Description
The concepts on market research like questionnaire design and sources of data. It also covers topics like consumer buying behavior and organization buying behavior
Marketing Research
Avoid ambiguity
Problem Definition
Research Objective Research Design Secondary Source of Data Data Collection Data Analysis Primary Measurable Specific
Be specific but not too rigid
Watch for symptoms Exploratory Descriptive censu sSample Causative Observation Techniques Tools Experimentation Survey Focus Group Questionnaire Interview schedule and Association Projection test (TAT)
(Primary, secondary and advanced) Report and
presentation
Steps in Questionnaire Design
Preliminary issues like research objectives, target response, etc. Decision on issues to be probed/asked
Decision on response format, I.e whether close-ended or open-ended
response Wording/style of the questions and what to avoid Sequencing the questions Conditions of questions
Pre-test, revise(if need be) and finalise
• Marketing Research problem is information oriented, narrowly and precisely defined. • Response to following three key questions can help sharply define marketing research problem: • Purpose of information being sought • Whether the information already exist; & • Whether the question posed by decision maker can be researched
SOURCES OF DATA 1. Primary Data 2. Secondary Data
• Sources of Secondary Data
1. Organizations, journals and newspapers 2. Company’s Internal Database
» The most common source of internal database is the sales call report, sales territory information system and brand score cards. » The fastest growing usage of an internal database is database marketing.
» database marketing can assist in: 1. Identification of most and least profitable customers. 2. Identification of attractive market segments and target efforts with greater efficiency and effectiveness. 3. Evaluation of sales territories 4. Identification of new market opportunities. 5. Evaluation or modification of marketing programmes.
3.
World wide web
– Internet discussion groups and special interest groups as a source of secondary information. – Databases on CD-ROM – Geographic Information Systems
Advantages of Secondary Data
– Economies of time and cost – Convenience – Data may offer a solution to the research problem
MARKETING INFORMATION SYSTEMS
• Order generation, processing, delivery and payment cycle. • Sales management information giving details on firm’s sales, market share, profitability and trends in each market. • Payment history • Orders Lost/Won • Brand Monitors • Distribution Audit Reports • Service Monitor Reports • Product Performance Reports
•
Typically any such system provides a perspective at three different levels. • Transaction processing / level – Transaction level information system is useful at the sales person level • Managerial and operational level – Reports on performance branch, region and product, sundry debtors status etc. form a part of managerial and operation level information system. • Strategic level – National sales data, relative market, share, shifts in customer preferences, competition in different product / markets, receivables etc are information used at the strategic level i.e. at the top management level.
• Decision making is a five step sequence.
Source
Data
Predictions/ Inferences/ Generalizations
Action
Values & Choice
Consumer Behaviour: Understanding the Buyer
Stimulus Buy Company Controlled Product Price Advtg Consumer Mind (Black Box) No Buy Response
Sales Promotion
Display Distribution
Social
Word of Mouth Reference Group
Customers Today
Drivers of Change Media Technology (eg. Developments in Medical Sciences, Genetics, Bio technology, Computers, Virtual Technologies etc.)
Influence CUSTOMER Impact
Borderless Competition
Influence
Influence
Awareness
Values: eg. Defer Pleasure & consumption vs. Instant Pleasure & Consumption
Social Structures: Individualism vs. Collectivism; Breaking up of Groups, Individual Identity, Role of Opinion, Leadership
Personality: ?Assertiveness? ?Exhibitionism? ?Perceived Selfconcept (!) ?Lifestyle ?Aspirational (!)
Affect Customer Decision Making Process
What Does the Customer Buy?
• Low Involvement Product
– Characteristics
• Does not reflect buyer’s self concept • Alternatives within the same product class are similar • Frequent brand switching behaviour
Problem/Need Recognition Evaluation of Alternatives
Decision
Low Involvement Products
Purchase Decision in Low Involvement Products
High Involvement Products
• Characteristics
– High Price – Complex Features – Large difference between alternatives – High perceived risks – Reflect self-concept of Buyer
Decision Making Process
Need Recognition/Problem Identification
Development of Decision Criteria
Search for Alternatives Evaluation of Alternatives
Decision High Involvement Products
Buying Situations
• Differentiation between the two buying situations may be caused by the absence of any or all of the following factors.
– Awareness about competing brands in a product group – Customer has a decision criteria – Customer is able to evaluate and decide on his choice.
