Understanding Buyer Behavior

Read this chapter. The terms "customer" and "consumer" are often mistakenly used interchangeably. The distinction is blurry because different organizations, academics, and governments have varying definitions for both of them. One easy way of distinguishing between the two is to think of the consumer as a potential customer to a firm and the customer as someone that already consumes the goods a specific firm produces. For example, if you regularly purchase shoes from Footlocker, you are a Footlocker customer. But if your friend does not shop at Footlocker, then Footlocker considers him a consumer: a potential customer. Firms often target consumers and existing customers differently.

Buyer Behavior as Problem Solving

Postpurchase Behavior

All the behavior determinants and the steps of the buying process up to this point are operative before or during the time a purchase is made. However, a consumer's feelings and evaluations after the sale are also significant to a marketer because they can influence repeat sales and also influence what the customer tells others about the product or brand.

Keeping the customer happy is what marketing is all about. Consumers typically experience some postpurchase anxiety after all but the most routine and inexpensive purchases. This anxiety reflects a phenomenon called cognitive dissonance. According to this theory, people strive for consistency among their cognitions (knowledge, attitudes, beliefs, values). When there are inconsistencies, dissonance exists, which people will try to eliminate. In some cases, the consumer makes the decision to buy a particular brand already aware of dissonant elements. In other instances, dissonance is aroused by disturbing information that is received after the purchase. The marketer may take specific steps to reduce post-purchase dissonance. Advertising that stresses the many positive attributes or confirms the popularity of the product can be helpful. Providing personalized reinforcement has proven effective with big-ticket items such as automobiles and major appliances. Salespeople in these areas may send cards or may even make personal calls in order to reassure customers about their purchase.


MARKETING CAPSULE
1. Buyer behavior takes place in an exchange setting and addresses two questions:
a. How do potential buyers; go about making purchase decisions?
b. What factors influence their decision process and in what way?

2. Buyer behavior is a problem-solving process and entail the following decisions:
a. Need identification
1. Determined by the discrepancy between what we have and what we want
2. Determined by the relative importance of the problem


b. Information search and processing is a five-step sequence:
1. Exposure
2. Attention
3. Reception
4. Retention
5. Retrieval and application

c. Identification and evaluation of alternatives

d. Product/service/outlet selection

e. The purchase decision

f. Postpurchase behavior