2. Types of Buying Decisions
Extended Problem Solving
High financial or social risk
Limited Problem Solving
Some prior Buying Experience
Habitual Decision Making
,Store Brand Loyalty
3. Extended Problem Solving
In this process customers spend a lot of time
and effort evaluating alternatives and
researching the desired product
4. Customers tend to engage in extended problem solving when
.a purchase involves a lot of risk or uncertainty
:Types of Risks Include
•
Financial Risks
•
Physical Risks
•
Social Risks
5. Retailers can assist consumers in
:Extended Problem solving by
•
Providing a lot of information
•
Having helpful and informative salespeople
•
-Having informational in store displays
•
Having salespeople demonstrate features and answer questions
Retailers can also reduce risks by:
•
Offering a money back guarantee
•
Offering easy return of merchandise
6. Limited Problem Solving
In this process consumers spend a moderate
amount of time and effort analyzing
,alternatives but also rely on their prior
experience with the product or service
7. Retailers can assist consumers in
:Limited Problem Solving by
Providing a positive experience
–
Make sure customer is satisfied
–
Provide good service
–
Have a large selection of quality items
–
Offer rewards for loyal customers
–
Have convenient locations
8. Habitual Decision Making
When the product is not important to the
customer and they make the purchase with
little or no effort the customer is
performing Habitual Decision Making
9. Habitual Decision Making usually involves customer loyalty
.to a Store or Brand
Brand Loyalty
•
Customer is committed to a specific brand
•
Will shop at a different retailer to get specific brand
•
Reluctant to try a different brand
Store Loyalty
Customer habitually visits the same store
Reluctant to try a different store
11. How Family Influences the Buying
Decision
•
Purchases are for the entire family
•
All family members have opinions about products
•
Retailers try to satisfy needs of all family members
–
: ,Example playrooms at IKEA books and games provided at Hyatt
, 'Hotels Seating areas with TV s in malls
12. Reference Groups
A reference group is one or more people whom a person uses
, ,as a basis of comparison for beliefs feelings and behaviors
:A reference group can affect the buying process by
•
( )Offering information directly and indirectly
•
-Enhancing a consumers self image
Retailers often try to reach store advocates that are part of reference groups to
.encourage consumers to frequent their store
13. Culture
, , ,Culture is the meaning beliefs morals and values shared by
.most members of a society
:Two commons types of cultures are
–Individualism consumers tend to rely on their own inner standards and beliefs
–Collectivism consumers tend to shop in groups and put more value on products used in a
public manner
