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Lecture Consumer behaviour: Chapter 17 - Cathy Neal, Pascale Quester, Del Hawkins

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Like households, organisations make many buying decisions. This lecture will build on the previous discussion of consumer behaviour and apply the concepts to organisational buying. As with previous lectures, we will apply these concepts to enable us to analyse buying decisions and use this information to learn how marketers can develop improved marketing strategies.

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Buying Behaviour

• Similarities and differences between

consumer/household behaviour and the behaviour

of businesses

• Analysing business buying behaviour and

developing marketing strategies

• Types of purchase decisions by large and complex organisations, and approaches used

• Adapting consumer behaviour concepts to

understanding business buying behaviour

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Overall Model of Organisational Buying Behaviour

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Organisational Culture and Organisational Decisions

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– income distribution of employees

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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• In industrial markets, the most powerful type of

reference group is that of lead users

• Trade associations

• Financial analysts

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Lead Users

• Lead users are innovative organisations that derive

a great deal of their success from leading change

• As a result, their adoption of a new product,

service, technology, or manufacturing process is watched and emulated by the majority

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Role of Lead Users in Encouraging

Development and Adoption of Online Services

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Internal Factors Influencing

Organisational Culture:

Organisational Values

• Different values create different corporate cultures

– IBM versus Apple

 IBM is corporate, formal and takes itself seriously

 Apple is less formal, creative and promotes a more open organisational style

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Organisational Values that Influence

Organisational Culture

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Internal Factors Influencing

• Learning—organisations learn through their

experiences and perceptions

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Personal, Organisational and

Shared Values

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Perception

the critical activity that links individual consumers to group, situation, and marketer influences

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Motives and Emotions

• Firms have objectives for purchasing, and

therefore a rational approach to purchasing

• Can appeal to the emotions of the individuals

making the decision

• Develop a communication to ‘excite’ the buyers

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Learning

• Like individuals, organisations learn

• Seen as guidelines and policies for purchasing

• Can be cognitive or experiential

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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The Impact of Advertising on Sales

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Unlearning High-Involvement

Negative Experiences

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Types of Organisational Decisions and

High-/Low-Involvement Processes

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The Organisational Purchase

Process: Purchase Situation

– decision requires more

effort and includes more

people because of

modification to the

product, delivery, price or

terms and conditions

• New task

– first-time buy

– lots of individuals influencing and involved with decision-making process

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Organisational Decision Process

Problem recognition Information search Evaluation and selection Purchase and decision implementation

Usage Postpurchase evaluation

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Purchase and Postpurchase

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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Next Lecture…

Chapter 18:

Consumers and Society

Copyright 2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins

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