Consumer and Business Buyer Behaviour

Chapter 6

Discussion Questions

Think about a specific major purchase you’ve made recently. What buying process did you follow (How did you decide)? What major factors influenced your decision?

Pick a company. Does the company you chose understand its customers and their buying behaviour? Explain.

Decision Making: Situations

LessInvolvement

MoreInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedProblemSolving

LimitedProblemSolving

ExtensiveDecisionMaking

ExtensiveDecisionMaking

Consumer decision-making processes - Exhibit 6-2

Traditional factors affecting consumer purchasing behaviours Demographics (age, gender, income, etc.) Heredity and home environment Family life cycle Life changing events Cultural environment Social environment Situational environment

Information Search – Step 2

Two ways of gathering information:

1. Internally

2. Externally – requires time and effort

Consumers look to reduce risks and uncertainty associated with their purchases

Consumer risks include: performance, financial, physical, social and time.

Evaluation of Alternatives – Step 3

Choice criteria

1. Evoked set

2. Inept set

3. Inert set

Product/service features

Need/want factors

The Purchase/Buy Decision – Step 4

Decision to purchase a particular product may be based on several factors:

Brands Price Need Quality Situation Attitudes of others Enticements And many others,…..

Postpurchase Evaluation – Step 5

Evaluation of product/service performance.

Cognitive dissonance.

Impacts future purchases.

Impacts word-of-mouth communications.

Discussion/Group Questions

Page 166, question 3

Page 167, question 14 (group work) Follow-up to question 4

Individual factors that shape the decision-making process

Motivation Perception Learning Attitudes Personality and Self-Concept

Business Markets and Organizational Buying

Chapter 7

Common Types of Organizational Consumers – Exhibit 7-1

Factors affecting Organizational purchasing behaviours Product and service quality Customer related services – examples? Price and terms of purchase Delivery and inventory management systems Collaboration

Distinguishing Characteristics of Business Markets

Concentrated Demand Derived Demand Higher Levels of Demand Fluctuation Purchasing Professionals/Buyer expertise Multiple Buying Influences Close Buyer-Seller Relationships due to repeat

buying

Characteristics of theThree Types of Buying Decisions

Straight Straight RebuyRebuy

Modified Modified RebuyRebuy

New New TaskTask

Newness of Problem or NeedNewness of Problem or Need

Information RequirementsInformation Requirements

Information SearchInformation Search

Consideration of New AlternativesConsideration of New Alternatives

Multiple Buying InfluenceMultiple Buying Influence

Financial RisksFinancial Risks

LowLow

MinimalMinimal

MinimalMinimal

NoneNone

Very SmallVery Small

LowLow

MediumMedium

ModerateModerate

LimitedLimited

LimitedLimited

ModerateModerate

ModerateModerate

HighHigh

MaximumMaximum

ExtensiveExtensive

ExtensiveExtensive

LargeLarge

HighHigh

Steps in Organizational Decision Making (Exhibit 7-4)

1. Identification of a Need

2. Deciding on Objectives and Specifications

3. Identification of Suppliers and Evaluation of Alternatives

4. Selection of Suppliers and Negotiations

5. Establishing a Valued Customers Relationship

Roles of the Buying Center Users Gatekeepers Influencers Deciders Buyers

Organizational Buying Center