Types of Buying Situations
• Routinised response behaviour- Straight Rebuy • Limited problem solving and- Modified Rebuy • Extensive problem solving- New Task
Self Actualisation Esteem
Affiliation
Security Needs
Basic Needs Maslow’s Hierarchy of Needs
Learning Theory
• Learning could be conditioned or be the result of trial and error, or an insight
– Generalisation Vs. Discrimination – Guiding &even directing human behaviour. ? Theory of Cognitive Dissonance Dissonance gets heightened in the following situations: • When a customer has plenty of choices or alternatives to choose from • Each alternative is equally attractive • The buying situation is a high price-high risk situation • The customer sees the product as reflecting his or her
• Do away with the product causing us mental anxiety or dissonance; or • Collect more material on the product in support of our decision to buy the product; or • Rationalise our decision by looking around and seeing how many customers had bought the product.
To overcome this state we either:
Perceptions
• Human beings see or hear only what they want or anticipate. Three different dimensions that affect human being’s perception:
– Selective attention; – Selective distortion; and – Selective retention.
ROLES IN CONSUMER DECISION MAKING
(a) Initiator (b) Influencer (c) Decider (d) Buyer (e) User
Total
Set
(All Brands)
Awareness Set (Brands Aware of)
Consideration Set (Brands considered)
Decision Set (Brand Decided) Purchase Set
Theory of Evoked Set
Categorisation of Customer based on life styles:
1. Survivors: These are disadvantaged people who tend to be despairing, depressed and withdrawn 2. Sustainers: are disadvantaged people who are valiantly struggling to get out of poverty. 3. Belongers: are individuals who are conventional, conservative, nostalgic and unexperimental and who would rather fit in than stand out. 4. Emulators: are ambitious, upwardly mobile and status conscious; they want to make it “big”. 5. Achievers: are the nation’s leaders, who make things happen, work within the system and enjoy the good life.
6. “ I-am-me”: are people who are typically young, self engrosses and given to whim. 7. Experimentials: are individuals who pursue a rich inner life and want to experience directly what life has to offer. 8. Societally Conscious: are those who have a high sense of social responsibility and want to improve conditions in society. 9. Integrate: Are men and women who are fully mature psychologically and combine the best element of inner and outer directedness.
Market Value
• Product or Service’s market value
may be universal, personal or both
Market Value
• Universal values are the ones that satisfy the needs of the customer. They pertain to the basic purpose of buying a product or service, and they are sought alike by customers across nations and cultures.
Market Value
• Personal values are those which satisfy the wants of the customer. These pertain to something beyond the basic or universal
reason of buying a product or service or for
doing business with a firm. They may be
group specific, are desired by and offered
alike to a segment or a group of customers.
Market Value
Universal values: Performance • Performance value: is the quality of physical
outcome of using the product or service, (i.e. it refers to how well a product or service serves its principal function consistently). This value resides in and stems from the physical composition of the product or from the design of the service. It depends therefore on design features and manufacturing quality.
Market Value
Personal Values: Social & Emotional Values
? Social value: Users driven by social value choose
products that convey an image congruent with the norms of their friends and associates or that convey
the social image they wish to project
• Emotional value: This refers to the enjoyment and emotional satisfaction that products and services offer to their users
Market Values sought by Decision-Makers
Universal Values: Price
•
This refers the fair prices and other
financial costs incurred in acquiring the products- e.g. delivery, maintenance etc.
Market Values sought by DecisionMakers
Personal Values : Credit and Financing • Credit value: Local retailers and stockists are known to extend credit lines to their customers. Credit, therefore, is an important value that most customers in their role as payer consider. Financing value: This consists of offering terms of purchase that make the payment more affordable by distributing their liability over an extended period of time
•
Market Values sought by Buyers Universal Value : Service • Service value is the assistance customers seek in purchasing a product or service. It has three elements: Pre-purchase advice and assistance Post-purchase advice and assistance in maintaining the product’s use-worthiness
• •
•
Freedom from risk of mis-purchase by being able to refund or exchange the merchandise.
Market Values sought by Buyers
Personal Value : Convenience & Personalization • • • • Convenience value: refers to savings in the time and effort needed to acquire the product Personalization value: has two aspects Customerization – refers to receiving the product or service in a manner tailored to an individual customers’ circumstances Interpersonal relation- is the desire for transaction to occur in an environment of pleasant interpersonal interaction.
