Buying Behaviour People behave differently when people want to buy something How and why do entities behave the way they do How does the consumer behave to make the consumer buy? A customer can obtain information from several sources: · Personal sources: family, friends, neighbours etc · Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays . Public sources: newspapers, radio, television, consumer organisations; specialist magazines · Experiential sources: handling, examining, using the product Companies need to understand how/why customers (i.e. individual consumers + organizational buyers) choose and buy So that they can affect the process in a way that benefits the company How do we choose - what steps do we go through - research shows that consumers choose on different processes (paradigms - 3 of them) Researched 5 different universities and then selected after discussion with tutors, parents and careers advisor COGNITIVE A lot of thinking involved - very rational. Extensive decision-making process - lengthy and time consuming TYPE - important or first time purchases (high emotional and/or financial impact) Is there an emotional impact? It is going to affect 4 years of your life whilst at university. There is a lot at stake. This should involve a very rational decision stage. You will meet people; you will establish network - maintain them through life. Depend a lot on the university that you choose The university is well quite ranked - top 10 There is a lot of choice - internship etc study abroad NO IMPULSE JUST THINKING Talk to people Word of mouth Open days Check league tables Emotional aspects that might drive people to university tables? Friends Distance from home (this is part of the emotional consequence)
REINFORCEMENT Companies teach their consumers - put associations in the mind of consumers Choice Process Induced by the environment (external stimuli influence the decision) Previous experience can also influence the decision TYPE Repeat purchases (lower emotional/financial impact) Clothing Perfumes Retaurants Consequence that will strengthen an individual's future behaviour whenever that behaviour is preceded by a specific stimulus HABIT Persuade - similar to reinforcement, but less thinking involved. Choice Less thinking involved Maybe unconscious - although you might check the price, you spend less time at choosing the product Type Purchases made out of routine/high frequency repeat purchases E.g. Milk Chewing gum Bin bags Tissue roll Cognitivism Decisions and, thus, behaviour are based on a maximum reliance on cognitive structures (reasoning) Behaviourism Decisions and consequently behaviour are the outcome of a stimulus-response relationship
How can technology affect the buying behaviour? How can it make it rational? Why study buying behaviour Companies need to understand how/why customers (i.e. individual consumers + organizational buyers) choose and buy So that they can affect the process in a way that benefits the company