buyerbehavior.stu

7/30/2019 Buyerbehavior.stu

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Buyer Behavior


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Model of Buyer Behavior

(Fig. 5.1)Marketing andOther Stimuli

MarketingProductPricePlacePromotion

OtherEconomicTechnologicalPoliticalCultural

Buyers Black Box

Buyer CharacteristicsBuyer Decision Process

Buyer Responses

Product ChoiceBrand ChoiceDealer Choice

Purchase TimingPurchase Amount


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Approaches to Study of

Buyer Behavior Economic model

Learning theory model

Psycho-analytic model

Information processing model


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The EBM model of buyer behavior

(Engel, Blackwell, and Miniard)


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Factors Affecting Consumer

Behavior: Culture

Subculture Group of people with shared

value systems based oncommon life experiences.

Hispanic Consumers

African American Consumers

Asian American Consumers

Mature Consumers

Culture is the Most Basic Cause of a Person'sWants and Behavior.


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Behavior: CultureCulture is the Set of Values, Perceptions, Wants &Behavior Learned by a Member of Society from

Family.

Social Class

Societys relatively permanent& ordered divisions whosemembers share similar values,interests, and behaviors.

Measured by: Occupation,Income, Education, Wealth andOther Variables.


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GroupsMembership

Reference

Family (most important)Husband, wife, kidsInfluencer, buyer, user

Roles and Status

Social Factors


Behavior: Social

Family Buying Influence

Children can exert a

strong influence onfamily buying decisions.

Johnson & Johnson remindscustomers of its commitment

to the American Family.

What other companies usechildren to influence

family buying decisions?

Click or press spacebar to return


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Personal Influences

Personal Influences

Age and LifeCycle Stage

Age and LifeCycle Stage OccupationOccupation

Personality &Self-Concept

Personality &Self-Concept

EconomicSituation

EconomicSituation

ActivitiesActivities InterestsInterests

Lifestyle IdentificationLifestyle Identification

Opinions

Opinions


Behavior: Personal


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High ResourcesHigh Innovation

Achievers

Actualizers

Strugglers

Strivers

Fulfilleds

Believers

Experiencers

Makers

SRI Values and Lifestyles

(VALS) (Fig. 5.3)

Low Resources Low Innovation


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Behavior: Psychological

PsychologicalFactors

Affecting

BuyersChoices

Motivation

Perception

Learning

Beliefs andAttitudes


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Physiological Needs(hunger, thirst)

Safety Needs(security, protection)

Social Needs(sense of belonging, love)

Esteem Needs(self-esteem)

SelfActualization

(Self-development)

Maslows Hierarchy of Needs

(Fig. 5.4)


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Consumer EvaluationWhat criteria do consumers use to make

evaluations? What do consumers care

about?Values

Benefits

Attributes

Means-End Value Chains


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Means-End Value ChainsPowerStatusSelf esteem

$$ securityFamilyEnvironment

Peer admirationSpeedExclusivity

ProtectionValueReliabilityLow emissions

Horse power

Prestige brandStylingExtras

Air bags

High mpgPrice/resaleJapanese

BMW

LexusMercedes

HondaToyota

Nissan


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Multi-attribute evaluationBelief x Importance Model:

Evaluation is reflected by brand attitude

Attitude is the sum of salient beliefs,

Weighted by the importance of each belief

Atto= (Bi x Ii) Summed for each attribute i.

The Bi component indicates the strength of the association. The Ii component indicates the importance of that

association to brand attitude.


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Buyer Decision Process

(Fig. 5.6)

PostpurchaseBehavior

PurchaseDecision

InformationSearch

Need

Recognition

Evaluationof Alternatives


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Buyer Decision Process

Step 1. Need Recognition

State Where theBuyers Needsare Fulfilled andthe Buyer is

Satisfied.

Needs Arising

From:

Internal Stimuli

Hunger

External Stimuli-

Friends

Buyer

RecognizesaProblem

or aNeed.


