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MODULE 3
CONSUMER BUYER BEHAVIOR
CONSUMER BUYER BEHAVIOR
Consumer buyer behavior
The buying behavior of final consumers – individuals and
households who buy goods and services for personal
consumption.
Consumer market
All the individuals and households who buy or acquire goods and
services for personal consumption.
MODEL OF BUYER BEHAVIOR
Marketing and other stimuli
Marketing Others
Product Economic
Price Technological
Place Political
Promotion Cultural
Buyer
Character-
istics
Buyer’s Responses
Buyer Decision Process
Buyer’s black box
Product Choice
Brand choice
Dealer choice
Purchase Amount
CONSUMER BUYER BEHAVIOR
FACTORS INFLUENCING CONSUMER BEHAVIOR
Cultural Factors: Culture
Sub-Culture
Social Class
CONSUMER BUYER BEHAVIOR
Cultural Factors:
Culture: The set of basic values, perceptions, wants and
behaviors learned by a member of society from family and other
important institutions.
Sub-Culture: A group of people with shared value systems based
on common life experiences and situations.
Social Classes: Relatively permanent and ordered divisions in a
society whose members share similar values, interests, and
behavior.
CONSUMER BUYER BEHAVIOR
FACTORS INFLUENCING CONSUMER BEHAVIOR
Social Factors: Reference Groups
Family
Roles and Status
CONSUMER BUYER BEHAVIOR
FACTORS INFLUENCING CONSUMER BEHAVIOR
Personal Factors: Age and Lifecycle stage
Occupation
Economic situation
Lifestyle
Personality and self concept
CONSUMER BUYER BEHAVIOR
Lifestyle: A person’s pattern of living as expressed in his or her
activities, interests, and opinions.
Personality : The unique Psychological characteristics that lead
to relatively consistent and lasting responses to one’s own
environment.
CONSUMER BUYER BEHAVIOR
FACTORS INFLUENCING CONSUMER BEHAVIOR
Psychological Factors:
Motivation Perception Learning Beliefs and attitudes
CONSUMER BUYER BEHAVIOR
Motive : The need that is sufficiently pressing to direct the person to seek
satisfaction of the need.
Perception : The process by which people select, organize, and interpret
information to form a meaningful picture of the world.
Learning: Changes in an individual’s behavior arising from experience.
Belief : A descriptive thought that a person holds about something.
Attitude : A person's consistently favorable or unfavorable evaluations,
feelings, and tendencies toward an object or idea.
THE BUYER DECISION PROCESS
Need recognition.
Information search.
Alternative evaluation.
Purchase decision.
Post purchase behavior.
THE BUYER DECISION PROCESS
Need recognition: The first stage of buyer decision process, in
which the consumer recognizes a problem or a need.
Information search: The stage of the buyer decision process
which the consumer is aroused to search for information; the
consumer may simply have heightened attention or may go into
active information search.
Alternative evaluation: The stage of the buyer decision process
which the consumer uses information to evaluate alternative
brands in the choice set.
THE BUYER DECISION PROCESS
Purchase decision: The buyer’s decision about which brand to purchase.
Post purchase behavior: The stage of the buyer decision process which the
consumers take further actions after purchase, based on their satisfaction or
dissatisfaction.
TYPES OF BUYING DECISION BEHAVIOR
Complex buying behavior
Dissonance - reducing buying behavior.
Habitual buying behavior.
Variety - seeking buying behavior.
TYPES OF BUYING DECISION BEHAVIOR
Complex buying behavior:
Consumer buying behavior in situations characterized by high consumer
involvement in a purchase and significant perceived differences among brands.
Dissonance - reducing buying behavior:
Consumer buying behavior in situations characterized by high involvement but few
perceived differences among brands.
TYPES OF BUYING DECISION BEHAVIOR
Habitual buying behavior:
Consumer buying behavior in situations characterized by low
consumer involvement and few significant perceived brand
differences.
Variety - seeking buying behavior:
Consumer buying behavior in situations characterized by low
consumer involvement but significant perceived brand differences.
THE BUYER DECISION PROCESS FOR NEW PRODUCT
New product
A good,sevice, or idea that is perceived by some potential
customers as new.
