Intro. to mrkt (Consumer behaviour) 1st year

MTU

Difference between Customer and Consumer

• They buy the product

• They use the product (regardless of who bought it)

  eg:

  Parent buy toy for child = Customer.

  Child using toy = consumer

Consumer buying behaviour

Is the study of how people make buying decisions.

The importance for marketers to know who buys their products (target audience)

• Allows marketers to contacts potential customer and grant them product offers that cater to their needs / wants.

• Allows marketers to determine a suitable marketing strategy based on customers Age, Gender, likes, Income, value, lifestyle e.t.c.

Roles in the buying decision making process

• who (buys the product)

• why (do they buy it)

• when (do they buy the product)

• where (do they buy the product)

• How customer evaluate alternatives

The importance for marketers to know what people buy.

• Allows marketers to know their target audience’s preferences, trends & demand patterns in the market

Marketing in Action

A programme that allows retailes understand consumers

Factors affecting consumer behaviour

• Psychological

• Personal

• Social

• Cultural

• Economic

5 Stages involved in Consumer buying decision making process

• Need / Problem Recognition

• Information search

• Evaluation of Alternatives

• Purchase

• Post Purchase Evaluation

Need / Problem Recognition

This occurs when a customers identifies the gap between their current state and their desired outcome, therefore influencing them to make a purchase catering to satisfy that need.

Need / Problem Recognition can be triggered by

• Internal Stimuli - Hunger, …

• External Stimuli - advertisement, …

Inhibitors

These are factors that inhibits customers from proceeding to the next buying decision process.

5 Roles in the purchase decision making process.

• Initiator

• Influencer

• Decider

• Buyer

• User

Initiator

A person with the initial intent to buy a product or service.

Influencer

A person who persuades or recommends the buyer to buy the product, this can alter the final outcome of the decision making.

Decider

A person with the power and / or financial authority, that decides if the product will be purchased or not .

Buyer

A person who makes the final transaction, in exchange of the intended product / service need or want.

User

A person that uses the product (final consumer)

High Involvement Purchase

Involves immense thoughts and consideration when buying something, due to its high price.

Eg

• Buying a Car - customers spend lots of time researching type of car, based on its features, prices etc

  • customers then start comparing other alternatives, weighing the pros and cons

  • There’s high financial risk involved with this type of purchase due to its price. Often times customers start filling doubt after the purchase is made.

  • Due to price, customers are emotionally attached to the product.

Low Involvement Purchase

Involves minimal thought and risks when buying, due to its low price.

Eg.

• Buying a pack of gum - decision is often made on the spot, without extensive research.

  • Less financial risks involved

  • Consumers may buy same product out of habit, without considering other alternatives

  • The item is purely fictional with little to no emotional attachment to it.

Influencer Marketing VS Brand advocacy

• This is when Individuals with large online presence and loyal followers, partner up with difference companies where they get to promote and recommend their partners products in return for compensation. These individuals leverage the trust they have with their followers to promote products.

“WHILE”

• This is when brands involve loyal customers or employees who would genuinely recommend products to others because they believe in them. This promotes brand authenticity because recommendations are given based on legitimate positive customer experience, especially because it doesn’t involve payment.