Today’s agenda
• What and how we purchase
• What influences our purchasing behaviour
• Psychological mechanisms
• New scientific findings of brain functioning
• Role of emotions and music
• Impact of product, place and conditions on purchasing
• Behaviour of online costumer

What and how we purchase
• Our purchasing behaviour is influenced by our personality, approaches, opinions, knowledge, motivational structure, social role…
• This means that even if the stimulus to buy is the same, each of us reacts in a different way

What and how we purchase
Wish that has never came true wish
Personal disposition goals want
Purchasing dispositions habit
Purchasing without decision-making impuls internal external
Purchase with decision making

What and how we purchase
Selection criteria
Purchase with decision making
Technical
Economic
Estethic
Other
PURCHASE

What and how we purchase
Goals – each of us has some goals, want to achieve something.
Goals – level of concreteness
• Desire (least concrete)
• Wish (more concrete)
• Effort (goal is set, supported by action)
This all translates into our behaviour when we enter the shop and influences our decision making.

What and how we purchase
Active search for certain products
Enter the shop
Orientation
Offer of the shop
Decision making
Selection Purchase

What and how we purchase
The process of decision making
We realise what need we want to satisfy by purchasing product (material/immaterial, actual/future) – we tend to satisfy the most urgent needs – see Maslow
We need some information to make a decision
– lack of info means higher risk (source of information – own sources, media)
Compare information, look for best solution – impact of emotions
Decision is made, decision also when to purchase – now or later /impulsive
Evaluation – satisfaction of customer with service, product… post-purchase behaviour very important (recommendation to others, loyalty)
Evaluation

Why we bought what we had bought
Money or what?

Why we bought what we had bought?
Two aspects of the question:
• Motivation (what we will get by deciding to buy something?)
• Decision making (why we decide to buy certain product)
Decision to buy a product is usually an final steps preceded by many other decisions:
• Whether to buy the product at all
• Which shop/center to visit
• Decision to go to the selected shop
• Decision to buy certain amount of product

Why we bought what we had bought?
Is our decision making strictly rational?
Fishbein model_ rational purchase of a jacket:
• What material (cotton, wool, polyester….)
• What colour ?
• Pockets or not
• If we want pockets, we cannot have polyester one or blue one, if we want woolen one, it is too costly…
• Hierarchy of what we need – we set priorities, we have an idea of ideal products.
• Compensations (compromises)

Why we bought what we had bought?
No compromises
• Conjunctive model of decision making (the jacket HAS to be woolen and blue
• Disjunctive model of decision making ( the jackets HAS to be either blue or must not cost more than xxxx

Why we bought what we had bought?
Psychological dimension of decision making
Many times we do not select the product that is the most reasonable or brings most advantages.
What psychological mechanisms may impact our decision makings?
• Mental qualities and dispositions (perception, attention, memory)
• Inborn qualities
• Life experience
• Knowledge
• What we purchase, what we expect from it and what type of purchase it is…

Why we bought what we had bought?
• Types
• Extensive (buyer is not decided in advance, actively searches for information, uses various sources inc. advertisements)
• Usually more expensive products (cars, TV)
• Impulsive (reactive behaviour, reasonable arguments do not play any role) – cheaper products (ice cream, Tshirt) –
• Limited – when we buy product/brand, we do not know, but we base our decision making on general experience. We may for ex. buy MP4 and we do not know the brand but we follow the principle „the more expensive the better) – other aspect might be environmental friendliness…
• Habitual – we buy the products as usual (food, tabacco). In some case it may be the purchase of favourite brand (loyalty). Usually there is not much of decision making, it is a habitual behaviour.

TYPES OF PURCHASE RELATED DECISION MAKING
• Decisions to buy
• Decision not to buy
• Moral restraints
• Does not like the product (because of the way of communication)

OVERVIEW OF DECISION MAKING WHEN PURCHASING FOOD
Features of buyer:
• Biological and physical
• Psychological
• Social and economic
• Cultural and religious
External features of the product.
• Brand
• Packaging
• Price
• Quality
Internal features of products:
• Look
• Aroma
• Taste
• Surface
No purchase
No re-purchase
First impression
First purchase
Bad experience
Use of product
Good experience
Repeated purchase

New discoveries of brain – impact of emotions
Implicit or explicit decision making?
Unconscious impact the conscious (and not vice versa)
Priming
The more stronger are the positive emotions mediated by products the more
„precious“ the product,brand or service is for our brain… the more is the customer ready and willing to pay for it ..

