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Buying Behavior of Batteries

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Shilbe Lim

on 26 February 2013

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Transcript of Buying Behavior of Batteries

Decision Making Process FIVE ONE TWO THREE FOUR CREDITS 0 + - = 9 8 7 1 2 3 4 5 6 c PRIMARY RESEARCH Self-administered a survey
Via an Online portal (Qualtrics)
Focus placed on Undergraduates
Quota Sampling
Analyzed data using SPSS & Microsoft Exel SECONDARY RESEARCH Identify the features of Alkaline & Rechargeable Batteries
Uncover possible Critical Decision-Making Drivers behind consumer's purchase of each type of battery SIMILARITIES DONE BY:

Darrel Tan
Karina Aninditha
Petrina Tok
Sara Liang
Shilbe Lim
Wong Liang Lei THANKS TO: Our respondents
PROF ELISON Decision making process is the SAME for both alkaline & rechargeable battery users. SURVEY RESULTS 34 Alkaline battery users
30 Rechargeable battery users
Gender: No particular preference for one type over the other
Majority buy the same battery type for both AA and AAA batteries
Environmental Consciousness:
2.9/5 Alkaline battery users
3.4/5 Rechargeable battery users LIMITATIONS Study of Consumer Buying Behavior of Batteries What would make me switch from buying alkaline to rechargeable battery & vice versa? METHODOLOGY OF RESEARCH QUESTIONNAIRE DESIGN VS ALKALINE RECHARGEABLE In-store display (47%)
Family Members (38%)
Advertisements (35%) Greatest Influences Family Members (53%)
In-Store Display (50%)
Advertisements (40%) Articles
Forums VS Secondary Research Problems:
Occurs when answers of respondents differ from the potential answers of those who did not answer.
Biased reflection of answers by respondents, who have slightly different traits and attitudes than other potential respondents. On Hindsight, some questions which we failed to include in survey.. PRICE other factors present in both users: DURABILITY TOP FACTORS IN PURCHASE DECISION PRICE
IN-STORE PROMOTIONS! We usually buy just enough for what we need! should we still continue
to sell bulk in future? WHAT OUR SURVEYORS SAY: INSIGHTS The MORE Environmentally Conscious the user is, the greater the tendency to purchase rechargeable batteries. Rechargeable battery user have shown greater influence from family members. Family members probably inculcate sense of environmental consciousness in user. 88% of LOYAL BRAND users become loyal after trying out other brands. This is due to OPERANT conditioning. Although Alkaline & Rechargeable batteries have different features, users still place great importance in the same 4 factors when making purchase decision. Consumers behave in the same way PRICE,
for external information search None of the respondents knew the difference between the different product lines.
None bothered to find out what was most suitable for their use. Consumer's information search is LIMITED to internal search PERSONAL EXPERIENCES ADVERTISEMENTS Low-cost, Low-risk LOW INVOLVEMENT ROUTINE RESPONSE BEHAVIOR PURCHASE POST-PURCHASE CLASSICAL CONDITIONING Through passive learning i.e. repetition of CS-US pair Unconditioned Stimulus Conditioned Stimulus Unconditioned Response Conditioned Stimulus Conditioned Response ROUTINE RESPONSE BEHAVIOR Saves users the time spent looking for information
BUT Brands have less time to influence consumer decisions. OBSERVATIONAL LEARNING (MODELING) "I buy what I usually buy." vs 29.7% "I have a brand that I always go to." GREATEST INFLUENCE: FAMILY habitual users loyal users Cognitive Learning Theory 32.8% ALTER VS REINFORCE Switch to a different brand Become Loyal users TRIAL-AND-ERROR OPERANT CONDITIONING 32.4% "I switched brands because I wasn't satisfied the previous brand." alkaline users "But now I'm satisfied with the brand I'm using. That's why I stick with it. Continuous Positive Reinforcement Brand Loyalty (SAME GOES FOR RECHARGEABLE USERS) Deterrent: Switching costs incurred
PURCHASE OF CHARGER I think my brand's the best. FAMILY INFLUENCE/ADVERTISEMENTS play a SUBCONSCIOUS role in triggering such responses. DIFFERENCE Decision making drivers/
Factors that influence purchase To better ENGAGE users during their decision making process.. Users learn to MAXIMIZE UTILITY Increase AWARENESS about different product lines that provide different power for different types of needs. EVEN MORE POSITIVE
RESULTS increase LEVEL OF INVOLVEMENT Secondary Research Problems:
NON-RESPONSE BIAS Whether battery users decided to switch brands due to their prior experiences with other battery brands

**Did not open this question to other available options except to those who showed brand loyalty
-> Therefore may not have full results on other users who may / may not have tried previous brands, had a bad experience, and switched.
Respondents answer questions incorrectly, or in ways they think the questioner wants them to answer instead of according to their true beliefs.

Inaccurate reflection of people’s actual mindsets and attitudes Core Questions:
Preferences SECTION A Warm-up Questions SECTION B Scenario Questions
Test of Loyalty
Switching Factors SECTION C SECTION D Demographics:
Gender SPLIT-SECOND DETERMINANTS IN-STORE DISPLAY PACKAGING PROMOTION Advantages of awareness from agressive advertising is SHORT-LIVED. 62.5% Already have one brand in mind prior to purchase OF USERS EVALUATION
ALTERNATIVES Sorting of brands into EVOKED, INERT, INEPT SETS Branding In-store Display Packaging Price Desire to be Environmentally Friendly 1. Some alkaline users have begun to SHIFT THEIR POSITION to align with their values. 1. 2. 2. Rechargeable users tend to be more loyal & only purchase alkaline ONLY if there are no rechargeable batteries available. 70% Prefer rechargeable because: STRONGLY AGREE THAT IT IS REUSABLE & they LAST LONGER & CHEAPER IN LR Prefer ALKALINE because: PRICE CONVENIENCE of BUYING, & of USING MARKETER'S BRAIN Q&A ENERGY
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