...and psychographic researches are important components to a brands marketing strategy. First of all a brand has to understand who is buying their product. This is very detailed process and covers a wide range of attributes from family size to annual income to education and the list can go on. Psychographics is considerably more difficult to determine since “it deals with beliefs, interests, hobbies and things that are important to us” (Brauer, 2014). IHOP’s demographic pool is hard to determine company wide since the brand is franchised. However, despite this difficulty the brand’s demographic pool is primarily made up of the baby boomer generation and Hispanic families with children. The psychographic makeup of the IHOP consumer includes but is not limited, to those who are more health conscious and find value important. IHOP’s understanding of the demographic and psychographic makeup of their consumers allows them to know who their target audience is. When a brand understands their target audience they are then able to formulate a marketing strategy designed for that specific audience. When a consumer is considering a purchase they go through a process known as the consumer buying process. The consumer buying process is “a mental state that a consumer enters into when they are about to make a purchasing decision (Brauer,2014) Within this process there are 5 steps the steps are as follows 1. Problem/Need Recognition- When you are hungry or thirsty or even have a broken appliance...
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...Introduction One “official” definition of consumer behavior is “those activities directly involved in obtaining, consuming, and disposing of products and service, including the decision processes that precede and follow these actions”. Moreover, the consumer behavior display in searching for purchasing, using, evaluating, experiences, and idea which they expect will satisfy their needs. Therefore, knowing the factors which influence the buying behavior could increase the sales volume. The consumer behavior is an important factor to indicate the decision making process in buying a car. The buying behavior would influenced by the marketers. The job of the marketers is to “think what customer want” and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, make profits to customer and benefits to the stakeholders. 2.0 Consumer purchases decision process In the role of consumer, they constantly face choices like how much to spend, what product to acquire, and where to purchase the product. Marketer need to understanding of how these decisions are in order to develop appropriate marketing strategies. The consumer buying decision process comprises five stages: problem recognition, information search/ search for alternatives, evaluation of alternatives, purchase decision, and post-purchase evaluation. The buying decision process is influenced by psychological factors...
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...Difference between Organizational Buying Process and Consumer Buying Behaviour Difference between Organizational Buying Process and Consumer Buying Behaviour Your consumer and business customers approach purchasing in two very different ways. To successfully market your business to both types of clients, you need to understand the differences between the consumer and business buying processes. The business processes you use and the kinds of products you offer enter into the way that businesses and consumers purchase your products and view your business. Planning Most purchases made by a business are planned in advance, where the same purchases might be impulse buys for a consumer. For example, a business will plan an employee lunch, choose the menu in advance and have the order in place to be catered on a particular day. A consumer's decision on where to go for lunch is often made just minutes before the lunch break. To be able to accommodate both business and consumer purchases, you need to have a structure in place that allows businesses to plan their purchases while still offering impulse options to consumers. Decision-making In many cases, the consumer decision-maker is the person that ultimately buys the product. For example, the mother of a family may decide to buy a new sandbox for the children, so she is either the one that goes out to make the purchase or is on hand with the father to make the final choice. A business purchasing process starts with an idea and then...
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...Segmentation is known as the process of defining and subdividing a large homogenous market into clear segments where each segment has clear wants, needs and demands. The objective is to create a marketing mix that matches the expectations of consumers in that particular segment. Four factors that affect market segmentation are : 1. Clear identification of the sector 2. Measurability of its effective size 3. How accessible it is through promotional efforts 4. Its accuracy regarding company policies The four basic market segmentation strategies are based on : 1. Geographical 2. Demographic 3. Psychographic 4. Geographical differences (BusinessDictionary.com, 2016) GEOGRAPHIC 1. CLIMATE 2. LOCATION 3. CULTURE 4. RELIGION 5. POPULATION Grand Union has several locations all over London, they have a branch in Camden and in Brixton as well to name a few. The Paddington branch is the one our assignment is focusing on. It is centrally located and is situated on the ground floor of a high rise building containing numerous offices. It is also a few steps away from Edgware road, thus their location is extremely good. Through a survey that we conducted with the customers at the venue we learned that, the primary reason for their visit was the location and many people that visited the place were either students or people who worked near by. Currently these are Grand Union’s primary targets for consumers, but they do have the...
