Buyer Behaviours

Chapter 3

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?

Traditional factors affecting consumer purchasing behaviors

Demographics (age, gender, income, etc.) Heredity and home environment Family life cycle Life changing events Cultural environment Social environment Situational environment

Information Search

Two ways of gathering information:

1. Internally

2. Externally

Attitude Sequence

Cognitive Affective Conative Affective Conative Cognitive Conative Cognitive Affective

Discussion Questions

Question 2, page 83 – www.tattoos.com

Question 4, page 83 www.starbucks.com www.ikea.com www.cadillac.com

What’s Happening?

 http://www.macrumors.com/

These ads are not very new but the goal is to counter the spread of new technology such as Apple tablet, iPhone...

 http://www.youtube.com/watch?v=YJ1QwExp0_g&feature=response_watch

http://www.youtube.com/watch?v=fVMnmTFxAjA&feature=player_embedded

http://www.apple.com/ipad/ Here is a link with a few new futuristic cell phone concepts.

 http://www.stumbleupon.com/su/1vLqVQ/www.toxel.com/tech/2010/01/07/10-futuristic-cell-phone-concepts/

Consumer Decision-Making Process

ProblemRecognition

InformationSearch

Evaluationof

AlternativesPurchaseDecision

PostpurchaseEvaluation

Cognitive Mapping

Cognitive maps are simulations of the knowledge structures and memories embedded in an individual’s brain

They contain our assumptions, beliefs, thought processes to interpret new information and to determine an appropriate response

Principles concerning processing of information and cognitive mapping

• Cognitive mapping enhances movement of messages from 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.

Evaluation of Alternatives

Evoked set method

1. Evoked set

2. Inept set

3. Inert set

Affect referral

Multi-attribute approach – used more in B to B buying situations

The Purchase Decision

Decision to purchase a particular product may based on several decisions:

____________ ____________ ____________ ____________ ____________

Common Reasons Purchases Are Made

Products/services provide utility To satisfy physical needs To satisfy psychological needs To satisfy social needs To satisfy emotional needs To satisfy epistemic needs

Trends and Factors in the Consumer Buying Environment

Age complexity Gender complexity Individualism Active, busy lifestyles, time pressures Cocooning Pleasure binges Emphasis on health

How likely is each of the following marketing material to alter your purchase decision for food items? Why? An advertisement A coupon A sweepstake or contest offer A price-off offer An in-store display The food package A in-store sample A billboard

Postpurchase Evaluation

Evaluation of product performance.

Cognitive dissonance.

Impacts future purchases.

Impacts word-of-mouth communications.

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