INFLUENCES ON BUYER BEHAVIOUR
1. Cultural Influences
Culture refers to a set of values, traditions or beliefs, which guide the individual's behaviour. Culture is normative as it prescribes norms of acceptable human behaviour. Refers to values, ideas, attitudes and other meaningful symbols created by people to shape human behaviour and the artefacts of that behaviour transmitted from one generation to another. It has both the abstract and material dimensions. The abstract dimensions affect consumer preferences. Abstract elements of culture include values, attitudes, ideas, personality types and summary constructs like religion. Material components on the other hand can be described as cultural artefacts or the material manifestation of culture. Some of these attitudes and behaviour influenced by culture are:
? ? ? ? ? ? ? ? ? ?
Sense of self and space Communication and language Dress and appearance Food and feeding habits Time and time consciousness Relationships (family, organizations, government, and so on) Values and norms Beliefs and attitudes Mental Processes and learning Work habits and practices.
INFLUENCES ON BUYER BEHAVIOUR
Refers to Values, Traditions on beliefs
• Cultural Influences
Normative
• Social Influences friends • Demographic Influences • Self concept • Psychographic Variables:
Peer group, relatives, neighbours &
Self image based on role models Personality, Lifestyle
Values of Society
Family
Religious Institutions
Education Institute
Early Lifetime Experiences
Peers
Individual Internalized Values
Environmental Influences on Consumer Decision and Marketing Strategy : International Transmission of Values
• According to Sheth, Newman and Gross, the five consumption values are:
• Functional value
• Conditional Value
• Social Value • Emotional Value • Knowledge Value
Major Consumer Reference Groups
Major Consumer Reference Groups Selected Sub-
cultures
Individual
Reference Groups
Fam ily
Friends
Other Culture s
Social Class
One ’s own Culture
Opinion Leaders
•
• • • • • •
Opinion leaders in any society could be any or all of the following.
Celebrities – film, sports, Social, Corporate etc Experts e.g. Professionals Common Man Executive / Employee Spokesperson / Salesman Dealer
• Opinion leaders fulfil a number of needs for opinion receivers:
? They provide new product or new usage information. ? They reduce the risk of opinion seekers by providing first-hand information about a specific product or brand. • They reduce the search time entailed in the identification of a needed product/ service.
2.Demographic Influences 3. Self-Concept 4. Psychographic Variables:
» » » » » » » » Survivors Sustainers Belongers Emulators Achievers “I-am-me” Experimentials Societally Conscious
AIO Categories of Lifestyles Activities Work Hobbies Social Events Vacation Entertainment Club Membership Community Shopping Sport Interests Family Home Job Community Recreation Fashion Opinions Themselves Social Issues Politics Business Economics Education Demographics Age Education Income Occupation Family Size Dwelling Geography City Size Stages in Life Cycle
Food Products Media Future Achieveme Culture nts
• The new Emerging Lifestyles of Urban Consumers
• Labelled, Urban, Chilled, Kicked-with-life Indians or the LUCKIES • Marked by multiple credit cards, off centre job options, recycling initiatives, a generation much aware about alternatives and sporting a choicy selection. • Confident communicators and can flourish in a global, competitive market. • Living in style is the in-thing. • Believes in looking good. • Ravaged by labels. • Working hard by day and clubbing all night. • T.V has played a major role.
Organizational Buying Behavior
Corporate Process
PRODUCT
Customer Values
SERVICE ?? ?? ?? ?? Service standards Service “penalty Extended service “technologisation” of service process ?? Service providers performance review and reward processes Presale guidance ?? Technology ?? Empowerment of Customer personnel Location of service outlet ?? Empowerment of customer personnel ?? Spare part management
?? Performance guarantee ?? Consistency performance
Six sigma ?? Brand and corporate image ?? Supply chain management ?? Internal linkages Purchasing information Real time distribution
?? Convenience in : * Selection * Availability
*
use Training
*
disposal
Elimination/upgrades
?? Economical price
Cost driver elimination
?? Valuation of existing equipment ?? “door step” disposal ?? Annual maintenance contract ?? Regularity of service calls ?? Newsletters and other customer communication media ?? Customer empowerment ?? Information technology ?? Minimize/eliminate service moments Innovation
Desired Values ?? Information in industry practices ?? Zero down time
Product applications
Six sigma
?? Assistance in cost leadership/differentiated leadership Unanticipated values
Cost driver elimination R&d Innovation
BUYING CENTRE : CONSISTS OF INDIVIDUALS ( Referred to as Decision Making Units- DMU) who:
?
