1. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-1 3 Chapter Three Buyer Behaviors

2. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-2 Apple iPhone July 2007 introduction - $600 Initial problem with AT&T phone activation Sales soared After 3 months – priced reduced to $200 Despite problems – Why did the iPhone succeed? 3

3. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-3 Apple iPhone Innovators Early adopters Early majority Late majority Laggards or nonadopters 3 New Product Introductions

4. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-4 Chapter Overview Consumer purchase process Consumer buying environment Recent trends in consumer behavior Business buying center B-to-B purchasing process Discussion Slide Buying Behaviors 3

5. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-5 F I G U R E 3. 1 Consumer Decision-Making Process

6. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-6 Information Search Internal search External search

7. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-7 External Search Ability to search Motivation Level of involvement Need for cognition Shopping enthusiasm Perceived cost versus benefit

8. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-8 Consumer Attitude Affective Cognitive Conative

9. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-9 Attitude Sequence Cognitive  Affective  Conative Affective  Conative  Cognitive Conative  Cognitive  Affective

10. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-10 What emotion does this Pamper Wipes advertisement solicit? Which attitude sequence would be the most likely for this product? “Some things can be rough.” “Her wipe shouldn’t be one of them.”

11. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-11 Comfortable life Equality Excitement Freedom Fun, exciting life Happiness Inner peace Mature love Personal accomplishment Pleasure Salvation Security Self-fulfillment Self-respect Sense of belonging Social acceptance Wisdom F I G U R E 3. 3 Personal Values

12. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-12 Which personal values does this Skeeter ad target?

13. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-13 F I G U R E 3. 4 Cognitive map for Ruby Tuesday

14. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-14 Processing of New Information Cognitive map Reinforce a current linkage. Modify a current linkage. Create a new linkage. What linkage is Miracle Whip attempting to create or reinforce with this TV advertisement? Click picture to play video.

15. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-15 Principles Concerning Processing of Information and Cognitive Mapping Cognitive mapping enhances movement of messages from short-term memory to long-term memory. Most persuasive messages reinforce current linkages. Repetition is necessary to establish new linkages. Difficult to modify or create new linkages.

16. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-16 Problem Recognition Information Search Evaluation of Alternatives Evoked set Multiattribute Affect referral Problem Recognition F I G U R E 3. 6 Methods of Evaluating Alternatives

17. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-17 The Evoked Set Method Inept set Inert set Evoked set

18. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-18 How important is it for each of the following brands to be a part of a consumer’s evoked set?  Advil (pain medicine)  Head & Shoulders (shampoo)  Black & Decker (power tools)  C & H (sugar)  Smith & Kline (attorneys)  Hall’s (cough drops)  Blockbuster (video rentals)  Dr. Nelson (neurosurgeon)  Pearle Vision (optical)

19. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-19 The Multiattribute Approach Brand’s performance for each attribute. Importance of each attribute. High-Involvement Products

20. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-20 Affect Referral Saves mental energy. Multiattribute approach may have been used previously. Consumers often develop emotional bonds with brands.

21. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-21 Age complexity Gender complexity Individualism Active, busy lifestyles Cocooning Pleasure pursuits Health emphasis F I G U R E 3. 7 Trends Affecting Consumer Buyer Behavior

22. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-22 Business-to-Business Buyer Behavior

23. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-23 F I G U R E 3. 9 The Buying Center

24. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-24 Individual Factors Affecting the Behaviors of Buying Center Members F I G U R E 3. 10

25. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-25 Types of Business-to-Business Sales Straight rebuy Modified rebuy New task

26. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-26 F I G U R E 3. 11 Reasons for Modified Rebuy  Dissatisfaction with current vendor.  A different vendor makes an attractive offer  End of contract with current vendor.  Individuals have no or little experience.

27. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-27 Problem Recognition Information Search Evaluation Of Alternatives Purchase Decision Consumer Buying Process Identification Of Needs B-to-B Buying Process Establish Specifications Identify Vendors Evaluate Vendors Select Vendor Postpurchase Evaluation Purchase Negotiations F I G U R E 3. 11 F I G U R E 3.12

28. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 3-28 Dual Channel Marketing Consumer and B-to-B markets Spin-off market Image concerns Dual strategy Different communication messages Create different brands Use multiple or different channels Single strategy Integrate communication message Sell same brand in both markets Scan both markets for dual opportunities