Get documents about "CONSUMER AND BUSINESS BUYING BEHAVIOR
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Consumer and Business Buying
Behavior
1
Consumer Buying Behavior
Consumer Buying Behavior refers to the
buying behavior of final consumers -
individuals & households who buy goods
and services for personal consumption.
All these consumers make up the
consumer market.
The central question for marketers is:
“How do consumers respond to various
marketing efforts the company might use?”
2
Model of Buyer Behavior
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli
Marketing Buyer Characteristics Product Choice
Product Buyer Decision Process Brand Choice
Price Dealer Choice
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural
3
Factors Influencing
Consumer Behavior
Cultural
Social
Personal
Age and Psycho-
Culture Reference life-cycle logical
groups
Occupation Motivation
Economic Perception Buyer
Sub-
culture Family situation Learning
Lifestyle Beliefs and
Roles attitudes
Social Personality
and and
class status self-concept
4
Factors Affecting Consumer
Behavior: Culture
Culture is the Most Basic Cause of a Person's
Wants and Behavior.
Subculture
• Group of people with shared
value systems based on
common life experiences.
5
Factors Affecting Consumer
Behavior: Culture
Culture is the Set of Values, Perceptions, Wants &
Behavior Learned by a Member of Society from
Family.
Social Class
• Society’s relatively permanent
& ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.
6
Factors Affecting Consumer
Behavior: Social
Groups
•Membership
•Reference
Family (most important)
•Husband, wife, kids Social Factors
•Influencer, buyer, user
Family Buying Influence
Children can exert a
strong influence on
Roles and Status
family buying decisions.
Johnson & Johnson reminds
customer’s of its commitment
to the American Family.
What other companies use
children to influence
family buying decisions?
7
Click or pre ss spa cebar to return
Factors Affecting Consumer Behavior: Personal
Personal Influences
Personal Influences
Age and Life
Age and Life Economic
Economic Personality &
Personality &
Cycle Stage Occupation
Occupation Situation Self-Concept
Cycle Stage Situation Self-Concept
Lifestyle Identification
Lifestyle Identification
Activities
Activities Interests
Interests Opinions
Opinions
8
SRI Values and Lifestyles
(VALS)
Actualizers High Innovation
High Resources
Fulfilleds Achievers Experiencers
Believers Strivers Makers
Strugglers
Low Resources Low Innovation
9
Factors Affecting Consumer
Behavior: Psychological
Motivation
Psychological
Factors
Beliefs and Affecting Perception
Attitudes Buyers
Choices
Learning
10
Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
11
Types of Buying Decision
Behavior
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
brands
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands
12
Buyer Decision Process
Purchase
Decision
Evaluation Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition 13
Buyer Decision Process
Step 1. Need Recognition
Buyer
Recognizes Needs Arising
State Where the From:
Buyer’s Needs a
are Fulfilled and Problem Internal Stimuli –
the Buyer is or a
Need. Hunger
Satisfied.
External Stimuli-
Friends
14
The Buyer Decision Process
Step 2. Information Search
Personal Sources •Family, friends, neighbors
•Most effective source of
information
Commercial Sources •Advertising, salespeople
•Receives most information from
these sources
Public Sources •Mass Media
•Consumer-rating groups
•Handling the product
Experiential Sources •Examining the product
•Using the product
15
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
16
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of Others Situational
Factors
Purchase Decision
17
The Buyer Decision Process
Step 5. Postpurchase Behavior
Satisfied Customer!
Consumer’s
Cognitive Dissonance
Expectations of Product’s Performance.
Product’s Perceived
Performance.
Dissatisfied Customer
18
Stages in the Adoption
Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.
Evaluation: Consumer considers
trying new product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides
to make regular use of product.
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Adopter Categories
Percentage of Adopters
Early Majority Late Majority
Innovators
Early
34% 34% Laggards
Adopters
13.5% 16%
2.5% Time of Adoption
Early Late
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Influence of Product Characteristics
on Rate of Adoption
Communicability Relative Advantage
Can results be easily
Is the innovation
observed or described
to others? superior to existing
products?
Divisibility Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
21
Business Buying Behavior
Business market : organizations that
buy goods and services for use in the
production of other products and
services that are sold rented, or
supplied to others
Business buying process: the
decision making process by which
business buyers establish the need for
22
Characteristics of business
markets
Characters Characteristics of business markets
Marketing •Business markets contain fewer but larger buyers
structure and •Business customers are more geographically
demand concentrated
•Business buyer demand is derived from final consumer
demand
•Demand is more inelastic
Nature of the •Business purchases involve more buyers
buying unit •Business buying involves a more professional effort
Types of decisions •Business buyers usually face more complex buying
and decision decision
process •The business buying process is more formalized
•Buyers and sellers work more closely together and
work on long run relationships
23
Model of business
buyer behavior
The The buying Buyer
Environme organization Respons
The Buying Product /service
nt
Marketing Other Center echoice
stimuli stimuli
Supplier
PET Buying
Decision Order quantities
Cultural
Competitive Process
Delivery times
Product
Price Service terms
Place
Promotion
Payment
Organizational influences
24
Major types of buying situations
Types Explanation
Straight rebuy Buyer routinely reorders something without modifications
Modified rebuy Buyer wants to modify product specifications (price, terms)
New task Buyer purchases a product or service for the first time
Systems buying Buying a packaged solution to a problem from a single seller
25
Participants in the Business
buying process
Participants
Buying center The decision making unit of a buying organization
Users Members of org who will use the product/services
Influencers Technical personnel are important influencers , define
specifications
Deciders Have formal/informal power to select or approve the final
supplier
Gatekeepers Control the flow of information to others , technical persons,
secretary, purchasing agents
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Major influences on business
buyers
Environmental Organizational
Economic Interpersonal
Developments Objectives Individual
Supply Policies Authority Age
conditions Education
Procedures Status Job
Technological responsibility Buyer
change Organizational Empathy Personality
structure Risk Attitudes s
Competitive Persuasiveness
developments Systems
Culture
27
The business buying process
Problem Recognition Someone in the company finds a problem that can be
met by acquiring a good/service
General need Stage in which company describes general
description characteristics and quantity of a needed item
Product Stage of BP, buying org decides or specifies best
specifications technical product characteristics for a needed item
Supplier search Buyer tries to find the best vendor
Proposal solicitations Buyers invite qualified suppliers to submit proposal
Supplier selection Buyer review proposal and select a supplier or suppliers
Order routine Final order , listing the technical specifications
specifications (quantity, delivery, expected time, return policies, and
warranties
Performance review Buyer rates its satisfaction with suppliers (continue,
modify and drop)
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