?
?
Participate in decision making. Have a common goal. Share risks arising out of the decision.
Roles in Buying Centre
Define product &service requirements Actual User Only goal: Uninterrupted Operations Influencer Opinion valued by the Decision-maker Decision maker Decider
Considerations: Both technical & commercial
Buyer
On-time delivery-Key consideration
Gatekeeper
Facilitate the flow of information
DMU in buying Centre-Expectations from a Vendor
Expectat ions from Vendor DMU Actual User Influenc er Decider Buyer Gatekee per
Pdt Consiste Guarant Perform ncy in ee and ance Product Warrant quality eies
After sales service
Vendor Image
Price Delivery Este and schedule payment s terms
v v v -
v v v -
v v v -
v v v -
v v v v -
v -
v v v -
v v v v v
Note: : v connotes expectations.
DECISION-MAKING PROCESS STAGES IN Decision Making
• • • • • • • • Need Recognition Product specification Laying down qualifications for potential vendors Inviting proposals from qualified vendors Evaluating the proposals Selecting the vendor Determination of order size and placement of order Review and feedback
BUYING SITUATIONS
1. Straight rebuy
loyalty
Characterised by vendor
2. Modified rebuy
the
When customer needs get modified/new supplier in industry. When customer does not have decision criteria, does not who the suppliers are & commercial terms.
3. New Task
a know
Organizational Buyer Behaviour
Environmental Factors (a) Level of demand (b) Economic outlook (c) Rate of interest (d) Technological change (e) Political and regulatory development (f) Competition
Influences on organisational behaviour Interpersonal (a) Authority (b) Status (c) Empathy (d) Persuasiveness
Individual
(a) Age (b) Education (c) Income (d) Attitude towards risk taking (e) Personality (f) Job position
Organisational Buyer
Organisational Variables (a) Objectives and goals (b) Organisational policies (c) Procedures (d) Organisational structures (e) Systems
doc_111322952.pptx
The concepts on market research like questionnaire design and sources of data. It also covers topics like consumer buying behavior and organization buying behavior
Marketing Research
Avoid ambiguity
Problem Definition
Research Objective Research Design Secondary Source of Data Data Collection Data Analysis Primary Measurable Specific
Be specific but not too rigid
Watch for symptoms Exploratory Descriptive censu sSample Causative Observation Techniques Tools Experimentation Survey Focus Group Questionnaire Interview schedule and Association Projection test (TAT)
(Primary, secondary and advanced) Report and
presentation
Steps in Questionnaire Design
Preliminary issues like research objectives, target response, etc. Decision on issues to be probed/asked
Decision on response format, I.e whether close-ended or open-ended
response Wording/style of the questions and what to avoid Sequencing the questions Conditions of questions
Pre-test, revise(if need be) and finalise
• Marketing Research problem is information oriented, narrowly and precisely defined. • Response to following three key questions can help sharply define marketing research problem: • Purpose of information being sought • Whether the information already exist; & • Whether the question posed by decision maker can be researched
SOURCES OF DATA 1. Primary Data 2. Secondary Data
• Sources of Secondary Data
1. Organizations, journals and newspapers 2. Company’s Internal Database
» The most common source of internal database is the sales call report, sales territory information system and brand score cards. » The fastest growing usage of an internal database is database marketing.
» database marketing can assist in: 1. Identification of most and least profitable customers. 2. Identification of attractive market segments and target efforts with greater efficiency and effectiveness. 3. Evaluation of sales territories 4. Identification of new market opportunities. 5. Evaluation or modification of marketing programmes.
3.
World wide web
– Internet discussion groups and special interest groups as a source of secondary information. – Databases on CD-ROM – Geographic Information Systems
Advantages of Secondary Data
– Economies of time and cost – Convenience – Data may offer a solution to the research problem
MARKETING INFORMATION SYSTEMS
• Order generation, processing, delivery and payment cycle. • Sales management information giving details on firm’s sales, market share, profitability and trends in each market. • Payment history • Orders Lost/Won • Brand Monitors • Distribution Audit Reports • Service Monitor Reports • Product Performance Reports
•
Typically any such system provides a perspective at three different levels. • Transaction processing / level – Transaction level information system is useful at the sales person level • Managerial and operational level – Reports on performance branch, region and product, sundry debtors status etc. form a part of managerial and operation level information system. • Strategic level – National sales data, relative market, share, shifts in customer preferences, competition in different product / markets, receivables etc are information used at the strategic level i.e. at the top management level.
