Planning and marketing health services
Helpm31990
9781284094428_SLID_CH04.pptxChapter 4
Buyer Behavior
Chapter 4 Objectives
Understand the process of consumer and industrial decision making.
Recognize the internal and external factors that influence consumer decision making.
Identify alternative strategies to affect consumer decision making.
Appreciate the different nature of organizational buying and its implication for marketing strategy.
Learning Objective 1
Decision-making model
Consumer decision-making process
Problem recognition
Internal search
External search (factors affecting external search: benefits relative to cost, locus of control, actual and perceived risk)
Alternative evaluation
Evaluative criteria (determinant attributes)
Purchase
Post-purchase evaluation
3
Discuss each step with the students, see pp. 101–108. Great opportunity for class discussion via Socratic Method. This slide alone can spur 30-45 minutes of discussion.
Learning Objective 1
Consumer decision models
Compensatory (multi-attribute model)
Non-compensatory model (one attribute choice)
Post-purchase evaluation
Cognitive dissonance and decision freedom
Learning Objective 2
Alternative decision-making sequences
High vs. low involvement
Level of consumer’s personal investment of purchase
Consider risk, cost, social implications
Degree of effort expended in moving from internal to external search, and extensiveness of external search
5
Discuss high and low involvement and give examples.
Learning Objective 2
Alternative decision-making sequences (cont.)
Routine decision making
Brand loyalty
Complex decision making
High involvement, extended search
Limited decision making
Low involvement
Over-the-counter pharmaceutical purchases
6
Discuss high and low involvement and give examples.
EXHIBIT 4-3 Consumer Decision Making and Involvement
Data from Henry Assael, Consumer Behavior and Marketing Action, 5th ed., 1995, p. 152.
Learning Objective 3
Psychological influences
Motivation
Attitudes
Lifestyles
VALS, PRIZM
Learning
Perception
Selective exposure, selective comprehension, selective retention
Perceived risk
8
Discuss each, pp. 109–116.
Learning Objective 3
Sociocultural influences
Family life cycle
Modified life cycle
Family decision making
See Exhibit 4-6.
Social class
See Exhibit 4-7 for social class distinctions.
Reference group
Culture and subculture
9
Discuss each, pp. 116–124.
Learning Objective 4
Industrial buyer behavior
Employers are huge customers.
Occupational medicine
Benefits purchasing
Physician services
10
Have students give examples. Refer to pp. 60–63.
Learning Objective 4
Industrial buyer behavior (cont.)
Organizational differences
Number of organizations
Demand variations
Derived demand
Greater total sales volume
Geographical concentration
Professional buying
11
Refer to pages 122–125.
Learning Objective 4
Industrial buyer behavior
Organizational differences (cont.)
Buying center
Negotiation variations (frequency and complexity)
Vendor solicitation
Close buyer-seller relationships
12
Refer to pages 122–125.
Learning Objective 4
Industrial buyer behavior (cont.)
Buying process
New task buying
Modified rebuy
Straight rebuy
13
Learning Objective 4
Industrial buyer behavior
Buying process (cont.)
The buying center
Initiators
Users
Influencers
Gatekeepers
Deciders
Buyers (approvers)
14
Summary
Buyer behavior that results in purchase is a multi-stage process involving problem recognition, search, evaluation, purchase, and post-purchase evaluation.
Post-purchase evaluation is a critical component of buyer behavior. Organizations should assess whether customer expectations are confirmed or disconfirmed by their interactions with the service or use of the product.
Summary (cont.)
Consumer decision making depends to a large degree on the amount of consumer involvement in the purchase. The level of involvement is related to the degree of risk and the extent of search behavior.
The consumer decision-making process is affected by several influences: motivation, attitudes, lifestyles, learning, and perception.
Summary (cont.)
Individual behavior is related to the stage a person is in his or her life cycle. As the composition of the typical family has changed, so have the traditional stages of the life cycle been modified.
Within the United States, there are several distinct social classes, each of which reflects norms of behavior, attitudes, and values.
Summary (cont.)
Culture is recognized as the transmission of attitudes, values, and norms from one generation to the next. Within the United States there is a growing emergence of several distinct subcultures that influence buying behavior.
Organizational buying behavior is characterized by the number of companies, demand variations, sales volume, professionalism of the buyer, and geographic concentration.
Summary (cont.)
A major defining characteristic of organizational buying behavior is the buying center, which involves many individuals at different levels and positions within the firm.
There are three variations of industrial buying: new task, modified rebuy, and straight rebuy.
