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    Consumer and Business Buyer Behavior: Nathan George

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    Ajay Roshan P
    The document discusses consumer and business buyer behavior, outlining models of the buyer decision process and factors that influence behavior such as cultural, social, personal, and psychological aspects for consumers. It also examines the business buying process, participants in the buying center, and influences on business buyer behavior including environmental, organizational, interpersonal, and individual factors. Major types of business buying situations are identified as straight re-buy, modified re-buy, and new task buying.

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    Consumer and Business Buyer Behavior: Nathan George

    Uploaded by

    Ajay Roshan P
    25 views32 pages
    The document discusses consumer and business buyer behavior, outlining models of the buyer decision process and factors that influence behavior such as cultural, social, personal, and psychological aspects for consumers. It also examines the business buying process, participants in the buying center, and influences on business buyer behavior including environmental, organizational, interpersonal, and individual factors. Major types of business buying situations are identified as straight re-buy, modified re-buy, and new task buying.

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    The document discusses consumer and business buyer behavior, outlining models of the buyer decision process and factors that influence behavior such as cultural, social, personal, and psychological aspects for consumers. It also examines the business buying process, participants in the buying center, and influences on business buyer behavior including environmental, organizational, interpersonal, and individual factors. Major types of business buying situations are identified as straight re-buy, modified re-buy, and new task buying.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    25 views32 pages

    Consumer and Business Buyer Behavior: Nathan George

    Uploaded by

    Ajay Roshan P
    The document discusses consumer and business buyer behavior, outlining models of the buyer decision process and factors that influence behavior such as cultural, social, personal, and psychological aspects for consumers. It also examines the business buying process, participants in the buying center, and influences on business buyer behavior including environmental, organizational, interpersonal, and individual factors. Major types of business buying situations are identified as straight re-buy, modified re-buy, and new task buying.

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    of 32

    5-1

    Consumer and Business Buyer Behavior

    Nathan George

    Consumer Buying Behavior


    Consumer Buying Behavior refers to the buying behavior of final consumers individuals & households who buy goods and services for personal consumption. The central question for marketers is: How do consumers respond to various marketing efforts the company might use?

    5-2

    Model of Buyer Behavior


    Product Price Place Promotion

    5-3

    Marketing and Other Stimuli

    Economic Technological Political

    Cultural
    Buyer Characteristics

    Buying Decision Process

    Buyers Black Box

    Product Choice

    Brand Choice
    Dealer Choice

    Buyers Response

    Purchase Timing Purchase Amount

    Factors Influencing Consumer Behavior


    Cultural Social Personal
    Culture Subculture Reference groups Family Roles and status
    Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept

    5-4

    Psychological
    Motivation Perception Learning Beliefs and attitudes

    Buyer

    Social class

    Factors Affecting Consumer Behavior: Culture


    Culture
    Most basic cause of a person's wants and behavior. Values, Perceptions, Wants & Behavior Subculture
    Groups of people with shared value systems based on common life experiences. Hispanic Consumers African American Consumers Asian American Consumers Mature Consumers

    5-5

    Social Class
    Societys relatively permanent & ordered divisions whose members share similar values, interests, and behaviors. Measured by: Occupation, Income, Education, Wealth and Other Variables.

    Factors Affecting Consumer Behavior: Social


    Groups Membership Reference Family Husband, wife, kids Influencer, buyer, user

    5-6

    Social Factors

    Roles and Status

    Factors Affecting Consumer Behavior: Personal


    Personal Influences
    Age and Life Cycle Stage
    Economic Situation Occupation

    5-7

    Personality & Self-Concept

    Lifestyle Identification

    Activities
    Interests

    Opinions

    Factors Affecting Consumer Behavior: Psychological


    Motivation

    5-8

    Beliefs and Attitudes

    Psychological Factors

    Perception

    Learning

    5-9

    Perception

    Perception
    Information Inputs Interpretation Selective Exposure Selective Distortion Selective Retention

    Maslows Hierarchy of Needs


    Self Actualization
    (Self-development)

    5-10

    Esteem Needs (self-esteem, status) Social Needs


    (sense of belonging, love)