• Decision making is a five step sequence.
Source
Data
Predictions/ Inferences/ Generalizations
Action
Values & Choice
Consumer Behaviour: Understanding the Buyer
Stimulus Buy Company Controlled Product Price Advtg Consumer Mind (Black Box) No Buy Response
Sales Promotion
Display Distribution
Social
Word of Mouth Reference Group
Customers Today
Drivers of Change Media Technology (eg. Developments in Medical Sciences, Genetics, Bio technology, Computers, Virtual Technologies etc.)
Influence CUSTOMER Impact
Borderless Competition
Influence
Influence
Awareness
Values: eg. Defer Pleasure & consumption vs. Instant Pleasure & Consumption
Social Structures: Individualism vs. Collectivism; Breaking up of Groups, Individual Identity, Role of Opinion, Leadership
Personality: ?Assertiveness? ?Exhibitionism? ?Perceived Selfconcept (!) ?Lifestyle ?Aspirational (!)
Affect Customer Decision Making Process
What Does the Customer Buy?
• Low Involvement Product
– Characteristics
• Does not reflect buyer’s self concept • Alternatives within the same product class are similar • Frequent brand switching behaviour
Problem/Need Recognition Evaluation of Alternatives
Decision
Low Involvement Products
Purchase Decision in Low Involvement Products
High Involvement Products
• Characteristics
– High Price – Complex Features – Large difference between alternatives – High perceived risks – Reflect self-concept of Buyer
Decision Making Process
Need Recognition/Problem Identification
Development of Decision Criteria
Search for Alternatives Evaluation of Alternatives
Decision High Involvement Products
Buying Situations
• Differentiation between the two buying situations may be caused by the absence of any or all of the following factors.
– Awareness about competing brands in a product group – Customer has a decision criteria – Customer is able to evaluate and decide on his choice.
Types of Buying Situations
• Routinised response behaviour- Straight Rebuy • Limited problem solving and- Modified Rebuy • Extensive problem solving- New Task
Self Actualisation Esteem
Affiliation
Security Needs
Basic Needs Maslow’s Hierarchy of Needs
Learning Theory
• Learning could be conditioned or be the result of trial and error, or an insight
– Generalisation Vs. Discrimination – Guiding &even directing human behaviour. ? Theory of Cognitive Dissonance Dissonance gets heightened in the following situations: • When a customer has plenty of choices or alternatives to choose from • Each alternative is equally attractive • The buying situation is a high price-high risk situation • The customer sees the product as reflecting his or her
• Do away with the product causing us mental anxiety or dissonance; or • Collect more material on the product in support of our decision to buy the product; or • Rationalise our decision by looking around and seeing how many customers had bought the product.
To overcome this state we either:
Perceptions
• Human beings see or hear only what they want or anticipate. Three different dimensions that affect human being’s perception:
– Selective attention; – Selective distortion; and – Selective retention.
ROLES IN CONSUMER DECISION MAKING
(a) Initiator (b) Influencer (c) Decider (d) Buyer (e) User
Total
Set
(All Brands)
Awareness Set (Brands Aware of)
Consideration Set (Brands considered)
Decision Set (Brand Decided) Purchase Set
Theory of Evoked Set
Categorisation of Customer based on life styles:
1. Survivors: These are disadvantaged people who tend to be despairing, depressed and withdrawn 2. Sustainers: are disadvantaged people who are valiantly struggling to get out of poverty. 3. Belongers: are individuals who are conventional, conservative, nostalgic and unexperimental and who would rather fit in than stand out. 4. Emulators: are ambitious, upwardly mobile and status conscious; they want to make it “big”. 5. Achievers: are the nation’s leaders, who make things happen, work within the system and enjoy the good life.
6. “ I-am-me”: are people who are typically young, self engrosses and given to whim. 7. Experimentials: are individuals who pursue a rich inner life and want to experience directly what life has to offer. 8. Societally Conscious: are those who have a high sense of social responsibility and want to improve conditions in society. 9. Integrate: Are men and women who are fully mature psychologically and combine the best element of inner and outer directedness.
