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How we purchase

How we purchase. Today ’s agenda. What and how we purchase What influences our purchasing behaviour Psychological mechanisms New scientific findings of brain functioning Role of emotions and music Impact of product , place and conditions on purchasing

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How we purchase

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  1. Howwepurchase

  2. Today’s agenda • What and howwepurchase • Whatinfluencesourpurchasingbehaviour • Psychologicalmechanisms • New scientificfindingsof brain functioning • Role ofemotions and music • Impactofproduct, place and conditions on purchasing • Behaviourof online costumer

  3. What and howwepurchase • Ourpurchasingbehaviourisinfluenced by our personality, approaches, opinions, knowledge, motivationalstructure, social role… • Thismeansthatevenif the stimulus to buyis the same, eachofusreacts in a differentway

  4. What and howwepurchase Personaldisposition goals wish want Purchasingdispositions Wishthathas nevercametrue Purchasewithdecisionmaking Purchasingwithoutdecision-making habit impuls internal external

  5. What and howwepurchase Purchasewithdecisionmaking Technical Economic Selectioncriteria Estethic Other PURCHASE

  6. What and howwepurchase • Goals – eachofus has somegoals, want to achievesomething. • Goals – levelofconcreteness • Desire (least concrete) • Wish (more concrete) • Effort (goalis set, supported by action) • Thisalltranslatesintoourbehaviourwhenwe enter the shop and influencesourdecisionmaking.

  7. What and howwepurchase Activesearchforcertainproducts Enter the shop Orien-tation Decisionmaking Selection Purchase Offerof the shop

  8. What and howwepurchase The processofdecisionmaking Werealisewhatneedwewant to satisfy by purchasingproduct(material/immaterial, actual/future) – wetend to satisfy the most urgent needs – seeMaslow Weneedsomeinformation to make a decision – lackofinfomeanshigher risk (source ofinformation – ownsources, media) Compareinformation, lookforbestsolution – impactofemotions Decisionis made, decisionalsowhen to purchase – noworlater /impulsive Evaluation – satisfactionofcustomerwithservice, product… post-purchasebehaviour very important (recommendation to others, loyalty) Evaluation

  9. Whyweboughtwhatwe had bought Money orwhat?

  10. Whyweboughtwhatwe had bought? • Twoaspectsof the question: • Motivation (whatwewillget by deciding to buysomething?) • Decisionmaking (whywedecide to buycertainproduct) • Decision to buy a productisusuallyanfinalstepspreceded by many otherdecisions: • Whether to buy the productatall • Whichshop/center to visit • Decision to go to the selectedshop • Decision to buycertainamountofproduct

  11. Whyweboughtwhatwe had bought? • Isourdecisionmakingstrictlyrational? • Fishbein model_ rationalpurchaseof a jacket: • Whatmaterial (cotton, wool, polyester….) • Whatcolour ? • Pocketsor not • Ifwewantpockets, wecannothave polyester oneor blue one, ifwewantwoolenone, itistoocostly… • Hierarchy ofwhatweneed – we set priorities, wehavean idea ofidealproducts. • Compensations (compromises)

  12. Whyweboughtwhatwe had bought? • No compromises • Conjunctive model ofdecisionmaking (the jacket HAS to bewoolen and blue • Disjunctive model ofdecisionmaking ( the jackets HAS to beeither blue ormust not cost more thanxxxx

  13. Whyweboughtwhatwe had bought? Psychologicaldimensionofdecisionmaking Many timeswe do not select the productthatis the most reasonableorbrings most advantages. Whatpsychologicalmechanismsmayimpactourdecisionmakings? • Mentalqualities and dispositions (perception, attention, memory) • Inbornqualities • Lifeexperience • Knowledge • Whatwepurchase, whatweexpectfromitand what type ofpurchaseitis…

  14. Whyweboughtwhatwe had bought? • Types • Extensive(buyeris not decided in advance, activelysearchesforinformation, usesvarioussourcesinc.advertisements) • Usually more expensiveproducts (cars, TV) • Impulsive (reactivebehaviour, reasonablearguments do not play any role) – cheaperproducts (icecream, Tshirt) – • Limited – whenwebuyproduct/brand, we do not know, but we base ourdecisionmaking on generalexperience. Wemayfor ex. buy MP4 and we do not know the brand but wefollow the principle „the more expensive the better) – otheraspectmightbeenvironmentalfriendliness… • Habitual– webuy the products as usual(food, tabacco). In some case itmaybe the purchaseoffavouritebrand (loyalty). Usuallythereis not much ofdecisionmaking, itis a habitualbehaviour.

