Consumer Buying Behavior the Role of Influencers A
Consumer Buying Behavior & the Role of Influencers: A Transit Marketing Perspecti 2019 FPTA/CTD Annual Conference -- Orlando Jeff Horton Institute for Applied Business Research De. Santis Center for Executive Education Florida State University College of Business Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
hocus-pocus! Can you change consumer buying behavior? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
the consumer buying process core message development Consumer buying behavior consists of five (5) critical steps. 1 Problem Recognition 2 Information Search 3 Evaluation of Alternatives 4 5 Purchase Decision Post. Purchase Evaluation You MUST be prepared and present at each step. Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
who is the buyer? Sometimes the person you need to reach isn’t the one you think it is. Initiato r Influenc er User Buying Center Roles Decide r Consumer Buying Behavior – A Transit Marketing Perspective Buyer Gatekeeper 2019 FPTA/CTD Annual Conference -- Orlando
1 Problem Recognition understanding need What is the fundamental problem(s) transit users are trying to satisfy? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
1 Problem Recognition understanding need What factors might be driving that need? Short-Term Car Breakdown No Vehicle Suspended License Broken Leg Desire for change Consumer Buying Behavior – A Transit Marketing Perspective > Conversion > Long-Term Disability Economics Age Social/Cultural Values 2019 FPTA/CTD Annual Conference -- Orlando
1 Problem Recognition whose problem? – the public sector challenge Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
1 Problem Recognition whose problem? – the public sector challenge and/or YOU Doris Do the needs and desired outcomes align? Who is defining the problem? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
2 Information Search information search We too quickly assume that the primary goal of advertising is to change consumer attitudes and behavior, but one of it’s primary functions is to achieve top of mind awareness. internal Where is your organization positioned in the minds of consumers? external Where are your potential customers looking for information? And what will they find? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
2 Information Search information search -- internal Internal searches access stored knowledge. Recall can be affected by memory, personal biases, misconceptions, and misinformation. Information gaps are filled by the external search. Consumer Buying Behavior – A Transit Marketing Perspective Xavier 2019 FPTA/CTD Annual Conference -- Orlando
2 Information Search information search -- external “Meet people where they are. ” Okay. Where are they? What are they finding? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
2 Information Search external – what will they find? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
3 Evaluation of Alternatives evaluation of alternatives “These seem like the better options, but which is best for me? ” Xavi er Consumer Buying Behavior – A Transit Marketing Perspective Once consumers have a better picture of the products and services available to them, they’ll narrow their contenders and then evaluate them individually based on their personal VALUE system. 2019 FPTA/CTD Annual Conference -- Orlando
3 Evaluation of Alternatives value vs. price “Yeah, it’s cheaper & good for the environment, but will I look sexy in it? ” Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
3 Evaluation of Alternatives assessing value the multi-attribute approach Importance to Individual Ride the bus. Buy a car. Uber Oh, hell. I’ll just walk. Safety High 2 3 3 2 Reliability High 2 4 3 5 Comfort Med 1 4 3 1 Cost High 4 1 3 5 Environment High 4 1 3 5 Sexiness Low 1 5 3 3 What Mom thinks High 4 2 1 2 Value Attributes Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
3 Evaluation of Alternatives second opinions Input from trusted sources is very important at this stage in the consumer buying process. Influencers play a DEFINITIVE role here, but their input is also affected by their biases, prejudices, misconceptions, and misinformation. Consumer Buying Behavior – A Transit Marketing Perspective Initiato r Influencer s User Buying Center Roles Decide r Buyer Gatekee per 2019 FPTA/CTD Annual Conference -- Orlando
3 Evaluation of Alternatives who are your most valuable influencers? influencer > < future influencers Consumer Buying Behavior – A Transit Marketing Perspective < < influencer 2019 FPTA/CTD Annual Conference -- Orlando
4 Purchase Decision “I’ve made a decision. . . almost. ” “I’ll start next month? ” Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
4 Purchase Decision reeling them in To close the deal, you might have to entice customers further. This may include: • Free Ride Coupons • Incentive/Reward Programs Do everything in your power to make sure that the initial experience is positive. Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
4 Purchase Decision the consumer buying process – first encounters Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
4 Purchase Decision the consumer buying process – first encounters What is the customer experience going to be? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
5 Post Purchase Evaluation the consumer buying process Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
were the needs and expectations satisfied? 5 Post Purchase Evaluation Attributes Importance Safety High Reliability What is the customer experience going to Oh, hell. I’ll just Ride the bus. Buy a car. Uber walk. be? 2 3 2 2 High 2 4 3 5 Comfort Med 1 4 3 1 Cost High 5 1 4 5 Privacy Low 1 5 2 5 Sexiness Med 1 5 3 4 What Mom thinks High 2 4 1 2 14 26 18 24 Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
5 Post Purchase Evaluation were the needs and expectations satisfied? Maslow’s Hierarchy of Needs Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
5 Post Purchase Evaluation if not, the process starts core message development all over again 1 Problem Recognition 5 2 Post Purchase Evaluation 4 3 Purchase Decision Consumer Buying Behavior – A Transit Marketing Perspective Information Search Evaluation of Alternatives 2019 FPTA/CTD Annual Conference -- Orlando
So. . . can you change consumer buying behavior? Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
the consumer buying process core message development Consumer buying behavior is relatively predictable & difficult to change. BUT, you can affect and manage critical touch points in the process. Advertising/Communication • Public Education • Calls to Action 1 Problem Recognition • Online Presence • SEO 2 Information Search Consumer Buying Behavior – A Transit Marketing Perspective • Product Amenities • Service Quality • Reward Programs • Value Benefits • Sales/Fare Free • Influencer Promotion Campaign 3 4 Evaluation of Alternatives Purchase Decision • Customer Feedback 5 Post. Purchase Evaluation 2019 FPTA/CTD Annual Conference -- Orlando
influencer marketing key takeaways • Consumer buying behavior is predictable but difficult to change. Just make sure you are present and prepared at each step in the process. • Make sure you’re targeting the right people in your marketing efforts. • Influencers play a major role in the process. Sometimes people need affirmation that they’re making a good decision. “Taylor Swift has one just like it. ” • Ultimately, it comes down to product & service quality and whether or not you keep up your end of the bargain. The best advertising campaign can be negated by a bad customer experience. Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
questions? Jeff Horton Institute for Applied Business Research Florida State University College of Business (850) 644 -2509 jnhorton@business. fsu. edu Consumer Buying Behavior – A Transit Marketing Perspective 2019 FPTA/CTD Annual Conference -- Orlando
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