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Family, friends, neighborsMost effective source of

informationAdvertising, salespeopleReceives most information from

these sources

Mass Media

Consumer-rating groups

Handling the productExamining the productUsing the product

Personal Sources

Commercial Sources

Public Sources

Experiential Sources

The Buyer Decision Process

Step 2. Information Search


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Consumer May Use CarefulCalculations & Logical Thinking

Consumers May Buy on Impulse andRely on Intuition

Consumers May Make Buying Decisionson Their Own.

Consumers May Make Buying DecisionsOnly After Consulting Others.

Marketers Must Study Buyers to Find Out

How They Evaluate Brand Alternatives


Step 4. Evaluation of Alternatives


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Purchase Intention

Desire to buy the most preferred brand

Purchase Decision

UnexpectedSituational

Factors

Attitudesof Others


Step 5. Purchase Decision


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Step 6. Postpurchase Behavior

Consumers

Expectations of Products Performance.

Products Perceived

Performance.

Dissatisfied Customer

Satisfied Customer!

CognitiveD

issonance


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Role of Consumer Involvement Sometimes consumers make

evaluations/choices very carefully

Sometimes consumers makeevaluations/choices with little care

Involvementstrength of motivation,

importance

High involvementB X I model


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Low involvement evaluations Cognitive shortcuts (heuristics)

Habit

Affective responses


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Awareness:Consumer is aware of

product, but lacks information.

Interest:Consumer seeks

Information about new product.

Evaluat ion:Consumer considers

trying new product.

Trial:Consumer tries new

product on a small scale.

Adopt ion :Consumer decides

to make regular use of product.

Stages in the Adoption

Process


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Adopter Categories (Fig. 5.7)

Percentage

ofA

dopters

Time of Adoption

Early Late

Innovato

rs

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority


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Divisibility

Can the innovation

be used on atrial basis?

ComplexityIs the innovation

difficult tounderstand or use?

CommunicabilityCan results be easily

observed or describedto others?

CompatibilityDoes the innovation

fit the values andexperience of thetarget market?

Relative AdvantageIs the innovation

superior to existing

products?

Influence of Product Characteristics

on Rate of Adoption


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What is a Business Market?A business market comprises all the

organizations that buy goods and services

for use in the production of other productsand services that are sold, rented, orsupplied to others.

The business market is huge and involvesmany more dollars and goods than doconsumer markets.


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Contain fewer, butlarger buyers

Customers are more

geographically concentrated

Buyer demand is derivedfromfinal consumer demand

Demand is often moreinelastic

Demand often fluctuatesmore, and more quickly

Characteristics of Business

MarketsMarketing Structureand Demand


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Markets Nature of the Buying

Unit

Business purchasesinvolve more buyers.

Business buyinginvolves a more

professional purchasingeffort.


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Businessbuyers

usually facemore

complexbuying

decisions.


Markets

Business

buyingprocess is

moreformalized.

Types of Decisions and theDecision Process

In businessbuying,

buyers andsellers work

more closelytogether.

To develop

long-term

partnerships,

business

marketers work

closely with

their customers.

Fujitsu promises high-end

support to go along with

its high-tech products.

Click to return

This Unisys ad offers services from technologicalconsulting to

database setup and maintenance.


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Model of Business Buyer

Behavior (Fig. 6.1)The Environment

Marketing

Stimuli:ProductPricePlacePromotion

Other Stimuli:EconomicTechnologicalPoliticalCulturalCompetitive

The BuyingOrganization

The buyingcenter

Buying decisionprocess

(Interpersonal andindividual influences)

(OrganizationalInfluences)

Buyer Responses

Product orservice choice

Supplier Choice

Order Quantities

Delivery termsand times

Service terms

Payment


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Organizational BuyingProfessional purchasing

Fewer buyers

Larger purchasesCloser, longer relationships/ reciprocity

Geographic concentration

Derived demandLower price sensitivity

Buying center


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UnexpectedSituationalFactors

AttitudesofOthers

Participants in the Business

Buying Process

EthicalDecision-

Making Unitof a BuyingOrganizationis Called Its

BuyingCenter.

Users

Influencers

Buyers

DecidersGatekeepers

Roles Include

buyerbehavior.stu

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