    Safety Needs
    (security, protection)

    Physiological Needs
    (hunger, thirst)

    The Buyer Decision Process


    Need Recognition

    5-11

    Information Search

    Evaluation of Alternatives

    Purchase Decision

    Post-purchase Behavior

    The Buyer Decision Process


    Step 1. Need Recognition
    Need Recognition
    Buyer Recognizes a Problem or Need

    5-12

    Internal Stimuli
    Hunger
    Thirst A persons normal needs

    External Stimuli
    TV advertising Magazine ad Radio slogan Stimuli in the environment

    The Buyer Decision Process


    Step 2. Information Search
    Personal Sources
    Family, friends, neighbors Most effective source of information

    5-13

    Commercial Sources

    Advertising, salespeople Receives most information from these sources Mass Media Consumer-rating groups

    Public Sources

    Experiential Sources

    Handling the product Examining the product Using the product

    The Buyer Decision Process


    Step 3. Evaluation of Alternatives
    Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own.

    5-14

    Consumers May Make Buying Decisions Only After Consulting Others.

    Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives

    The Buyer Decision Process


    Step 4. Purchase Decision
    Purchase Intention Desire to buy the most preferred brand Unexpected Situational Factors

    5-15

    Attitudes of Others

    Purchase Decision

    The Buyer Decision Process


    Step 5. Post-purchase Behavior
    Consumers Expectations of Products Performance Products Perceived Performance

    5-16

    Satisfied Customer!

    Dissatisfied Customer

    Cognitive Dissonance

    Buying Decision Process


    Consumer satisfaction is a function of consumer expectations and perceived product performance.
    Performance < Expectations Disappointment

    5-17

    Performance = Expectations

    Satisfaction

    Performance > Expectations

    Delight

    Buying Decision Process


    Cognitive dissonance: a buyers doubts shortly after a purchase about whether it was the right decision.

    5-18

    Stages in the Adoption Process


    Awareness

    5-19

    Interest

    Evaluation

    Trial

    Adoption

    5-20

    Stages in the Adoption Process


    1. 2. 3. Awareness:

    4.
    5.

    Consumer becomes aware of the new product, but lacks information about it. Interest: Consumer seeks information about new product. Evaluation: Consumer considers whether trying the new product makes sense. Trial: Consumer tries new product on a small scale to improve his or her estimate of its value. Adoption: Consumer decides to make full and regular use of the new product.

    Adopter Categories
    Percentage of Adopters

    5-21

    Early Majority Innovators

    Late Majority

    Early Adopters
    13.5%

    34%

    34% 16%

    Laggards

    2.5%

    Time of Adoption Late

    Early

    Influence of Product Characteristics on Rate of Adoption


    Communicability Can results be easily observed or described to others? Relative Advantage Is the innovation superior to existing products?

    5-22

    Divisibility
    Can the innovation be used on a trial basis?

    Product Characteristics

    Compatibility Does the innovation fit the values and experience of the target market?

    Complexity
    Is the innovation difficult to understand or use?

    What is a Business Market?

    5-23

    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 market is huge and involves many more dollars and items than do consumer markets.

    5-24

    The Business Buying Process

    Characteristics of Business Markets


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

    5-25

    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

    5-26

    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 situations. Buying Center Members:
    Users Deciders Influencers Buyers Gatekeepers

    Participants in the Business Buying Process: The Buying Center


    Gatekeepers Users

    5-27

    Buying Center Buyers Deciders

    Influencers

    Model of Business Buyer Behavior


    Product Price Place

    5-28

    Marketing and Other Stimuli

    Economic Technological

    Political
    Cultural The Buying Organization Interpersonal and Individual Influences

    Promotion

    Organizational Influences

    The Buying Center Buying Decision Process

    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

    5-29

    Organizational
    Objectives, Policies, Procedures, Structure, & Systems

    Interpersonal
    Authority, Status, Empathy & Persuasiveness

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

    Buyers

    5-30

    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

    5-31

    New Task Buying Involved Decision Making

    Modified Re-buy

    Straight Re-buy

    Rest Stop: Reviewing the Concepts

    5-32

    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.

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