Buying Behaviour of Customers

1. Buying Behaviour of Customers

2. If you had to group these products into 2 groups, how would you do it?? Take a few minutes to try…..

3. What criteria did you use to categorize your products?

4. Convenience Goods vs Shopping Goods • Convenience Goods • inexpensive and/or frequent purchases • Consumers don’t take very much time to reach a decision…not worth it. • A low risk purchase • Ie. Gum, pop, laundry detergent... • Shopping Goods • when the item/service is complicated or expensive • Requires much more time in searching and comparing information. • A higher risk purchase • Ie. Computer, car, trip, education...

5. As a result, marketers must understand the type of product they are selling in order to create their marketing strategy • When a customer is looking to buy a “shopping good”, they are much more likely to invest their time and efforts into selecting the proper product. • As a result, marketers of these products need to focus their efforts on reaching their target market and helping to differentiate why their product is the best fit for their customer

6. When a customer is looking to buy a “convenience good”, they are less likely to invest their time and efforts into selecting the right product. • In these cases, marketers need to focus their efforts on distribution and convenience (make it easy for your customer to get it in as many places as possible)

7. Information search Evaluation of alternatives Purchase decision Postpurchase behavior The Consumer Buying Process Problem recognition

8. Let’s go through a couple of examples:

9. Laptop Computer • Problem Recognition: • Need to be able to access computer files and information • Must be portable • Information Search: • Internet, tech stores, word of mouth • Evaluation of Alternatives: • Find different brands with similar prices and features, trial • Goes to different stores to “kick the tires” • Purchase Decision: • Best product fit is found and decision made • Post-Purchase Behaviour: • Evaluates computer through use

10. So….with this information, what strategy should a laptop computer manufacturer use in their marketing efforts?

11. Laptop • A shopping good, more risk and effort involved • Each element of the 4 Ps and 2 Cs need to be focused on to help sway purchaser • a combination of push and pull strategies required to sell your product

12. Pencil • Problem Recognition: • Need writing utencil • Information Search: • Closest convenience store or office supply store • Evaluation of Alternatives: • Most pencils have similar features….yellow, eraser…what’s to evaluate?? • Purchase Decision: • Price • Convenience….first one I pick up • Post-Purchase Behaviour: • Did it work?

13. So….with this information, what strategy should a “pencil” producer use in their marketing efforts?

14. Pencil • A convenience purchase, therefore little risk or effort exerted by customer • not worth time or effort to differentiate, I just want one and move on • Main efforts should be on “Place” • as many places as possible, convenient • No real need to focus on the other 3 Ps or 2 Cs….. • Vital to market your product to the retailer who can “push” your product (ie – good shelf placement, display)

15. For marketers, it is vital that they understand the buying process of their customers for their product or service • By understanding the process their customers go through in their purchase, they can begin to create a marketing strategy that provides them with the best chance of persuading the customer to choose their product over the competition • This is the ultimate goal of marketing and business……

16. The End !!!