Ch 5Understanding Consumer & Business Buyer

Behavior
04/29/2015
Consumer buyer behavior
Buying behavior of final consumers
Consumer Market
All the individual and households that buy or acquire goods ands
services for personal consumption
Model Buyer Behavior

Factors Influencing Consumer Behavior

Cultural Factors
Culture
o Set of basic values, perceptions, wants, and behaviors
learned by an individual from family and other important
institutions
Subculture
o Group of people with shared value systems based on common
life experiences and situations
o Cross-cultural marketing: Including ethnic themes and
cross-cultural perspectives within a brands mainstream
marketing
Social Class
o Relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviors
Social Factors
Personal Factors


Groups

Word-ofmouth
influence

Opinion
leader

Online
social
networks

Family

Roles and
status

Age and
life-cycle
stage

Occupation

Lifestyle

Economic
situation

Personality
and selfconcept

Psychological Factors

Motivatio Perceptio
n
n
Beliefs
Learning
and
Attitudes
Buyer Decision Process

Stages in Adoption Process

Awarene
Evaluatio
Interest
ss
n
Trial

Adoption

Adopter Categories Based on Relative Time of Adoption of

Innovations


Characteristics Influencing an Innovations Rate of Adoption

Relative
advantage

Compatibilit
y

Divisibility

Complexity

Communica
bility

Business Buyer Behavior

Buying behavior of organizations
o Purchased goods and services are used in the production of
other products and services that are sold, rented, or supplied
to others
Business buying process: Determining which products and
services an organization needs to purchase
o Finding, evaluating, and choosing among alternative suppliers
and brands
Business Markets
Huge and involve more money and items than consumer markets
Differ from consumer markets in terms of:
o Market structure and demand
o Nature of the buying unit
o Types of decisions and the decision process
Market Structure and Demand and Nature of the Buying Unit
Market structure and demand
o Fewer but larger buyers
o Derived demand: Business demand that comes from the
demand for consumer goods
o Inelastic and fluctuating demand
Nature of the buying unit
o More decision participants

o More professional purchasing effort

Types of Decisions
Business purchases
o More complex buying decisions
o Large sums of money
o Complex technical and economic considerations
o Interactions among people at many levels of the buyers
organization
Decision Process
Buying processes
o Longer and more formalized procedures
o Buyer and seller more dependent on each other
Supplier development: Systematic development of networks of
supplier-partners
o To ensure a dependable supply of products and materials
Model of Business Buying Behavior

Types of Buying Situations

Straight rebuy
o Buyer routinely reorders something without any modifications
Modified Buy
o Buyer wants to modify product specifications, prices, terms,
or suppliers
o New task: Buyer purchases a product or service for the first
time
Systems selling (or solutions selling)
o Buying a packaged solution to a problem from a single seller
o Avoids the separate decisions involved in a complex buying
situation
Participants in the Business Buying Process
Buying center: All the individuals and units that play a role in the
purchase decision-making process
o Actual users of the product or service

o People who make the buying decision

o People and units influencing the buying decision
o People who do the actual buying
o Individuals and units controlling the buying information
Major Influences on Business Buying Behavior

Stages of Business Buying Behavior

E-Procurement
Purchasing through electronic connections between buyers and
sellersusually online
E-procurement occurs through:
o Reverse auctions
o Online trading exchanges
o Company buying sites
o Extranet links with key suppliers
Benefits & Problems of E-Procurement


Benefits

Problems

Cuts transaction costs

Can affect the customersupplier relationship
Results in efficient
Can create potential security
purchasing for both buyers
and suppliers
concerns
Reduces the time between
order and delivery
Helps an organization keep
better track of all purchases
Frees buyers from a lot of
work and paperwork
Learning Objective
Understand the consumer market and the major factors that
influence consumer buyer behavior.
Identify and discuss the stages in the buyer decision process.
Describe the adoption and diffusion process for new products.
Define the business market and identify the major factors that
influence business buyer behavior.
List and define the steps in the business buying decision process.