1. Copyright John Wiley & Sons 2007 Presentation prepared by Robin Roberts, Griffith University and Mike Spark, Swinburne University of Technology

2. Copyright John Wiley & Sons 2007 Chapter 6 Consumer buying behaviour

3. Copyright John Wiley & Sons 2007 Chapter 6 1.Describe the level of involvement and types of consumer problem-solving processes 2.Recognise the stages of the consumer buying decision process 3.Explain how situational influences may affect the consumer buying decision process Chapter Objectives

4. Copyright John Wiley & Sons 2007 Chapter 6 4.Understand the psychological influences that may affect the consumer buying decision process 5.Recognise the social influences that affect the consumer buying decision process Chapter Objectives

5. Copyright John Wiley & Sons 2007 Chapter 6 Wotif.com – a successful new venture business built on understanding consumer behaviour Dial-UpBroadband

6. Copyright John Wiley & Sons 2007 Chapter 6 Definitions Successful marketing relies on being able to identify and adapt to changes in consumers’ buying behaviour Buying Behaviour The decision processes and acts of people involved in buying and using products Consumer Buying Behaviour Buying behaviour of people who purchase products for personal or household use and not for business purposes

7. Copyright John Wiley & Sons 2007 Chapter 6 Level of involvement and consumer problem-solving processes Level of Involvement is the degree of interest in a product and the importance the individual places on that product Enduring involvement –the interest in the product category –is ongoing and long-term Situational involvement –temporary and dynamic, resulting from a set of circumstances

8. Copyright John Wiley & Sons 2007 Chapter 6 Types of consumer problem-solving processes Routinised Response Behaviour Buying of frequently purchased, low cost items that require little decision effort Limited Problem Solving When purchasing products occasionally and information is needed about an unfamiliar brand in a familiar category Extended Problem Solving When purchasing unfamiliar, expensive, or infrequently bought products

9. Copyright John Wiley & Sons 2007 Chapter 6 What type of problem-solving process would a consumer use to buy a Mercedes M Class? Dial-UpBroadband

10. Copyright John Wiley & Sons 2007 Chapter 6 The consumer buying decision process Problem Recognition –occurs when a buyer becomes aware of a difference between a desired state and an actual condition –May occur rapidly or slowly Information Search –Internal search –External search

11. Copyright John Wiley & Sons 2007 Chapter 6 The consumer buying decision process Evaluation of Alternatives Consideration set (or Evoked set) a group of brands that the buyer views as alternatives for possible purchase Evaluative criteria objective and subjective traits important to the buyer Framing the alternatives describing the alternatives and their attributes in a certain manner, to make a particular characteristic appear more important and facilitate its recall from memory

12. Copyright John Wiley & Sons 2007 Chapter 6 The consumer buying decision process Purchase –Choosing the product or brand to be bought, based on the outcome of the evaluation stage Post purchase Evaluation –Cognitive dissonance A buyer’s doubts shortly after a purchase about whether the decision was the right one

13. Copyright John Wiley & Sons 2007 Chapter 6 Situational influences on the buying decision process Situational Influences are factors that can influence a buyer’s purchase decision and may cause the buyer to short, lengthen or terminate the process Major Situational Factors –Physical and social surroundings –Time perspective –Reason for purchase –Buyer’s momentary mood

14. Copyright John Wiley & Sons 2007 Chapter 6 Psychological influences on the buying decision process Psychological Influences are factors that partly determine people’s general behaviour and thus influence their behaviour as consumers: –Perception and motives –Learning and attitudes –Personality and self-concept –Lifestyles

15. Copyright John Wiley & Sons 2007 Chapter 6 Perception defined Perception — the process of selecting, organising and interpreting information inputs to produce meaning to the consumer/buyer Information inputs sensations received through sight, taste, hearing, smell and touch

