Buyer Behavior - Group & Situational Effect

Management Trainee at Prudential Vietnam Assurance Private Ltd.
Oct. 2, 2015

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Buyer Behavior - Group & Situational Effect

  1. Group & Situational Effect ___Decision Making part 2___ Andrew - Nawel - Perry
  2. What are the external factors that influence our purchase ?
  3. What is the point of this presentation ? Are consumers rational ? Or are they influenced ? Marketers’ Roles : ⇒ Fulfill consumers Wants and Needs ⇒ Understand their Choices ⇒ Sell our product easily
  4. Situational Effect on Consumer Behavior
  5. A consumption situation includes : - a Buyer - a Seller - a Product or Service As well as other factors...
  6. A consumer will make different purchase depending on ⇒ The mood of the consumer ⇒ If the is consumer alone or not ⇒ If he is in a hurry or not ⇒ How he will use the product
  7. DAY RECONSTRUCTION METHOD People’s mood increased gradually throughout the day and is punctuated by occasional anxiety, anger and frustration. Activities such as watching tv or socializing make people happy Activities such as commuting or housekeeping make them feel unhappy, annoyed and stressed
  8. The self-image A person’s self image is the idea, conception or mental image one has of oneself It will tend to influence what the he or she will buy. ⇒ Some consumers imitate the people they admire and may buy the same brands ⇒ Others will buy different product depending on how they want people to see them. (Eg: Guy on a date Vs with friends)
  9. Usage of the product Consumers make different purchase choices depending on how they plan to use it (Eg : Shoes)
  10. The importance of Time
  11. Time, one of our most important resource ● Time is an important factor in decision making ● It is an economical variable ⇒ We try to maximize satisfaction by dividing time between activities ⇒ Different Time Styles ⇒ Same perception of time poverty
  12. It is the subjective experience of the passage of time ● Five time perspectives metaphors : ⇒ Time is a pressure cooker (shopping is stressful) ⇒ Time is a map (research before buy) ⇒ Time is a mirror (loyal consumer) ⇒ Time is a river (spontaneous shoppers) ⇒ Time is a feast (variety seekers) Psychological time
  13. Waiting Time Queuing theory is the mathematical study of waiting in line. The experience when we wait has a big effect on our evaluations of what we get at the end of the wait.
  14. The Shopping Experience
  15. Physical environment Many environmental factors influence decision-making Marketers have control over some of these, such as atmospherics ⇒ Wall colors ⇒ Smells ⇒ Sounds ⇒ Store layout ⇒ The number of consumers ( packed or empty store ?)
  16. Shopping orientation We segment people in term of their shopping orientation (ie, view of shopping) Why people shop ? - Social experience - Sharing of common interest - Instant Status - The thrill of the Hunt
  17. E-Commerce: Clicks Versus Bricks Showrooming visiting a store to examine a product before buying it E-Commerce will replace traditional retailing
  18. Benefits ● Shop 24 Hours ● Less traveling ● Lower Prices ● More choices of product ● Receive relevant information ● Fast delivery ● Virtual auctions E-Commerce Limitations ● Lack of Security ● Fraud ● Can’t touch items ● Expensive to order & then return ● Exact colors may not reproduce on computer monitors
  19. Retailing as Theater Landscaping themes Association with Images of nature, earth, and animals Marketscape Themes Association with man-man made places Cyberspace Themes Images of information & communication technology Mindscape Themes Abstract ideas & concepts, fantasy, and spiritual overtones
  20. Store Image Store have “Personalities” ● Location ● Merchandise suitability ● Knowledge & congeniality of sale staff
  21. Atmospherics “Conscious designing of space and various dimensions to evoke certain effects in buyers” -- M.R. Solomon p. 363--
  22. In-store Decision Making Mental budgets Typically composed of both an itemized portion Mobile shopping apps Imaginative new ways for retailers to guide shoppers
  23. Unplanned buying recognize a new need while in a store Spontaneous Shopping Impulse buying experience an urge that you can’t resist
  24. Interaction Styles ● Nonassertive person (non-social) ● Assertive person (stand-out) ● Aggressive person (rude) Salesperson role ● Knows Customers traits ● And preferences better than an inexperienced salesperson Dyadic encounter two parties (buyer and seller) reach an agreement about roles of each participant The salesperson: A lead Role in the Play
  25. The Social Power ___ of ___ Group Social Power The capacity to alter others’ action 6 types ● Reference ● Information ● Legitimate ● Expert ● Reward ● Coercive
  26. Reference Power You admire a person or a group, then you try to copy their behaviors Information Power They know things others love to know They have Information Power!
  27. Legitimate Power Positional or Authoritical Power Expert Power You follow his recommendations because he’s the expert! Police Soldier Professors
  28. Reward Power Provide positive reinforcement Coercive Power Influence by social or physical intimidation
  29. Informational “You use the brand because it has good reviews from your friends” Utilitarian “You use the brand to satisfy your family’ s expectations of you” Value-Expensive “You think using the brand will enhance your image in those girls’ eyes” Reference Group Who can significantly influence people’s evaluations, aspirations; or behaviors
  30. Name letter effect All things equal, we like people who share our names or even initials better than those who don’t Platypus My name is Perry, so I will like... Pizza Hut Peter Pennsylvania
  31. Normative Influence Reference groups that help set & enforce fundamental standards of conduct Comparative Influence Reference groups that influence decisions about specific brands & activities Parents may influence you in attitudes towards marriage or future career Your sorority sisters may influence your decisions on newest clothes brands
  32. “Brandfest” Brand-sponsored events intended to promote strong brand loyalty among customers Who’s wanna join Apple’s community? “Collective Value Creation” Brand community members work together to develop better ways to use & customize products Brand Community Group of consumers who share a set of social relationships based on usage or interest in products
  33. Consumer Tribe Group of people who share a lifestyle and can identify with each other because of a shared allegiance to an activity or a product. Consumer Tribe: specific product - Brand community: specific brand Tribal Marketing Strategy Link a product’s identity to an activity-based “tribe”
  34. Membership Reference Group People you actually know Propinquity Closer physical distance - closer relationship Mere Exposure The more you see them - the more you like them Group cohesiveness As group’s value to you increase - the more they can influence your decision Aspirational Reference Group You don’t know them but you admire them anyway! Application Brand ambassador
  35. Deindividualization When individual identities become submerged within a group Home shopping party When a brand representative make a sales presentation to a group gathering at a member’ s house - direct selling Group Shopping We get away with more when we do it in a group
  36. Cultural Pressures Different cultures have different level of conformity Fear of deviance “They fear of being boycotted if they do something different” Commitment The more you commit - the more you conform Group unanimity, size & expertise Larger & more powerful group has more conformity Susceptibility to interpersonal influence People’s need to have others think highly of them Conformity People change in beliefs / actions to react to group pressure NORM - informal rule, govern what is right or wrong WHAT INFLUENCE YOUR CONFORMITY?
  37. Thank you ~~~ for ~~~ listening