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

value, not controlImage 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 as well as how buyers are internalizing their own Social Engagement Index.  Evidence is building that how involved and how engaged buyers are is shaping the buyer’s perceived value of making a decision to enter into a relationship as well as make a purchase decision.

Knowledge: shared knowledge related to informative problem solving can help influence positively buyer’s perceived values.  This is an area of improvement for the evolving areas of content strategy and content marketing.  Just as social media fatigue may be setting in, I am beginning to see signs of content fatigue also.  Content creation for the sake of content, especially with dramatic self-promoting marketing flair, is now getting filtered by buyers.  The old adage that too much of good thing can actually hurt you can be true in this case.

Network: a new evolving factor is the growing influence of social networks that extends well beyond peer influence.  A new dynamic that associates peer recommendations with something we can refer to as network buzz.  It is proving to be a tricky formula.  A formula that needs to be organic as opposed to imposed upon.

These are just four new and evolving, of sure to be more variables, that influence Buyer Perceived Values.  Dramatically calling for the need for further buyer behavior research that can help organizations today understand why and how buyers are making decisions today.  This does not minimize nor excludes other conventional type variables such as:

Brand: a strong brand is also a strong leverage point in influencing Buyer Perceived Values (BPV)

Loyalty: the cumulative value of previous buyer experiences and relationships can translate into strong customer loyalty

Quality: no amount of new efforts in social business and content marketing can make up for poor quality and service.  Another old adage applies here: make sure your house is in order before you move on.

Risks:  let’s face it – changing products or services in a B2B market can turn into an agonizing experience for buyers.  Buyers have to see the risks of changing mitigated in order to make a switch.  The degree of risks involved has a direct influence on Buyer Perceived Value.

Price: competitive pricing will always remain a significant variable in determining a Buyer’s Perceived Value.  The positive or negative impact of other variables can influence the tolerance level on pricing and how it directly influences a Buyer’s Perceived Value.

What we do know is that the above mentioned variables or factors, both new and conventional, translate into Buyer Perceived Values which directly affect the buyer’s behavior and decision-making.  How buyers experience these variables or factors throughout the buying process not only will shape their internalized Buyer Perceived Values but also determine how long they choose to stay in the buying process specifically with one organization versus another.

Understanding Buyer Perceived Values requires qualitative research means and constant monitoring as we now live in a hyper-connected and social world.  Not only will values shift over time, but we are bound to witness new factors or variables that evolve and further change the buyer landscape.

One place senior executives can start thinking about Buyer Perceived Value (BPV) in general is by asking: do I have any idea what our buyer’s perceived values are?

 

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Buyerology: The New Science of Understanding Buyer Behavior

Behaviour 1Image by Taz etc.via Flickr

Over the course of the past two years, we’ve seen a marked shift in buyer behavior and buying choices.  So much so that the degree of uncertainty of why and how both individual buyers and organizational buyers make buying decisions has also markedly increased.  There is a direct correlation occurring whereby as buyers continue to increase their share of self-directing the buying decision without any direct interactions from sellers, the degree of uncertainty grows.  While quantitatively as well as statistically we have a sense of what buyers are doing, as survey reports by Baseone and DemandGen indicate, we still lack in-depth qualitative awareness on why and how certain buying choices are made.

This is awakening a renewed reality among business today that understanding shifts in buying behavior is becoming paramount to planning marketing and selling strategies that will succeed.  Buyer behavior understanding began to surface more prominently in the mid-1970’s but remained on the fringes of planning and strategies as product-centricity was entrenched in much of business as we knew it through the ‘80’s and ‘90’s.  During the past three decades we have seen a growth in customer and buyer-centric thinking however buyer behavior analysis remained somewhat a small component of marketing and sales thinking as well as planning.  Fast forward to the last five years and the explosive convergence of the Internet and the Social Age; we are seeing recognition that buyer behavior understanding is moving towards being the centerpiece linchpin of planning and strategy.  Companies today are attempting to make themselves relevant to buyers who are radically evolving their buying behaviors and have more buying choices than they ever dreamed of in just a few short years.  The relevancy mystery can only be solved by understanding buyer behaviors and the shifts in buying choices that are occurring.

We are witnessing another awakening as a result of new and rapidly evolving buyer behaviors; organizations today needing to approach marketing and selling interactions as more science and less art.  These monumental awakenings call for a new approach and concept I call BuyerologyBuyerology is a means to introduce more science into understanding, both quantitatively and qualitatively, buyer behaviors and buying choices.  The convergence of the Internet and the Social Age requires new approaches to tools that are used to reach in-depth understanding as well as to monitor rapid shifts in buyer behaviors.  Buyerology must offer approaches and tools that help to translate buyer behavior understanding and insights into meaningful strategies that accomplish the relevancy that remains elusive for many companies today.

My own shift in thinking about buyer behavior began with a series of articles on Social Buyerology.  The articles tapped into the recognition and movement towards more science and less art in the spheres of marketing and sales as well as in overall social strategy.  Reflecting back on ten years since originating buyer persona development, much of the analysis performed via buyer persona development was in essence about buyer behavior.  Recently, I have written about how buyer persona development must indeed undergo its own transformation at this juncture in modern business history.

This article marks a turning point for me personally and professionally.  I have been thinking about something – in fact a lot – Tom Peters use to bellow loudly in many of his presentations years ago – that if you’ve been doing the same thing or staying with the same company for ten years or more you’ve become institutionalized.  In similar ways, buyer personas as an idea has become institutionalized in various circles; defined rightly and wrongly, and indeed no longer can suffice on its own.  Adapting to the new social world and taking a leap of faith, I will be devoting the next twelve weeks to elaborating on the new science of understanding buyer behaviors I call Buyerology.  I will be sharing new approaches and tools that address the many challenges faced by organizations in marketing, sales, social business, and content strategy planning.

My hope is to accomplish two things.  First, to avoid becoming institutionalized as Tom Peters ingrained in me many years ago.  Whether he meant mentally or physically, I am not sure but it has felt like a few times, like many of us, I was losing my mind while I attempted to understand the many changes occurring!  The second is to make a contribution towards advancing buyer behavior understanding through the social science of Buyerology.

 

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