Chapter 5 & 6 Consumer Buyer Behavior and Business Buyer Behavior INTRODUCTION TO MARKETING MANAGEMENT Dr. Franck VIGNERON CSUN – COBE – Dept. Of Marketing
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?”
Model of Buyer Behavior Marketing and Other Stimuli Buyer’s Black Box Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Buyer Characteristics Buying Decision Process Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
Factors Influencing Consumer Behavior Culture Sub- culture Social class Social Reference groups Family Roles and status Personal Age and life-cycle Occupation Economic situation Lifestyle Personality and self-concept Psycho- logical Motivation Perception Learning Beliefs and attitudes Buyer Cultural
Factors Affecting Consumer Behavior: Culture
Most basic cause of a person's wants and behavior.
Values, Perceptions, Wants & Behavior
Society’s relatively permanent & ordered divisions whose members share similar values, interests, and behaviors.
Measured by: Occupation, Income, Education, Wealth and Other Variables.
Groups of people with shared value systems based on common life experiences.
African American Consumers
Asian American Consumers
Factors Affecting Consumer Behavior: Social
Husband, wife, kids
Influencer, buyer, user
Roles and Status Social Factors
Factors Affecting Consumer Behavior: Personal Personal Influences Age and Life Cycle Stage Occupation Economic Situation Lifestyle Identification Activities Opinions Interests Personality & Self-Concept
Maslow’s Hierarchy of Needs Esteem Needs ( self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst) Self Actualization (Self-development )
The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior
The Buyer Decision Process Step 1. Need Recognition
Stimuli in the environment
A person’s normal needs
Need Recognition Buyer Recognizes a Problem or Need
The Buyer Decision Process Step 2. Information Search
Family, friends, neighbors
Most effective source of
Receives most information from
Handling the product
Examining the product
Using the product
Personal Sources Commercial Sources Public Sources Experiential Sources
Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives 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. Consumers May Make Buying Decisions Only After Consulting Others .
The Buyer Decision Process Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Purchase Decision Attitudes of Others Unexpected Situational Factors
The Buyer Decision Process Step 5. Postpurchase Behavior
Consumer’s Expectations of
Dissatisfied Customer Satisfied Customer!
Product’s Perceived Performance
Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption
Adopter Categories Percentage of Adopters Time of Adoption Early Late Innovators Early Adopters Early Majority 2.5% 13.5% 34% 34% 16% Laggards Late Majority
Influence of Product Characteristics on Rate of Adoption Divisibility Can the innovation be used on a trial basis? Compatibility Does the innovation fit the values and experience of the target market? Complexity Is the innovation difficult to understand or use? Relative Advantage Is the innovation superior to existing products? Communicability Can results be easily observed or described to others? Product Characteristics
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 market is huge and involves many more dollars and items do consumer markets.
Types of Decisions & the Decision Process Market Structure and Demand
Fewer, larger buyers
Demand derived from consumers
Nature of the Buying Unit
More professional purchasing
More complex decisions
Process is more formalized
Buyer and seller are more
dependent on each other
Build close long-term relationships
Characteristics of Business Markets
The Buying Organization Model of Business Buyer Behavior Marketing and Other Stimuli Buyer’s Response Product Price Place Promotion Economic Technological Political Cultural Interpersonal and Individual Influences Organizational Influences Product or Service Choice Supplier Choice Order Quantities Delivery Terms and Times Service Terms Payment The Buying Center Buying Decision Process
Business Buying Situations Straight Rebuy New Task Buying Modified Rebuy Involved Decision Making
Participants in the Business Buying Process: The Buying Center Buying Center Users Gatekeepers Buyers Deciders Influencers
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
Stages of the Business Buying Process Problem Recognition General Need Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review