Buyer Behavior
Buyer Behaviour – Branding - Loyalty
Contents
Purchase Decision Making Process p. 3
Approaches and Theories of Buyer Behaviour p. 6
Factors Affecting Buyer Behaviour p. 9
Brand Loyalty and Corporate Image p. 12
References p. 15
Purchase decision making process
* When buying products or services, consumers typically follow this five-step process:
1. Need Recognition
Need recognition occurs when a consumer identifies a need and thinks of a product that might meet this need. It is the moment when you realize you want something because you i.e. saw a commercial for a new car, your old car has broken down, you have a big family and thus need a bigger car now etc. This stage is a state of imbalance between your actual and desired needs, there is some unsatisfied need. The ‘want’ addresses your current need and it can be triggered by different impulses.
The need can be functional (i.e. your car has completely broken down and you need a new one for your business) or psychological (i.e. a man wants to impress his new girlfriend and buys Porsche although he does not really that car).
2. Information Search
Once consumers know what they want, they search for more information and look at different options. They can obtain the information from several sources - personal experience / what they know about the product or service (internal search) and then seek information outside (external search). They collect and evaluate information such as: types of product, price, availability, material, and quality through consumer reports, internet, advertising, brand name, family or friends’ recommendations, television, magazines etc. Consumers who have had good experience with a product or a service are most likely to choose it again, i.e. specific brand (Volvo - reliability) or type of product.
When searching for a new car, the buyer has many options and it therefore depends on his current needs. Customers can consider lot
Contents
Purchase Decision Making Process p. 3
Approaches and Theories of Buyer Behaviour p. 6
Factors Affecting Buyer Behaviour p. 9
Brand Loyalty and Corporate Image p. 12
References p. 15
Purchase decision making process
* When buying products or services, consumers typically follow this five-step process:
1. Need Recognition
Need recognition occurs when a consumer identifies a need and thinks of a product that might meet this need. It is the moment when you realize you want something because you i.e. saw a commercial for a new car, your old car has broken down, you have a big family and thus need a bigger car now etc. This stage is a state of imbalance between your actual and desired needs, there is some unsatisfied need. The ‘want’ addresses your current need and it can be triggered by different impulses.
The need can be functional (i.e. your car has completely broken down and you need a new one for your business) or psychological (i.e. a man wants to impress his new girlfriend and buys Porsche although he does not really that car).
2. Information Search
Once consumers know what they want, they search for more information and look at different options. They can obtain the information from several sources - personal experience / what they know about the product or service (internal search) and then seek information outside (external search). They collect and evaluate information such as: types of product, price, availability, material, and quality through consumer reports, internet, advertising, brand name, family or friends’ recommendations, television, magazines etc. Consumers who have had good experience with a product or a service are most likely to choose it again, i.e. specific brand (Volvo - reliability) or type of product.
When searching for a new car, the buyer has many options and it therefore depends on his current needs. Customers can consider lot
References: Business Dictionary (no date). Black Box Model. Available at: http://www.businessdictionary.com/definition/black-box-model.html (Accessed: April 25, 2013). Tutor2U (2012). Stimulus Response Model. Available at: http://www.tutor2u.net/business/marketing/buying_stimulus_model.asp (Accessed: April 25, 2013). Robinson, L. (2009). Enabling Change. A summary of Diffusion of Innovations. Available at: http://www.enablingchange.com.au/Summary_Diffusion_Theory.pdf (Accessed: April 30, 2013). Khor, A. (2011). Bad Company. The Law of Diffusion of Innovation. Available at: http://thebadcompanyblog.wordpress.com/2011/03/09/the-law-of-diffusion-of-innovation-2/ (Accessed: May 11, 2013). U Talk Marketing (2011). How to use semiotics in branding. Available at: http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=21570&Title=How_to_use_semiotics_in_branding (Accessed: May 11, 2013). Twitter (2013). Volvo Cars US. Available at: https://twitter.com/volvocarsus (Accessed: May 15, 2013) Facebook (2013) Inc.com (2013). Corporate Image. Available at: http://www.inc.com/encyclopedia/corporate-image.html (Accessed: May 15, 2013)