5. consumer and business buyer behavior

8/20/2019 5. Consumer and Business Buyer Behavior

1/35

5-1

5-1

Consumer

and BusinessBuyer Behavior


2/35

5-2

5-2

Consumer Buying Behavior

Consumer Buying Behavior

•

Consumer Buying BehaviorConsumer Buying Behavior refers to thebuying behavior of final consumers-individuals & households who buy goodsand services for personal consumption.

• The central uestion for mar!eters is"

##$ow do consumers respond to various$ow do consumers respond to variousmar!eting efforts the company might use%mar!eting efforts the company might use%


3/35

5-'

5-'

Model of Buyer Behavior

Model of Buyer Behavior

(ar!eting and)ther *timuli


Buyer+s Blac! Bo,

Buyer+s Blac! Bo,

Buyer+s esponse

Buyer+s esponse

roduct

rice

lace

romotion

/conomic

Technological

olitical

Cultural

Buyer

Characteristics

Buying

0ecisionrocess

roduct Choice

Brand Choice

0ealer Choice

urchaseTiming

urchasemount


4/35

5-

5-

Factors Influencing

Consumer Behavior

Factors Influencing

Consumer Behavior

Culture

*ub-culture

*ocialclass

*ocial

eferencegroups

3amily

olesand

status

ersonal

ge andlife-cycle

)ccupation

/conomicsituation

4ifestyle

ersonalityand

self-concept

sycho-logical(otivation

erception

4earning

Beliefs and

attitudes

Buyer

Cultural


5/35

5-55-5Factors Affecting Consumer Behavior:

Culture

Factors Affecting Consumer Behavior:

Culture

*ocial Class

• *ociety+s relatively permanent &ordered divisions whosemembers share similar valuesinterests and behaviors.

• (easured by" )ccupation6ncome /ducation 7ealth and)ther 8ariables.

*ocial Class

• *ociety+s relatively permanent &ordered divisions whosemembers share similar valuesinterests and behaviors.

• (easured by" )ccupation6ncome /ducation 7ealth and)ther 8ariables.

Culture• (ost basic cause of a person9s wants and behavior.

• 8alues erceptions 7ants & Behavior

Culture• (ost basic cause of a person9s wants and behavior.

• 8alues erceptions 7ants & Behavior

*ubculture

• :roups of people with sharedvalue systems based oncommon life e,periences.

• $ispanic Consumers

• frican merican Consumers

• sian merican Consumers

• (ature Consumers

*ubculture

• :roups of people with sharedvalue systems based oncommon life e,periences.

•

$ispanic Consumers• frican merican Consumers

• sian merican Consumers

• (ature Consumers


6/35

5-;5-;

:roups•(embership•eference

:roups•(embership•eference


Social


Social

3amily•$usband wife !ids•6nfluencer buyer user

3amily•$usband wife !ids•6nfluencer buyer user

oles and *tatusoles and *tatus

*ocial 3actors*ocial 3actors


7/35

5-


8/35

5-=5-=Factors Affecting Consumer Behavior:

Psychological


Psychological

sychological 3actors

(otivation(otivation

erceptionerception

4earning4earning

Beliefs andttitudes

Beliefs andttitudes


9/35

5->5->Maslow’s Hierarchy of eedsMaslow’s Hierarchy of eeds

/steem ?eeds@self-esteem statusA

*ocial ?eeds

@sense of belonging loveA

*afety ?eeds@security protectionA

hysiological ?eeds

@hunger thirstA

*elf

ctualiation@*elf-developmentA


10/35

5-15-1

?eed ecognition?eed ecognition

6nformation *earch6nformation *earch

/valuation of lternatives/valuation of lternatives

urchase 0ecisionurchase 0ecision

ost-purchase Behavior ost-purchase Behavior

!he Buyer "ecision Process!he Buyer "ecision Process

5 11


11/35

5-115-11!he Buyer "ecision ProcessSte# $% eed &ecognition

!he Buyer "ecision ProcessSte# $% eed &ecognition

/,ternal *timuli

• T8 advertising• (againe ad• adio slogan•*timuli in the environment

/,ternal *timuli

• T8 advertising• (againe ad• adio slogan•*timuli in the environment

6nternal *timuli

• $unger • Thirst• person+s normal needs

6nternal *timuli

• $unger • Thirst• person+s normal needs

?eed ecognitionBuyer ecognies a roblem or ?eed

?eed ecognitionBuyer ecognies a roblem or ?eed

5 12

!h B " i i P


12/35

5-125-12!he Buyer "ecision ProcessSte# '% Information Search

!he Buyer "ecision ProcessSte# '% Information Search

•3amily friends neighbors•(ost effective source of information

•dvertising salespeople•eceives most information from these sources

•(ass (edia•Consumer-rating groups

•$andling the product•/,amining the product•Dsing the product

ersonal *ourcesersonal *ources

Commercial *ourcesCommercial *ources

ublic *ourcesublic *ources

/,periential *ources/,periential *ources

5 1'