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...he Role of Product Positioning in Consumer Buying Decision Process Segmenting, Targeting, Positioning (STP) is the process which marketers employ to select target markets. Segmentation is the process of ordering consumers into groups with similar product interests or needs. Targeting involves a company determining which market segments it believes it can satisfy, and then choosing an appropriate targeting strategy for the segments. Positioning is how consumers perceive a brand or product, particularly in relation to other brands and products. The relation between target segments and product positioning is dependent on the age of the company. For a new company, they have the opportunity to decide what perceptions that want the public to have about the company as they are yet to have a position. Therefore they can choose the target market, and then decide on brand positioning. For a company that has existed for some time, they already have a present brand position. Brand positioning often takes time to build, and much time to change. For this reason, established companies are likely to choose target markets that are ideal for its brand positioning. Positioning is a crucial element for any company as this is how the general public views a brand or product. The public perception of the brand or product is likely to be a determining factor as to whether they buy it or not. Brand positioning is delivered to the market through a marketing mix, which consists of: product strategy...
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...Stages of consumer buying decision process Posted on September 12, 2012 by shma The marketer is responsible for selling the goods in the market so he must have the knowledge how the consumers actually make their buying decisions. For this he must study the consumer buying decision process or model. It involves five stages. 1.) Need recognition:- consumer buying decision process starts with need recognition. The marketer must recognize the needs of the consumer as well as how these needs can be satisfied. For example if a person is hungry then food is desired or if it is a matter of thirst than water is desirable. 2.) Information search:- in consumer buying decision process information search comes at second number. In this stage consumer searches the information about the product either from family, friends, neighborhood, advertisements, whole seller, retailers, dealers, or by examining or using the product. 3.) Evaluation of alternatives:- after getting the required knowledge about the product the consumer evaluate the various alternatives on the basis of it’s want satisfying power, quality and it’s features. 4.) Purchase decision:- after evaluating the alternatives the buyer buys the suitable product. But there are also the chances to postpone the purchase decision due to some reasons. In that case the marketer must try to find out the reasons and try to remove them either by providing sufficient information to the consumers or by giving them guarantee regarding...
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...Consumer Markets and Consumer Buyer Behavior Case Study Harley Davidson Building Success • Understanding the customers’ emotions and motivation • Determining the factors of loyalty • Translating this information to effective advertising Measuring Success • Currently 22% of all U.S. bike sales • Demand above supply • Sales doubled in the past 5 years with earnings tripled Case Study Harley-Davidson – Devoted Consumers Building Success • Offers good bikes, upgraded showrooms, and revised sales tactics. • Consumer emotions, motivations, and lifestyle research has been translated into effective advertising. • Harley riders are fiercely loyal to the brand, older, better educated, affluent. Measuring Success • Currently has 26% of all U.S. bike sales and 50% of heavyweight segment. • Demand outstripped supply for several years; waits of up to 2 years for popular models. • Annual revenues/earnings have grown at 14% to 23% over past 10 years. 2007: 21st straight year of record sales and income. 5-3 Definitions • Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption • All of these final consumers combine to make up the consumer market. Consumer Buying Behavior • Consumers make many buying decisions every day. • Most research consumer buying decisions try to answer the questions about; What consumers buy? Where, how, and how they buy, when & why they buy...
