Buyer Behaviour Reading: Chapter 5 MKTG 201: First Semester 2010 Overview Influences on Consumers Buying Behaviour The Consumer Decision Making Process Types of Consumer Buying Behaviour

Consumer Behaviour the study of how consumers acquire, consume and dispose of goods, services, experiences and ideas.

Influences on Consumer Behaviour A consumer’s behaviour can be influenced by many factors: –Group factors e.g. culture, family, friends –Individual factors e.g. gender, age, personality –Psychological factors e.g. perception, involvement, time pressure

A Group Factor: Culture Culture - a set of values, attitudes and preferences passed on from one generation to the next.

A Group Factor: Culture Culture- a set of values, attitudes and preferences passed on from one generation to the next

The Effect of Gender Are men and women really different?

A Psychological Process: Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. We perceive our world________

The Selective Perception Process Selective Perception: organising & interpreting ______ of the information available –Selective exposure: choosing to expose ourselves to, or to avoid stimuli –Selective attention: choosing to pay attention to, or to ignore stimuli –Selective comprehension/distortion: comprehending stimuli in a way that fits our pre-conceptions –Selective retention: limiting the stimuli we retain in our memory

Selective Comprehension Selective Retention

THE CONSUMER DECISION MAKING PROCESS DECISION MAKING PROCESS Fig 5.1 taken from Kerin et al. (2009), p. 116

The Consumer Decision Making Process Problem Recognition –_________ a _________ difference between the actual and ideal situation

The Consumer Decision Making Process Information Search –Internal Search _______________ –External Search Personal Sources Marketer Sources Neutral Sources

The Consumer Decision Making Process Evaluation of Alternatives –Evaluative Criteria Ways to compare the alternatives –Determinant Attributes Aspects on which the alternatives clearly differ –Decision Criteria Decision rules

The Consumer Decision Making Process The Purchase Decision –What to purchase –Where, when and how to pay –Decision is not the same as actual purchase

The Consumer Decision Making Process Post Purchase Evaluation –Cognitive Dissonance: post-purchase anxiety –Evaluation of satisfaction: did reality meet or exceed expectations?

An important psychological factor: Involvement Involvement: the degree of importance and consumer interest

An important psychological factor: Involvement Involvement depends partly on _______ risk

Perceived financial risk

Perceived social risk

Perceived performance risk

What happens when involvement is Low? Routine buying behaviour –Very Low involvement –Problem recognition – purchase –Buy what we bought before –Little time and effort –Examples:

What happens when involvement is Low? Routine buying behaviour –Very Low involvement –Problem recognition – purchase –Buy what we bought before –Little time and effort –Examples:

What happens when involvement is moderate? Limited Problem Solving –Moderate involvement –Unwilling or unable to spend more than limited time and effort –Willing to compare a few alternatives –Use shortcuts or recommendations –Examples

What happens when involvement is moderate? Limited Problem Solving –Moderate involvement –Unwilling or unable to spend more than limited time and effort –Willing to compare a few alternatives –Use shortcuts or recommendations –Examples:

Types of Buying Behaviour Extended Problem Solving –Medium to High involvement –Willing to spend time and effort –Careful search and evaluation of information –Examples:

Types of Buying Behaviour Extended Problem Solving –Medium to High involvement –Willing to spend time and effort –Careful search and evaluation of information –Undertake all 5 stages of decision process –Examples:

Comparison of problem-solving variations Fig 5.3 Kerin et al. (2009), p.120

Looking Back Involvement Consumer Decision Making Process –correct names and sequence of stages Routine, Limited & Extended Problem Solving