Market Value
• Product or Service’s market value
may be universal, personal or both
Market Value
• Universal values are the ones that satisfy the needs of the customer. They pertain to the basic purpose of buying a product or service, and they are sought alike by customers across nations and cultures.
Market Value
• Personal values are those which satisfy the wants of the customer. These pertain to something beyond the basic or universal
reason of buying a product or service or for
doing business with a firm. They may be
group specific, are desired by and offered
alike to a segment or a group of customers.
Market Value
Universal values: Performance • Performance value: is the quality of physical
outcome of using the product or service, (i.e. it refers to how well a product or service serves its principal function consistently). This value resides in and stems from the physical composition of the product or from the design of the service. It depends therefore on design features and manufacturing quality.
Market Value
Personal Values: Social & Emotional Values
? Social value: Users driven by social value choose
products that convey an image congruent with the norms of their friends and associates or that convey
the social image they wish to project
• Emotional value: This refers to the enjoyment and emotional satisfaction that products and services offer to their users
Market Values sought by Decision-Makers
Universal Values: Price
•
This refers the fair prices and other
financial costs incurred in acquiring the products- e.g. delivery, maintenance etc.
Market Values sought by DecisionMakers
Personal Values : Credit and Financing • Credit value: Local retailers and stockists are known to extend credit lines to their customers. Credit, therefore, is an important value that most customers in their role as payer consider. Financing value: This consists of offering terms of purchase that make the payment more affordable by distributing their liability over an extended period of time
•
Market Values sought by Buyers Universal Value : Service • Service value is the assistance customers seek in purchasing a product or service. It has three elements: Pre-purchase advice and assistance Post-purchase advice and assistance in maintaining the product’s use-worthiness
• •
•
Freedom from risk of mis-purchase by being able to refund or exchange the merchandise.
Market Values sought by Buyers
Personal Value : Convenience & Personalization • • • • Convenience value: refers to savings in the time and effort needed to acquire the product Personalization value: has two aspects Customerization – refers to receiving the product or service in a manner tailored to an individual customers’ circumstances Interpersonal relation- is the desire for transaction to occur in an environment of pleasant interpersonal interaction.
INFLUENCES ON BUYER BEHAVIOUR
1. Cultural Influences
Culture refers to a set of values, traditions or beliefs, which guide the individual's behaviour. Culture is normative as it prescribes norms of acceptable human behaviour. Refers to values, ideas, attitudes and other meaningful symbols created by people to shape human behaviour and the artefacts of that behaviour transmitted from one generation to another. It has both the abstract and material dimensions. The abstract dimensions affect consumer preferences. Abstract elements of culture include values, attitudes, ideas, personality types and summary constructs like religion. Material components on the other hand can be described as cultural artefacts or the material manifestation of culture. Some of these attitudes and behaviour influenced by culture are:
? ? ? ? ? ? ? ? ? ?
Sense of self and space Communication and language Dress and appearance Food and feeding habits Time and time consciousness Relationships (family, organizations, government, and so on) Values and norms Beliefs and attitudes Mental Processes and learning Work habits and practices.
INFLUENCES ON BUYER BEHAVIOUR
Refers to Values, Traditions on beliefs
• Cultural Influences
Normative
• Social Influences friends • Demographic Influences • Self concept • Psychographic Variables:
Peer group, relatives, neighbours &
Self image based on role models Personality, Lifestyle
Values of Society
Family
Religious Institutions
Education Institute
Early Lifetime Experiences
Peers
Individual Internalized Values
Environmental Influences on Consumer Decision and Marketing Strategy : International Transmission of Values
• According to Sheth, Newman and Gross, the five consumption values are:
• Functional value
• Conditional Value
• Social Value • Emotional Value • Knowledge Value
Major Consumer Reference Groups
Major Consumer Reference Groups Selected Sub-
cultures
Individual
Reference Groups
Fam ily
Friends
Other Culture s
Social Class
One ’s own Culture
Opinion Leaders
•
• • • • • •
Opinion leaders in any society could be any or all of the following.
Celebrities – film, sports, Social, Corporate etc Experts e.g. Professionals Common Man Executive / Employee Spokesperson / Salesman Dealer
• Opinion leaders fulfil a number of needs for opinion receivers:
? They provide new product or new usage information. ? They reduce the risk of opinion seekers by providing first-hand information about a specific product or brand. • They reduce the search time entailed in the identification of a needed product/ service.