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...CONSUMER BUYING BEHAVIOR TOWARDS MOBILE PHONE BUYING AMONG UMP ABSTRACT Consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Factors affecting how customers make decisions are extremely complex. There are many factors that can affect this process as a person works through the purchase decision. According to the black box model of consumer behavior, there are two main stimuli that is related to buyers response towards buying a certain product, in this research; mobile phone. But, which one can be much more influencing than the other in terms of buying decisions. But, which one can be much more influencing than the other in terms of buying decisions. Based on the black box model of consumer behavior, this research’s objectives are to find out the relationship between environmental factors with buyers decision making process. This study also intends to compare the two elements in environmental factors in terms influencing buying decisions to find out which stimuli is the main stimuli that mostly influence consumers mobile phone buying decisions. A survey questionnaire were conducted among 100 randomly chosen UMP students. INTRODUCTION According to Kotler and Armstrong (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Consumers around the world are different in various factors...
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...Lecture Topic 6 Ch. 5 & 6 (p. 188 - 201) Buyer Behavior MKTG 2501 Lecturer: Yin Mei NG Model of Consumer Behavior External Stimuli • Marketing Stimuli • Environmental Forces BUYER’S BLACK BOX • Buyer’s decision process • Buyer’s characterist ics Buyer Responses • Buying attitude and preference • Purchase behavior (what, when, where, and how much) • Relationship behavior with brand and company Five Stages in the Consumer Decision Process Need recognition Information search Evaluation of alternatives Purchase decision Class Discussion: Customer Needs • What do parents-to-be need? • How can a company meet their important needs? Identify and Evaluate Alternatives Example: Brand Choice of Your Computer Purchased Recently Company: What can you do? Dear Company, We’re sorry to let you know your brand is not in our evoked set. To: The Company Yours sincerely, Your target customers Question: • What can a company do if its brand is NOT in the evoked set of the target consumers? – Inept set (avoided alternatives) – Inert set (backup alternatives) – Unawareness set Example: A customer’s evaluation of 3 computer brands • Which brand would this consumer most likely choose to purchase? • Which brand would this consumer least likely choose to purchase? Attributes (Criteria) Importance Weight (Sum = 1.0) Evaluation on the Performance of Alternative Computer Brands (Score: 1-7) Evaluation of Alternatives Brand A Price Speed Warranty Size ...
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...CONSUMER BUYING BEHAVIOR TOWARDS MOBILE PHONE BUYING AMONG UMP STUDENTS : MARKETING VERSUS ENVIRONMENTAL STIMULI. ABSTRACT Consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Factors affecting how customers make decisions are extremely complex. There are many factors that can affect this process as a person works through the purchase decision. According to the black box model of consumer behavior, there are two main stimuli that is related to buyers response towards buying a certain product, in this research; mobile phone. But, which one can be much more influencing than the other in terms of buying decisions. But, which one can be much more influencing than the other in terms of buying decisions. Based on the black box model of consumer behavior, this research’s objectives are to find out the relationship between environmental factors with buyers decision making process. This study also intends to compare the two elements in environmental factors in terms influencing buying decisions to find out which stimuli is the main stimuli that mostly influence consumers mobile phone buying decisions. A survey questionnaire were conducted among 100 randomly chosen UMP students. INTRODUCTION According to Kotler and Armstrong (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy goods and services for personal consumption. Consumers...
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...AFFECTING CONSUMER BUYING BEHAVIOR. OVERVIEW The discussion in this part focuses on the critical literature review on the study of the factors affecting consumer buying behavior. Matters addressed in this discussion are, introduction on the relevant terms, significance of the consumer buying behavior to performance of business, theoretical and empirical literature reviews on the study as well as the conclusion which contains what has not been done by other researchers. INTRODUCTION Consumer Buying Behavior is the tendency of consumers to buy products from a company. It determines the various factors that influence a consumer to make a decision of buying the company’s products. Buyer Behavior is a process, which through inputs and their use though process and actions leads to satisfaction of needs and wants Consumer buying behavior has numerous factors as a part of it which are believed to have some level of effect on the purchasing decisions of the customers It is worth noting that consumer buying behavior is studied as a part of the marketing and its main objective it to learn the way how the individuals, groups or organizations choose, buy use and dispose the goods and the factors such as their previous experience, taste, price and branding on which the consumers base their purchasing decisions. We study consumer buying behavior...
