Buyer Behaviour

  • 9,853 views
Uploaded on

 

More in: Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • Really appreciate with the slide works & thanks alot to all the members
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
9,853
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
305
Comments
1
Likes
6

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Buyer Behaviour The Individual, Risk and Involvement
  • 2. Objectives of this session:
    • Some factors affecting buying behaviour
    • B2B buying behaviour
    • ‘ Risk’ and Buying Behaviour
    • ‘ Involvement’ and Buying Behaviour
    • Buyer behaviour and the DMU
    • Buyer behaviour and communication tasks
  • 3. Factors affecting all buying behaviour
    • Personal Factors
      • Demographics: Age, Gender, Income, Education
      • Situational: Lifestyle choices
      • Experience: previous buying experience
    • Social Factors
      • Culture, Sub-Culture, Reference Groups
    • Psychological Factors
      • Personality Type
      • Attitudes & Beliefs
  • 4. Opinions, Attitudes and Beliefs BELIEFS & VALUES ATTITUDES OPINIONS Long term and deeply held – almost impossible to change Sets of Attitudes derived from Beliefs – May only be changed over the medium to long term Derived & Received Opinions – may be changed by Experience, Learning and Persuasion
  • 5. Three B2B factors affecting the purchaser:
    • As an Individual
      • Psycho-Social factors
    • As a ‘Role’
      • Expectations and responsibilities of role in DMU
    • As a Relationship, between:
      • Buyer & Seller Organisations
      • Individual and Corporate Image
      • Individuals involved in DMP
  • 6. B2B: DMP and Degree of Complexity
    • Routine: Straight Re-Buy (Low cost, frequently purchased items)
      • Strategy:
        • Maintain quality / value to retain existing customers
        • Introduce promotions to attract new buyers
    • Limited Problem Solving: Modified Re-Buy (Less frequent purchase. Higher search for information)
      • Strategy:
        • Aid customer search for information
        • Build confidence in brand
    • Extensive Problem Solving: Major or New Buy (Expensive or new product area. Extended search for information)
      • Strategy:
        • Understand evaluation process of DMP
        • Inform customers of key purchasing criteria
        • Competitor comparisons
  • 7. Other influences on B2B purchases
    • Stakeholder Factors
      • Stakeholder networks
      • Long / short term relationship
      • Unsupported or co-operative relationship
      • Formalised or casual purchasing process
      • Legal, Codes of Practice and other agreements
      • Social and cultural values
    • Organisational Factors
      • Corporate values and objectives
      • Resources and costs
      • Established procedures
    • Individual Factors
      • Interpersonal effects
      • Relative status of individuals
      • Personal rewards and incentives
  • 8. Individual Factors: Perceived Risk
    • Performance Risk
      • Will product deliver promised benefit?
    • Financial Risk
      • Affordability and costs of incorrect decision
    • Physical Risk
      • Potential harm to people and equipment
    • Social Risk
      • Peer group attitudes.
      • Consequences of incorrect decision
    • Ego Risk
      • ‘ Feel good factor’
      • Fit with corporate / self-image
    • Time Risk
      • Time taken on decision Vs other risks
  • 9. Risk Contexts
    • Situation of the Purchase
      • Relative importance of purchase
      • Relation to other activities
      • Brand and other factors
    • Individual Context
      • Attitude towards risk taking / risk aversion
      • Other personality factors
    • Product Context
      • Prestige / Cost / Social role of product
  • 10. Individual Factors: Involvement Theory
    • Interest
      • How interested is the individual in the purchase?
    • Risk Importance
      • How does individual respond to risk?
    • Risk Probability
      • How likely is an incorrect decision?
    • ‘ Sign’ Value
      • Significance of prestige and other factors
    • ‘ Hedonic’ Value
      • Pleasure / fun associated with purchase
  • 11. Involvement Theory: Three Perspectives
    • Cognitive
      • Perceived relevance to the individual
    • Predisposition to act
      • Individual able and resourced to act
    • Response-based: Purchase as response to stimulus:
      • Occurrence of perceived problem
      • Occurrence of marketing message
      • Other prompt
  • 12. Involvement Theory: Degree of Involvement
    • High Level Involvement
      • High perceived relevance or risk
      • Involved search for information
      • Trial of alternatives only after attitudes and intentions already set
    • Low Level Involvement
      • Low cost / risk purchases
      • Less involved information search
      • Trial of alternatives before attitudes and intentions established
    • Zero Level Involvement
  • 13. Reprise: Individuals’ concerns within the DMU
    • The Gatekeeper
    • The Initiator
    • The Decider
    • The Buyer
    • The User
    • The Financier
    • Other Influencers
  • 14. The Gatekeeper
    • Concerns:
    • “ You better have a good reason for disturbing my boss.”
    • “ Let me prove what a good member of the team I am.”
  • 15. The Initiator
    • Concerns:
    • “ I’ve got a problem – Help me!”
    • “ Make my job easier!”
  • 16. The Decider
    • Concerns:
    • “ Why should I risk my job or reputation on you?”
    • “ If this thing works, how will I get the credit?”
  • 17. The Buyer
    • Concerns:
    • “ Don’t give me more problems – or any more work – than I have already.”
  • 18. The User
    • Concerns:
    • “ I just want this to work – first time, every time.”
    • “ I’d like to feel good about using this.”
  • 19. The Financier
    • Concerns:
    • “ How much?”
    • “ What R.O.I can I expect?”
  • 20. Influencers
    • Concerns:
    • “ If I’m going to be your advocate, don’t make a liar out of me.”
  • 21. What effects would you like your communications to have?
    • Find out more
    • Visit website / stand / store
    • See sales representative
    • Purchase
    • Provide feedback
    • Brand values / image
    • What you ‘stand for’
    • Brand – Customer relationship
    • ‘ Like’ / ‘Prefer’ (DAGMAR)
    • Who you are
    • What you do
    • Why you are better
    • How you solve problems
    • Where to buy (Place)
    • Benefits / Features
    • New products / services / offers
    • New / improved specification
    Behaviour (Do) Attitudes (Feel) Knowledge (Think)
  • 22. Summary
    • There are many individual factors which affect B2B as well as B2C buying behaviour
    • Marketers should accept that their communications can have only limited effect
    • Understanding customers’ concerns and attitudes to Risk and Involvement is important to creating successful marketing messages
    • Clear objectives should be set for all communication tasks