BUYERS BEHAVIOUR
BUYERS BEHAVIOURBuyer behavior is concerned with the activities
& actions of people & organization that purchase & use
economic goods & services, including the influences on these
activities & actions.1Distinguishing features of consumer and
organizational buyer behavior1- fewer organizational buyer-
generally a co. marketing industrial products will have fewer
potential buyers than one marketing in consumer markets. 80% of out
put to10-15 organizations in organizational buyer. However in
consumer market trade intermediaries are more in numbers. 2-CLOSE,
LONG TERM RELATIONSHIPS BETWEEN ORGANIZATIONAL BUYERS AND
SELLERS.Dedicated sales & marketing teams are employed to
service major customer. The nature of relationship in many consumer
markets is different: customers & manufacturers rarely
meet.3-Organizational buyers are more rationalIt is probably true
that on the whole organizational buying is more rational. Decision
will be made on economic criteria. Organizational buyers have to
justify their decisions to other members of the
organization.4-Organizational buying may be to specific
requirementsOrganizational buying is based on the specific
requirements. This is feasible because of the large potential
revenue of such products like railway engine. 6-Reciprocal buying
may be important in organizational buyingAn organizational buyer
may be in a powerful negotiating position with a seller, it may be
possible to demand concessions in return for placing the order in
products in return for securing the order.
7-Organizational buying/selling may be more riskyBusiness to
business markets are sometimes characterized by a contract before
the product is made. Further the product itself may be highly
technical and the seller may be faced with unexpected problems once
work has started8-Organizational buying is more complexMany
organizational purchases involve large sums of money and are new to
the co. involve many people at different levels of the
organization. The managing director, product engineer, production
manager, purchase manager and operatives may influence the decision
of which expensive machine to purchase.9-Negotiation is often
important in organizational buying The sellers list price may be
regarded as the starting point for negotiation, but the actual
price will depend on the negotiation skills and power bases of
buyers and sellers.The consumer decision making process:A consumer
may pass through a series of steps as decision making process as
below.Need identificationInformation searchEvaluation of
AlternativesProduct selection and buying
decisionPost-purchasebehaviorTypes of
needs-Functional(Rational)-psychology(emotional)2. Hierarchy of
needs(5 hierarchy)3. Conflicts of needs4.Recognition of needs
Nature of information (brand , quality color etc. ) 1.Sources of
information (experience, reports, magazines etc.)3. Times of
information search)Organize data in a desired form 2. Develop the
decision criteria cost performance Suitability convenience
etc.Select the best alternative 2.Make purchase
decision-Store-place-time-Day , etc1.Evaluate the rationality of
decision made in the past.2.Identify the level of satisfaction
provided by the product 3.Make re-purchase, new purchase modified
decisionNew purchase decisionRepurchaseModified purchase
decisionFactors affecting the consumer buying decision process1-
The buying situation: There are three types of buying situations
(a) extensive problem solving(b) limited problem solving(c)
automatic response(a) Extensive problem solvingWhen a problem or
need is new the means of solving that problem is expensive and
uncertainty is high, aconsumer is likely to conduct extensive
problem solving.Sales person should provide sufficient information
to the buyer so that group of loyal buyers can be developed.(b)
Limited problem solvingIf the consumer has some experience with the
product may be inclined to stay loyal to the brand previously
purchased. However, a certain amount of information search and
evaluation of a few alternatives occurs as a rudimentary check that
the right decision is being made. In this situation may provide
limited opportunity for sales people of competing products to
persuade consumers that they should switch model or brand by
providing relevant information.
(c) Automatic responseE Companies who have built up a larg e
brand image will wish to move their customer to the state of
automatic response. Advertising may be effective in keeping the
brand in the forefront of the consumers mind. Personal selling to
the ultimate consumer may be superflous.2-personal
influencesConcerns the psychology of the individuals concernedIt
includes personality, motivation, perception and learning.It is
extremely difficult for sales people to judge accurately how
extrovert or introvert, conventional or unconventional ,a customer
is.BUZZOTTA,LEFTON AND SHERBERG proposed a two-dimensional approach
to understanding buyer psychology. (1) dominant (2)submissive (3)
warm (4)hostileDominantIt is the drive to take control of others.
It wants to lead in personal encounters, to have control of
situations and to have a strong desire to be independent
submissiveIt is the disposition to let others take the lead. It
implies a willingness to be controlled, a need to comply with the
wishes of others and an avoidance of confrontation.warmWarmth is
having a regard for others. A warm person is described as one who
is out going, good humoured, optimistic and willing to place trust
in others. hostileHostility is having a lack of regard for others.
It suggest a person who is cold, distrustful and disdainful of
others.
In general each person primarily falls in to one of the four
groups. The sales person must look for their hallmark
as(1)dominant-hostile (2) submissive-hostile (3) submissive-warm
(4) dominant-warm1- Dominant-hostileThese people are loud,
talkative, demanding and forceful in their actions. They are
usually difficult to get along with and can be offensive. They tend
to distrust sales people.To win the respect of dominant-hostile
people, the appropriate sales person behavior is to adjust their
dominance level upward to meet that of the buyer. This would
involve sitting upright, maintaining eye contact, listening
respectfully and answering directly. 2- submissive-hostileThese
people are cold, aloof and uncommunicative. They tend to be loner
and work in jobs that demand concentration rather than
socialization, such as research, accounting and computer
programming etc. They prefer to avoid sales intervi ew. While
responding to questions they tend to be short.While dealing with
submissive-hostile buyer a sales person should not attempt to
dominant, but gradually try to win his or her trust. The sales
person should match the buyers dominance level and ask open ended
questions in a slow and soft manner.3-submissive-warmThese people
are extrovert , friendly, understanding, talkative and
positive-minded, who are not natural leaders. They prefer to buy
from some one they like and view a sales interview as a social
occasion.Generally they accept most of what the sales person tells
them, but if they feel any doubt they will postpone the decision to
buy.The sales person should satisfy their social needs by being
warm and friendly. S/he should not attempt to dominate, but should
share the social experience. Once the trust have been established,
the sales person should guide the interview towards the goal of
decision making.4-dominant-warmThese people are open minded, but
not afraid to express their ideas and opinions.They are not
hesitate to buy from any one who can proof to their satisfaction
and there is a benefit to be gained.Dominant-warm people consider
respect more important than being liked.The sales person should
match the dominance level while maintaining the warm manner. Sales
arguments need to be backed up whenever possible by
evidance.3-social influencesSocial classReference
groupsCulturefamilySocial classBased on the occupation of the head
of the household
Upper middle classMiddle classLower middle classSkilled working
classWorking classLowest classReference groupsA group of people
that influences a persons attitude or behaviour. (group of friends,
the family, work colleagues)cultureIt refers to the
traditions,values and attitudes of the whole society within which
an individual lives.Submissive
familyThe family is sometimes called a primary reference group
that may play a significant part in consumer buying behavior.
