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8/20/2019 5. Consumer and Business Buyer Behavior
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5-1
5-1
Consumer
and BusinessBuyer Behavior
8/20/2019 5. Consumer and Business Buyer Behavior
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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%
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5-'
5-'
Model of Buyer Behavior
Model of Buyer Behavior
(ar!eting and)ther *timuli
(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
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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
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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.
•
$ispanic Consumers• frican merican Consumers
• sian merican Consumers
• (ature Consumers
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5-;5-;
:roups•(embership•eference
:roups•(embership•eference
Factors Affecting Consumer Behavior:
Social
Factors Affecting Consumer Behavior:
Social
3amily•$usband wife !ids•6nfluencer buyer user
3amily•$usband wife !ids•6nfluencer buyer user
oles and *tatusoles and *tatus
*ocial 3actors*ocial 3actors
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5-
8/20/2019 5. Consumer and Business Buyer Behavior
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5-=5-=Factors Affecting Consumer Behavior:
Psychological
Factors Affecting Consumer Behavior:
Psychological
sychological 3actors
(otivation(otivation
erceptionerception
4earning4earning
Beliefs andttitudes
Beliefs andttitudes
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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
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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
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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
• $unger • Thirst• person+s normal needs
?eed ecognitionBuyer ecognies a roblem or ?eed
?eed ecognitionBuyer ecognies a roblem or ?eed
5 12
!h B " i i P
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5-125-12!he Buyer "ecision ProcessSte# '% Information Search
!he Buyer "ecision ProcessSte# '% Information Search
•3amily friends neighbors•(ost effective source of information
•dvertising salespeople•eceives most information from these sources
•(ass (edia•Consumer-rating groups
•$andling the product•/,amining the product•Dsing the product
ersonal *ourcesersonal *ources
Commercial *ourcesCommercial *ources
ublic *ourcesublic *ources
/,periential *ources/,periential *ources
5 1'
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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
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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
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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
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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
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5-1
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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/
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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
8/20/2019 5. Consumer and Business Buyer Behavior
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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
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5 21
The Buying )rganiationThe Buying )rganiation
Model of Business Buyer Behavior Model of Business Buyer Behavior
(ar!eting and)ther *timuli
(ar!eting and)ther *timuli
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
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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'
8/20/2019 5. Consumer and Business Buyer Behavior
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5 '
0rgani1ational Buying
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
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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
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0rgani1ational Buying
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;
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0rgani1ational Buying
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
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0rgani1ational Buying
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
Partici#ants in the Business Buying
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Partici#ants in the Business Buying
Process: !he Buying Center
Partici#ants in the Business Buying
Process: !he Buying Center
Buying Center Buying Center
Dsers:ate!eepers
Buyers 0eciders
6nfluencers
5-2>
5-2>
Ma4or Influences on Business
Ma4or Influences on Business
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Ma4or Influences on Business
Buyer Behavior
Ma4or Influences on Business
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-'
8/20/2019 5. Consumer and Business Buyer Behavior
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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
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Influences on Business Buyers
(aFor 6nfluences
)nvironmental
0rgani1ational
Inter#ersonal
Individual
)bFectives
olicies
rocedures
)rganiational
structures
*ystems
5-'2
5-'2
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Influences on Business Buyers
(aFor 6nfluences
)nvironmental
0rgani1ational
Inter#ersonal
Individual
6nterests
uthority
*tatus
/mpathy
ersuasiveness
5-''
5-''
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Influences on Business Buyers
(aFor 6nfluences
)nvironmental
0rgani1ational
Inter#ersonal
Individual
ge
6ncome
/ducation Kob position
ersonality
is! attitudes
Culture
5-'
5-'
Stages of the Business
Stages of the Business
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Stages of the Business
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#:
8/20/2019 5. Consumer and Business Buyer Behavior
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&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.