13/35

5-1'5-1'

!he Buyer "ecision ProcessSte# (% )valuation of Alternatives

!he Buyer "ecision ProcessSte# (% )valuation of Alternatives

Consumer (ay Dse CarefulCalculations & 4ogical Thin!ing

Consumer (ay Dse Careful

Calculations & 4ogical Thin!ing

Consumers (ay Buy on 6mpulse andely on 6ntuition

Consumers (ay Buy on 6mpulse andely on 6ntuition

Consumers (ay (a!e Buying 0ecisionson Their )wn.

Consumers (ay (a!e Buying 0ecisionson Their )wn.

Consumers (ay (a!e Buying 0ecisions)nly fter Consulting )thers%

Consumers (ay (a!e Buying 0ecisions)nly fter Consulting )thers%

(ar!eters (ust *tudy Buyers to 3ind )ut $owThey /valuate Brand lternatives

5 1

!h B " i i P


14/35

5-15-1!he Buyer "ecision ProcessSte# *% Purchase "ecision

!he Buyer "ecision ProcessSte# *% Purchase "ecision

urchase 6ntention0esire to buy the most preferred brand

urchase 6ntention0esire to buy the most preferred brand

urchase 0ecisionurchase 0ecision

ttitudes of

)thers

Dne,pected

*ituational 3actors

1

5-15

!h B " i i P


15/35

5-155-15!he Buyer "ecision ProcessSte# +% Post,#urchase Behavior

!he Buyer "ecision ProcessSte# +% Post,#urchase Behavior

Consumer+s /,pectations of

roduct+s erformance

Consumer+s /,pectations of

roduct+s erformance

0issatisfied Customer 0issatisfied Customer *atisfied CustomerE*atisfied CustomerE

roduct+s erceived erformanceroduct+s erceived erformance

Cognitive 0issonanceCognitive 0issonance

5 1;

5-1;

St i th Ad ti P

Stages in the Ado#tion Process


16/35

5-1;5-1;Stages in the Ado#tion ProcessStages in the Ado#tion Process

warenesswareness

6nterest6nterest

/valuation/valuation

TrialTrial

doptiondoption

5 1<

5-1<

Ad t C t i


17/35

5-1


18/35

5-1=5 1=Influence of Product Characteristics

on &ate of Ado#tion

Influence of Product Characteristics

on &ate of Ado#tion

0ivisibilityCan the innovation

be used on atrial basis%

Compatibility0oes the innovation

fit the values ande,perience of the

target mar!et%

Comple,ity6s the innovation

difficult tounderstand or use%

elative dvantage6s the innovation superior

to e,isting products%

CommunicabilityCan results be easily

observed or describedto others%

roductCharacteristics

roductCharacteristics

5 1>

5-1>

-h t i B i M . t/

-hat is a Business Mar.et/


19/35

5-1>-hat is a Business Mar.et/ -hat is a Business Mar.et/

•

Business Buyer BehaviorBusiness Buyer Behavior refers to the buyingbehavior of all the organiations that buygoods and services for use in the productionof other products and services that are sold

rented or supplied to others.

• The business mar!et is huge and involvesmuch high value transactions and items than

do consumer mar!ets.

5-2

5-2

Ch t i ti f B i M . t

Characteristics of Business Mar.ets


20/35

5-2

Types of 0ecisions & the0ecision rocess

Types of 0ecisions & the0ecision rocess

(ar!et *tructure and 0emand(ar!et *tructure and 0emand

•

3ewer larger buyers• :eographically concentrated• 0emand derived from consumers• 3luctuating demand

• 3ewer larger buyers• :eographically concentrated• 0emand derived from consumers• 3luctuating demand

?ature of the Buying Dnit?ature of the Buying Dnit

• (ore buyers• (ore professional purchasing effort

• (ore buyers• (ore professional purchasing effort

• (ore comple, decisions• rocess is more formalied• Buyer and seller are more

dependent on each other • Build close long-term relationships with customers

• (ore comple, decisions• rocess is more formalied• Buyer and seller are more

dependent on each other • Build close long-term relationships with customers

Characteristics of Business Mar.etsCharacteristics of Business Mar.ets

5-21

5-21

Model of B siness B er Beha ior

Model of Business Buyer Behavior


21/35

5 21

The Buying )rganiationThe Buying )rganiation

Model of Business Buyer Behavior Model of Business Buyer Behavior



Buyer+s esponseBuyer+s esponse

roduct

rice

lace

romotion

/conomic

Technological

olitical

Cultural

6nterpersonal

and 6ndividual6nfluences

)rganiational

6nfluences

roduct or *erviceChoice

*upplier Choice

)rder Huantities

0elivery Termsand Times

*ervice Terms

ayment

The Buying Center

Buying 0ecisionrocess

5-22

5-22


22/35

5 22

0rgani1ational Buying

0rgani1ational 2uying is"

#the decision-ma!ing process by

which formal organiationsestablish the need for purchasedproducts and services andidentify evaluate and choose

among alternative brands andsuppliers.

