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Buyer behaviour (theory)
 

Buyer behaviour (theory)

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    Buyer behaviour (theory) Buyer behaviour (theory) Document Transcript

    • Instructor’s Visual Index Armstrong/ Kotler Chapter 5: Consumer and Business Buyer Behavior 5-1 Consumer Buying Behavior 5-2 • Consumer Buying Behavior refers to the buying behavior of final consumers - individuals & households who buy goods Chapter 5 and services for personal consumption. • The central question for marketers is: Consumer “How do consumers respond to various and Business marketing efforts the company might use?” Buyer Behavior  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall Model of Buyer Behavior 5-3 Factors Influencing 5-4 Marketing and Product Other Stimuli Economic Consumer Behavior Price Technological Place Political Promotion Cultural Cultural Social Personal Buying Buyer Decision Buyer’s Black Box Characteristics Age and Psycho- Culture Reference life-cycle logical Process groups Occupation Motivation Economic Perception Buyer Sub- Family culture situation Learning Lifestyle Beliefs and Roles Personality attitudes Product Choice Purchase Social and and Buyer’s Response Timing class status self-concept Brand Choice Purchase Dealer Choice Amount  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall 5-5 5-6 Factors Affecting Consumer Behavior: Factors Affecting Consumer Behavior: Culture Social Culture Groups • Most basic cause of a persons wants and •Membership behavior. •Reference • Values, Perceptions, Wants & Behavior Family Subculture Social Class •Husband, wife, kids Social Factors • Groups of people with shared • Society’s relatively permanent •Influencer, buyer, user value systems based on & ordered divisions whose common life experiences. members share similar values, interests, and behaviors. • Hispanic Consumers • Measured by: Occupation, Roles and Status • African American Consumers Income, Education, Wealth and • Asian American Consumers Other Variables. • Mature Consumers  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall
    • Instructor’s Visual Index Armstrong/ Kotler Chapter 5: Consumer and Business Buyer Behavior Factors Affecting Consumer Behavior: 5-7 VALS 2 5-8 Actualizers Abundant Resources Personal Personal Influences Principle Oriented Status Oriented Action Oriented Age and Life Cycle Occupation Stage Fulfilleds Achievers Experiencers Economic Situation Personality & Self-Concept Lifestyle Identification Believers Strivers Makers Activities Opinions Strugglers Interests Minimal Resources  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall Factors Affecting Consumer Behavior: 5-9 Maslow’s Hierarchy of Needs 5-10 Psychological Self Actualization Motivation (Self-development) Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Beliefs and Psychological Factors Perception Attitudes Safety Needs (security, protection) Physiological Needs (hunger, thirst) Learning  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall The Buyer Decision Process 5-11 The Buyer Decision Process 5-12 Step 1. Need Recognition Need Recognition Need Recognition Buyer Recognizes a Problem or Need Information Search Internal Stimuli External Stimuli Evaluation of Alternatives • Hunger • TV advertising • Thirst • Magazine ad • A person’s normal needs • Radio slogan •Stimuli in the environment Purchase Decision Postpurchase Behavior  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall
    • Instructor’s Visual Index Armstrong/ Kotler Chapter 5: Consumer and Business Buyer Behavior The Buyer Decision Process 5-13 The Buyer Decision Process 5-14 Step 2. Information Search Step 3. Evaluation of Alternatives •Family, friends, neighbors Consumer May Use Careful Personal Sources •Most effective source of Calculations & Logical Thinking information Commercial Sources •Advertising, salespeople Consumers May Buy on Impulse and •Receives most information from Rely on Intuition these sources •Mass Media Consumers May Make Buying Decisions Public Sources •Consumer-rating groups on Their Own. •Handling the product Consumers May Make Buying Decisions Experiential Sources •Examining the product Only After Consulting Others. •Using the product Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall The Buyer Decision Process 5-15 The Buyer Decision Process 5-16 Step 4. Purchase Decision Step 5. Postpurchase Behavior Consumer’s Expectations of Purchase Intention Desire to buy the most preferred brand Product’s Performance Product’s Perceived Performance Factors Others Situational of Unexpected Attitudes Satisfied Customer! Dissatisfied Customer Purchase Decision Cognitive Dissonance  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall Stages in the Adoption Process 5-17 Adopter Categories 5-18 Awareness Percentage of Adopters Interest Early Majority Late Majority Innovators Early 34% 34% Laggards Adopters Evaluation 13.5% 16% 2.5% Time of Adoption Trial Early Late Adoption  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall
    • Instructor’s Visual Index Armstrong/ Kotler Chapter 5: Consumer and Business Buyer Behavior Influence of Product Characteristics 5-19 Speed Bump: 5-20 on Rate of Adoption Linking the Concepts Communicability Relative Advantage Can results be easily Is the innovation observed or described superior to existing • Think about a specific major purchase to others? products? you’ve made recently. >What buying process did you follow? Product >What major factors influenced your Divisibility Characteristics Compatibility Does the innovation decision? Can the innovation be used on a fit the values and trial basis? experience of the • Pick a company that we’ve discussed in a target market? previous chapter - Nike, Coca-Cola, etc. Complexity >Does the company you choose Is the innovation difficult to understand its customers and their understand or use? buying behavior?  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall What is a Business Market? 5-21 Characteristics of Business Markets 5-22 Market Structure and Demand • Fewer, larger buyers • Business Buyer Behavior refers to the • Geographically concentrated buying behavior of all the organizations that • Demand derived from consumers • Fluctuating demand buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. Nature of the Buying Unit • More buyers • More professional purchasing effort • The business market is huge and involves Types of Decisions & the many more dollars and items do consumer Decision Process markets. • More complex decisions • Process is more formalized • Buyer and seller are more dependent on each other • Build close long-term relationships with customers  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall Model of Business Buyer Behavior 5-23 Rest Stop: 5-24 Product Marketing and Economic Reviewing Other Stimuli Price Technological the Place Political Concepts Promotion Cultural • Understand the consumer market and the major The Buying Organization factors that influence consumer buyer behavior. Organizational Interpersonal Influences The Buying Center and Individual • Identify and discuss the stages in the buyer Buying Decision Process Influences decision process. • Describe the adoption and diffusion process for new products. • Define the business market and identify the major Product or Service Delivery Terms factors that influence business buyer behavior. Choice Buyer’s Response and Times • List and define the steps in the business buying Supplier Choice Service Terms decision process. Order Quantities Payment  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall  Copyright 2000 Prentice Hall