l1 understanding buyers behavior
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Understanding Buyers Behavior
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TYPES OF CONSUMERS
1: Personal Consumer
2 Organizational Consumer
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Factors Influencing
Consumer Behavior
Cultural Factors
Social Factors
Personal Factors
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What is Culture?
Culture is the fundamental determinant of a
persons wants and behaviors acquired
through socialization processes with family
and other key institutions.
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Subcultures
Nationalities
Religions
Racial groups
Geographic regions
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Social Classes
Upper uppers
Lower uppers
Upper middlesMiddle class
Working class
Upper lowersLower lowers
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Social Factors
Reference
groups
Socialroles
Statuses
Family
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Reference Groups
Membership groups
Primary groups
Secondary groups
Aspirational groups
Dissociative groups
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Provogue uses teenage icons as brand
ambassadors and a youth targeted
website to connect to its customers
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Roles and Status
What degree of status is
associated with various
occupational roles?
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Personal Factors
Age
Values
Life cycle
stage
Occupation
Personality
Self-
concept
Wealth
Lifestyle
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The Family Life Cycle
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Lifestyle Influences
Multi-tasking
Time-starved
Money-constrained
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Figure 6.1
Model of Consumer Behavior
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Key Psychological Processes
Motivation
MemoryLearning
Perception
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Copyright 2009 Dorling
Kindersley (India) Pvt. Ltd.
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Motivation
Freuds
Theory
Behavior
is guided by
subconscious
motivations
Maslows
Hierarchy
of Needs
Behavior
is driven by
the lowest,
unmet need
Herzbergs
Two-Factor
Theory
Behavior is
guided by
motivating
and hygiene
factors
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Copyright 2009 Dorling
Kindersley (India) Pvt. Ltd.
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Maslows Hierarchy of Needs
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Copyright 2009 Dorling
Kindersley (India) Pvt. Ltd.
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Herzbergs Two-Factor Theory
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Perception
Selective Attention
Subliminal Perception
Selective Retention
Selective Distortion
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Figure 6.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
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Sources of Information
Personal
ExperientialPublic
Commercial
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Figure 6.5 Successive Sets Involved in
Consumer Decision Making
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Stages between Evaluation of Alternatives and
Purchase
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Perceived Risk
Functional
Physical
Financial
Social
Psychological
Time
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Figure 6.7 How Customers Use and Dispose of
Products
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What is Organizational Buying?
Organizational buying refers to the
decision-making process by which formal
organizations establish the need for
purchased products and services, andidentify, evaluate, and choose among
alternative brands and suppliers.
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Characteristics of Business Markets
Fewer, larger buyers
Close supplier-customer
relationships
Professional purchasing
Many buying influences
Multiple sales calls
Derived demand
Inelastic demand
Fluctuating demand
Geographically
concentrated buyers
Direct purchasing
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Buying Situation
Straight rebuy
Modified rebuy
New task
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The Buying Center
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
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Of Concern to Business Marketers
Who are the major decision participants?
What decisions do they influence?
What is their level of influence? What evaluation criteria do they use?
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Stages in the Buying Process:
Buyphases Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order-routine specification
Performance review
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Factors Affecting
Buyer-Supplier Relationships
Availability of
alternatives
Supply market
dynamism
Complexity of
supply
Importance of
supply
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The End
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