Consumer and Business Buying Behavior

Anna Marie Alzona

What is Consumer Buyer Behavior?

Consumer buyer behavior refers to the buying behavior of final consumers individuals and households who buy goods and services for personal consumption

Model of Buyer Behavior

Figure 5.1

Characteristics Affecting Consumer Behavior Key Factors

Culture Forms a persons wants

and behavior

Cultural Social Personal Psychological

Subculture Groups with shared

value systems

Social Class Societys divisions who

share values, interests and behaviors

Characteristics Affecting Consumer Behavior Key Factors

Groups Membership Reference Aspirational Opinion leaders Buzz marketing Family Many influencers Roles and status

Cultural Social Personal Psychological

This advertiser knows teens are strongly influenced by groups when purchasing fashion items
Marketing in Action

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Characteristics Affecting Consumer Behavior Key Factors

Age and life cycle Occupation Economic situation Lifestyle Activities, interests and

Cultural Social Personal Psychological

opinions Lifestyle segmentation

Personality and selfconcept

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Characteristics Affecting Consumer Behavior Key Factors

Motivation Perception Learning Beliefs and attitudes

Cultural Social Personal Psychological

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Psychological Factors Motivation

A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research is based on best therorist that developed theories of human motivatin.

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Freuds Theory

Forces shaping peoples behavior are largely unconscious or hidden Consumer react to other less conssciuos cues

Herzberg Theory

Developed two factor theory

Dissatisfiers satisfiers

Maslows Theory

Human needs are arranged into hierarchy from the most to the least

Maslows Hierarchy of Needs

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This ad demonstrates a product meeting physiological and social needs

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Marketing in Action

Discussion
What consumer products might fulfill multiple levels of the Hierarchy of Needs?

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Psychological Factors Perception

Perception is the process by which people select, organize, and interpret information. Perception Includes:
Selective attention
Consumers screen out information

Selective distortion
People interpret to support beliefs

Selective retention
People retain points to support attitudes
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Discussion Question Perception

1. How many ads were you exposed to today? 2. Which ones do you remember? Why?

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Psychological Factors Learning

Learning describes changes in an individuals behavior arising from experience Learning occurs through
Drives
Stimuli
Internal stimulus that calls for action Objects that move drive to motive Minor stimuli that affect response Feedback on action
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Cues

Reinforcement

Psychological Factors Beliefs and Attitudes

Belief
a descriptive thought about a brand or service may be based on real knowledge, opinion, or faith

Attitude
describes a persons evaluations, feelings and tendencies toward an object or idea They are difficult to change
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Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and stages in the process 4. Describe the adoption and diffusion process for new products
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Types of Buying Decision Behavior

Figure 5.6

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The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-purchase Behavior

The Buyer Decision Process

Process Stages
Need recognition Information search Evaluation of Needs can be triggered by: Internal stimuli Normal needs become strong enough to drive behavior External stimuli Advertisements Friends of friends
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alternatives Purchase decision Postpurchase behavior

The Buyer Decision Process

Process Stages
Need recognition Information search Evaluation of
Consumers exhibit heightened attention or actively search for information Sources of information: Personal Commercial Public Experiential Word-of-mouth 5 - 24

alternatives Purchase decision Postpurchase behavior

The Buyer Decision Process

Process Stages
Need recognition Information search Evaluation of
Evaluation procedure depends on the consumer and the buying situation. Most buyers evaluate multiple attributes, each of which is weighted differently. At the end of the evaluation stage, purchase intentions are 5 - 25 formed.

alternatives Purchase decision Postpurchase behavior

The Buyer Decision Process

Process Stages
Need recognition Information search Evaluation of
Satisfaction is important: Delighted consumers engage in positive word-of-mouth. Unhappy customers tell on average 11 other people. Cognitive dissonance is common
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alternatives Purchase decision Postpurchase behavior

The Buyer Decision Process

Process Stages
Need recognition Information search Evaluation of
Two factors intercede between purchase intentions and the actual decision: Attitudes of others Unexpected situational factors
Video Snippet Wild Planet realizes that kids and parents make the decision for 5 - 27 toys

alternatives Purchase decision Postpurchase behavior

Discussion Question
How is a site like Consumer Reports used in the decisionmaking process?
Marketing in Action
Click on screenshot for website 5 - 28

Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and stages in the process 4. Describe the adoption and diffusion process for new products
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Buyer Decision Process for New Products

New Products
Good, service or idea that is perceived by customers as new.

Stages in the Adoption Process

Marketers should help consumers move through these stages.

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Stages in the Adoption Process

Awareness Evaluation Interest Trial

Adoption

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Buyer Decision Process for New Products

Individual Differences in Innovativeness
Consumers can be classified into five adopter categories, each of which behaves differently toward new products.

Product Characteristics and Adoption

Five product characteristics influence the adoption rate.
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Adoption Process
Figure 5.8

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Product Characteristics
Relative Advantage Compatibility Complexity Divisibility

Communicability

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Discussion Question
Why might the adoption process be slow for a home robot?

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Marketing in Action

Source: Business Week

Buyer Decision Process for New Products

International Consumer Behavior
Values, attitudes and behaviors differ greatly in other countries. Physical differences exist which require changes in the marketing mix. Customs vary from country to country. Marketers must decide the degree to which they will adapt their marketing efforts.

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Learning Goals
1. Define the consumer market and construct a model of consumer buyer behavior 2. Name the four factors that influence buyer behavior 3. List and understand the types of buying decision behavior and stages in the process 4. Describe the adoption and diffusion process for new products
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What is a Business Market?

Business Buyer Behavior refers to the buying behavior of all the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.

The Business Buying Process

Characteristics of Business Markets

Market Structure and Demand
Fewer, larger buyers Geographically concentrated Demand derived from consumers Fluctuating demand

Nature of the Buying Unit

More members

More professional purchasing effort

Types of Decisions & the Decision Process

More complex decisions

Process is more formalized Buyer and seller are more dependent on each other Build close long-term relationships with customers

Participants in the Business Buying Process

Decision-making unit of a buying organization is called its buying center. Not a fixed and formally identified unit. Membership will vary for different products and buying Buying Center Members:
Users Deciders Influencers Buyers Gatekeepers

Participants in the Business Buying Process: The Buying Center

Gatekeepers Users

Buying Center Buyers Deciders

Influencers

Model of Business Buyer Behavior

Product Price Place

Marketing and Other Stimuli

Economic Technologica l Political Cultural

Promotion
The Buying Organization Organization al Influences
The Buying Center Buying Decision Process

Interpersonal and Individual Influences

Product or Service Choice Supplier Choice Order Quantities

Buyers Response

Delivery Terms and Times Service Terms

Payment

Major Influences on Business Buyer Behavior

Environmental
Economic, Technological, Political, Competitive

Organizational
Objectives, Policies, Procedures, Structure, & Systems

Interpersonal
Authority, Status, Empathy & Persuasiveness

Individual
Age, Education, Job Position, Personality & Risk Attitudes

Buyers

Major Types of Buying Situations

Straight Re-buy

The buyer routinely reorders something without any modifications.

Modified Re-buy

The buyer wants to modify product specifications, prices, terms, or suppliers.

New Task

The buyer purchases a product or service for the first time.

Business Buying Situations

New Task Buying Involved Decision Making

Modified Re-buy

Straight Re-buy

 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.