part two: making sense of markets
CHAPTER 3
BUYER BEHAVIOUR
an opening challenge
The Apprentice is a BBC television programme in
which young business people compete for a job with
Lord Sugar. In one episode, the teams were asked to
sell expensive lollipops at a zoo. One contestant’s
approach was to hand a lollipop to a small child, ask
if the child liked it/wanted it – and then charge the
parents.
What do you think of that idea?
agenda
• consumer decision making
– process
– organisational decisions
• influences on buyer behaviour
– internal
– external
• organisational decision making
buyer decision process
need or
problem
info
search
evaluation of
alternatives
purchase
decision
purchase
post-purchase
evaluation
need or problem recognition
AQ – re-set figure text
information search
• personal sources
– e.g. family, friends
• commercial (supplier) sources
– e.g. websites, adverts, product literature
• third-party sources
– e.g. reviews, articles, blogs
evaluating alternatives
criteria:
• performance
• financial
• social
• personal
purchase decision
AQ – re-set figure type
post-purchase evaluation
• three likely outcomes:
– disappointment
– satisfaction
– delight
• post-purchase dissonance
• marketing’s role continues post-purchase
consumer buying situations
• routine problem solving
– regular purchases, low risk
– e.g. drinks, sweets, bread
• limited problem solving
– less frequent purchases, greater risk
– e.g. laptop, phone
• extended problem solving
– rarely purchased, high risk
– e.g. flat, car
levels of involvement
• the level is affected by:
– self-image
– perceived risk
– social factors
– hedonism
low
level of involvement
high
minor
need/problem
recognition
major
limited
information
search
extensive
few
considered
evaluation of
alternatives
many
considered
rapid
purchase
decision
slow
may change at pos
actual
purchase
planned
limited
post-purchase
evaluation
extensive
buyer behaviour types
high involvement
low involvement
complex
variety-seeking
high
differences
between
brands
low
dissonancereducing
habitual
internal influences on buying
behaviour
• personality
• perception
• learning
– behavioural
– cognitive
• motives
• attitudes and beliefs
external influences on buying
behaviour
• culture
• reference groups
– membership groups
– aspirational groups
– disassociative groups
• social networking media
• family
• buying roles (decision-making unit)
the decision to purchase a
new product
awareness
interest
evaluation
trial
adoption
(Strong, 2007)
product adoption
AQ – re-set figure type and slightly increase
size of innovators triangle
increased complexity of
organisational decisions
•
•
•
•
•
•
•
buy in larger quantities
negotiate harder on delivery terms
expect reduced prices for bulk buying
may require tailored products
are harder to please
more people involved in making the decision
longer, more complex procedures
organisational buying situations
AQ – re-set figure type
the buying centre
initiator
user
influencer
purchase
decision
decider
buyer
gatekeeper
financer
the buying process
•
•
•
•
•
•
•
•
problem recognition
general need description
product specification
supplier search
proposal solicitation
supplier selection
order
performance review
summary
• individuals make buying decisions
– not markets
– not organisations
• individuals vary
– personality, motives, attitudes, beliefs, perception, culture
– role in decision-making unit or buying centre
– adopter category
• buying decision processes vary
– high or low involvement?
– consumer or organisation?
reference
Strong, E.K. (2007) The Psychology of Selling.
New York: McGraw-Hill.