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The degree to which a company is able to deliver a desirable customer experience will largely determine its success. Schmitt (1999)
Behaviour factors
Taste/preference Attitude to cooking Budget concerns Special occasions Time/convenience Health concerns Religion/beliefs Mobility, etc
Grocery selection
Supplier factors
Store design / Range / Pack size / Packaging / Storage qualities / Brands / Price / Promotion / Advertising, etc.
Customers
WHAT are the choice criteria
2. Information Search
to aid decision making Internal: retrieving from memory External: when internal memory insufficient
Need to assess risk & level of involvement ~ extent of search e.g., Monetary, Social - kids trainers for school Marketers facilitate information research on eg. packaging PR price promotions advertising store placement
Decision making rules non compensatory: eliminate brand if has low performance/lacks a particular feature
compensatory: offsetting weaknesses against strengths to arrive an overall opinion
4. Purchase processes
Experiences at point of sale / channel
Shopping motives / behaviour reasons/motives for using channel maximising chance of impulse purchase
Consumers aim to maximise satisfaction and convince themselves theyve made the right choice Ads reinforcing purchase decision After sales service(s) Replacement process
1. Hassle free shopping Convenience 2. Getting the right item working women 3. Transaction efficiency 4. Wide range Price/recreation full time mothers 5. Best buy 6. Recreational experience 7. Incentive/added value
Greenland and McGoldrick 1990
ORGANISATIONAL BUYING
Key characteristics: derived demand Decision Making Unit > complexity risks / more rational .. Strict criteria negotiation economies of scale/reciprocal buying cooperation on product development
Negotiating best value Product testing/approval Quality assurance Making up/deciding order
55
Production
80 75
Purchasing
50 0 20 40 60 % Yes 80 100
Base: 100
Implications
Identify key individuals involved Information needs/requirements Design most effective product/service mix
Overview
Necessity to understand customer behaviour Appreciate stages in buying decisions Understand major factors influencing consumer/organisational buying behaviour
Marketers who understand buyer behaviour: design more effective marketing programmes give increased customer satisfaction