MARKETING RESEARCH Buyer Behaviour

Buyer Behaviour processes / influences

Importance of understanding buyer behaviour How marketing influences it Models Consumer Behaviour Organisational behaviour

EXPERIENTIAL V. TRADITIONAL MARKETING

TRADITIONAL MARKETING focusing on functional features and benefits which supplement a products basic function.
EXPERIENTIAL MARKETING creates different experiences for customers through appropriate use of the marketing mix.
(these replace functional values)

The degree to which a company is able to deliver a desirable customer experience will largely determine its success. Schmitt (1999)

WHAT IS BUYER BEHAVIOUR?

Processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs. (Solomon 2002)

What affects/ conditions it?

Marketing factors influencing behaviour

Product/service itself. Benefits/use Economic nature of product.. Luxury v. Necessity Price/value Packaging Place/channels of distribution Staff/service Corporate image / reputation Media After sales service/added value

Consumer buying behaviourinfluences on decision process

Material influences Demographics Situational factors Involvement
Psychological factors Perception Motives Experience Personality

Social factors Family Social class Culture

CONSUMER DECISION MAKING PROCESS

Grocery buying behaviour model

(Greenland and Davies 1993) ENVIRONMENTAL FACTORS Economy Legislation Technology Society Competitive Political Personal factors

Behaviour factors

Taste/preference Attitude to cooking Budget concerns Special occasions Time/convenience Health concerns Religion/beliefs Mobility, etc

Grocery selection

Who: in-store/household When: freq/timing Where: retailer/loyalty How: recall/payment

Supplier factors
Store design / Range / Pack size / Packaging / Storage qualities / Brands / Price / Promotion / Advertising, etc.

Consumer buying behaviourkey questions

WHO is important

HOW they buy

WHERE do they buy

Customers
WHAT are the choice criteria

WHEN do they buy

HOW - Consumer individual decision making process

1. AWARENESS 2. INFORMATION 3. DECISION & Evaluation 4. ACTION (5. Post purchase evaluation / satisfaction)

1. Awareness - Problem recognition

Consumer purchase is a response to a problem(?) a challenge No need then no problem & no purchase Producer needs to be aware of this, and assess it as an opportunity Power of marketing communications Ability to satisfy need & need being important enough

2. Information Search
to aid decision making Internal: retrieving from memory External: when internal memory insufficient
Need to assess risk & level of involvement ~ extent of search e.g., Monetary, Social - kids trainers for school Marketers facilitate information research on eg. packaging PR price promotions advertising store placement

3. Decision - Evaluating alternatives

What are the evaluation / choice criteria?

Decision making rules non compensatory: eliminate brand if has low performance/lacks a particular feature
compensatory: offsetting weaknesses against strengths to arrive an overall opinion

4. Purchase processes
Experiences at point of sale / channel

In store/ warehouse/ site compared to at home (mail order / on- line)

Shopping motives / behaviour reasons/motives for using channel maximising chance of impulse purchase

5. Post purchase processes

Consumers aim to maximise satisfaction and convince themselves theyve made the right choice Ads reinforcing purchase decision After sales service(s) Replacement process

WHO - Consumer buying behaviour

The buying centre roles:

Initiator Influencer Decider Buyer User

eg mother neighbour sister father child

WHERE - Supermarket buying Tricks of the trade:

Entrance on LHS / layout / pattern & lighting Fresh foods at entrance + selective lighting Bakery smells pumped in Essentials maximum distance from entrance, dispersed & not at eye level Wider aisles slow speed, narrow faster Music slow tempo slows shoppers down High margin goods hi profile positions/ more space /slow trolley speed

WHAT - Home shopping motives

Next Directory: reasons for using:

1. Hassle free shopping Convenience 2. Getting the right item working women 3. Transaction efficiency 4. Wide range Price/recreation full time mothers 5. Best buy 6. Recreational experience 7. Incentive/added value
Greenland and McGoldrick 1990

ORGANISATIONAL BUYING
Key characteristics: derived demand Decision Making Unit > complexity risks / more rational .. Strict criteria negotiation economies of scale/reciprocal buying cooperation on product development

WHO - Organisational buying behaviour

The buying centre roles: Initiator Influencer Gatekeepers Decider/approver Buyer User in the organisation

Organisational buying behaviour - case study:

Division of global chemical co Supplies raw material Wants to expand customer base Needs to understand buying process

100 respondents involved with supplier selection Europe Americas Asia

HOW & WHO

75% decision made in conjunction with others Mean no of key decision makers = 4 Most frequently mentioned job functions:
Production Purchasing Research and development Quality control Product testing Technical support Product supplier approval

Involvement with suppliers

Negotiating best value Product testing/approval Quality assurance Making up/deciding order

55
Production

80 75
Purchasing

50 0 20 40 60 % Yes 80 100

Base: 100

Additional products/services supplied

1/2 buy other products/services from suppliers
ADDITIONAL SERVICES Research & technical back up/support Product development support Product testing support Testing to European or intl standards Environmental advice testing None of these Cos n=100 40 32 30 25 23 12

DMU information sources

Most frequent sources:
Experienced representatives Colleagues The Internet Specialist/trade magazines/directories Conferences

Key areas for improving/enhancing communication

More frequent communication/updates Personal visits

WHAT Key reasons for main supplier

Its a trade off between low prices, value for money. Theres a limit on technical performance and provided they meet that we go for the cheapest.
Top ten attributes ranked in order of importance 1. Being reliable 2. Meeting the specifications (i.e., consistent) 3. Delivery accuracy 4. Having reliable sales representatives 5. Rapid response to queries 6. Having technically knowledgeable sales reps 7. Being flexible in approach (price, prod, etc.) 8. Performance e.g., adhesion/flexibility/ strength 9. Being open to negotiation on price 10. Regular updates on new products and services

Implications

Identify key individuals involved Information needs/requirements Design most effective product/service mix

Overview
Necessity to understand customer behaviour Appreciate stages in buying decisions Understand major factors influencing consumer/organisational buying behaviour

Marketers who understand buyer behaviour: design more effective marketing programmes give increased customer satisfaction