5-2'

5-2'


23/35

5 '


The Business (ar!et 6ncludes 3or-rofitCompanies and Two *pecialied :roups"

– The institutional mar!et*chools hospitals prisons etc. with captive

audiencesCost and uality standards drive purchases

– The government mar!et

Bidding process awards contracts

5-2

5-2

Business Buying Situations

Business Buying Situations


24/35

Business Buying SituationsBusiness Buying Situations

*traight e-buy*traight e-buy

?ew Tas! Buying?ew Tas! Buying

(odified e-buy(odified e-buy

6 nv ol v e d 0 e ci si on( a! i n g

5-25

5-25


25/35


Buying *ituations

Straight re2uy

Modified re2uy

ew tas.

outine reorders

from approved

vendor list

4ow involvement

minimal time

commitment

)3am#le: copierpaper

5-2;

5-2;


26/35


Buying *ituations

Straight re2uy

Modified re2uy

ew tas.

*pecifications pricesdelivery terms orother aspects reuire

modification (oderate level of

involvement and timecommitment

)3am#le: des!topcomputers

5-2<

5-2


27/35


Buying *ituations

Straight re2uy

Modified re2uy

ew tas.

urchasing a productor service for the first time

$igh level ofinvolvement and timecommitmentI multipleinfluences

)3am#le: selecting aweb site design firm orconsultant

5-2=

5-2=

Partici#ants in the Business Buying



28/35


Process: !he Buying Center


Process: !he Buying Center

Buying Center Buying Center

Dsers:ate!eepers

Buyers 0eciders

6nfluencers

5-2>

5-2>

Ma4or Influences on Business



29/35


Buyer Behavior


Buyer Behavior

/nvironmental)conomic5 !echnological5 Political5 Com#etitive

/nvironmental)conomic5 !echnological5 Political5 Com#etitive

)rganiational024ectives5 Policies5 Procedures5

Structure5 6 Systems

)rganiational024ectives5 Policies5 Procedures5

Structure5 6 Systems

6nterpersonal Authority5 Status5 )m#athy 6

Persuasiveness

6nterpersonal Authority5 Status5 )m#athy 6

Persuasiveness

6ndividual Age5 )ducation5 7o2 Position5 Personality 6

&is. Attitudes

6ndividual Age5 )ducation5 7o2 Position5 Personality 6

&is. Attitudes

BuyersBuyers

5-'

5-'


30/35

Influences on Business Buyers

(aFor 6nfluences

)nvironmental

0rgani1ational

Inter#ersonal

Individual

0emand level

/conomic outloo!

6nterest rates

Technological change oliticsJregulations

Competition

Concerns for socialresponsibility

5-'1

5-'1


31/35


(aFor 6nfluences

)nvironmental

0rgani1ational

Inter#ersonal

Individual

)bFectives

olicies

rocedures

)rganiational

structures

*ystems

5-'2

5-'2


32/35


(aFor 6nfluences

)nvironmental

0rgani1ational

Inter#ersonal

Individual

6nterests

uthority

*tatus

/mpathy

ersuasiveness

5-''

5-''


33/35


(aFor 6nfluences

)nvironmental

0rgani1ational

Inter#ersonal

Individual

ge

6ncome

/ducation Kob position

ersonality

is! attitudes

Culture

5-'

5-'

Stages of the Business



34/35


Buying Process

gBuying Process

roblem ecognitionroblem ecognition

:eneral ?eed 0escription:eneral ?eed 0escription

roduct *pecificationroduct *pecification

*upplier *earch

*upplier *earch

roposal *olicitationroposal *olicitation

*upplier *election*upplier *election

)rder outine *pecification)rder outine *pecification

erformance eviewerformance eview

5-'5

5-'5

&est Sto#:

&est Sto#:


35/35

&est Sto#:

&eviewing

the

Conce#ts

#

&eviewing

the

Conce#ts• Dnderstand the consumer mar!et and the maFor

factors that influence consumer buyer behavior.

•

6dentify and discuss the stages in the buyer decisionprocess.

• 0escribe the adoption and diffusion process for newproducts.

• 0efine the business mar!et and identify the maForfactors that influence business buyer behavior.

• 4ist and define the steps in the business buyingdecision process.

5. consumer and business buyer behavior

Documents