Boundless Business: "Consumer Purchasing Behavior"
Consumer Purchasing Behavior
Consumer behaviour is the study of when, why, how, and where people do or do not buy a product.
Learning Objective
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Outline the steps in the consumer purchasing process
Key Points
- Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
- Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer.
- Consumers compare the brands and products that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. It also needs to check other brands of the customer's consideration set to prepare the right plan for its own brand.
- Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The organization can use a variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now.
- There are 5 stages of a consumer buying process. They are: The problem recognition stage, meaning the identification of something a consumer needs. The search for information, which means you search your knowledge bases or external knowledge sources for information on the product. The possibility of alternative options, meaning whether there is another better or cheaper product available. The choice to purchase the product and then finally the actual purchase of the product.
Terms
- Extensive Decision Making Buying Behavior
This purchasing behavior relates to items that are bought rarely. They require planning and the decision can include input from websites, stores, friends, company personnel, etc.
- Routine Response Purchasing Behavior
This purchasing behavior occurs with items that are bought frequently and do not require a high level of decision making.
- Selective retention consumers
Selective retention consumers remember messages that are more meaningful or important to them.
- Selective comprehension consumers
Selective comprehension consumers interpret messages in line with their beliefs, attitudes, motives and experiences
- Selective attention consumers
Selective attention consumers select which promotional messages they will pay attention to.
- Limited Decision Making Purchasing Behavior
This purchasing behavior relates to items that are bought occasionally. There is more thought put into the decision than with routine responses, but there is not a high level of thought and time that goes into the purchase.
- Selective exposure consumers
Consumers who select which promotional messages they will expose themselves to.
- Integration
The relevant internal psychological process that is associated with a purchase decision
Examples
- Examples of Social Functions: Decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality.
- Routine Response Purchasing Behavior: Examples of items purchased include soft drinks and candy bars.
- Limited Decision Making Purchasing Behavior: examples include clothing and games.
- Extensive Decision Making Purchasing Behavior: examples include cars, apartments, and electronic equipment.
- The problem recognition stage, meaning the identification of something a consumer needs.
- The search for information, which means you search your knowledge bases or external knowledge sources for information on the product.
- The possibility of alternative options, meaning whether there is another better or cheaper product available.
- The choice to purchase the product.
- And then finally, the actual purchase of the product.