Understanding consumer behaviour

Understanding consumer behaviour Music Ivana Yaremuchuk Elena Marusic Bojana Knoflach Stefan Index ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ Dimensions of buyer behavi...
Author: Violet Campbell
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Understanding consumer behaviour Music Ivana Yaremuchuk Elena Marusic Bojana Knoflach Stefan

Index ¾

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Dimensions of buyer behaviour Who buys? How they buy? Need recognition/problem awarenes Information search Evaluation of alternatives and the purchase High-involvement Low-involvement Post-purchase evaluation Choice criteria

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Influences on consumer behaviour -

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Conditions of extended problem solving Personal influences Information processing -

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Perception

Motivation -

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The buying situation

Maslow’s hierarchy of needs

Social influences References

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Dimensions of buyer behaviour Individuals Organizational buying An understanding of customers can be gained by answering the following questions:

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Who is important?

How do they Buy?

Where do they buy?

What are their choice criteria?

When do they buy?

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Who buys? „

Individuals or number of individuals that interact in the buying process: ™ ™ ™ ™ ™

Initatior: considers the purchase Influencer: attempts to influence others Decider: has the power or financial authority Buyer: conducts the transaction User: actual consumer of the product

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How they buy? Decision-making process:

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Need recognition/problem awareness

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Information search

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Evaluation of alternatives

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Purchase

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Post-purchase/evaluation of decision

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Need recognition/problem awareness „

Functional or emotional/psychological needs

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Solvation of problem depends on: ™

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Discrepancy between the desired and present situation Relative importance of the problem

Need inhibitors (fear not to be able to manage the purchased product) 6

Information search „

Internal (from memory or experiences)

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External (from friends, family, work colleagues)

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Commercial (advertisement and salespeople)

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Build up the awareness set (the array of brands that may provide a solution to the problem)

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Evaluation of alternatives and the purchase „

Reduce a awareness set to evoked set

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Choice criteria: ™ ™ ™

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Price Quality Reliability

Involvement ™ ™

High-involvement Low-involvement

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High-involvement „

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Attitude toward a brand is based upon a set of beliefs about the brands attributes such as money or durability Advertasing messages should contain high information degree Printmedia Personal beliefs

Attitudes Purchase intention

Normative beliefs

Purchase

Subjective norms

•Fischbein and Ajzen

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Low-involvement „

Repeat purchase, simple process, behaviour becomes habitual

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Advertising messages should be short with a small number of key points TV

Awareness

•Ehrenberg and Goodhart

Trial

Repeat purchase

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Post-purchase evaluation „

After purchase consumer experiences cognitive dissonance (Did I made a right decision?)

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Dissonance increase with expense of purchase, when decision is difficult and irrevocable and when the purchaser has a tendency to experience anxiety

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Contact customer after the purchase to ask him how does he likes the product and is he satisfyed 11

Choice criteria Technical (reliability, durability comfort, convenience)

Economic (cost aspects)

Choice criteria

Social (relationships with other people)

Personal (risk reduction, ethic,)

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Influences on consumer purchasing behavior „

The buying situation

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Personal influences

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Social influences

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Their marketing implications

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Influences on consumer behavior: The buying situation Extended problem-solving

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Marketers: provide information-rich communication;

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Salespeople: adopt the problem-solution approach to selling

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Limited problem-solving

1. 2.

Marketers: stimulate the need to conduct a search, or reduce the risk of brand switching by, for instance, giving warranties

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Habitual problem-solving

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An application of repetitive advertising for creating an awareness and reinforcement of the favorable attitudes 14

Conditions of extended problem-solving ¾ ¾ ¾

1) 2) 3)

The alternatives are differentiated and numerous; Adequate amount of time available for deliberation; The purchase has a high degree of involvement: 4 factors affecting high involvement: Self-image (decision potentially affects one’s self-image) Perceived risk (perceived risk of making a mistake is high) Social factors (social acceptance is depend upon making a correct choice)

4)

Hedonistic influences (the purchase is capable of providing a high degree of pleasure)

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Influences on consumer behavior: Personal influences Information processing

Personality

(Perception &Learning)

(psychological characteristics of individuals, brand personality)

Motivation

Lifestyle

(Maslow’s hierarchy of needs, influence on choice criteria)

(behavior purchase; lifestyle groups - segmentation & targeting purposes)

Beliefs and attitudes (positive/negative attitude as the consequence of a set of beliefs)

Life cycle and age (Dependence of disposable income & purchase needs on the stage)

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Information processing: Perception „

Selective attention

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Advertisements, logos & packaging are to be attention-getting, An existence of competition to obtain eye-level positions on market shelves

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Selective distortion

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Present important messages clearly by high credible source Present evidence of sales message whenever possible

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Selective retention

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It is more likely to remember those messages, which are in line with existing beliefs and attitudes

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Motivation: Maslow’s hierarchy of needs

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Social influences „

Culture (affects business conduction & consumption behavior

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different culture accommodation)

Social class (predict some consumption patterns use for market segmentation & targeting purposes)

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Geodemographics (consumers according to their location - use for market segmentation & targeting purposes)

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Reference group (influences an individual's attitude or behavior. Marketers: making the brand acceptable or gaining it’s acceptability) 19

Thank you for your attention!

References David Jobber (2004) Principles and practice of marketing - 4. edition, London [u.a.] : McGraw-Hill Education.

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