Professional Documents
Culture Documents
That includes
what they buy ,
why they buy ,
when they buy it ,
where they buy it ,
how often they buy it ,
how often they use it ,
how they evaluate it after purchase
and the impact of such evaluations on future purchases
and how they dispose of it .
Walking through the store , they see some DKNY suits . Jennifer
looks at them briefly and decides theyre too expensive for her
budget and too trendy . She wants to interview in the banking
industry and thinks she needs a more conservative suit .
Jennifer and Brenda are approached by a sales person in the career
womens department. After asking Jennifer what type of suit she
wants and her size , the salesperson shows her three suits .
Jennifer asks Brenda what she thinks about the suits and then tries
on all three.
Jennifer doesnt not a Macys charge card , so she asks if she can
pay with a personal check . The salesperson says yes , but the
store also takes visa and master card .Jennifer decides to pay with
her visa card . As the salespersons walks with Jennifer and Brenda
to cash register , they pass a display of scarves. The sales person
stops , picks up a scarf , and shows Jennifer how well the scarf
compliments the suit . Jennifer decides to buy the scarf also .
Jennifer doesnt not a Macys charge card , so she asks if she can
pay with a personal check . The salesperson says yes , but the
store also takes visa and master card .Jennifer decides to pay with
her visa card . As the salespersons walks with Jennifer and Brenda
to cash register , they pass a display of scarves. The sales person
stops , picks up a scarf , and shows Jennifer how well the scarf
compliments the suit . Jennifer decides to buy the scarf also .
Marketing and
other stimuli
Product
Price
Place
Promotion
Buying
decision
process
Buyers responses
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount
Consumer Decision-Making
Process
Need
Need Recognition
Recognition
Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological
Factors
Factors
affect
affect
all
all steps
steps
Information
Information Search
Search
Evaluation
Evaluation
of
of Alternatives
Alternatives
Purchase
Purchase
Postpurchase
Postpurchase
Behavior
Behavior
Buying process
There are various stages in buying process such as :
Need Recognition
Information search
Evaluation
Choice
Visit
Loyalty
Difference
Differencebetween
betweenan
anactual
actualstate
stateand
andaadesired
desiredstate
state
Buyer
Recognizes a
Problem or a
Need.
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition
Need
Need Recognition
Recognition
Difference
Differencebetween
betweenan
anactual
actualstate
stateand
andaadesired
desiredstate
state
Internal
InternalStimuli
Stimuli
External
ExternalStimuli
Stimuli
Hunger
Hunger
TV
TVadvertising
advertising
Thirst
Thirst
Magazine
Magazinead
ad
AApersons
personsnormal
normal
needs
needs
Radio
Radioslogan
slogan
Stimuli
Stimuliin
inthe
the
environment
environment
Need Recognition
The buying process is triggered when people recognize they have an
unsatisfied need. An unsatisfied need arises when a customers
desired level of satisfaction differs from his present level of
satisfaction.
Visiting stores , surfing the internet , and purchasing products are
approaches to satisfying different types of needs .
Personal
PersonalSources
Sources
Commercial
CommercialSources
Sources
Public
PublicSources
Sources
Experiential
ExperientialSources
Sources
Information search
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features
Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?
Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?
Total
TotalProduct
ProductSatisfaction
Satisfaction
Based
Basedon
onwhat
whatIm
Imlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
or
ormore
moreattributes.
attributes.
The multi attribute model is based on the notion that customers see
a retailer , a product or a service as a collection of attributes or
characteristics . The model is designed to predict a customers
evaluation of the product , service or retailer based on :
Its performance on relevant attributes
The importance of those attributes to the customer .
Unexpected
Situational
Factors
Purchase Decision
Satisfied Customer!
Consumers
Expectations of Products Performance.
Products Perceived
Performance.
Cognitive Dissonance
Dissatisfied Customer
50
Post-purchase Evaluation
After making a purchase , the customer uses the product and then
evaluates the experience to determine whether it was satisfactory or
unsatisfactory.
Satisfaction is a post consumption evaluation of how well a store or
product meets or exceeds customer expectations . This post
purchase evaluation then becomes part of the customers internal
information that affects future store and product decisions.
Unsatisfactory experiences can motivate customers to complain to
the retailer , patronize other stores and select different brands in the
future . Consistently high levels of satisfaction build store and brand
loyalty , important sources of competitive advantages .
Low
Involvement
Significant
differences
between
brands
Complex
Buying
Behavior
VarietySeeking
Behavior
Few
differences
between
brands
DissonanceReducing Buying
Behavior
Habitual
Buying
Behavior
52
Brand Loyalty
Store Loyalty
Customer habitually visits the same store
Reluctant to try a different store
Reference
groups
SubSubculture
culture
Family
Social
Social
class
class
Roles
and
status
Personal
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psychological
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
61
Social
Social Factors
Factors
Family Buying Influence
Roles
Roles and
and Status
Status
63
Click or pre ss spa cebar to return
Culture
Subculture
Social class
Reference groups
Family
Nordstrom provides sitting areas in its store and pubs where men
can have a beer and watch a football game while their wives shop .
By accommodating the needs of men and children who might not be
interested in shopping , the retailer keeps the family in stores longer
and thereby encourages them to buy more merchandise .
Reference Groups
A reference group is one or more people whom a person uses as a
basis of comparison for beliefs, feelings, and behaviors
A reference group can affect the buying process by:
Offering information (directly and indirectly)
Providing rewards for specific purchasing behavior
Reference groups provide information to consumers directly through
conversation or indirectly through observation .
Enhancing a consumers self-image
Retailers often try to reach store advocates that are part of reference groups to
encourage consumers to frequent their store.
Subculture
Group of people with shared
value systems based on
common life experiences.
67
Social Class
Societys relatively permanent
& ordered divisions whose
members share similar values,
interests, and behaviors.
Measured by: Occupation,
Income, Education, Wealth and
Other Variables.
68
Upper Upper
Lower Upper
Upper Middles
Middle Class
Working Class
Upper Lowers
Lower Lowers
Those within the class tend to behave more alike than persons from
two different social class.
Persons are perceived as occupying superior or inferior position
according to social class.
Social class is indicated by a cluster of variables rather than any
single variable.
Individual can move up and down the social class ladder during their
lifetime.
Social factors
Perception
It is the process by which an individual
selects, organizes, and interprets
information inputs to create a meaningful
picture of the world
Three perceptual processes
Selective Attention
Selective Distortion
Selective Retention
Age
Ageand
andLife
Life
Cycle
CycleStage
Stage
Occupation
Occupation
Economic
Economic
Situation
Situation
Personality
Personality &&
Self-Concept
Self-Concept
Lifestyle Identification
Identification
Lifestyle
Activities
Activities
Interests
Interests
Opinions
Opinions
76
Beliefs and
Attitudes
Psychological
Factors
Affecting
Buyers
Choices
Learning
Perception
77
Market Segmentation
Market Segmentation
Requirements for Effective Segmentation
Measurable
Measurable
Accessible
Accessible
Substantial
Substantial
Differential
Differential
Actionable
Actionable
Market Segmentation
Bases for Segmenting Consumer Markets
Geographic
Nations, states,
regions or cities
Demographic
Age, gender, family size
and life cycle, or income
Psychographic
Social class, lifestyle, or
personality
Behavioral
Occasions, benefits,
uses, or responses