Promotion
Advertising
Buyer Behavior
Dominant Family Purchase
Demographic Factors
The Consumer Buying Process
Maslow’s Hierarchy of Needs
Socioeconomic Classification Scheme
Types of Buyer Behavior
The Buying Decision Process
Organizational Buyer Behavior
Dominant Family Purchase
Dominant
Product Typical Decision
Decision Maker
Women’s casual clothing Wife Price, style
Vacations Syncratic (both) Whether to go, where
Men’s casual clothing Husband Type, price, style
Life insurance Husband Company, coverage
Homeowner’s insurance Husband Company, coverage
Household appliances Wife Style, brand, price
Demographic Factors
Age
Stage in family life cycle
Occupation
Economic circumstances
Lifestyle
Social influence variables
Family background
Reference groups
Roles and status
The Consumer Buying Process
Marketing Inputs Purchase Decisions
Product Product Choice
Price Consumer Location Choice
Promotion Brand Choice
Place Other Choices
Psychological Inputs
Culture
Attitude
Learning
Perception
Maslow’s Hierarchy of Needs
Self
Actualisation
Esteem
Social
Safety
Physiological
Socioeconomic Classification Scheme
Occupation of head % of
Social status
of household population
Upper middle Higher managerial, administrative or 3
professional
Middle Intermediate managerial, 14
administrative or professional
Lower middle Supervisors or clerical, junior 27
managerial, administrative or
professional
Skilled working Skilled manual workers 25
Working Semi-skilled and unskilled workers 19
Those at lowest Pensioners, widows, casual or lower- 12
levels of subsistence grade workers
Types of Buyer Behavior
Complex buyer behavior
Intel Pentium Processor
Dissonance-reducing behavior
brand reduces after-sales discomfort
Habitual buying behavior
salt – little difference
Variety seeking behavior - significant brand
differences
laundry detergent
The Buying Decision Process
Recognition of the need
a new PC
Choice of involvement level
time and effort justified – two week ends
Identification of alternatives
Dell vs Gateway
Evaluation of alternatives
price
customer service
software support
The Buying Decision Process
Decision – choice made
Epsom printer
Action
Buy Epsom printer from Target
Post-purchase behavior
use
breakdowns
Organizational Buyer Behavior
“The decision-making process by which
formal organizations establish the need for
purchased products and services, and
identify, evaluate, and choose among
alternative brands and suppliers”
Kotler and Armstrong
Characteristics of Organizational
Buyer Behavior
Organization purpose
Goodyear Tires
Derived demand
Follow cars, trucks, etc.
Concentrated purchasing
Stockholdings of rubber
Characteristics of Organizational
Buyer Behavior
Direct dealings
Large purchaser of basic rubber – no
intermediaries
Specialist activities
Learns about the product
Multiple purchase influences
DMU - Decision making Unit