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a study on Buyerbehavior

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  1. 1. Buyer Behavior
  2. 2. Model of Buyer BehaviorMarketing and Buyer’s Black Box Buyer ResponsesOther StimuliMarketing Buyer Characteristics Product ChoiceProduct Buyer Decision Process Brand ChoicePrice Dealer ChoicePlacePromotionOther Purchase TimingEconomic Purchase AmountTechnologicalPoliticalCultural
  3. 3. Approaches to Study of Buyer Behavior Economic model Learning theory model Psycho-analytic model Information processing model
  4. 4. Factors Affecting Consumer Behavior: Culture Culture is the Most Basic Cause of a Persons Wants and Behavior. Subculture• Group of people with shared value systems based on common life experiences.• Hispanic Consumers• African American Consumers• Asian American Consumers• Mature Consumers
  5. 5. Factors Affecting Consumer Behavior: CultureCulture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of Society from Family. Social Class• Society’s relatively permanent & ordered divisions whose members share similar values, interests, and behaviors.• Measured by: Occupation, Income, Education, Wealth and Other Variables.
  6. 6. Factors Affecting Consumer Behavior: Social Groups Groups•• Membership Membership•• Reference Reference Family (most important) Family (most important)•• Husband, wife, kids Husband, wife, kids Social Factors Social Factors•• Influencer, buyer, user Influencer, buyer, user Family Buying Influence Children can exert a strong influence on Roles and Status family buying decisions. Roles and Status Johnson & Johnson reminds customer’s of its commitment to the American Family. What other companies use children to influence family buying decisions? Click or pre ss spa cebar to return
  7. 7. Factors Affecting Consumer Behavior: Personal Personal Influences Personal InfluencesAge and LifeAge and Life Economic Economic Personality & Personality &Cycle Stage Occupation Occupation Situation Self-Concept Cycle Stage Situation Self-Concept Lifestyle Identification Lifestyle Identification Activities Activities Interests Interests Opinions Opinions
  8. 8. Values and Lifestyles Actualizers Actualizers High InnovationHigh Resources Fulfilleds Fulfilleds Achievers Achievers Experiencers Experiencers Believers Believers Strivers Strivers Makers Makers Strugglers Strugglers Low Resources Low Innovation
  9. 9. Factors Affecting Consumer Behavior: Psychological Motivation Psychological FactorsBeliefs and Affecting Perception Attitudes Buyers Choices Learning
  10. 10. Maslow’s Hierarchy of Needs(Fig. 5.4) Self Actualization (Self-development) Esteem Needs (self-esteem) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst)
  11. 11. Consumer EvaluationWhat criteria do consumers use to make evaluations? What do consumers care about? Values Benefits Attributes Means-End Value Chains
  12. 12. Means-End Value Chains •Power •$$ security •Status •Family •Self esteem •Environment •Protection •Peer admiration •Value •Speed •Reliability •Exclusivity •Low emissions•Horse power •Air bags•Prestige brand •High mpg•Styling •Price/resale•Extras •Japanese •Honda •BMW •Toyota •Lexus •Nissan •Mercedes
  13. 13. Buyer Decision Process Purchas e Evaluation Decision Postpurchase of Alternatives Behavior Information Search NeedRecognition
  14. 14. Buyer Decision Process Step 1. Need Recognition Buyer Recognizes Needs ArisingState Where the From:Buyer’s Needs aare Fulfilled and Problem Internal Stimuli –the Buyer is or aSatisfied. Need. Hunger External Stimuli- Friends
  15. 15. The Buyer Decision ProcessStep 2. Information Search Personal Sources Personal Sources •Family, friends, neighbors •Most effective source of informationCommercial Sources •Advertising, salespeopleCommercial Sources •Receives most information from these sources Public Sources Public Sources •Mass Media •Consumer-rating groups •Handling the productExperiential SourcesExperiential Sources •Examining the product •Using the product
  16. 16. The Buyer Decision Process Step 4. 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.Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives
  17. 17. The Buyer Decision ProcessStep 5. Purchase Decision Purchase Intention Desire to buy the most preferred brand Attitudes Unexpected of Others Situational Factors Purchase Decision
  18. 18. The Buyer Decision ProcessStep 6. Postpurchase Behavior Satisfied Customer! Consumer’s Expectations of Product’s Performance. Cognitive Dissonance Product’s Perceived Performance. Dissatisfied Customer
  19. 19. Role of Consumer Involvement Sometimes consumers make evaluations/choices very carefully Sometimes consumers make evaluations/choices with little care Involvement—strength of motivation, importance High involvement—B X I model
  20. 20. Low involvement evaluations Cognitive shortcuts (heuristics) Habit Affective responses
  21. 21. Stages in the Adoption Process Awareness: Consumer is aware of product, but lacks information. Interest: Consumer seeks Information about new product. Evaluation: Consumer considers trying new product. Trial: Consumer tries new product on a small scale.Adoption: Consumer decidesto make regular use of product.
  22. 22. Influence of Product Characteristics on Rate of Adoption Communicability Can results be easily Relative Advantage observed or described Is the innovation to others? superior to existing products? Divisibility CompatibilityCan the innovation Does the innovation be used on a fit the values and trial basis? experience of the target market? Complexity Is the innovation difficult to understand or use?
  23. 23. What is a Business Market? A business market comprises 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 goods than do consumer markets.
  24. 24. Characteristics of Business Markets Contain fewer, but Contain fewer, butMarketing Structure larger buyers larger buyersand Demand Customers are more Customers are more geographically concentrated geographically concentrated Buyer demand is derived from Buyer demand is derived from final consumer demand final consumer demand Demand is often more inelastic Demand often fluctuates more, and more quickly
  25. 25. Characteristics of Business Markets Types of Decisions and the Business Decision Process buyersusually face Business more buying In business complex process is buying, buying more buyers and decisions. formalized. sellers work more closely together. Click to return To develop long-term partnerships, business marketers work closely with their customers. Fujitsu promises high-end support to go along with its high-tech products.
  26. 26. This Unisys ad offers services from technological consulting to database setup a nd maintenance. Model of Business Buyer Behavior (Fig. 6.1) Buyer ResponsesThe Environment The Buying Organization Product orMarketing service choiceStimuli: The buying•Product center•Price Supplier Choice•Place•Promotion Buying decision Order Quantities processOther Stimuli: Delivery terms•Economic (Interpersonal and and times•Technological individual influences)•Political Service terms•Cultural (Organizational•Competitive Influences) Payment
  27. 27. Organizational BuyingProfessional purchasingFewer buyersLarger purchasesCloser, longer relationships/ reciprocityGeographic concentrationDerived demandLower price sensitivityBuying center
  28. 28. Participants in the Business Buying Process Users Ethical Influencers Decision- tF ra F o a s co s c r t Making Unit iS iu tt ti ll S a n o a u a n o a t i tU d e e p e n c x t of a Buying U d e e p e n c xRoles Include Organizatio Buyers n is Called Attitudes Attitudes Its Buying of of Center. Others Others Deciders Gatekeeper s