Understanding-Customer-Behaviour

1Chapter3UnderstandingCustomerBehaviourCustomerTypesOrganisationalCustomersPurchase:Foruseintheoperationofabusinessororganisation.TomanufactureotherproductsForresaletoothersPrivateConsumersPurchase:ForpersonalorhouseholduseORGANISATIONALPRODUCTCONSUMERPRODUCT2UnderstandingCustomers3Howdotheybuy?Whataretheirchoicecriteria?CustomersWhoisimportant?Wheredotheybuy?Whendotheybuy?WhoBuys?TheBuyingDecisionMakingProcessDecider(DecisionMaker)BuyerGatekeeperorganizationalOnlyInfluencerInitiatorUserMiraShowersThisadvertisementisspecificallyaimedatraisingawarenessamongstconsumersoftheirlatestproducttohelpreducetheinfluenceplumbershaveoverthechoiceofshowersduringthedesignstage.Howdotheybuy?TheConsumerDecision-MakingProcess6Needrecognition/problemawarenessInformationSearchEvaluationofalternativesPurchasePost-purchaseevaluationHowdotheybuy?TheOrganizationalDecision-MakingProcess7Recognitionofaproblem(need)DeterminationofspecificationandquantityofneededitemSearchforandqualificationofpotentialsourcesAcquisitionandanalysisofproposalsEvaluationofproposalsandselectionofsupplier(s)SelectionofanorderroutinePerformancefeedbackandevaluation8ChoiceCriteriaUsedWhenEvaluatingAlternativesTechnical-ReliabilityDurabilityPerformanceStyle/looksComfortDeliveryConvenienceTasteSocial-StatusSocialbelongingConventionFashionPersonal-Self–imageRiskreductionMoralsEmotionsEconomic-PriceValueformoneyRunningcostsResidualvalueLifecyclecostsChannelNo5Thisadvertisementisdesignedtomotivatetheconsumertobuythisclassicfragranceandbecomepartoftherichandfamous.10InfluencesonconsumerpurchasingbehaviorinformationprocessingmotivationbeliefsandattitudespersonalitylifestylelifecycleCultureandSubculturesocialclassreferencegroupsPersonalinfluencesSocialinfluencesConsumerThebuyingsituationThispicturedepictsthehumorousT.V.commercialwithaStarWarsthemeforV.W.It’sprimaryaimistoillicitanemotionalresponseandengenderwarmthforthebrandBehaviouralLearningTheories:12OperantconditioningClassicalconditioningindividualrespondtothestimulusthatoffersthemostsatisfactoryrewardsandsubsequentlythebehaviourisrepeated.Themorerewardingtheresponse,themorelikelihoodofarepeatpurchaseistheprocessofusinganestablishedrelationshipbetweenastimulusandaresponsetocauselearningBehaviouralTheoriesandMarketing13Classicalconditioningusesanestablishedrelationshipbetweenstimulusandresponsetocauselearning–Inadvertising,humourisknowntoelicitapleasantresponseandisusedinthebeliefthatthesepleasantfeelingwillbeaconditionoftheproduct.Operantconditioningisreinforcementthroughrewards–TheuseoffreesamplesisbasedontheseprinciplesMaslow5categoriesofmotivation:1Physiological2Safety3Belongingnessandlove4Esteemandstatus5Self-actualisation14InfluencesonOrganizationalPurchasingBehaviour15straightre-buymodifiedre-buynewtaskBuyclassOrganizationalbuyerproductconstituentsproductfacilitiesMROsProducttypeImportanceofpurchaseProductTypesinOrganisationalBuying:16ComponentsPlant&equipmentProducts&ServicesMaterialsDevelopmentsinOrganizationalPurchasingPracticeJust-in-timepurchasingOnlinepurchasingCentralisedpurchasingRelationshipMarketingReversemarketingLeasing17ChapterSummaryTherearekeydifferencesbetweenconsumerandorganizationalbuying.Thereare5rolesinthebuyingdecisionmakinggroup:initiator,influencer,decider,buyer,user.Thelevelofinvolvementisapurchasesituationwillaffectthenumberofstagesaconsumergoesthroughbeforemakingapurchasedecision.Inconsumerpurchasingchoicecriteriacanbecategorisedas:technical,social,economicandpersonal.Themaininfluenceonconsumerbuyingbehaviourare:thebuyingsituation,personalandsocialinfluences.Themaininfluenceonorganizationalbuyingbehaviourare:thebuyclass,theproducttype,andtheimportanceofthepurchase.Therehavebeenkeyinnovationsinpurchasingpractice.18