New discoveries of brain – impact of emotions
The information we get are evaluated in our limbic system. The results have the form of „good/bad, pleasant/unpleasant, useful/unuseful). This means that our brain decides between negative and positive.
This decision is based on emotional processes going on in our limbing system. If limbic systém does not arrive to the unambiguous results, the information is tranfered to the drawer „unimportant“ – boring for brain. This piece of information is erased.
So – only the information with „emotional relevance“ can enter our brain (positive and negative).
These emotional evaluative programs are controled by programs in unconscious part of our mind (we are not aware of them, but they still control our behaviour).

New discoveries of brain – impact of emotions
Limbic system
The limbic system is a complex set of brain structures that lies on both sides of the thalamus, right under the cerebrum.
The limbic system supports a variety of functions, including emotion, behavior, motivation, long-term memory, and olfaction.
It appears to be primarily responsible for emotional life, and it has a great deal to do with the formation of memories.

New discoveries of brain – impact of emotions
Two levels of decision making
Data, numbers, motives, experience, facts
1st level (30 %)
Unconscious programs proven as functional during evolution that control our behaviour
2nd level (70 %)

New discoveries of brain – impact of emotions
Example: phone operator selection
52 % of users do not monitor the prices of own operator
16 % of users monitor prices of competition
Mother bird syndrom - detailed selection of place for nest, then it stays there even in danger

Place of purchase
Place of purchase – set up to evoke positive emotions stimulating us to buy (to stimulate, we have to know what motivates the customer, what are their values and needs).
Place of sale – „the only place where certain forms of advertising is wellcome
Place of purchase – meets other needs (social contact, own self – status, desire…
Merchandising
• method to ensure that the right goods is at the right place at the right time and at the right price
• Impact the behaviou of customers (it is a reaction to certain situation)
• Factors:
• the total time we spent at the shelf
• The arrangement of products on the shelf
• Unstructured offer

Merchandising and its impact on purchase behaviour
• Global perception of products (periphery) - 6 meters (cathegory of products)
• Global perception of brands : 3 ms (individual products, brands)
• Precise vision of brands: 1 meter ( info on products)
• Manipulation with products: up to 1 meter (touch products – important, when we touch, we own)
• Smell

Merchandising and its impact on purchase behaviour
• Photo – where people look
• (63)

Merchandising and its impact on purchase behaviour
• BEST POSITION
• Eye level – optimum to attract the attention
• POS – customers are not attract, do not perceive them, best communication place: body of assistant and place around
• Floor and high level communication - primary out of field of vision (communication therefore has to stand out)
• LCD pannels: only half of consumers look at, spent 1,47 % of total time
• Paper/plastic POS – has to be placed to cash line

CONDITIONS
• Opening hours
• Width and depth of sortiment
• Cleanliness
• Quality of product
• Quality of service
• Quality of staff
• Accessibility
• Design of store – colours, lighting, layout
• Music in store (increased amount of time spent) – studies (69)

ONLINE CUSTOMERS
• Internet – change of interaction betwen consumers and their interactin with companies
• New model of marketing communication – hypermedia environment enable people to act, interact and create their own environment
• Virtual communities – groups the online interaction of which is based on common knowlege of certain consumption activity (e-mail sent to Barbie fans…)
• 4 types of virtual communities (such as discussion forum, web page)
• Tourists (no social links to the group, superficial/temporary interest in consumption activity)
• Minglers ( enter the group, strong relations, but no interest in consumption activities)
• Enthuziasts (interested, excited, but lower social links to group)
• Insiders – strong personal relations to activitity and group
• Impact of social media – the content is co-created and shared by users
• Social media – no purchase, but influence on decision making