2. Consumer Behaviour - Complete lecture notes week 2 PDF

Preview

Summary

Marketing Principles MAN Lecture 217/02/2. Consumer BehaviourConsumer buyer behaviour - processandinfluencesonfinalconsumer s,individualsandhouseholds,who buy goods and services for personal consumptionMarket offerings are combinations ofproducts,services,infor mationorexperiencesofferedtocustomers ...

Description

Marketing Principles MAN1075 Lecture 2 17/02/2020

2. Consumer Behaviour Consumer buyer behaviour - process and influences on final consumers, individuals and households, who buy goods and services for personal consumption Market offerings are combinations of products, services, information or experiences offered to customers to satisfy a need or want Marketing myopia - focuses only on existing wants and loses sight of underlying consumer needs Modern consumer - Affluent - More demanding - Wants more choice - Easily bored - Complex, emotional reasons behind purchase - More knowledgeable - Many sources for purchases - Has more information Roles of buying centre 1. Initiator - starts buying process 2. Influencer - collects information and imposes opinion on decision 3. Decider - has power and financial authority 4. Buyer - performs transaction 5. User - actually uses the product Characteristics affecting consumer behaviour - Cultural ➔ Culture - set of basic values and learned behaviours ➔ Subculture - group of people with shared value systems ➔ Social class - members share similar values, interests and behaviours - Social ➔ Groups and social networks ➔ Family - most important consumer-buying organisation in society ➔ Roles and status - defined by a person’s position in a group - Personal ➔ Age and life-cycle stage ➔ Occupation ➔ Economic situation ➔ Lifestyle - person’s pattern of living as expressed in their psychographics ➔ Personality and self-concept - refers to unique psychological characteristics that distinguish a person or group - Psychological ➔ Motivation ➔ Perception ➔ Learning ➔ Beliefs and attitudes Types of buying decision behaviour - Complex buying behaviour ➔ Significant differences between brands and high involvement

Marketing Principles MAN1075 Lecture 2 17/02/2020

-

-

➔ Consumers spend more time and effort in information search and evaluation ● Complex products ● Perceived risk ● Personal/emotional significance ➔ Cars, houses, computers Habitual buying behaviour ➔ Few perceived differences between brands, low involvement ➔ ‘Boring’ products ● Functional utility ● Low cost ● Frequent purchase ➔ Toilet rolls, rice Variety-seeking buying behaviour ➔ Low involvement, but significant differences between brands ➔ Novelty goods ● Switching purchases based on desire to experiment ● Large numbers of brands ● Low relative cost ➔ Confectionery, flavoured water

Perceptions of risk in buying process - Economic risk ➔ Resources invested in purchase ➔ House - Physical risk ➔ Fear of physical harm ➔ Cheap meat - Performance risk ➔ Product/service is unknown quality ➔ Unfamiliar brand - Psychological risk ➔ Feared loss of status ➔ Dacia car Consumer decision-making process - Need recognition or problem awareness ➔ Awareness of problem/need raised by ● Routine depletion ● Change in circumstances ➔ Problem ● Perceived as difference between current and desired situation ➔ Role of advertising ● Potential customers become aware of their problem through advertising - Information search ➔ Involves the identification of alternative solutions by searching online ➔ Internal search ● Relevant information from memory ● Role of advertising and branding

Marketing Principles MAN1075 Lecture 2 17/02/2020

-

-

-

➔ External search ● Friends, family, work colleagues ● Commercial sources ● Media Evaluation of alternatives ➔ Firstly ● Reduction of solutions to a manageable shortlist ➔ Evoked set ● Shortlist of brands for careful evaluation ➔ Secondly: ranking of evoked set ● Cost ● Availability ● Suitability ➔ Has fuelled the growth of comparison websites Purchase ➔ Selection of: ● Quantity ● Quality ● Exact product characteristics ● Brand ● Retailer and method of payment Post-purchase evaluation of decision ➔ Satisfaction ● Transaction ● Performance ● Durability ➔ Dis-satisfaction ● Cognitive dissonance - opposite of satisfaction

Buyer decision process for new products - Adoption process is mental process an individual goes through from first learning about an innovation to final regular use - Stages include: ➔ Awareness ➔ Interest ➔ Evaluation ➔ Trial ➔ Adoption...