Transcript 06 Buying Behaviour

Buying Behaviour of Customers
If you had to group these products into 2 groups, how
would you do it?? Take a few minutes to try…..
Bubble Gum
Root Beer Pop
42” Plasma TV
Disposable Razor
Laptop Computer
Bag of chips
Milk
Dishwasher
Diamond Ring
GPS System
Duotang
Hockey Skates
Pencil
Mini Van
What criteria did you use to categorize your products?
Convenience Goods vs Shopping Goods
• Convenience Goods
• inexpensive and/or frequent purchases
• Consumers don’t take very much time to reach a decision…not
worth it.
• A low risk purchase
• Ie. Gum, pop, laundry detergent...
• Shopping Goods
•
•
•
•
when the item/service is complicated or expensive
Requires much more time in searching and comparing information.
A higher risk purchase
Ie. Computer, car, trip, education...
• As a result, marketers must understand the type of product
they are selling in order to create their marketing strategy
• When a customer is looking to buy a “shopping good”, they
are much more likely to invest their time and efforts into
selecting the proper product.
• As a result, marketers of these products need to focus their
efforts on reaching their target market and helping to
differentiate why their product is the best fit for their customer
•
When a customer is looking to buy a “convenience good”,
they are less likely to invest their time and efforts into
selecting the right product.
•
In these cases, marketers need to focus their efforts on
distribution and convenience (make it easy for your
customer to get it in as many places as possible)
The Consumer Buying Process
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior
• Let’s go through a couple of examples:
Laptop Computer
Problem Recognition:
•
Need to be able to access computer files and information
•
Must be portable
Information Search:
•
Internet, tech stores, word of mouth
Evaluation of Alternatives:
•
Find different brands with similar prices and features, trial
•
Goes to different stores to “kick the tires”
Purchase Decision:
•
Best product fit is found and decision made
Post-Purchase Behaviour:
•
Evaluates computer through use
So….with this information, what strategy should a
laptop computer manufacturer use in their
marketing efforts?
Laptop
•
A shopping good, more risk and effort involved
•
Each element of the 4 Ps and 2 Cs need to be focused on to
help sway purchaser
•
a combination of push and pull strategies required to sell
your product
Pencil
Problem Recognition:
•
Need writing utencil
Information Search:
•
Closest convenience store or office supply store
Evaluation of Alternatives:
•
Most pencils have similar features….yellow, eraser…what’s to evaluate??
Purchase Decision:
•
•
Price
Convenience….first one I pick up
Post-Purchase Behaviour:
•
Did it work?
So….with this information, what strategy should a “pencil”
producer use in their marketing efforts?
Pencil
•
A convenience purchase, therefore little risk or effort exerted
by customer
•
•
Main efforts should be on “Place”
•
•
•
not worth time or effort to differentiate, I just want one and move on
as many places as possible, convenient
No real need to focus on the other 3 Ps or 2 Cs…..
Vital to market your product to the retailer who can “push”
your product (ie – good shelf placement, display)
• For marketers, it is vital that they understand the buying
process of their customers for their product or service
• By understanding the process their customers go through in
their purchase, they can begin to create a marketing strategy
that provides them with the best chance of persuading the
customer to choose their product over the competition
• This is the ultimate goal of marketing and business……
The End !!!