Lecture 3.1 Buyer behaviour - B2C Flashcards
Definition of consumer needs:
- States of felt deprivation
Definition of wants:
the form human needs take, shaped by culture and individual personality
Definition of consumer demands:
Human wants that are backed by buyer power.
Definition of a customer:
A person or an organization that buys a product or service.
Definition of a consumer:
Individuals or businesses that consume or use the goods or services.
Definition of a consumer market:
all individuals and households that acquire goods and services for personal consumption.
Buyer behaviour:
- A study of individuals on why they make decisions regarding purchases of goods and services.
- At its core it looks at the interplay between psychological, social, cultural and economic factors that shape consumer choices.
Maslows hierarchy of needs consist of:
- Self-actualisation
- Self-esteem
- Love and belonging
- Safety
- Physiological
Black box model of buying behaviour:
- Describes a customers purchasing decision in a very simplified way.
- Helps marketers understand how the environment in the consumer market affects their decisions.
Environment —> Buyers decision processing —> Buyers response.
4 factors affecting consumer behaviour:
- Cultural
- Social
- Personal
- Psychological.
Cultural factors:
- Culture is a set of basic values and behaviours learned through family and other important institutions.
- Subculture is a group of people with shared value systems based on common life experiences and situations.
Social factors:
- May consist of social network, friends and family.
Also factors within social factors are:
- membership groups
- Aspirational groups
- Opinion leader
- Word of mouth
- Reference group
What is a membership group?
A group with direct influence and to which a person belongs.
What is an aspirational group?
A group to which an individual wishes they belong in.
What is a reference group?
A group that serves as a point of comparison, shaping a person’s attitudes and behaviour.
What is an opinion leader?
A person within a reference group which can socially influence others.
Word of mouth:
More credible usually as it becomes from family and friends so can be really valuable.
The family as a decision making unit:
User, initiator, influencer, decider, purchaser
Personal factors that affect buyer behaviour
- Age and life stage
- Occupation
- Lifestyle
- Economic situation
- Environmental awareness
- Personality.
5 psychological factors that affect buyer behaviour…
- Motivation, person seeks to satisfy their needs.
- Perception (selective attention, selective distortion and selective retention)
- Belief, is a descriptive thought that an individual holds about something.
- Attitudes, favourable feeligs towards an object.
- Learning
5 steps to the buyer decision process:
1) Need for recognition: recognise problem/need
2) Information search: motivated to search for info to support their decision
3) Alternative evaluation: looks at possible other products
4) Purchase decision:
5) Post purchase evaluation: satisfied with product?
Consumers often skip or reverse this process.
4 types of buying decision behaviour:
1) Complex = High involvement, significant differences between brands.
2) Variety-seeking = Low involvement, significant differences between brands
3) Dissonance-reducing = High involvement, few differences between brands.
4) Habitual = Low involvement, few differences between brands.
Complex buying behaviour:
- Consumer may be highly involved when the product is expensive/risky.
- Much to learn about the product category.
The stages in consumption process:
Pre-purchase issues
Purchase issues
Post purchase issues.
