Understanding Consumer Behaviors and Planned Buying Processes - Prof. Patricia J. Fisher, Study notes of Production and Operations Management

Download Understanding Consumer Behaviors and Planned Buying Processes - Prof. Patricia J. Fisher and more Study notes Production and Operations Management in PDF only on Docsity! Chapter Thirteen HE PLANNED BUYING ROCESS -_2.2 ff. GENERAL BUYING BEHAVIORS OF CONSUMERS Habit Buying  “Programmed” purchase decisions based on repeated past experiences- Ex: if you always buy scotch tape, you probably always will. You may also buy something that your parents always bought 13-2 CONSUMER PURCHASE DECISIONS Consumers make bad marketplace decisions for three reasons: 1. Lack of information. 2. Inability to process information. 3. Lack of time to gather or process information. Ex: her house and leaves 13-5 PLANNED BUYING FOR IMPORTANT PURCHASES Planned buying: A rational decision-making process based on marginal costs and benefits. When cost is high and potential payoff is great for the time you may spend. When product or service will be used often. 13-5 SEVEN STEPS IN DECISION-MAKING MODEL OF PLANNED BUYING Define the problem.  Ex. Choosing transportation. 13-6 Compare the choices. Gather information. Evaluate by establishing criteria and prioritizing them. Use a buying matrix.  Identify the pluses and minuses of each option. Comparison shop. Seven Steps in Decision Making Model of Planned Buying 13-9 Negotiate.  Room for negotiation depends on the profit margin for the item & supply and demand for it.  Bargaining or haggling. Seven Steps in Decision Making Model of Planned Buying 13-10 Select the best alternative.  Which product or service is best for you given your needs and wants? Seven Steps in Decision Making Model of Planned Buying 13-11 SOURCES OF BUYING INFORMATION  Consumer testing magazines  Consumer Reports  Products are purchased on the open market.  Accepts no advertising in magazine.  Tests and compares.  Rates items.  Classifies products as acceptable, conditionally acceptable, or not acceptable. 13-14 SOURCES OF BUYING INFORMATION Consumer-oriented magazines.  Kiplinger’s Personal Finance Magazine.  Consumer’s Digest.  Car and Driver.  Stereo Review.  P.C. World. 13-15 SOURCES OF BUYING INFORMATION  The Internet.  Corporate web sites.  Consumer informational websites. 13-15 ADVANTAGES OF ONLINE SHOPPING  Easy price comparisons  Product price  Shipping & handling  Restocking fees  Convenient  24/7  Location  Variety DRAWBACKS OF ONLINE SHOPPING  Tangibility  Only have picture  Limited contact with merchant  More personal information provided  Need to track purchases PAYMENT METHODS  Unsafe purchasing methods  Personal check, debit card not affiliated with a credit card company, money order, & wire transfer.  Safe purchasing methods include:  Debit card that is affiliated with a credit card company  Credit card NO YES