Flashcards
Week 4: Buyer behaviour
Cards in this deck (27)
- 1Consumer behaviourStudy of the behaviour of individuals and households who buy goods and services for personal consumption
- 2Influences on consumer behaviour1. Situational - specific to a situation in which consumers find themselves
2. Group e.g. social and cultural influences
3. Individual e.g. personal and psychological influences - 3Situational factors1. Physical - location in which the purchase decision is made
2. Social - interactions with others at the time the purchase decision is made (e.g. product knowledge of a salesperson)
3. Time - time available for a purchase decision
4. Motivational - reasons for the purchase
5. Mood - mood of a person at the time of the purchase decision (e.g. tired or emotional => impulsive decision) - 4Group influences: cultural- Influence of the values, beliefs and customs of the person’s community
- Tangible (e.g. housing, technology, clothing, food) vs intangible elements (e.g. laws, beliefs, education, institutions)
- Consider subcultures and social class (economic indicator of purchasing power) - 5Hofstede’s theoryNational cultures can be distinguished by variations across 4 core dimensions:
1. Power distance - degree of inequality that is acceptable
2. Uncertainty avoidance - extent to which people feel threatened by uncertainty and rely on mechanisms to reduce it
3. Individualism
4. Masculinity - 6Group factors: social- Influence of a group on its individual members
- Opinion leader - person who provides influential advice about a topic of interest i.e. ‘expert’ in the field
- Consider roles and status e.g. influence of opinion leaders - 7Reference groupsAny group to which an individual looks for guidance as to values, attitudes or behaviour
1. Membership groups - groups to which the individual belongs
2. Aspirational groups - groups of which the individual would like to be a member
3. Dissociative groups - groups with which an individual does not wish to be associated - 8Family life cycle
- 9Family purchase decisions- Autonomic decisions - purchased independently by husband/wife e.g. furniture, cars
- Wife-dominant decisions - purchased by women e.g. food, cosmetics
- Husband-dominant decisions - purchased by men e.g. hardware products
- Syncratic decisions - purchased by husband and wife acting jointly e.g. purchasing a home, booking a holiday - 10Individual factors: personal- Comprise an individual’s identity; are objective and quite stable in the short term
- Demographics e.g. age, income
- Lifestyle - how people spend their time and interact with others; preferred vs actual lifestyles
- Personality - combination of genetics and experience - 11Individual factors: psychological- Internal factors that shape the thinking, aspirations, expectations and behaviours of the individual
- Motivation - internal drive to satisfy unfulfilled needs or goals
- Beliefs and attitudes - 12Maslow’s hierarchy of needsHuman needs are hierarchical i.e. lower-order needs must be satisfied before higher-order needs are pursued
- 13Perception- Psychological process that filters, organises and attributes meaning to external stimuli (senses)
- Selective exposure - actively seeking messages that are pleasant and avoiding messages that are disagreeable
- Selective distortion - dismissing messages that are inconsistent with one's beliefs
- Selective attention - only taking in messages that are relevant to one's needs
- Selective retention - only remembering information that is consistent with beliefs and relevant to one’s needs - 14Attitude components- Cognitive component - awareness of and knowledge about the object/issue
- Affective component - feelings towards, or approval of, the object/issue
- Behavioural component - actions or intentions towards the object/issue - 15Learning theories- Learning - changes in behaviour arising from experience and new knowledge
- Behavioural learning theories - learning via experience and repetition; applies to low-involvement purchases
- Cognitive learning theories - learning via rational problem solving and gain of new information; applies to high-involvement purchases - 16Behavioural conditioning- Classical conditioning - behaviour that results in a pleasant experience is likely to be repeated
- Operant/instrumental conditioning - use of reward and punishment to stimulate behaviour - 17Buying decision behaviour-involvement- Habitual decision making - minimal search and shopping efforts for routine purchases e.g. groceries
- Limited decision making - seeking limited information to evaluate options for infrequent purchases with familiar product categories e.g. clothing, books, music
- Extended decision making - seeking comprehensive information for high-cost, infrequent purchases e.g. cars, holidays - 18Consumer decision-making process1. Need/want recognition - consumer is aware of unsatisfied needs or wants; marketer stimulates demand
2. Information search - seek information from commercial, personal (friends/family), public (media) and experiential sources
3. Evaluation of options - rank alternatives
4. Purchase - choose product/brand and decide whether to purchase
5. Post-purchase evaluation - cognitive dissonance, express (dis)/satisfaction, influence on future purchases - 19Business marketsMade up of individuals or organisations who purchase products to:
- Resell the product
- Use it in the production of other products
- Use it in their daily business operations - 20Types of business markets
- 21Characters of business purchases- High-value
- High-volume, regular repeat purchases
- Price competition and more freedom of negotiation
- Fewer buyers and sellers
- Formal assessment of purchase alternatives
- Long-term, ongoing relationships
- Higher volatility/elasticity in demand - 22Characteristics of business demand- Derived demand - driven by demand in consumer markets
- Joint demand - interdependent demand for multiple products e.g. many components for manufacturing
- Industry demand tends to be price inelastic; company demand highly elastic - 23Forms of business purchases: straight rebuy- Buyers purchase the same products routinely from established vendors under already established terms of sale
- Often through automated or semi-automated ordering systems
- Occurs when a business has found a satisfactory product and its needs are stable - 24Forms of business purchases: modified rebuy- Buyers purchase a similar, but not identical, product to one previously purchased
- Involves some evaluation of alternative product options
- Often involve new product features or performance characteristics - 25Forms of business purchases: new task purchase- Buyers make a purchase in a product category for the first time
- Completely new product/service, so needs extensive research - 26Buyer centreGroups and structures within an organisation that make business buying decisions
1. Initiators - recognise need for purchase
2. Users - people for whom the product is being purchased
3. Influencers - develop the product specification and formally evaluate the alternatives (technical experts)
4. Deciders - have authority to make the final purchase decision
5. Buyers - make the purchase i.e. deal with the seller and negotiate terms
6. Gatekeepers - control information relevant to the purchase decision e.g. finance manager, director - 27Business buying decision process1. Problem/need recognition
2. Information search and specification development
3. Evaluation of options
4. Purchase
5. Post-purchase evaluation
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- Business/Economics (MKC1200: Principles of Marketing) Flashcards on Week 4: Buyer behaviour, created by Melina Mackey on 27/09/2018.
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- Melina Mackey
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- Created by Melina Mackey · Jul 29, 2018
- Copied by Melina Mackey · Sep 26, 2018
- Copied by Melina Mackey · Sep 27, 2018
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