Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 4

UNDERSTANDING BUYER BEHAVIOR

experience and

more on personal observation to secure information; thus, in-store pro-

motion would become an important communication tool. Knowing the basic personality

traits of target customers can be useful information for the manager in designing the mar-

keting mix. Marketers have, however, found personality to be difficult to apply in devel-

oping marketing strategy. The primary reason for this is the lack of good ways to measure

personality traits. Most available measures were developed to identify people with prob-

lems that needed medical attention. These have little value with consumers who are men-

tally healthy. As a result, most marketers have turned to lifestyle analysis.

Lifestyle

One of the newer and increasingly important set of factors that is being

used to understand consumer behavior is lifestyle. Lifestyle has been generally defined as the attitudes, interests, and opinions of the potential customer. Such variables as interest in

hunting, attitude toward the role of women in society, and opinion on the importance of

dressing well can be used to better understand the market and its behavior.

It is the multifaceted aspect of lifestyle research that makes it so useful in consumer

analysis. A prominent lifestyle researcher, Joseph T. Plummer, summarizes the concept as

follows:

. .. life style patterns, combines the virtues oj demographics with the richness and

dimensionality ojpsychological characteristics. ... Life style is used to segment the marketplace because it provides the broad, everyday view oj consumers life style segmentation and can generate identifiable whole persons rather than isolatedjragments. 8

A useful application of the lifestyle concept rela tes to consumer's shopping orienta-

tion. Different customers approach shopping in very different ways. They have different attitudes and opinions about shopping and different levels of interest in shopping. Once people know their alternatives, how do they evaluate and choose among them? In particular,

how do people choose among brands of a product? Current description of this process empha-

sizes the role of attitudes. An attitude is an opinion of a person, idea, place, or thing. Attitudes range based on a continuum from very negative to very positive. Traditionally, an attitude is broken down into three components : cognitive, affective, and behavioral. That is, an attitude is first what we know/believe, followed by what we feel, and ending with an action.

Thus, we have learned that a particular company has been polluting a local river; we feel

very strongly that business shouldn't do this and feel very angry; and we boycott the prod-

uct

by that company.

A great deal of marketing strategy is based on the idea that the cognitive, affective,

and behavioral components of an attitude tend to be consistent. Thus, if it is possible to

change what people believe about Yamaha CD players, their feelings and their actions may

eventually change as well . However, this relationship among the three components of an

attitude seems to be situation- or even product-specific . For example, attitudes tend to pre-

dict behavior better in high-involvement decisions. Thus, if someone has a strong attitude

about wearing stylish clothes, then it is possi ble to predict that the person will restrict purchases to a particular set of brands. Furthermore, we do not react to products in isolation.

The situation, or our attitude toward the situation, plays an important role in how well atti-

tudes predict behavior. For example, assume that a consumer likes pizza

doesn ' t like

Pizza Inn pizza. In a social setting where everyone wants to go to Pizza Inn for pizza, this

person might eat this brand rather than not have pizza at all.

Despite limitations on the predictive power of attitudes, attitudes can help us

understand how choices are made. However, we need to carefully assess the validity of the

attitude-behavior relationships for each situation and product.

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ORGANIZATIONAL BUYER BEHAVIOR

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MARKETING CAPSULE

0

1. The following factors influence consumer behavior:

3. Reference groups

a. Situational influences

4. Family

1. The buyer task: high-involvement vs. low-

c. Internal influences

involvement

1. Learning and socialization

2. Market offerings

2. Motivation

3. Demographics

3. Personality

b. External influences

4. Lifestyle

1. Culture

5. Attitudes

2. Social class

Given the hypothesis that attitudes influence buying behavior, how can a company

bring its products and consumers' attitudes into a consistent state; that is, into a situation

where consumers evaluate a given product or brand as satisfying their need? Marketers have

two choices: either they can change consumers' attitudes to be consistent with their prod-

uct, or they can change the product to match attitudes. It is easier to change the product

than to change consumers' attitudes. Nevertheless, attitudes can sometimes be modified .

Modifying attitudes might be the only reasonable choice, as when a firm is introducing a

truly new product or an unusual new use for an existing one. Marketers should neverthe-

less face the fact that it is extremely difficult to change consumers' attitudes. If there is to be change, it is most likely to occur when people are open-minded in their beliefs or when

an existing attitude is of weak intensity; that is, when there is little information to support

the attitude or very little ego involvement on the individual 's part. The stronger a person's

loyalty to a certain brand, for example, the more difficult it is to change that attitude.

ORGANIZATIONAL BUYER BEHAVIOR

Those who supply goods and services to consumer markets are themselves in need of

goods and services to lUn their business. These organizations-producers, resellers, and

government-make

vast marketing organizations that buy a large variety of products,

including equipment, raw material, and labor and other services. Some organizations sell

to other organizations and never come into contact with consumer buyers.

Despite the importance of organizational markets, far less research has been conducted

on factors that influence their behavior than on factors that influence consumers . However,

we can identify characteristics that distinguish organizational buying from consumer buy-

ing and typical steps in the organizational buying process.

Characteristics of Organizational Buying

Many elements of the sociocultural environment discussed earlier influence organizational

as well as

buying, but some additional forces are salient only in the organiza-

tional setting. In particular, each organization has its own business philosophy that guides

its actions in resolving conflicts, handling uncertainty and risk, searching for solutions, and

adapting to change. For example, Peabody Coal, which is palt of a declining industry, relies

on a conservative purchase strategy in an attempt to maintain their status quo.

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