Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 4

UNDERSTANDING BUYER BEHAVIOR

communication with buyers in particular, and it has received a great deal of study.

ing how a person processes information is not an easy task. Often observation has served

as the basis. Yet there are many theories as to

the process takes place. One widely

accepted theory proposes a five step sequence.2

1. Exposure. Information processing starts

the exposure of consumers to some

so urce of stimulation such as watching television , going to the supermarket, or

receiving direct mail advertisements at home. In order to start the process,

must attract consumers to the stimulus or put it squarely in the path of

ple in

target

2. Attention. Exposure alone does little unless peopie pay attention to the stimulus .

aJ1Y moment, people are bombarded by all sorts of stimuli, but they have a

ited capacity to process this input. They must devote mental resources to stimuli

in order to process them; in other words, they must pay attention.

can

increase the likelihood of attention by providing inforrrational cues that are

evant to the buyer.

3. Perception . Perception involves classifying the incoming signals into meaningful categories, forming

and assigning names or images to them. Perception

is the assignment of meaning to stimuli received through the senses. (More will

be said about perception later.)

4. Retention.

of information for later reference, or retention, is the fourth

step of the information-processing sequence. Actually, the role of retention or

ory in the sequence is twofold. First, memory holds information while it is being

processed throJghout the sequence. Second, memory stores information

future,

long-term use. Heavy repetition and

a message to music are two things

marketers do to

retention.

5. Retrieval and Application. The process by which information

recovered from

memory storehouse

called retrieval . Application is putting that information

INTEGRATED MARKETING

KIDS ARE HOOKED ONLINE

These days, practically even the tiniest of tykes is

pled with the fact that 19% of these kids have a credit card

And it's no wonder. There are computers in elementary

in

or her own name and 9% have access to a parent's card

schools, computer games, and, of course, there is educational

to shop online, adds up to a huge customer base for Internet

software.

marketers.

Kids spend a lot of time online, not just at school, but also

Snowball.com is a portal that claims to serve both Gen Y

at home, for social interaction and entertainment. According

and Gen X youth. It includes ChickClick.com for young

to market researcher Teen Research Unlimited, 62% of

women,

for young men, Power Students.com for

teenagers say they log on at home for 4.2 hours a

while

high school and college students,

InsideGuide.com for

46% spend 2.3 hours a week using a computer outside the

college students. The portal has inked deals with major

home. Teens say they spend most of their online time doing

keters,including Sony, Toyota, and Pillsbury. The site also

research (72%), sending and reading email (63%), playing

has received a lot of interest from the entertainment world.

games (28%), and checking out things to buy or making

chases (23%).

'

Sources: Jennifer Gilbert, "New Teen Obsession," Advertising

Internet consultancy Cyber Dialogue Data reveals the

Age,

14,2000, p. 8; "School Daze," American Demo-

ber of teenagers going online at least once a month grew by

graphics, August 1999, p. 80; Krestina Filiciano, "Just Kidding,"

nearly 270% between 1998 and 1999. That frequency,

Adweek,

1,2000, p. 58.

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BUYER BEHAVIOR AS PROBLEM SOLVING

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into

ri ght context. If the buyer can retrieve relevant information about a

uct, brand, or store, he or she will apply it to solve a problem or meet a need.

Variations in how each step is carried out in

information-processing sequence also occur.

Especially influ ential is

degree of elaboration. Elaborate processing, also called cen-

tral processing, involves active manipulation of information. A person engaged in elaborate processing pays close attention to a message and thinks about it; he or she develops

thoughts in support of or counter to the information received . In contrast, nonelaborate, or peripherial, processing involves passive manipulation of information.3 It is demonstrated by most airline passengers while a flight attendant reads preflight safety procedures. This

degree of elaboration closely parallels the low-involvement, high-involvement theory, and

the same logic applies.

Identification and Evaluation of Alternatives

After information is secured and processed, alternative products, services, and outlets are

identified as viable options . The consumer evaluates these alternatives, and, if fin ancially

and psychologically able, makes a choice. The criteria used in evaluation varies from con-

sumer to consumer just as the needs and information sources vary. One consumer may con-

sider price most important while another puts more weight upon quality or convenience.

The search for alternatives and

methods used in

search are influenced by such

factors as: (1) time and money costs; (2) how much information the consumer already 'las;

(3) the amount of the perceived risk if a wrong selection is made; and (4)

consumer's

toward particular choices as influenced by the attitude of the individual toward

choice behavior. That is, there are individuals who find

selection process to be difficult

and disturbi ng. For these people there is a tendency to keep

number of alternatives to

a minimum, even if they haven't gone through an extensive information search to fi nd that

their alternatives appear to be the very best. On the other hand, there are individuals who

feel it necessary to collect a long list of alternatives. This tendency can appreciably slow

down

decision-making function.

The selection of an alternative in many cases will require additional evaluation. For exam-

ple, a consumer may select a favorite brand and go to a convenient outlet to make a pur-

chase. Upon arrival at the dealer,

consumer finds that

desired brand is out-of-stock.

At this point, additional evaluation is needed to decide whether to wait until the product

comes in, accept a substitute, or go to another outlet. The selection and evaluation phases

of consumer problem solving are closely related and often run sequentially, with outlet selection infl uencing product evaluation, or product selection influencing outlet evaluation .

The Purchase Decision

After much searching and eval uating, or perhaps very little, consumers at some point

to decide whether they are going to buy. Anything marketers can do to simplify purchas-

ing will be attractive to buyers. In their advertising marketers could suggest the best size

for a particular use, or the right wine to drink with a particular food . Sometimes several

decision situations can be combined and marketed as one package. For example, travel agel1ts

often package travel tours.

To do a better marketing job at this stage of

buying process, a seller needs to know

answers to many questions about consumers' shopping behavior. For instance, how much

effort is

consumer willing to spend in shopping for the product? What factors infl uence

when

consumer will actually purchase? Are there any conditions that would prohibit

or delay purchase? Providing basic product, price, and location information through labels,

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