2. TOPIC
A. Model of Consumer Behavior
B. Personal Characteristics affecting consumer
behavior
A. Organizational Markets
B. A model of Organizational Buyer Behavior
6. INDUSTRIAL MARKETS
Includes individuals and companies that buy
goods and services in order to produce other
goods and services.
RESELLER
MARKET
GOVERNMENT
MARKET
INSTITUTIONAL
MARKET
TYPES OF ORGANIZATIONAL MARKETS
7. RESELLER MARKET
Consists of individuals or companies that
purchase goods and services produced by
others for resale to consumers
GOVERNMENT
MARKET
INSTITUTIONAL
MARKET
TYPES OF ORGANIZATIONAL MARKETS
8. GOVERNMENT MARKET
Consists of government agencies at all levels
that purchase goods and services for carrying
out the functions of government
INSTITUTIONAL
MARKET
TYPES OF ORGANIZATIONAL MARKETS
9. INSTITUTIONAL MARKET
Consists of individuals and companies such as schools or
hospitals that purchase goods and services for the benefit
or use of persons cared for by the institution.
TYPES OF ORGANIZATIONAL MARKETS
10. INDUSTRIAL MARKETS
Includes individuals and companies that buy
goods and services in order to produce other
goods and services.
RESELLER MARKET
Consists of individuals or companies that
purchase goods and services produced by
others for resale to consumers
GOVERNMENT MARKET
Consists of government agencies at all levels
that purchase goods and services for carrying
out the functions of government
INSTITUTIONAL MARKET
Consists of individuals and companies such as schools or
hospitals that purchase goods and services for the benefit
or use of persons cared for by the institution.
TYPES OF ORGANIZATIONAL MARKETS
11. A MODEL OF ORGANIZATIONAL
BUYER BEHAVIOR
• The Webster and Wind Model
• The Howard Sheth Model
12. I
B
E O
ENVIRONMENTAL
BUYING
CENTRE
INDIVIDUAL
ORGANIZATIONAL
• Physical
• Technological
• Economic
• Political
• Legal
• Labor Unions
• Competition
• Supplier
Information
• Authority
• Size
• Key Influencers
• Interpersonal
Relationship
• Communication
• Personal Goals
• Education
• Experience
• Values
• Job Position
• Lifestyle
• Income
• Objectives, Goals
• Organization
Structure
• Purchasing
Policies and
Procedures
• Degree of
Centralization in
Purchasing
• Evaluation and
Reward System
Webster and Wind Model
13. • Any aspect of the external environment that may affect the
organization buying behavior is embraced under this heading.
This includes political, economic, cultural, legal, technological
and physical environments. Competitors’ marketing actions are
also deemed to be in the external environment.
ENVIRONMENTAL
14. • The relationships between the individuals in the Buying
Centre are an important determinant of how decisions are
reached. How coalitions are formed and where loyalties lie
within an organization will be dependent on these
relationships
BUYING CENTRE
15. • Attitude to risk, creativity, competitiveness, style of problem solving
and locus of control will all be unique in each individual. The
individual’s personal goals, past experience and training will inform
their way of operating. Each individual will influence the DMU’s
decisions to a greater or lesser extent. Each of these categories has two
subcategories of task and non-task related variables.
• Task related variables are directly related to the buying decision being
undertaken;
• Non-task related variables are not directly concerned with the buying
decision but nevertheless affect the decisions made.
INDIVIDUAL
16. • There are several organizational factors that affect behavior.
The company’s goals and objectives set parameters on
activity. The organization’s structure and resources act as
constraints on its culture in terms of the type of policies and
procedures that are followed. These all affect buying behavior.
ORGANIZATIONAL
17.
18. The Howard Sheth Model is an approach for
analyzing the combined impact of the social,
psychological and marketing factors on the buying
behavior or preference of the consumers and the
industrial buyers into a logical order of
information processing.
Howard Sheth Model
19. EXTENSIVE PROBLEM SOLVING
THREE LEVELS OF DECISION-MAKING
DEPICTED BY HOWARD SHETH MODEL
LIMITED PROBLEM SOLVING
ROUTINIZED RESPONSE BEHAVIOUR
20. EXTENSIVE PROBLEM SOLVING
THREE LEVELS OF DECISION-MAKING
DEPICTED BY HOWARD SHETH MODEL
LIMITED PROBLEM SOLVING
ROUTINIZED RESPONSE BEHAVIOUR
This is the initial stage of decision-making, where the buyer is
new to the market. He/she has no or little information about the
brands and has no preference for a particular product or service.
Thus, a consumer is an information seeker at this level, who
check out different brands available in the market, before making
a buying decision.
21. EXTENSIVE PROBLEM SOLVING
THREE LEVELS OF DECISION-MAKING
DEPICTED BY HOWARD SHETH MODEL
LIMITED PROBLEM SOLVING
ROUTINIZED RESPONSE BEHAVIOUR
The buyer has inadequate or incomplete information about the
product, market or the brands operating in it. Sometimes the
buyer is confused among the various alternatives.
Therefore, to make a buying decision, he/she look for a
comparative study of the different brands and the products
available in the market
22. EXTENSIVE PROBLEM SOLVING
THREE LEVELS OF DECISION-MAKING
DEPICTED BY HOWARD SHETH MODEL
LIMITED PROBLEM SOLVING
ROUTINIZED RESPONSE BEHAVIOUR
The habitual response behavior stage is where the buyer
is entirely aware of the products offered by different
brands and the features, pros and cons of each product.
He/she is capable of evaluating and comparing the
multiple options available in the market.
Here, the buyer decides in advance, which product is to
be purchased.