Adoption process
The mental process through which an individual passes from first
hearing about an innovation to final adoption.
ADOPTION PROCESS
Stages in the Adoption process: Awareness
Interest
Evaluation
Trial
Adoption
ADOPTION PROCESS
Adopter Groups: Innovators
Early Adopters
Early Majority
Late Majority
Laggards
BUSINESS BUYER BEHAVIOR
The buying behavior of the organization that buy goods and
services for use in the production of other products and
services or for the purpose of reselling or renting them to
others at a profit.
BUSINESS BUYING PROCESS
The decision process by which business buyers determine which
products and services their organizations need to purchase, and
then find, evaluate, and choose among alternative suppliers and
brands.
CHARACTERISTICS OF BUSINESS MARKETSMARKETING STRUCTURE AND DEMAND: Business markets contain fewer but larger buyers.
Business customers are more geographically concentrated.
Business buyer demand is derived from final consumer demand.
Demand in many business markets is more inelastic.
Demand in business markets fluctuates more, and more quickly.
NATURE OF BUYING UNIT:
Business purchases involve more buyers.
Business buying involves a more professional effort.
TYPES OF DECISIONS AND THE DECISION PROCESS:
Business buyers usually face more complex buying decisions.
Business buying process is more formalized.
In business buying, buyers and sellers work more closely together and build close long-
run relationships.
DERIVED DEMAND
Business demand that ultimately comes from (derives from) the
demand for customer goods.
BUSINESS BUYING SITUATIONS
Straight rebuy : Business buying situation in which the buyer
routinely reorders something without any modifications.
Modified rebuy : Business buying situation in which the buyer
wants to modify product specifications, prices, terms, suppliers.
New task : Business buying situation in which the buyer
purchases a product or service for the first time.
BUSINESS BUYER BEHAVIOR
Buying centre: All the individuals and units that participate in the
business buying- decision process.
PARTICIPANTS IN THE BUSINESS BUYING PROCESS
Users
Influencers
Buyers
Deciders
Gatekeepers
MAJOR INFLUENCES ON BUSINESS BUYER BEHAVIOR
Environmental
Economic developments
Supply conditions
Political and regulatory developments
Competitive developments
Culture and customs
Organizational
Objective
Policies
Procedures
Organizational structure
Systems
Interpersonal
Authority
Status
Empathy
Persuasiveness
Individual
Age
Education
Job position
PersonalityRisk attitudes
Buyers
BUSINESS BUYING PROCESS
Problem recognition : The first stage of business buying process
in which someone in the company recognizes a problem or need
that can be met by acquiring a good or service.
General need description : The stage of the business buying
process in which the company describes the general
characteristics and quality of a needed item.
Product specification : The stage of the business buying process
in which the buying organization decides on and specifies the
best technical product characteristics for a needed item.
BUSINESS BUYING PROCESS
Supplier search : The stage of the business buying process in
which the buyer tries to find the best vendors.
Proposal solicitation : The stage of the business buying process
in which the buyer invites qualified suppliers to submit
proposals.
Supplier selection : The stage of the business buying process in
which the buyer reviews proposals and select a supplier or
suppliers.
BUSINESS BUYING PROCESS
Order-routine specification: The stage of the business buying process in
which the buyer writes the final order with the chosen supplier.
Performance review :The stage of the business buying process in which
the buyer assesses the final performance of the chosen supplier and
decides to continue, modify or drop the arrangement.
STAGES OF THE BUSINESS BUYING BEHAVIOR
Problem recognition General need
description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order- routine specification
Performance review
BUSINESS BUYER BEHAVIOR
Institutional market : Schools, hospitals, nursing
home, prisons, and other institutions that provides
goods and services to people in their care.
Government market : Governmental units – federal,
state, and local – that purchase or rent goods and
services for carrying out the main functions of
government.
MODEL OF BUSINESS BUYER BEHAVIOR
The Environment
Marketing Other stimuli
Product Economic
Price Technological
Place Political
Promotion Cultural
Competitive
Buyer ResponsesThe Buyer Organization
Product or service choice
Supplier choice
Order quantities
Delivery terms and times
Service terms
Payment
The buying centre
(Interpersonal and Individual influences)
Buying Decision Process
(Organizational Influences)