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...Consumer and organizational buyer behavior are sub-categories of marketing. Research in both fields has enabled manufacturers and distributors to understand the needs, preferences and behavior of buyers, as well as the internal and external factors that influence buyer behavior. Although much has been written about the differences between consumer and organizational buyer behavior, it appears that the demarcations between the two fields are not as clear as they may seem to be. Keywords Buying Center; Buying Decision Process; Consumer Buyer Behavior; Decision-Making Unit (DMU); Organizational Buyer Behavior Marketing: Consumer Overview Buyer behavior is concerned with the selection and purchase of Products or services to satisfy a need for individuals or groups. It is focused on the needs of individuals, groups and organizations. Buyer behavior occurs either for an individual consumer on his own; an individual consumer in the context of a group (where others in the group influence how a person behaves); or an organization (where employees make decisions about which products or services the firm should use). Although economists were the first academic group to offer a theory of buyer behavior, the field of buyer behavior is a subcategory of marketing that blends elements from economics, psychology, sociology, social psychology, anthropology and other sciences, such as physiological psychology, biochemistry, and genetics. The two main areas of buyer behavior are consumer...
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...Project Marketing Management 571 Analyzing Consumer Buying Behavior Factors that influence consumer decision making Consumer buying decision process Techniques of analyzing consumer buying behavior The aim of marketing is to meet and satisfy target customers' needs and wants better than competitors. Marketers must have a thorough understanding of how consumers think, feel, and act and offer clear value to each and every target consumer. Successful marketing requires that companies fully connect with their customers. Adopting a holistic marketing orientation means understanding customers – gaining a 360 degree view of both their daily lives and the changes that occur during their lifetimes so that the right products are always marketed to the right customers in the right way. The product must bring a benefit to the customer in order for the company to maximize its profit. Consumer decision-making processes are undertaken by consumers in regard to potential market transaction before, during, and after the purchase of a product or service. A consumer's buying behavior is influenced by cultural, social, and personal factors. Cultural factor carries the most impact on consumer buying decision-making. Culture is the fundamental determinant of a person's wants and behavior. Two children growing up in different countries would have significantly different beliefs and values in life. Therefore their buying decision-making will not be the same. Marketers...
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...Chapter Five Consumer Markets and Consumer Buyer Behavior Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 1 Consumer Markets and Consumer Buyer Behavior Topic Outline • • • • • Model of Consumer Behavior Characteristics Affecting Consumer Behavior Types of Buying Decision Behavior The Buyer Decision Process The Buyer Decision Process for New Products Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 2 Model of Consumer Behavior Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 3 Model of Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 4 Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 5 Characteristics Affecting Consumer Behavior Culture is the learned values, perceptions, wants, and Family Oriented Cultural symbol Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Future Orientation behavior from family and other important In Group - Collectivism institutions ...
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...opportunistic ongoing process Name: Institution: Course: Tutor: Date: Identify and discuss how holiday decision-making as described in the case, is different from the traditional problem-solving models of consumer decision-making Holiday decision-making process is different from the traditional problem-solving models of consumer decision making. This is because holiday decision-making model does not require fixed sequential stages that are required by traditional problem-solving models. Administrative factors play an imperative role when deciding time and choice of holiday decision-making process (Schermerhorn & Osborn, 2011). The typical factors that mostly influence the holiday decision-making process are levels of involvement, situational factors, anticipation, nostalgia and daydreaming. On the other hand, this is very different from traditional decision-making process that is well sequentialized and structured. In this model, the need for a specific service or product is identified and information search and other alternatives are evaluated. The consumer is further led towards purchasing a product and there after placing a purchase evaluation (Moore & Simmons, 2010). In the traditional consumer decision-making, the method of searching for information is well structured and it is either external, internal or both of them. Information collection process in the holiday decision making is an ongoing and continuous process. The information is collected...
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