  15. TYPES OF PURCHASE RELATED DECISION MAKING • Decisions to buy • Decision not to buy • Moralrestraints • Does not like the product (becauseof the wayofcommunication)

  16. OVERVIEW OF DECISION MAKING WHEN PURCHASING FOOD • Featuresofbuyer: • Biological and physical • Psychological • Social and economic • Cultural and religious No purchase No re-purchase Firstimpression • Externalfeaturesof the product. • Brand • Packaging • Price • Quality Badexperience Firstpurchase Use ofproduct • Internalfeaturesofproducts: • Look • Aroma • Taste • Surface Goodexperience Repeatedpurchase

  17. New discoveriesof brain – impactofemotions Implicitor explicit decisionmaking? Unconsciousimpact the conscious (and not vice versa) Priming The more stronger are the positive emotionsmediated by products the more „precious“ the product,brandorserviceisforour brain… the more is the customerready and willing to payforit ..

  18. New discoveriesof brain – impactofemotions The informationweget are evaluated in ourlimbicsystem. The resultshave the formof „good/bad, pleasant/unpleasant, useful/unuseful). Thismeansthatour brain decidesbetween negative and positive. Thisdecisionisbased on emotionalprocessesgoing on in ourlimbingsystem. Iflimbic systém does not arrive to the unambiguousresults, the informationistranfered to the drawer „unimportant“ – boringfor brain. Thispieceofinformationiserased. So – only the informationwith „emotional relevance“ can enter our brain (positive and negative). These emotionalevaluativeprograms are controled by programs in unconscious part ofour mind (we are not awareofthem, but theystillcontrolourbehaviour).

  19. New discoveriesof brain – impactofemotions Limbicsystem The limbic systemis a complex set of brain structures that lies on both sides of the thalamus, right under the cerebrum. The limbic system supports a variety of functions, including emotion, behavior, motivation, long-term memory, and olfaction. It appears to be primarily responsible for emotional life, and it has a great deal to do with the formation of memories.

  20. New discoveriesof brain – impactofemotions Twolevelsofdecisionmaking Data, numbers, motives, experience, facts 1st level (30 %) Unconsciousprogramsproven as functionalduringevolutionthatcontrolourbehaviour 2nd level (70 %)

  21. New discoveriesof brain – impactofemotions Example: phoneoperatorselection 52 % ofusers do not monitor the pricesofownoperator 16 % ofusers monitor pricesofcompetition Motherbird syndrom - detailedselectionof place fornest, thenitstaysthereeven in danger

  22. Place ofpurchase • Place ofpurchase – set up to evoke positive emotionsstimulatingus to buy (to stimulate, wehave to knowwhatmotivates the customer, what are theirvalues and needs). • Place ofsale – „the only place wherecertainformsofadvertisingiswellcome • Place ofpurchase – meetsotherneeds (socialcontact, ownself – status, desire… • Merchandising • method to ensurethat the rightgoodsisat the right place at the righttime and at the rightprice • Impact the behaviouofcustomers (itis a reaction to certainsituation) • Factors: • the totaltimewespentat the shelf • The arrangement ofproducts on the shelf • Unstructuredoffer

  23. Merchandising and itsimpact on purchasebehaviour • Globalperceptionofproducts (periphery) - 6 meters (cathegoryofproducts) • Globalperceptionofbrands : 3 ms (individualproducts, brands) • Precise vision ofbrands: 1 meter ( info on products) • Manipulationwithproducts: up to 1 meter (touchproducts– important, whenwetouch, weown) • Smell

  24. Merchandising and itsimpact on purchasebehaviour • Photo – wherepeoplelook • (63)

  25. Merchandising and itsimpact on purchasebehaviour • BEST POSITION • Eyelevel – optimum to attract the attention • POS – customersare not attract, do not perceivethem, bestcommunication place: body ofassistant and place around • Floor and high levelcommunication - primaryoutoffieldof vision (communicationtherefore has to standout) • LCD pannels: onlyhalfofconsumerslookat, spent 1,47 % oftotaltime • Paper/plastic POS – has to beplaced to cash line

  26. CONDITIONS • Openinghours • Width and depthof sortiment • Cleanliness • Qualityofproduct • Qualityofservice • Qualityofstaff • Accessibility • Design ofstore – colours, lighting, layout • Music in store (increasedamountoftimespent) – studies (69)

  27. ONLINE CUSTOMERS • Internet – changeofinteractionbetwenconsumers and theirinteractinwithcompanies • New model of marketing communication – hypermediaenvironmentenablepeople to act, interact and createtheirownenvironment • Virtualcommunities – groups the online interactionofwhichisbased on commonknowlegeofcertainconsumptionactivity (e-mail sent to Barbiefans…) • 4 typesofvirtualcommunities (such as discussionforum, web page) • Tourists (no sociallinks to the group, superficial/temporaryinterest in consumptionactivity) • Minglers ( enter the group, strong relations, but no interest in consumptionactivities) • Enthuziasts (interested, excited, but lowersociallinks to group) • Insiders – strongpersonal relations to activitity and group • Impactofsocial media – the contentis co-created and shared by users • Social media – no purchase, but influence on decisionmaking

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