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Buying behaviour
               Consumer behaviour
                                                                                                                          Key first step in developing a marketing strategy is
                                                                                                                          understanding the target market and their buying
                                      MAN40037                                                                            behaviour
                               Marketing and Operations                                                                   Who is the buyer?
                                    Management                                                                            Why do they buy?
                                                                                                                          How, when and where do they buy?

                                         Krzysztof Kubacki




                                                                                                                                         Types of customers
                                 Buying behaviour
                                                                                                                     Private consumers                                     Organisational customers

         Why do they buy?                                                                                            Purchase:                                             Purchase:
          most complex question of the three                                                                           for personal or household                             for use in the operation of a
          requires qualitative rather than quantitative insights                                                       use                                                   business or organisation
          and understanding                                                                                                                                                  to manufacture other
                                                                                                                                                                             products
          products and services are bought for a range of                                                                                                                    for resale to others
          different reasons and benefits
          some conscious, others unconscious
          some rational, others emotional
                                                                                                                                                                                ORGANISATIONAL
                                                                                                                            CONSUMER PRODUCT
                                                                                                                                                                                   PRODUCT




    Influences on consumer behaviour                                                                                                          Who is important

       Personal                                                                                                                Roles in a buying decision process
                                                                                             Social
      influences:                                                                          influences:
        Information                                                                            Culture                                                                                              Gate
        processing                                                                                                  Initiator                                          Decider
                                                                                             Social class                                                                                          keeper
         Motivation                                                                             Geo-
           Beliefs                                                                         demographics
       and attitudes                                                                         Reference
         Personality                                                                          groups                            Influencer                                            End user
          Lifestyle                                     Buying
          Lifecycle                                     situation
                                                                                                                                                                        Buyer

Source: Jobber, D. and Fahy, J. (2002) ‘Foundations of marketing’, McGraw-Hill Education
                                                                                                            PAGES: purchaser, advisor, gatekeeper, end user, starter




                                                                                                                                                                                                             1
Types of buying behaviour                                                                              How do they buy
Consumer buying behaviour differs between situations, depending on the                Cognitive model of the ‘complex’ buying process*
degree of differences between brands (or other objects of choice: e.g.
                                                                                                              PROBLEM/NEED RECOGNITION
lifestyle) and on the extent to which a buyer is ‘involved’ in the decision.


                           High Involvement          Low Involvement                                          ACTIVE INFORMATION SEARCH

Significant                Complex buying            Variety-seeking
differences                behaviour                 behaviour                                    EXTENSIVE EVALUATION OF ALTERNATIVES
between brands
No significant             Dissonance-               Habitual buying                                                            PURCHASE
differences                reducing                  behaviour
between brands             behaviour
                                                                                                              POST-PURCHASE EVALUATION


                                                                               *Assumes high involvement and significant differences between brands




   Marketing implications of low
  involvement buying behaviour                                                     Persuading people to persuade
                                                                                            themselves
  With low involvement, the hierarchy of effects is different:                          “Hitting the sweet spot”
  AWARENESS → BEHAVIOUR → EVALUATION
                                                                                        Helpful and personal communication is persuasive not
  Marketing communications                                                              manipulative
  With low involvement, marketing communications are                                    Opportunities at every step of the decision making
  non-consciously processed, on an emotional level
                                                                                        process to move customers towards (or away) from the
  Brand loyalty                                                                         product
  The intensity of consumer attachment to a brand is                                    IMC planning issue: How do these consumers’ insights
  usually low, even if s/he is a repeat-buyer
                                                                                        connect with brand perceptions




                                                                                                                                                      2

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Understanding consumer buying behaviour

  • 1. Buying behaviour Consumer behaviour Key first step in developing a marketing strategy is understanding the target market and their buying MAN40037 behaviour Marketing and Operations Who is the buyer? Management Why do they buy? How, when and where do they buy? Krzysztof Kubacki Types of customers Buying behaviour Private consumers Organisational customers Why do they buy? Purchase: Purchase: most complex question of the three for personal or household for use in the operation of a requires qualitative rather than quantitative insights use business or organisation and understanding to manufacture other products products and services are bought for a range of for resale to others different reasons and benefits some conscious, others unconscious some rational, others emotional ORGANISATIONAL CONSUMER PRODUCT PRODUCT Influences on consumer behaviour Who is important Personal Roles in a buying decision process Social influences: influences: Information Culture Gate processing Initiator Decider Social class keeper Motivation Geo- Beliefs demographics and attitudes Reference Personality groups Influencer End user Lifestyle Buying Lifecycle situation Buyer Source: Jobber, D. and Fahy, J. (2002) ‘Foundations of marketing’, McGraw-Hill Education PAGES: purchaser, advisor, gatekeeper, end user, starter 1
  • 2. Types of buying behaviour How do they buy Consumer buying behaviour differs between situations, depending on the Cognitive model of the ‘complex’ buying process* degree of differences between brands (or other objects of choice: e.g. PROBLEM/NEED RECOGNITION lifestyle) and on the extent to which a buyer is ‘involved’ in the decision. High Involvement Low Involvement ACTIVE INFORMATION SEARCH Significant Complex buying Variety-seeking differences behaviour behaviour EXTENSIVE EVALUATION OF ALTERNATIVES between brands No significant Dissonance- Habitual buying PURCHASE differences reducing behaviour between brands behaviour POST-PURCHASE EVALUATION *Assumes high involvement and significant differences between brands Marketing implications of low involvement buying behaviour Persuading people to persuade themselves With low involvement, the hierarchy of effects is different: “Hitting the sweet spot” AWARENESS → BEHAVIOUR → EVALUATION Helpful and personal communication is persuasive not Marketing communications manipulative With low involvement, marketing communications are Opportunities at every step of the decision making non-consciously processed, on an emotional level process to move customers towards (or away) from the Brand loyalty product The intensity of consumer attachment to a brand is IMC planning issue: How do these consumers’ insights usually low, even if s/he is a repeat-buyer connect with brand perceptions 2