Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 4

UNDERSTANDING BUYER BEHAVI OR

advertising, personal selling, and public relations is an obvious starting point. Produc ' sam-

pling, coupons, and rebates may also provide an extra incentive to buy.

Actually determining how a consumer goes through the deci sion-making process

a difficult research task. As indicated in the Newsline box, there are new research methods

to better assess this behavior.

NEWSLINE: FOLWW THE CONSUMER AND SEE

HAPPENS

It seems that traditional market research no longer works with an

increasingly diverse and fickle customer ba se . The m ethods marketers

h ave relied on for decades-perfunctory written and phone surveys-

merely skim the surface of the shifting customer profile . Says Larry

president of t he Doblin Group. a Chicago-based design and

consulting firm: "Th e surveys are n othing more tha n tracking studies

designed to measure if customers are a little more or a little less

pleased with you than they were last year."

Surely there must be a better way. Wise heads in the arcane world

of customer research are onto s ometh ing called storytelling. These

folks advocate far more probing research than ever before, advising

companies to elicit real-life stories from c ustomers abou t how they

behave and what th ey truly feel. The notion may seem like a leap into

the unknown . but s ome com panies have discovered that these s tory-

telling methods work. Great service and. u ltimately. breakthrough

products have resulted. Kimberly-Clark built a n ew $500-million dia-

per market using in-dept h customer research. At Intuit. s torytelling

customers helped its software writers revolutionize the way people all

over the U.S . handle their money. Clothing maker Patagonia . solicit-

ing true tales about how customers live and u se their gear. manages

to keep its

ahead of the curve .

At the h eart of this new b rand of customer r esearch is a s earch for

subtle insight into human beh avior-not only emotion-laden anec-

dotes. but also unspoken impu lses. Just think, for example, of the

last time you made eye contact with an attractive s tranger. A whole

range of feelings washed over you. and at that moment it would be

h ard to argue with the notion that at least 80% of all human commu-

nication is nonverbal.

At Patagonia, an outdoor-sports apparel company in Ventura. Cali-

fornia. customer s torytellers surf at the "Point" right outside the front

door of headquarters . Founder Yoon Chouinard . who spends at least

six months a year at the ends of the earth testing his company's gear

himself. has made a point of h iring several of these customers so they

could share their war stories in-house . He refers to them affection-

ately as his "dirtbags ." people who spend so much time outside that

shows under their fingernails.

Patagonians collect s uch war stories from far-flung customers as

well and use them as a marketing tool. Many of their wares are sold

through a biennial catalogue that is unique among its peers. Instead

of spending millions to s hoot glossy spreads of unthinkably beautiful

models , t he company relies on its cu stomers to pose while wearing

Patagonia du ds in exotic locales. This pictorial road map of customer

adventl'res makes for great rea ding. but it has another role as well.

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8

The placement of

stories front and center proves that

opinions

experience are

and

respond in droves.

have trained

to

that we are

about responding to

their feedback and improving our products," notes Randy howard.

the company's director of quality.

Sources: Joanne Gordon, "Shrink Rap, " Fortune, February 7. 2000, pp.

110-111: Ronald B. Liebier, "Storytelling: A New Way to Get Close to the Cus-

tomer," Fortune, February 3, 1997, pp. 102-1 05; Kendra Darko, "Zooming In

On What's

American Demographics, August 1999, pp. 46-47.

Postpurchase Behavior

All the behavior determinants and the steps of the buying process up to this point are oper-

ative before or during the time a purchase is made. However, a consumer' s feelings and

evaluations after the sale are also significant to a marketer.

they can influence repeat

sales and also influence what the customer tells others about

prodl'ct or

Keeping the customer happy is what marketing is all about. Neveri:hele"s,

typically experience some postpurchase anxiety after all but the most routine and

purchases. This anxiety reflects a

called cognitive dissonance. According

theory, people strive for consistency among their cognitions (knowledge, attitudes, beliefs,

values). When there are inconsistencies, dissonance exists, which people will try to elimi-

nate.

some cases, the consumer makes the decision to buy a particular brand already aware

of dissonant elements. In othe"

dissonance is aroused by disturbing information

that is received after the purchase.4

marketer may take specific steps to reduce post-

purchase dissonance. Advertising that stresses the many positive

or confirms the

populari i.y of the product can be helpful. Providing

reinforcement has proven

effective with big-ticket items such as automobiles and major appliances. Salespeople

these areas may send cards or may even make personal calls in order to reassure customers

about their purchase.

MARKETING CAPSULE

1. Buyer behavior takes place in an exchange setting and

b. Information search and processing is a five-step

addresses

questions:

sequence:

a. How do potential

go about making purchase

1. Exposure

decisions?

2. Attention

b. What factors influence their

process and in

3. Reception

what way ?

4. Retention

Buyer behavior is a problem-solving process and entaiL

5. Retrieval and application

the following decisio ns:

Identification and evaluation of alLernatives

a. Need identification

d. Product/service/outlet selection

1. Determined by the discrepancy between what

e. The purchase decision

have and what we want

f. Postpurchase behavior

2. Determined by the relative importance of the

problem

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