Buying Behavior: The Final Consumer and the Business-to-Business Consumer

Buying Behavior: The Final Consumer and the Business-to-Business Consumer

Buying Behavior: The Final Consumer and the Business-to-Business Consumer

To Accompany Basic Marketing, 14th Editionby William D. Perreault, Jr. and E. Jerome McCarthyTo Accompany Basic Marketing, 14th Editionby William D. Perreault, Jr. and E. Jerome McCarthy

Your host:

David J. UrbanProfessor of Marketing

VirginiaCommonwealthUniversity

Your host:

David J. UrbanProfessor of Marketing

VirginiaCommonwealthUniversity

Marketing Strategy Planning ProcessMarketing Strategy Planning Process

CustomersNeeds and other

SegmentingDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

S.W.O.T.

External Market EnvironmentExternal Market EnvironmentTechnology Political & Legal Social & Cultural EconomicTechnology Political & Legal Social & Cultural Economic

Targeting &Segmentation

Positioning &DifferentiationPositioning &Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria

U. S. Population TrendsU. S. Population Trends

BirthrateKey

DomesticTrends

KeyDomestic

Trends

Birthrate

AgingPopulation

KeyDomestic

Trends

KeyDomestic

Trends

U. S. Population TrendsU. S. Population Trends

Birthrate

HouseholdComposition

AgingPopulation

KeyDomestic

Trends

KeyDomestic

Trends

U. S. Population TrendsU. S. Population Trends

Shifts toSuburban

AreasBirthrate

HouseholdComposition

AgingPopulation

KeyDomestic

Trends

KeyDomestic

Trends

U. S. Population TrendsU. S. Population Trends

RegionalDifferences

Shifts toSuburban

AreasBirthrate

HouseholdComposition

AgingPopulation

KeyDomestic

Trends

KeyDomestic

Trends

U. S. Population TrendsU. S. Population Trends

Ethnic Dimensions of the U. S. MarketEthnic Dimensions of the U. S. Market

BuyingBehaviorBuying

Behavior

MedianIncomeGrowth

MedianIncomeGrowth

AccurateTarget

AccurateTargetGrowth

RateGrowth

Rate

Identifying Potential International MarketsIdentifying Potential International Markets

GrowthRate of Growth

Focus:

Identifying Potential International MarketsIdentifying Potential International Markets

Growth

Concentration

Rate of Growth

Population Density

Focus:

Focus:

Identifying Potential International MarketsIdentifying Potential International Markets

Growth

Concentration

Literacy

Rate of Growth

Population Density

Communication Concerns

Focus:

Focus:

Focus :

Identifying Potential International MarketsIdentifying Potential International Markets

Growth

Concentration

Literacy

Rate of Growth

Population Density

Communication Concerns

Focus:

Focus:

Focus:

Focus :

MoneyRelative Buying Power

Focus :

A Model of Buying BehaviorA Model of Buying Behavior

Marketing Mixes All Other Stimuli

PsychologicalInfluences

MotivationPerceptionLearningAttitudePersonality/Lifestyle

PersonMakingDecision

A Model of Buying BehaviorA Model of Buying Behavior

FamilySocial ClassReference GroupsCulture

SocialInfluences

Marketing Mixes All Other Stimuli

PersonMakingDecision

PsychologicalInfluences

MotivationPerceptionLearningAttitudePersonality/Lifestyle

A Model of Buying BehaviorA Model of Buying Behavior

Purchase ReasonTimeSurroundings

PurchaseSituation

FamilySocial ClassReference GroupsCulture

SocialInfluence

Problem-Solving Process

Person Does or Does Not Purchase (Response)

Marketing Mixes All Other Stimuli

PersonMakingDecision

PsychologicalVariables

MotivationPerceptionLearningAttitudePersonality/Lifestyle

The PSSP Hierarchy of NeedsThe PSSP Hierarchy of Needs

Physiological Needs

The PSSP Hierarchy of NeedsThe PSSP Hierarchy of Needs

Safety Needs

Physiological Needs

The PSSP Hierarchy of NeedsThe PSSP Hierarchy of Needs

Social Needs

Safety Needs

Physiological Needs

The PSSP Hierarchy of NeedsThe PSSP Hierarchy of Needs

Safety Needs

Social Needs

Physiological Needs

PersonalNeeds

Needs Translate to AdvertisingNeeds Translate to Advertising

The Learning ProcessThe Learning Process

DriveDrive

The Learning ProcessThe Learning Process

DriveDrive

CuesCues

The Learning ProcessThe Learning Process

DriveDrive

CuesCues

ResponseResponse

Reinforcement

The Importance of AttitudesThe Importance of Attitudes

Lifestyle DimensionsLifestyle Dimensions

OpinionsOpinions

ActivitiesActivities InterestsInterests

LifestyleSegment

Profile

LifestyleSegment

Profile

Lifestyle InfluencesLifestyle Influences

Social InfluencesSocial Influences

CultureKeySocial

Influences

Culture

SocialClass

KeySocial

Influences

Social InfluencesSocial Influences

Culture

ReferenceGroups

KeySocial

Influences

SocialClass

Social InfluencesSocial Influences

FamilyDecisionMaking

OpinionLeaders

CultureKeySocial

Influences

SocialClass

ReferenceGroups

Social InfluencesSocial Influences

Family InfluencesFamily Influences

Consumer Problem SolvingConsumer Problem Solving

AwarenessAwarenessNeed to Satisfy

Focus:

