Consumer Buying Behavior 2

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Consumer Buying Behavior 2

  1. 1. Consumer Buying Behavior Cont.
  2. 2. Types of Buying Decisions <ul><li>Extended Problem Solving </li></ul><ul><li>High financial or social risk </li></ul><ul><li>Limited Problem Solving </li></ul><ul><li>Some prior Buying Experience </li></ul><ul><li>Habitual Decision Making </li></ul><ul><li>Store Brand, Loyalty </li></ul>
  3. 3. Extended Problem Solving <ul><li>In this process customers spend a lot of time and effort evaluating alternatives and researching the desired product </li></ul>
  4. 4. <ul><li>Customers tend to engage in extended problem solving when a purchase involves a lot of risk or uncertainty. </li></ul><ul><li>Types of Risks Include: </li></ul><ul><li>Financial Risks </li></ul><ul><li>Physical Risks </li></ul><ul><li>Social Risks </li></ul>
  5. 5. <ul><li>Retailers can assist consumers in </li></ul><ul><li>Extended Problem solving by: </li></ul><ul><li>Providing a lot of information </li></ul><ul><li>Having helpful and informative salespeople </li></ul><ul><li>Having informational in-store displays </li></ul><ul><li>Having salespeople demonstrate features and answer questions </li></ul><ul><li>Retailers can also reduce risks by : </li></ul><ul><li>Offering a money back guarantee </li></ul><ul><li>Offering easy return of merchandise </li></ul>
  6. 6. Limited Problem Solving In this process consumers spend a moderate amount of time and effort analyzing alternatives, but also rely on their prior experience with the product or service
  7. 7. <ul><li>Retailers can assist consumers in </li></ul><ul><li>Limited Problem Solving by: </li></ul><ul><ul><li>Providing a positive experience </li></ul></ul><ul><ul><li>Make sure customer is satisfied </li></ul></ul><ul><ul><li>Provide good service </li></ul></ul><ul><ul><li>Have a large selection of quality items </li></ul></ul><ul><ul><li>Offer rewards for loyal customers </li></ul></ul><ul><ul><li>Have convenient locations </li></ul></ul>
  8. 8. Habitual Decision Making <ul><li>When the product is not important to the customer and they make the purchase with little or no effort the customer is performing Habitual Decision Making </li></ul>
  9. 9. <ul><li>Habitual Decision Making usually involves customer loyalty to a Store or Brand. </li></ul><ul><li>Brand Loyalty </li></ul><ul><li>Customer is committed to a specific brand </li></ul><ul><li>Will shop at a different retailer to get specific brand </li></ul><ul><li>Reluctant to try a different brand </li></ul><ul><li>Store Loyalty </li></ul><ul><li>Customer habitually visits the same store </li></ul><ul><li>Reluctant to try a different store </li></ul>
  10. 10. Social Factors Influencing the Buying Process
  11. 11. How Family Influences the Buying Decision <ul><li>Purchases are for the entire family </li></ul><ul><li>All family members have opinions about products </li></ul><ul><li>Retailers try to satisfy needs of all family members </li></ul><ul><ul><li>Example: playrooms at IKEA, books and games provided at Hyatt Hotels, Seating areas with TV's in malls </li></ul></ul>
  12. 12. Reference Groups <ul><li>A reference group is one or more people whom a person uses as a basis of comparison for beliefs, feelings, and behaviors </li></ul><ul><li>A reference group can affect the buying process by: </li></ul><ul><li>Offering information (directly and indirectly) </li></ul><ul><li>Enhancing a consumers self-image </li></ul><ul><li>Retailers often try to reach store advocates that are part of reference groups to encourage consumers to frequent their store. </li></ul>
  13. 13. Culture <ul><li>Culture is the meaning, beliefs, morals, and values shared by most members of a society. </li></ul><ul><li>Two commons types of cultures are: </li></ul><ul><li>Individualism – consumers tend to rely on their own inner standards and beliefs </li></ul><ul><li>Collectivism – consumers tend to shop in groups and put more value on products used in a public manner </li></ul>

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