2.Demographic Influences 3. Self-Concept 4. Psychographic Variables:
» » » » » » » » Survivors Sustainers Belongers Emulators Achievers “I-am-me” Experimentials Societally Conscious
AIO Categories of Lifestyles Activities Work Hobbies Social Events Vacation Entertainment Club Membership Community Shopping Sport Interests Family Home Job Community Recreation Fashion Opinions Themselves Social Issues Politics Business Economics Education Demographics Age Education Income Occupation Family Size Dwelling Geography City Size Stages in Life Cycle
Food Products Media Future Achieveme Culture nts
• The new Emerging Lifestyles of Urban Consumers
• Labelled, Urban, Chilled, Kicked-with-life Indians or the LUCKIES • Marked by multiple credit cards, off centre job options, recycling initiatives, a generation much aware about alternatives and sporting a choicy selection. • Confident communicators and can flourish in a global, competitive market. • Living in style is the in-thing. • Believes in looking good. • Ravaged by labels. • Working hard by day and clubbing all night. • T.V has played a major role.
Organizational Buying Behavior
Corporate Process
PRODUCT
Customer Values
SERVICE ?? ?? ?? ?? Service standards Service “penalty Extended service “technologisation” of service process ?? Service providers performance review and reward processes Presale guidance ?? Technology ?? Empowerment of Customer personnel Location of service outlet ?? Empowerment of customer personnel ?? Spare part management
?? Performance guarantee ?? Consistency performance
Six sigma ?? Brand and corporate image ?? Supply chain management ?? Internal linkages Purchasing information Real time distribution
?? Convenience in : * Selection * Availability
*
use Training
*
disposal
Elimination/upgrades
?? Economical price
Cost driver elimination
?? Valuation of existing equipment ?? “door step” disposal ?? Annual maintenance contract ?? Regularity of service calls ?? Newsletters and other customer communication media ?? Customer empowerment ?? Information technology ?? Minimize/eliminate service moments Innovation
Desired Values ?? Information in industry practices ?? Zero down time
Product applications
Six sigma
?? Assistance in cost leadership/differentiated leadership Unanticipated values
Cost driver elimination R&d Innovation
BUYING CENTRE : CONSISTS OF INDIVIDUALS ( Referred to as Decision Making Units- DMU) who:
?
?
?
Participate in decision making. Have a common goal. Share risks arising out of the decision.
Roles in Buying Centre
Define product &service requirements Actual User Only goal: Uninterrupted Operations Influencer Opinion valued by the Decision-maker Decision maker Decider
Considerations: Both technical & commercial
Buyer
On-time delivery-Key consideration
Gatekeeper
Facilitate the flow of information
DMU in buying Centre-Expectations from a Vendor
Expectat ions from Vendor DMU Actual User Influenc er Decider Buyer Gatekee per
Pdt Consiste Guarant Perform ncy in ee and ance Product Warrant quality eies
After sales service
Vendor Image
Price Delivery Este and schedule payment s terms
v v v -
v v v -
v v v -
v v v -
v v v v -
v -
v v v -
v v v v v
Note: : v connotes expectations.
DECISION-MAKING PROCESS STAGES IN Decision Making
• • • • • • • • Need Recognition Product specification Laying down qualifications for potential vendors Inviting proposals from qualified vendors Evaluating the proposals Selecting the vendor Determination of order size and placement of order Review and feedback
BUYING SITUATIONS
1. Straight rebuy
loyalty
Characterised by vendor
2. Modified rebuy
the
When customer needs get modified/new supplier in industry. When customer does not have decision criteria, does not who the suppliers are & commercial terms.
3. New Task
a know
Organizational Buyer Behaviour
Environmental Factors (a) Level of demand (b) Economic outlook (c) Rate of interest (d) Technological change (e) Political and regulatory development (f) Competition
Influences on organisational behaviour Interpersonal (a) Authority (b) Status (c) Empathy (d) Persuasiveness
Individual
(a) Age (b) Education (c) Income (d) Attitude towards risk taking (e) Personality (f) Job position
Organisational Buyer
Organisational Variables (a) Objectives and goals (b) Organisational policies (c) Procedures (d) Organisational structures (e) Systems
doc_111322952.pptx