Transcript Stages in the buying process

Customer behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Family decision making
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Why is it important to know how
families make decisions?
For most consumers it is the most common source of
contact with other consumers
In families, marketers encounter a multi person decision
making “team”
Families influence children’s decision making
Children influence the budget allocation and buying
behavior of families.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Families vs. Households
Families are not always the norm.
Households are more informal but also relevant
structures.
Customer units an alternative term
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Customer units
Families
Married couple
Nuclear couple
Extended family
Single – parent families
Other
Unmarried couples
Friends sharing
accommodation
Communes
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Functions of Families (Customer units)
Socialization
Central role in the acculturation process
Consumption often a social activity
Economic well being
By sharing financial responsibilities it increases the buying power of the
“group”.
Emotional support
During the Purchase decision making process
Family life styles
The chosen lifestyle will determine the priorities ito. spending
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Family decision making
Because families / customer units influence consumer
behavior we need to understand how the decision are
made in them.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Family decision making
Role behavior
Influencers – Information givers
Gatekeepers – Control the flow of info
Deciders – Independent
Buyers – actual purchasers
Preparers – Transforms the product for consumption
Users – of the transformed product
Maintainers – Maintenance of products
Disposers – Decide if product should be retained or discarded.
Recognition of the roles by marketers are critical
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Influences on decision making.
Influence by Decision stage
Info gathering stage in High risk decisions – done by one party
Influence of employment
Increase in Working woman changed the pattern
Influence of Gender
Narrowing gender gap changes the roles in decision making
process
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Family life cycle
Traditional approach
Bachelorhood – Young single living away from parents
Honeymooners – Young married couple
Parenthood – Married with at least one child in home
Post parenthood – married with no children at home
Dissolution – One partner passed away.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Family life cycle – Modern approach
Group
Age
Characteristics
At home singles
Up to 34 Years
Live with parents
Starting out singles
Up to 34 years
Not living with parents
Mature singles
35-49 Years
No children / Not married
Young couples
Up to 49 years
Married / no children
New parents
Children up to 12 years
Married with children
Mature parents
At least one child older than 13
years
Married with children
Single parents
Dependant children
Children and/or dependant
children
Golden nests
50 + years
Married - No children or
dependants
Left Alones
50 + years
Not married – No children /
dependants
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Organizational Buying
behavior
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Background
Organizational buyers purchase for the following
reasons:
Manufacture of other products
Re-sale to other organizational buyers
Carry out organizational operations
Organizational buying are also driven by rules and
processes apart from the normal personal and
environmental factors
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Types of Organizational buying
decisions
New task buying
Large amount of info needed
Compliance with processes to be listed as Supplier.
Buyers are often not the users in organizations
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Types of Organizational buying
decisions
Straight Re-buy
Non complicated process, more one of replenish than purchase.
Goal is to reduce the cost of the buying process for supplier
Maintenance of relationships is critical.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Types of Organizational buying
decisions
Modified re-buy
Re purchase but with different specs, terms or suppliers
Opportunity for non listed suppliers to gain access.
Risk for listed suppliers in losing business.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Forces shaping Org. buying
Environmental forces – Production figures, exchange
rates, seasonal changes….
Organizational forces – Company policies, objectives,
systems…..
Group forces – Organizational buyers purchase on
behalf of other and personal preferences play a role
Individual factors – Each individual have a different set of
“criteria” that influence outcomes.
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Stages in the buying process
Recognition of
problem / need
Performance
feedback and
Evaluation
Determine specs
and quantity
Selection of
order routine
Evaluation of
proposals &
selection of
suppliers
Search / Qualify
potential
suppliers
Acquisition /
analysis of
proposals
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior
Relationship building
Focus on retaining clients not gaining clients.
Technical support
Expertise
Resource support
Service level agreements
Risk reduction
Hugo van Zyl
083-629 2069
[email protected]
Marketing 1B
Customer behavior