Buyer behaviour (theory)

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

5-5 5-6
Factors Affecting Consumer Behavior: Factors Affecting Consumer Behavior:
Culture Social
Culture
Groups
• Most basic cause of a person's 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

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

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


The Buyer Decision Process 5-11

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



Buyer Behavior

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


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

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



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?

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

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


Buyer behaviour (theory)

Recommended

Recommended

More Related Content

What's hot

What's hot (17)

Similar to Buyer behaviour (theory)

Similar to Buyer behaviour (theory) (20)

Recently uploaded

Recently uploaded (20)

Buyer behaviour (theory)