Buyer Behaviours Chapter 3 Apple i Phone n

Buyer Behaviours Chapter 3

Apple i. Phone n July 2007 introduction - $600 n Initial problem with AT&T phone activation n Sales soared n After 3 months – priced reduced to $200 n Despite problems – Why did the i. Phone succeed?

Traditional factors affecting consumer purchasing behaviors n Demographics (age, gender, income, etc. ) n Heredity and home environment n Family life cycle n Life changing events n Cultural environment n Social environment n Situational environment

Information Search Two ways of gathering information: 1. Internally 2. Externally

Attitude Sequence ü Cognitive Affective Conative ü Affective Conative Cognitive ü Conative Cognitive Affective

Discussion Questions n Question 2, page 83 – www. tattoos. com n Question 4, page 83 n www. starbucks. com n www. ikea. com n www. cadillac. com

What’s Happening? n http: //www. macrumors. com/ n These ads are not very new but the goal is to counter the spread of new technology such as Apple tablet, i. Phone. . . n http: //www. youtube. com/watch? v=YJ 1 Qw. Exp 0_g&feature=resp onse_watch n http: //www. youtube. com/watch? v=f. VMnm. TFx. Aj. A&feature=playe r_embedded n http: //www. apple. com/ipad/ n Here is a link with a few new futuristic cell phone concepts. http: //www. stumbleupon. com/su/1 v. Lq. VQ/www. toxel. com/tech/201 0/01/07/10 -futuristic-cell-phone-concepts/

Consumer Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Evaluation

Cognitive Mapping n Cognitive maps are simulations of the knowledge structures and memories embedded in an individual’s brain n They contain our assumptions, beliefs, thought processes to interpret new information and to determine an appropriate response

Principles concerning processing of information and cognitive mapping • Cognitive mapping enhances movement of messages from short-term memory to longterm memory. • Most persuasive messages reinforce current linkages. • Repetition is necessary to establish new linkages. • Difficult to modify or create new linkages.

Evaluation of Alternatives Evoked set method 1. Evoked set 2. Inept set 3. Inert set Affect referral Multi-attribute approach – used more in B to B buying situations

The Purchase Decision to purchase a particular product may based on several decisions: n ____________ n ______

Common Reasons Purchases Are Made n Products/services provide utility n To satisfy physical needs n To satisfy psychological needs n To satisfy social needs n To satisfy emotional needs n To satisfy epistemic needs

Trends and Factors in the Consumer Buying Environment n Age complexity n Gender complexity n Individualism n Active, busy lifestyles, time pressures n Cocooning n Pleasure binges n Emphasis on health

How likely is each of the following marketing material to alter your purchase decision for food items? Why? ü An advertisement ü A coupon ü A sweepstake or contest offer ü A price-off offer ü An in-store display ü The food package ü A in-store sample ü A billboard

Postpurchase Evaluation of product performance. Cognitive dissonance. Impacts future purchases. Impacts word-of-mouth communications.

Dual Channel Marketing n n Consumer and B-to-B markets Spin-off market Image concerns Dual strategy n n n Different communication messages Create different brands Use multiple or different channels n Single strategy n n n Integrate communication message Sell same brand in both markets Scan both markets for dual opportunities