Chapter 3 buyer behavior

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Chapter Three

Buyer BehaviorsProf. (Dr.) Kao Kveng Hong, Ph.D., D.Litt.

Apple iPhone

• July 2007 introduction - $600• Initial problem with AT&T

phone activation• Sales soared• After 3 months – priced

reduced to $200• Despite problems – Why did

the iPhone succeed?

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Apple iPhone

• Innovators• Early adopters• Early majority• Late majority• Laggards or nonadopters

3 New Product Introductions

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Discussion Slide

Copyri

Chapter Overview

• Consumer purchase process• Consumer buying environment• Recent trends in consumer

behavior• Business buying center• B-to-B purchasing process

Buying Behaviors

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F I G U R E 3 . 1

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Consumer Decision-Making Process

Information Search

Internal searchExternal search

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External SearchAbility to searchMotivation

Level of involvementNeed for cognitionShopping enthusiasm

Perceived cost versus benefit

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Consumer AttitudeAffectiveCognitiveConative

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Attitude SequenceCognitive Affective

Conative

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Affective Conative CognitiveConative Cognitive Affective

What emotion does this Pamper Wipes advertisement solicit?

Which attitude sequence would be the most likely for this product?

“Some things can be rough.”“Her wipe shouldn’t be one of them.”

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Personal Values

• Comfortable life• Equality• Excitement• Freedom• Fun, exciting life• Happiness• Inner peace• Mature love• Personal

accomplishment3-11

• Pleasure• Salvation• Security• Self-fulfillment• Self-respect• Sense of belonging• Social acceptance• Wisdom

F I G U R E 3 . 3

Which personal values does this Skeeter ad target?

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F I G U R E 3 . 4

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Cognitive map for Ruby Tuesday

Processing of New InformationCognitive map

Reinforce a current linkage.Modify a current linkage.Create a new linkage.

What linkage is Miracle Whip attempting to create or reinforce with this TV advertisement?

Click picture to play video.

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Principles Concerning Processing ofInformation and Cognitive Mapping

• Cognitive mapping enhances movement of messagesfrom short-term memory to long-term memory.

• Most persuasive messages reinforce current linkages.• Repetition is necessary to establish new linkages.• Difficult to modify or create new linkages.

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Problem Recognition

Information Search Evaluation of

Alternatives

Evoked set

Multiattribute

Affect referral

ProblemRecognition

F I G U R E 3 . 6

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Methods of Evaluating Alternatives

The Evoked Set Method

• Inept set• Inert set• Evoked

set

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How important is it for each of the following brands to be a part of a consumer’s evoked set?

Advil (pain medicine) Head & Shoulders (shampoo) Black & Decker (power tools) C & H (sugar) Smith & Kline (attorneys) Hall’s (cough drops) Blockbuster (video rentals) Dr. Nelson (neurosurgeon) Pearle Vision (optical)

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The Multiattribute Approach

• Brand’s performance for each attribute.• Importance of each attribute.

High-Involvement Products

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Affect Referral• Saves mental energy.

• Multiattribute approach mayhave been used previously.

• Consumers often develop emotional bonds with brands.

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Trends Affecting Consumer Buyer Behavior

• Age complexity• Gender complexity• Individualism• Active, busy lifestyles• Cocooning• Pleasure pursuits• Health emphasis

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F I G U R E 3 . 7

Business-to-BusinessBuyer Behavior

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F I G U R E 3 . 9

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The Buying Center

Individual Factors Affecting the Behaviors of Buying Center Members

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F I G U R E 3 . 10

Types ofBusiness-to-Business Sales

• Straight rebuy• Modified rebuy• New task

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F I G U R E 3 . 11

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Reasons for Modified Rebuy

Dissatisfaction with current vendor.

A different vendor makes an attractive offer

End of contract with current vendor.

Individuals have no or little experience.

Problem Recognition

Information Search

Evaluation Of

Alternatives

Purchase Decision

Consumer Buying Process

Identification Of Needs

B-to-B Buying Process

Establish Specifications

Identify Vendors

Evaluate Vendors

Select Vendor

PostpurchaseEvaluation

Purchase Negotiations

F I G U R E3 . 11F I G U R E

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Dual Channel Marketing• Consumer and B-to-B markets• Spin-off market• Image concerns• Dual strategy

• Different communication messages• Create different brands• Use multiple or different channels

• Single strategy• Integrate communication message• Sell same brand in both markets• Scan both markets for dual

opportunities

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