16. Copyright John Wiley & Sons 2007 Chapter 6 1st steps of perception — Selecting Selective Exposure Process of selecting inputs to be exposed to our awareness while ignoring others Selective Distortion An individual’s changing or twisting of information when it is inconsistent with personal feelings or beliefs Selective Retention Remembering information inputs that support personal feelings and beliefs

17. Copyright John Wiley & Sons 2007 Chapter 6 2nd step of perception — Perceptual Organisation Organising and integrating new information with what is already stored in memory Several methods are used, one is: Closure occurs when a person mentally fills in incomplete or missing elements in a pattern or statement

18. Copyright John Wiley & Sons 2007 Chapter 6 3rd step of perception — Interpretation Perceptual Interpretation The assignment of meaning to what has been organised based on what is expected or what is familiar Note that attempts by marketers to influence interpretation by the buyer can fail because of various forms of selective perception or blocking

19. Copyright John Wiley & Sons 2007 Chapter 6 Psychological Influences — Motives (cont’d) Motive — an internal energising force that directs a person’s behaviour toward satisfying needs or achieving goals Buyer’s actions are influenced by a set of motives, not just one Some motives are stronger than others at any point in time

20. Copyright John Wiley & Sons 2007 Chapter 6 Maslow’s hierarchy of needs

21. Copyright John Wiley & Sons 2007 Chapter 6 Psychological Influences — Learning (cont’d) Learning — changes in an individual’s thought processes and behaviour caused by information and experience Consumers learn about products by: –experiencing the products personally –gaining additional knowledge from seller provided information or product trial –gaining indirect information from other purchasers/users

22. Copyright John Wiley & Sons 2007 Chapter 6 Psychological Influences — Attitudes (cont’d) Attitudes — an individual’s enduring evaluation of, feelings about, and behavioural tendencies toward an object or idea Attitudinal Components –Cognitive –Affective –Behavioural –Attitude Scale

23. Copyright John Wiley & Sons 2007 Chapter 6 Psychological Influences — Personality and Self-Concept (cont’d) Personality — a set of internal traits and distinct behavioural tendencies that result in consistent patterns of behaviour in certain situations Self-concept (or self-image) –Perception or view of oneself –Closely linked to personality –Constantly trying to enhance one’s self-image through visible purchases

24. Copyright John Wiley & Sons 2007 Chapter 6 Psychological Influences — Lifestyles (cont’d) Lifestyle — an individual’s pattern of living expressed through activities, interests and opinions People partly determine their own lifestyles, but it is also affected by personality and demographic factors Lifestyle is measured through lengthy surveys

25. Copyright John Wiley & Sons 2007 Chapter 6 Social influences on the buying decision process Social influences — the forces other people exert on one’s buying behaviour Role is a set of actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons

26. Copyright John Wiley & Sons 2007 Chapter 6 Social influences (cont’d) Family Influences Consumer socialisation — the process through which a person acquires the knowledge and skills to function as a consumer Family Decision-Making Processes –Autonomic –Husband-dominant –Wife-dominant –Syncratic

27. Copyright John Wiley & Sons 2007 Chapter 6 Social influences (cont’d) Reference Groups Any group that positively or negatively affects a person’s values, attitudes or behaviour Opinion Leader A knowledgeable, accessible individual who provides information about a specific sphere of interest to opinion seekers

28. Copyright John Wiley & Sons 2007 Chapter 6 Social influences (cont’d) Social Class — an open group of individuals with similar social rank Individuals in the same social class tend to –develop and assume common behavioural patterns –have similar attitudes, values, language patterns and possessions –influences many major life decisions –influences shopping patterns

29. Copyright John Wiley & Sons 2007 Chapter 6 Social influences (cont’d) Culture — the accumulated values, knowledge, beliefs, customs, objects and concepts of a society –Culture influences buying behaviour –Cultural changes affect product development, marketing mix Subcultures — groups of individuals whose characteristic values and behaviour patterns are similar, but differ as a group from those of the surrounding culture

30. Copyright John Wiley & Sons 2007 Chapter 6