Ch 4 customer buying behaviour
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Ch 4 customer buying behaviour

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    Ch 4 customer buying behaviour Ch 4 customer buying behaviour Presentation Transcript

    • 4.CUSTOMER BUYING BEHAVIOR
    • STAGES IN BUYING PROCESS
    • A. Utilitarian Needs (Specific Shopping ) Men Women Child B. Hedonic Needs (Shopping for Pleasure ) 1. Stimulation Child Child --- 2. Social Experience Women 3. Learning New trends Women 4. Self reward 5. Adventure
    • RESEARCH TECHNIQUES
    • STAGES IN BUYING PROCESS 1. Need Recognition A. Types of Needs – 1 Utilitarian Needs (Specific Shopping ) 2 Hedonic Needs (Shopping for Pleasure ) • Stimulation • Social Experience • Learning New trends • Status & Power • Self reward • Adventure B. Conflicting Needs • Cross Shopping – Pattern of buying both premium & low priced merch C. Stimulating Need Recognition – Tie with a blazer
    • STAGES IN BUYING PROCESS CONTI…. 2. Information Search  Amount of Info searched - Influencing factors : a) nature & use of product being purchased b) characteristics of individual customer c) aspects of market & buying situation  Source of information –Internal /External  Reducing the information search - EDLP
    • STAGES IN BUYING PROCESS CONTI…. 3. Evaluation of Alternatives : The Multi-attribute model I. Beliefs about Performance A. Information about stores selling groceries Store Characteristic Super Center Supermarket Internet Grocer Grocery Prices 20% below Avg Avg 10% above Avg Delivery cost 0 0 10 Total travel time 30 15 0 Typical check out time (Minutes ) 10 5 2 No. Of Products ,Brands, & Sizes 40000 25000 20000 Fresh Produce Yes Yes Yes Fresh Fish Yes Yes No Ease of Finding Products Difficult Easy Easy Ease of collecting nutritional information about products Difficult Difficult Easy
    • STAGES IN BUYING PROCESS CONTI…. 3. Evaluation of Alternatives : The Multi-attribute model I. Beliefs about Performance B. Beliefs about Stores Performance Benefits Performance Benefit Supercenter Supermarket Internet grocer Economy 10 8 6 Convenience 3 5 10 Assortment 9 7 5 Availability of product information 4 4 8 * 10 = excellent; 1 = poor
    • STAGES IN BUYING PROCESS CONTI…. 3. Evaluation of Alternatives : The Multi-attribute model contd… II. Importance Weights CHARACTERISTIC PARENT WITH FOUR CHILDREN SUPER CENTER SUPERM ARKET INTERNET GROCER ECONOMY 4 10 10 8 6 CONVENIENCE 10 4 3 5 10 ASSORTMENT 5 8 9 7 5 AVAILABILITY OF PRODUCT INFORMATION 9 2 4 4 8 OVERALL EVALUATION Young Single Woman 151 153 221 Parent with four children 192 164 156 PERFORMANCE BELIEF YOUNG SINGLE WOMAN IMPORTANCE WEIGHT * 10 = very important; 1 = very unimportant
    • STAGES IN BUYING PROCESS CONTI…. 3. Evaluation of Alternatives : The Multi-attribute model contd… III. Evaluating stores IV. Implications for retailers-  Getting into the consideration set  Changing performance beliefs  Changing importance weights  Adding a new benefit
    • STAGES IN BUYING PROCESS CONTI…. 4. Purchasing the Merchandise or Service - Retailers preventive measures a) No stock outs b) Appropriate return / exchange policies c) Credit terms d) Convenient check outs e) Minimal waiting time at checkout 5. Post purchase Evaluation
    • TYPE OF BUYING DECISIONS  Extended Problem Solving - Extended time & effort is invested  Limited Problem Solving - Moderate time investment. Impulse Buying  Habitual Decision Making - Little / No effort. Brand Loyalty /Store Loyalty
    • SOCIAL FACTORS INFLUENCING THE BUYING PROCESS  Family  Reference Group – used as a basis of comparison for beliefs, feelings & behaviors  Culture – beliefs, moral, values shared by most members within a society
    • MARKET SEGMENTATION Group of customers whose needs are satisfied by a similar retail mix because they have similar needs  Criteria for evaluating Market segments  Actionability - Should clearly indicate what action should be taken to satisfy its needs Identifiability - Segment size, Target audience to communicate Accessibility - Ability to communicate to the segment Size - Target segment should be large enough
    • MARKET SEGMENTATION CONTI…  Approaches for segmenting Markets  Geographic  Demographic  Geo-demographic  Lifestyle  Buying situation  Benefit segmentation  Composite segmentation approaches E