CHAPTER 3 BUYER BEHAVIOR. Buying Units and Roles Buying Process Influences on Buyer Behavior

CHAPTER 3CHAPTER 3

BUYER BEHAVIORBUYER BEHAVIOR

BUYER BEHAVIOR

• Buying Units and Roles

• Buying Process

• Influences on Buyer Behavior

BUYING UNIT

# of Consumer BusinessPeople Market Market

One Individual PurchasingAgent

More Family Buyingthan one Committee

BUYING ROLES

Buyer Purchaser of the product

Influencer Person(s) who influence the sale

User Person(s) who use the product

EXAMPLE OF BUYING ROLES

Buyer Boyfriend buys perfume for girlfriend at Christmas

Influencer Clerk at Marcy’s suggestsa brand of perfume

User Girlfriend receives the gift from her boyfriend

INFLUENCERS OF THE BUYING PROCESS

Doctors Prescription Drugs

Executive Secretary Gatekeeper for Vice President

Professor College Textbooks

BUYING PROCESS

Wants and Needs

Pre-Purchase Activity

Purchase Decision

Post-Purchase Evaluation

WANTS AND NEEDS

• Food trucks at UH

• Defective goods

• Safe drinking water

PRE-PURCHASE ACTIVITY

• Relevant information search

• Evaluation of alternative choices

RELEVANT INFORMATION SEARCH

• Personal Experience

• External Searches

PERSONAL EXPERIENCE

• Previous Purchasing

• Previous Shopping

• Current Shopping

CURRENT SHOPPING EXAMPLES

• Buying cars

• Showrooming

• Shopping malls

EXTERNAL SEARCHES

• Formal searches

• Informal searches

• Internet searches

FORMAL SEARCHES

• Magazines

• Newspapers

• TV

INFORMAL SEARCHES

• Friends

• Family

• Fellow Students

INTERNET SEARCHES

• Car Buyers

• Angie’s List

• App Examples

BUYING A CAR USING THE INTERNET

• Kelly Blue Book: www.kbb.com Get value of your existing automobile

• Edmunds: www.edmunds.com Edmunds has the latest automobile prices for new cars

• Auto-by-tel: www.autobytel.com Retailer pays the commission to Auto-by-tel

APP EXAMPLES

• Moving

• Traveling with kids

• Smartphones and Digital wallets

APPS FOR MOVING

• Padmapper

• Street Advisor

• Homesnap

• Updater

APPS FOR TRAVELING WITH KIDS

• Bag It!

• Where’s My Perry

• Coloring Farm Touch

ALTERNATIVE CHOICES

Total Set of Alternatives All Choices Available

Awareness Set Buyer Awareness

Choice Set (serious) Three or Four

Final Choice Buy / Do Not Buy

PURCHASE DECISION

• Purchase the product

• Do not purchase the product

• Continue pre-purchase activities

POST-PURCHASE EVALUATION

After the buyer actually purchases the

product, the buyer then evaluates how

satisfied he/she is with the product.

POST-PURCHASE BEHAVIOR

• Satisfied with purchase

• Disappointed in product

POST-PURCHASE EXAMPLES

• Costco return policy

• USAA

• Sewell Cadillac

HOW TO SATISFY CUSTOMERS AT SEWELL CADILLAC

• Underpromise and overdeliver

• Assign service advisor to a repeat customer

• When something goes wrong, apologize first, and then fix the problem

EXPANDING AUTOMOBILE CUSTOMER SERVICE

Stage 1 Extend hours of service

Stage 2 Provide free loaner car

Stage 3 Take loaner car to and from customer’s house

RESPONSES TO CUSTOMER COMPLAINTS

• Encourage customer complaints

• Fix any problems first

• Reward employees who provide exceptional customer service

INFLUENCES ON THE BUYING BEHAVIOR

• Social Influences

• Perception Influences

• Marketing Influences

SOCIAL INFLUENCES

• Culture

• Reference Groups

• Family

CULTURAL INFLUENCES

Values accepted by a homogeneous group and transmitted to succeeding generations

CULTURAL GROUPS IN HOUSTON

• Hispanic

• Vietnamese

• Indian

REFERENCE GROUPS

Groups to whom a person belongs or is a source of personal standards

•Membership Groups•Aspiration Groups•Opinion Leadership

MEMBERSHIP GROUPS

• Fellow Students

• Churches

• Professional Groups

ASPIRATION GROUPS

• Country Clubs

• River Oaks

• Sororities

OPINION LEADERS

• Movies Stars

• Sports Stars

• Business CEO’s

FAMILY

Primary group of people which includes parents, spouses, and children

•Changing Structure of Families

•Changing Family Roles

CHANGING FAMILY ROLES

• Buying a Car

• Raising Children

• Grocery Shopping

PERCEPTION INFLUENCES

The level of uncertainty a buyer believes exists for a product or service

• Selective Perception

• Perceived Risk

• Perceived Reality

SELECTIVE PERCEPTION

Selective Screens outExposure Messages

Selective FiltersDistortion Messages

Selective RemembersRetention Messages that

Support Beliefs

PERCEIVED RISK

• A level of uncertainty a buyer believes exists for a product or service

PERCEIVED RISK EXAMPLES

• Fear of flying

• Buying your first house

• Giving blood

PERCEIVED REALITY

• If a buyer perceives something to be true, then it becomes reality to that buyer

PERCEIVED REALITY EXAMPLES

• Shell gasoline

• Proctor & Gamble logo

• Fresh bread