, without these, the brand may never even be considered
Discuss the 4 reasons for external search
=> No experience with product category / cannot recall any brands
=> Consumer recalls only poor experiences with recalled brands
=> High-involvement decision – consumer wants more information
=> Socially-visible product – consumer wants to be sure others will approve or be impressed
Determinants of External Search
Ability to Search
Motivation to Search
=> Amount of time consumers spend searching externally depends on their motivation
to search, which is a function of 3 things
(Product involvement; Need for cognition; Shopping enthusiasm)
Perceptions of Search Costs & Benefits
=> costs : actual cost $ / subjective cost (time spent) / opportunity cost ( biking)
=> benefits : value of making a better choice / decreased anxiety about the choice
Describe consumer attitudes
Attitudes = Mental positions a person takes towards topics, people, events, or products when evaluating them. Ads can focus on any of the 3 attitude components.
The 3 components of consumer attitudes
Affective
=> Feelings
=> Emotions
Cognitive
=> Mental images
=> Understanding
=> Interpretations
Conative
=> Intentions
=> Actions
=> Behaviours
Describe cognitive maps
Cognitive maps = Simulations of the knowledge & memory structure in person’s mind; context in which new evaluations take place
the application of cognitive maps in marketing messages
Typical goals of messages are to
=> Strengthen existing linkages
=> Modify them
=> Create new links
The 3 prototypical strategies to evaluate alternatives
=> evoked-set
=> Multi-attribute
=> Affect referral
evoked-set strategie to evaluate alternatives
Choose spontaneously from brands that “come to mind” (= evoked set)
Multi-attribute strategie to evaluate alternatives
a consumer looks a set of attributes across an array of brands and evaluates the importance of those attributes
Affect referral strategie to evaluate alternatives
consumers tend to decide based on affect when they have yet experienced a brand/product
Discuss trends that are affecting consumer behaviour
=> Age complexity => Gender complexity => Customization => Diverse, busier lifestyles => Communication => Experience pursuits => Health emphasis
B2B buyer behaviour
=> Multiple directly involved => Rational choice => Authority and expertise => Complex and big customers => Large quantities => Relationship focus => Derived demand => Limited branding
B2C buyer behaviour
=> One directly person involved => Non-rational choice => Liking of other persons => Simple and small => Small quantities => Transaction focus => Direct demand => Extensive branding
Types of B2B sales
new task
modified rebuy
staight rebuy
New task type of B2B sales
=> Company considers a purchase for the 1st time (or long time since 1st purchase)
=> Vendors provide large amounts of information
=> All phases (need specification, over supplier search, and performance feedback) are needed
Modified rebuy type of B2B sales
=> Company evaluates current vendor and alternatives
=> Reasons
=> Dissatisfaction with current vendor
=> Alternative vendor has made an attractive offer
=> End of current contract
=> Company wants experience with multiple vendors
=>Company does not want to be dependent on just one vendor
Straight rebuy type of B2B sales
=> Current vendor contacted and new order placed
=> Alternatives not considered
=> Only performance feedback and evaluation
The characteristics of B2B markets also have implications for communications
Existence of buying center implicates :
=> Individual communication to different roles of BC
=> Analysis of behaviour between the members of BC
Derived demand implicates :
=> Demand creation at end of customer (ingredient branding
=> Communication to end customer
=> Creation of trust and positive image (e.g., Nike supplier)
Rational, extensive choice implicates :
=> Communication of monetary benefits
=> Careful analysis of preference and delivered information
High product complexity implicates:
=> Explanation of benefits
=> Product demonstrations
Relationship focus implicates:
=> After sales service communication
=> Face-to-face communication
=> Focus on loyalty
Describe dual channel marketing
Some firms sell to both customers and (end-)consumers
