Scribd
Upload
124 views

Module 3 - Consumer and Business Buying Behavior

The document discusses consumer and business behavior as it relates to strategic marketing management. It provides an overview of the consumer decision making process in 5 stages: 1) need recognition, 2) information search, 3) evaluation of alternatives, 4) purchase decision, and 5) post-purchase behavior. It also discusses how consumer involvement impacts the decision making process and marketing implications. Business buying behavior and the stages in the business buying process are also briefly covered.

Uploaded by

Bùi Thị Thu Hồng
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
124 views

Module 3 - Consumer and Business Buying Behavior

The document discusses consumer and business behavior as it relates to strategic marketing management. It provides an overview of the consumer decision making process in 5 stages: 1) need recognition, 2) information search, 3) evaluation of alternatives, 4) purchase decision, and 5) post-purchase behavior. It also discusses how consumer involvement impacts the decision making process and marketing implications. Business buying behavior and the stages in the business buying process are also briefly covered.

Uploaded by

Bùi Thị Thu Hồng
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 30

STRATEGIC

MARKETING
MANAGEMENT
Module 3: Consumer and Business Behavior
Why marketing
managers should
understand
consumer behavior

2
MARKETING POINT

• Consumer product and service preferences are constantly


changing.
• Marketing managers must understand these changing
desires in order to create a proper marketing mix for a
well-defined market.
WHAT IS CONSUMER BEHAVIOR?

consumers make
purchase decisions

Consumer
behavior = HOW

consumers use and


dispose of product

4
TEEN APPAREL RETAILER FOREVER
21 FILES FOR BANKRUPTCY

Teen apparel retailers are struggling as customers switch to fast-fashion


brands such as H&M and Zara and online retailers such as Amazon.com that
offer deep discounts
CONSUMER DECISION-MAKING PROCESS

When buying products, particularly new or expensive items, consumers


generally follow the consumer decision-making process
NEED RECOGNITION

• When a current product isn’t performing properly

• When the consumer is running out of a product

• When another product seems superior to the one currently


used
NEED RECOGNITION

An imbalance
between actual and
desired states that
creates a need

Marketing’s objective is to help consumers recognize


they have an “unfulfilled need” for a product or
service. This could be functional or emotional need.
NEED VS. WANT

I’m hungry and have to


satisfy my hunger. I want
a Snicker’s bar!
INFORMATION SEARCH

• Internal Information Search


-- Person recalls information
stored in memory

• External Information search


-- Person seeks information
from external sources
EXTERNAL INFORMATION SEARCHES

Need Less Need More


Information Information

-- Less Risk -- More Risk


-- More knowledge -- Less knowledge
-- More product experience -- Less product experience
-- Low level of interest -- High level of interest
-- Confidence in decision -- Lack of confidence

More complex the product, greater


the need for external information
EVALUATION OF ALTERNATIVES

Evoked Set
Analyze product attributes

Use cutoff criteria

Rank attributes by
Purchase! importance
Example: Buying a Car

Analyze product attributes

Use cutoff criteria

Rank attributes by
importance
EVALUATION OF ALTERNATIVES

Evoked Set

Toyota Camry

Hyundai Sonata

Purchase! Nissan Altima


HOW MARKETERS INFLUENCE
THE PURCHASE DECISION

Determines which attributes


are most important
in influencing a
consumer’s choice
1
6

Postpurchase Behavior
CONSUMER BUYING DECISIONS AND
CONSUMER INVOLVEMENT

.
CONSUMER BUYING DECISIONS AND
CONSUMER INVOLVEMENT

Routine Limited Extensive


Response Decision Decision
Behavior Making Making

Less More
Involvement Involvement

Involvement is the amount of time and effort a buyer


invests in the search, evaluation, and decision process
Routine Response Behavior

Low-Involvement products
require little time and search
to make a decision
Limited Decision Making

Typically occurs when a


consumer has previous
product experience but is
unfamiliar with the current
brands available
Extensive Decision Making

When buying an
unfamiliar, expensive
product or an
infrequently bought
item
Think of a product you
recently purchased that
required extensive
decision making
Marketing Implications of Involvement

In-store promotion,
Low-involvement eye-catching package
purchases design, good displays.
coupons, discounts,
2-for-1 offers
Marketing Implications of Involvement

High-involvement Extensive and informative


purchases promotion to target market
Discussion Activity

• Analyse and discuss this through the 5 stages


of the consumer decision process for any
product of your case study: insurance,
sneakers, online shopping, smart phone.
Business Buying Behavior

26
Characteristics of Business Markets

• Fewer buyers
• Close supplier-customer relationships
• Professional purchasing
• Many buying influences
Stages in Business Buying Process

28
Major Types of Business Buying Situations

• A new task situation occurs in an industrial buying


situation in which the buyer purchases a product or
service for the first time.
• Where a straight rebuy occurs, the buyer reorders items
without any modifications. It is usually handled on a
routine basis by procurement officers.
• In a modified rebuy, the buyer wants to modify product
specifications, prices, terms or suppliers. The modified
rebuy usually involves more decision participants than
the straight rebuy.
Thank you ☺

You might also like