Lecture 1

• Buyer behaviour


  • Why we buy?
  • What does buyer behaviour look like?
  • What does the buying decision process look like?

  
• Buying Decision Process


  1. Need Recognition

  2. Information

  3. Alternative Evaluation

  4. Purchase Decision

  5. Post Purchase

  
• Information


  • Internal Search: memory/knowledge of past experiences (Nike, Aasics, Adidas, Salomon, Saucony)
  • External Search: Runner friends, salespeople in retail stores, consumer reports (unbiased), running magazines (biased), company websites, running blogs, professional runner endorsements, user generated content by other runners
• Information


  • Perceived risk and consumer involvement
  • Complexity of the purchase
  • Availability and credibility of the information sources
• Alternative Evaluation


  • Universal Set: ALL possible choices in a category
  • Retrieved Set: Those brought from memory (Nike, Adidas, Saucony, Salomon, Aasics, Hoka)
  • Evoked Set: Alternatives considered in making a purchase decision (Aasics, HokaOneOne, Saucony)
  • THREE ALTERNATIVES CONSIDERED
• Purchase Decision


  • Purchase intention versus the purchase decision
  • No availability in UAE (physical location)
  • Online purchases (availability/price)
  • Product knowledge and service advice
  • Exchange policy

  
• Key takeaways


  • A model of buyer behaviour
  • The buying decision process (5 stages)
  • An example: running shoes