Tagged 'Perception'

How Buyer Perceived Risks (BPR) Affects Buyer Behavior and Purchase Decisions

Posted by Tony Zambito on November 29th, 2011 at 10:52 am

Image by IceSabre via Flickr
The notion that perceived risks influences purchasing behavior has been around for quite some time.  As we have seen an increase in the complexity of the buying process, we are seeing a correlating increase in Buyer Perceived Risks (BPR)© associated with purchase decisions.  Compounding perceived risks is the increase in choices as mentioned in my previous article as well as new social channels to explore.  This new mishmash of complexity, choices, and new channels causes a much higher degree of uncertainty on the part of buyers.
What does understanding choice have to do with Buyer Perceived Risks (BPR)©?  It comes down to two general areas:
Buyers are dealing with the uncertainty and the risks of making a bad choice
Buyers are dealing with the unknown consequences resulting from a bad choice
These two general areas of perceived risks are not necessarily new however the degree of impact has expanded significantly as a result of the convergence of the Internet and Social Technologies.

Variables that are affecting the degree of impact include speed, awareness, chance, and reputation.  Put more simply:
The impact of a bad choice is happening much faster, more people as well as organizations are aware when they happen, there are... Read more

Buyer Perceived Value (BPV) Scorecard: Qualifying and Quantifying Value

Posted by Tony Zambito on November 8th, 2011 at 10:12 am

Image by J. McPherskesen via Flickr
As a follow-up to the article Influence of Buyer Perceived Value (BPV) on Buyer Behaviors and Decisions, offered is a perspective on how to implement a scorecard approach.  The Buyer Perceived Value (BPV) Scorecard™ combines both a qualitative as well as a quantitative approach to understanding the influence of buyer values.  An important disclaimer here is that there have been many scorecard approaches for measuring customer value over the past two decades.  My point is not to endorse any particular one but to endorse the notion that values are rapidly changing and that buyer perceived value is critical to understanding buyer behavior.  The understanding of buyer behavior is the central focal point of Buyerology© and understanding Buyer Perceived Value (BPV)™ is one key aspect.
Before jumping into a quantitative approach, it is important to emphasize the need for reaching an understanding of Buyer Perceived Value (BPV) qualitatively.  Perceived values are changing rapidly and will continue to do so as new buyer behaviors are formed – changes driven by the introduction of new technologies and business models.  Multiple and varietal forms of qualitative methods help to provide a unique articulation of value criteria that buyers may formalize... Read more

Influence of Buyer Perceived Value (BPV) on Buyer Behavior and Decisions

Posted by Tony Zambito on November 7th, 2011 at 9:57 am

Image by Will Lion via Flickr
In my recent article, Buyerology: The New Science of Understanding Buyer Behavior, I introduced the concept of Buyerology and the need for a renewed focus on understanding buyer behavior in the Social Age.  A key component of understanding buyer behaviors and decisions is gaining a reality check on Buyer Perceived Values (BPV).  How well organizations; in relations to products, service, and brand; maps to Buyer Perceived Values will serve as the one of the primary influences that shapes buyer behaviors and purchase decisions.
Buyer behavior research, performed through qualitative means, can reveal many aspects of what comprises Buyer Perceived Values (BPV).  Buyer experience is now becoming one of the most important factors that contributes to and influences these values.  The convergence of the Internet and the Social Age, in fact, is introducing many new variables and factors that influence Buyer Perceived Values.  Some of the new variables include:
Buyer Experience: previous as well as in process buyer experience can have an enormous impact on how buyers perceive the value that organizations can bring to their challenges and environments.  This correlation is becoming stronger as more self-directed experiences by buyers evolve.
Engagement: I have written recently about social engagement... Read more