Consumer Problem SolvingConsumer Problem Solving

AwarenessAwarenessNeed to Satisfy

Focus:

Gathering InformationGathering InformationHow Products Fill Needs

Focus:

Consumer Problem SolvingConsumer Problem Solving

AwarenessAwareness

Gathering InformationGathering Information

Need to Satisfy

How Products Fill Needs

Focus:

Focus:

Evaluating AlternativesEvaluating AlternativesRanking Products

Focus:

Consumer Problem SolvingConsumer Problem Solving

AwarenessAwareness

Gathering InformationGathering Information

Evaluating AlternativesEvaluating Alternatives

Need to Satisfy

How Products Fill Needs

Ranking Products

Focus:

Focus:

Focus:

Choosing a SolutionChoosing a SolutionSelecting a Product Solution

Focus :

Consumer Problem SolvingConsumer Problem Solving

AwarenessAwareness

Gathering InformationGathering Information

Evaluating AlternativesEvaluating Alternatives

Choosing a SolutionChoosing a Solution

Need to Satisfy

How Products Fill Needs

Ranking Products

Selecting a Product Solution

Focus:

Focus:

Focus:

Focus :

Evaluating the DecisionEvaluating the DecisionHow Did It Work Out?

Focus :

Types of Consumer DecisionsTypes of Consumer Decisions

Extensive Problem Solving

Involvement Continuum

Low Involvement High Involvement

High involvementInfrequently purchased

ExpensiveHigh risk

Much information desired

Types of Consumer DecisionsTypes of Consumer Decisions

Extensive Problem Solving

Routinized Response Behavior

Involvement Continuum

Low Involvement High Involvement

Low involvementFrequently purchasedInexpensiveLittle riskLittle information needed

High involvementInfrequently purchased

ExpensiveHigh risk

Much information desired

Types of Consumer DecisionsTypes of Consumer Decisions

Extensive Problem Solving

Limited Problem Solving

Routinized Response Behavior

Involvement Continuum

Low Involvement High Involvement

Low involvementFrequently purchasedInexpensiveLittle riskLittle information needed

High involvementInfrequently purchased

ExpensiveHigh risk

Much information desired

Types of Organizational BuyersTypes of Organizational Buyers

ManufacturersManufacturers

Service ProducersService Producers Retailers &Wholesalers

Retailers &Wholesalers

GovernmentsGovernments

Buying CentersBuying Centers

BuyingCenterBuyingCenter

BuyersBuyers

Buying CentersBuying Centers

BuyingCenterBuyingCenter UsersUsers

InfluencersInfluencers

BuyersBuyers

Buying CentersBuying Centers

BuyingCenterBuyingCenter UsersUsersGatekeepersGatekeepers

DecidersDeciders InfluencersInfluencers

BuyersBuyers

Basic Methods in Organizational BuyingBasic Methods in Organizational Buying

BasicMethods

BasicMethods

Inspection Sampling

Description NegotiatedContracts

Organizational Buying ProcessesOrganizational Buying Processes

Information Needed

Review of Suppliers

Multiple Influences

Time Required

Characteristics

Much

Much

Much

Much

New-TaskBuying

Type of Process

Organizational Buying ProcessesOrganizational Buying Processes

Much

Much

Much

Much

Information Needed

Review of Suppliers

Multiple Influences

Time Required

CharacteristicsNew-Task

Buying

Some

Some

Some

Medium

ModifiedRebuy

Type of Process

Organizational Buying ProcessesOrganizational Buying Processes

SomeMuch

SomeMuch

SomeMuch

MediumMuch

Information Needed

Review of Suppliers

Multiple Influences

Time Required

CharacteristicsNew-Task

BuyingModifiedRebuy

Little

None

Little

Little

StraightRebuy

Type of Process

InformationSharing

Cooperation OperationalLinkageKey

Dimensions

Social InfluencesSocial Influences

InformationSharing

Cooperation OperationalLinkage

RelationshipSpecific

Adaptations

LegalBonds

KeyDimensions

Buyer-Supplier Relationships Buyer-Supplier Relationships

Marketing Strategy Planning ProcessMarketing Strategy Planning Process

CustomersNeeds and other

SegmentingDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

S.W.O.T.

External Market EnvironmentExternal Market EnvironmentTechnology Political & Legal Social & Cultural EconomicTechnology Political & Legal Social & Cultural Economic

Targeting &Segmentation

Positioning &DifferentiationPositioning &Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria