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

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Imc course session 3 consumer buyer behaviour

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

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