Buyer Behavior

Session 3: Generic Model and Influencing Factors

Zeeshan Kingshuk Huq

Guest Faculty

zeeshan.huq@gmail.com

2 1/27/14/ZKH

We discussed about the Black Box Model

§  The model itself

§  Its limitation

§  So what is a perfect model?

3 1/27/14/ZKH

The Generic Model of Consumer Behavior

Need Recognition

and Problem

Awareness

Information Search

Evaluation of

Alternatives Actual

Purchase Post-

purchase Evaluation

4 1/27/14/ZKH

The Generic Model of Consumer Behavior

Need Recognition

and Problem

Awareness

Information Search

Evaluation of

Alternatives Actual

Purchase Post-

purchase Evaluation

5 1/27/14/ZKH

Need Recognition and Problem Awareness

§  What is the ‘pain point’

§  What triggers  Actual Incidents  Location  Advertisements / Communications  Peer group pressure  Luck!

§  Tool: Customer Touchpoint Analysis

§  How to measure the trigger?  Web à digital  Channel à survey or actual stock-count

6 1/27/14/ZKH

The Generic Model of Consumer Behavior

Need Recognition

and Problem

Awareness

Information Search

Evaluation of

Alternatives Actual

Purchase Post-

purchase Evaluation

7 1/27/14/ZKH

Information Search

§  How  External search   Internal (memory) search

§  From Where  Personal Sources  Experience  Commercial  Public

8 1/27/14/ZKH

Perception

§  Perception: “The process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world”

§  Selective perception processes:  Selective Exposure  Selective Attention  Selective Comprehension  Selective Retention

9 1/27/14/ZKH

The Generic Model of Consumer Behavior

Need Recognition

and Problem

Awareness

Information Search

Evaluation of

Alternatives Actual

Purchase Post-

purchase Evaluation

10 1/27/14/ZKH

Evaluation of Alternatives

§  Categories / Areas of Alternatives  Products / Services  Outlet / Mode of Acquisition / Delivery

§  Influencers  Financial ability  Time and other associated costs  Amount of information customer has  Perceived risk against a wrong decision  Attitude towards the selection process

-  Long versus short list -  Personal likings versus logic

11 1/27/14/ZKH

The Generic Model of Consumer Behavior

Need Recognition

and Problem

Awareness

Information Search

Evaluation of

Alternatives Actual

Purchase Post-

purchase Evaluation

12 1/27/14/ZKH

The Purchase Decision

§  What can the marketer do?  Simplify the purchase process  Make the actual process ‘gratifying’  Reduce ‘road-blocks’

13 1/27/14/ZKH

The Generic Model of Consumer Behavior

Need Recognition

and Problem

Awareness

Information Search

Evaluation of

Alternatives Actual

Purchase Post-

purchase Evaluation

14 1/27/14/ZKH

Post-purchase Behavior

§  Post-purchase Cognitive Dissonance  The Anxiety after purchasing  Usually seen in all case except regular, routine, low-

involvement purchases  The search for Consistency between

-  Knowledge -  Attitude -  Beliefs -  Values

 Usually triggered because of ‘disturbing information’ received AFTER the purchase

15 1/27/14/ZKH

Post-purchase Behavior

§  How to reduce Cognitive Dissonance  Continued communication / advertising stressing the

positives  Personalized reinforcement in case of big-ticket items  Follow-up ‘calls’  WoM   ‘Club’

16 1/27/14/ZKH

QUESTIONS AND ANSWERS