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Imc course session 3 consumer buyer behaviour

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This is part 3 of my 15 lecture series class for Integrated Marketing Course at IOBM Karachi

This is part 3 of my 15 lecture series class for Integrated Marketing Course at IOBM Karachi

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  • 1. Session 3
    Ali Raza Merchant
    IMC CourseConsumer Buyer Behaviour
    IMC 2011 by ARM
  • 2. How to take advantage of each stage in the consumer purchase decision
    Target ads and other marketing communications to meet emotional and logical needs of consumers
    Refine knowledge about how attitudes and values are reflected in buyer behaviour
    Discover traditional factors that affect consumer purchasing decisions
    Understand how new trends in society affect purchasing processes
    Topic Objectives
    IMC 2011 by ARM
  • 3. Starbucks began as a coffee importing firm
    Howard Shultz an employee, toured Italy in 1980 and watched city dwellers stopping at a coffee bar every morning
    Shultz comes back and tries to convince owners of Starbucks to do something similar in USA but gets turned down
    Shultz quits the job, raises money from investors and opens a Café in Seattle using the name Il Giornale
    Starbucks - Backgrounder
    IMC 2011 by ARM
  • 4. Within 15 years, Starbucks expanded to 1200 retail outlets
    Success factors include:
    Product itself
    Locations
    Employees
    Sourcing
    Effective marketing communications
    The nonchalance of competition was also a factor
    Starbucks - In 2003
    IMC 2011 by ARM
  • 5. Starbucks - Videos
    IMC 2011 by ARM
    A look into
    The future
    Of Starbucks
    Starbucks 2011 TVC
    Thematic
    Starbucks Vote TVC
    CSR
    Starbucks
    Gold Coast TVC 2008
  • 6. So What Did Starbucks Do???
    IMC 2011 by ARM
    The Big Idea
    Going to Starbucks should be an experience, a special treat; the stores should be a place to meet friends and visit
    Italian coffee-bar culture in the United States could be Starbucks' differentiating factor
  • 7. IMC 2011 by ARM
    Starbucks Product
    Starbucks offers both straight and diluted creamy drinks like caffe latte
    (Espresso mixed with steamed milk covered with a topping of foam
    Other Products include:
    Cappuccino
    Caffe Mocha
    Basic Ingredient Coffee is never more than an hour old
  • 8. IMC 2011 by ARM
    Starbucks Location - Exterior
  • 9. IMC 2011 by ARM
    Starbucks Location -Interior
  • 10. IMC 2011 by ARM
    Starbucks Location - Facts
    • Café’s must be easily accessible on commuter routes
    • 11. In each café there are numerous enticements like:
    • 12. Jazz music in background
    • 13. Merchandise like stainless steel thermoses, commuter mugs, filters, natural hairbrushes for cleaning coffee grinders and home epresso machines
  • IMC 2011 by ARM
    Starbucks Employees
    • Called Baristas, Italian for Bar Person
    • 14. Motivation programs including buy-in options
    • 15. Encourages Baristas to provide high end service
    • 16. Extensive Training to become experts in coffee vending
    • 17. Starbucks insists on a diverse work force reflecting make up of community
  • IMC 2011 by ARM
    Starbucks Sourcing Advantage
    • The firm is vertically integrated and relies on quality suppliers from around the world
    • 18. Each region grows beans with distinct flavors for coffee connoisseurs
    • 19. Starbucks brings all of the flavors to a single location for purchase
  • IMC 2011 by ARM
    Starbucks Marketing Coms Program
    Challenge 1
    Convincing Price Conscious buyers to shift away from old purchasing habits
    Challenge 2
    To counter caffeine usage as a bad habit and encourage coffee drinking
    • Many Gen X type customers found coffee shops to be an alternative to the bar scene and made purchases accordingly
    • 20. Baby Boom Generation could discuss coffees such as the Jamaican Blue Mountain with as sophistication as they discussed wines
    • 21. Expansion through alliance with Barnes & Nobles, Holland America Cruise Lines, United Airlines
    Primary Target Market 2
    Baby Boom Gen People in 40s and 50s consuming less alcohol with a degree of snob appeal
    Primary Target Market 1
    Younger Gen X types inhabiting Seattle Area – Hang out places for a long time
  • 22. IMC 2011 by ARM
    Starbucks Competitors - Complacent
    • Simply ignored the potential of gourmet coffee
    • 23. The idea of vending coffee in a café seemed so far fetched to them that they did not view Starbucks as a threat, even as Seattle became known as “Latteland”
    • 24. Today Starbucks has as much name recognition and more brand loyalty compared to its major competitors
    Owned by General Foods
    Owned by P&G
  • 25. IMC 2011 by ARM
    Consumer Purchasing Process
    Problem/ Need
    Recognition
    Information Search
    Evaluation of Alternatives
    Purchase Decision
    Post Purchase Evaluation
  • 26. IMC 2011 by ARM
    Problem / Need Recognition
    Not Necessarily a Cognitive Event
    Waiting at a checkout counter & reminded of Cigarettes or Mints
    On a holiday & running out of batteries for Digital Camera
    The smell of fresh biscuits in a bakery making you purchase them
  • 27. Information Search
    Education / Knowledge of Product Category
    Higher Search Effort if Perceived Benefit is Greater
    Ability to Search
    Motivation
    Benefits
    Costs
    Level of Involvement
    Need for Cognition
    Level of Shopping Enthusiasm
    Actual Cost of Product
    Opportunity Cost of foregoing activities like TV
    IMC 2011 by ARM
  • 28. IMC 2011 by ARM
    Evaluation of Alternatives
    Evoked Set consists of the brands he or she considers in a purchasing situation
    E.g. Top recalled brands used or unused
    The consumer chooses the brand he /she likes
    Generally low involvement products like toothpaste, milk, soft drinks etc
    Evoked Set Method
    Affect Referral
    The Multi – attribute Approach
    Consumers beliefs about a brand’s performance on each attribute
    Importance of each attribute to the consumer
    E,g, Mac v/s PC
  • 29. IMC 2011 by ARM
    The Purchase Decision
    May purchase something else due to low on cash, buying a less preferred brand from a nearby store
    1. Situational Changes
    5. Impact of Friend or Family
    2. Desire for Variety
    Ordering more expensive items in restaurant to impress friends
    To satisfy an internal need for variety
    Trying a diet drink occasionally
    Mostly a one time exception
    3. An Impulse
    Purchase
    Buying a different brand of cheese due to a discount coupon of 1+1 deal
    The best alternative may be ignored for chewing gum etc at checkout counters
    4. Advertising, CP & other marketing material
  • 30. IMC 2011 by ARM
    Post Purchase Evaluation
    Consumer Evaluates what was expected v/s what actually occurred
    Customer is satisfied if it meets expectations
    Post Purchase Cognitive Dissonance
    In cases where customer has spent time, money and ego consumer often doubt after purchases
    They may therefore continue to pay attention to ads to reduce tension associated with Cognitive Dissonance
    In post purchase evaluations consumers compare the brand they chose with the brand they didn’t buy
  • 31. Atrium Cinema Karachi
    Evaluate how the cinema goers experience has changed?
    What is different in the offerings of Atrium v/s competition?
    Has it changed customer expectations?
    Compare Atrium Cinema on the following criteria:
    Price
    Ambience & Service
    The movie experience
    Food, Beverage, Hygiene
    Its presence within the mall
    Its location
    Other services like valet
    Overall value for money
    Rate the services on scale of 1 to 10 (1 lowest& 10 highest)
    IMC 2011 by ARM
    Exercise for Class Groups