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3 consumerandbusinessbuyerbehavior1-100102033316-phpapp01


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3 consumerandbusinessbuyerbehavior1-100

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3 consumerandbusinessbuyerbehavior1-100102033316-phpapp01

  1. 1. 5-1 Consumerand BusinessBuyer BehaviorNathan George
  2. 2. Consumer Buying Behavior 5-2 • 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?”
  3. 3. Model of Buyer Behavior 5-3Product Marketing and EconomicPrice Other Stimuli TechnologicalPlace PoliticalPromotion CulturalBuying BuyerDecision Characteristics Buyer’s Black BoxProcessProduct Choice Purchase TimingBrand Choice Buyer’s Response PurchaseDealer Choice Amount
  4. 4. 5-4Factors InfluencingConsumer Behavior Cultural Social Personal Age and Psycho- Culture Reference life-cycle logical groups Occupation Motivation Economic Perception Buyer Sub- culture Family situation Learning Lifestyle Beliefs and Roles Personality attitudes Social and and class status self-concept
  5. 5. Factors Affecting Consumer Behavior: 5-5Culture Culture • Most basic cause of a persons wants and behavior. • Values, Perceptions, Wants & Behavior Subculture Social Class• Groups of people with shared • Society’s relatively permanent & value systems based on ordered divisions whose common life experiences. members share similar values, interests, and behaviors.• Hispanic Consumers • Measured by: Occupation,• African American Consumers Income, Education, Wealth and• Asian American Consumers Other Variables.• Mature Consumers
  6. 6. Factors Affecting Consumer Behavior: 5-6Social Groups Membership• • Reference Family Husband, wife, kids Social Factors• • Influencer, buyer, user Roles and Status
  7. 7. Factors Affecting Consumer Behavior: 5-7Personal Personal Influences Age and Life Cycle Occupation Stage Economic Situation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests
  8. 8. Factors Affecting Consumer Behavior: 5-8Psychological Motivation Beliefs and Psychological Factors Perception Attitudes Learning
  9. 9. 5-9Perception• Perception – Information Inputs – Interpretation – Selective Exposure – Selective Distortion – Selective Retention
  10. 10. Maslow’s Hierarchy of Needs 5-10 Self Actualization (Self-development) Esteem Needs ( self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst)
  11. 11. The Buyer Decision Process 5-11 Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post-purchase Behavior
  12. 12. The Buyer Decision Process 5-12Step 1. Need Recognition Need Recognition Buyer Recognizes a Problem or Need Internal Stimuli External Stimuli • Hunger • TV advertising • Thirst • Magazine ad • A person’s normal needs • Radio slogan •Stimuli in the environment
  13. 13. The Buyer Decision Process 5-13Step 2. Information Search •Family, friends, neighbors Personal Sources •Most effective source of information •Advertising, salespeople Commercial Sources •Receives most information from these sources •Mass Media Public Sources •Consumer-rating groups •Handling the product Experiential Sources •Examining the product •Using the product
  14. 14. 5-14The Buyer Decision ProcessStep 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. Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives
  15. 15. The Buyer Decision Process 5-15Step 4. Purchase Decision Purchase Intention Desire to buy the most preferred brand Attitudes of Unexpected Others Situational Factors Purchase Decision
  16. 16. The Buyer Decision Process 5-16Step 5. Post-purchase Behavior Consumer’s Expectations of Product’s Performance Product’s Perceived Performance Satisfied Customer! Dissatisfied Customer Cognitive Dissonance
  17. 17. 5-17Buying Decision Process Consumer satisfaction is a function of consumer expectations and perceived product performance. Performance < Expectations Disappointment Performance = Expectations Satisfaction Performance > Expectations Delight
  18. 18. 5-18Buying Decision Process • Cognitive dissonance: a buyer’s doubts shortly after a purchase about whether it was the right decision.
  19. 19. Stages in the Adoption Process 5-19 Awareness Interest Evaluation Trial Adoption
  20. 20. 5-20Stages in the Adoption Process• Awareness: Consumer becomes aware of the new product, but lacks information about it.• Interest: Consumer seeks information about new product.• Evaluation: Consumer considers whether trying the new product makes sense.• Trial: Consumer tries new product on a small scale to improve his or her estimate of its value.• Adoption: Consumer decides to make full and regular use of the new product.
  21. 21. 5-21Adopter CategoriesPercentage of Adopters Early Majority Late Majority Innovators Early Laggards Adopters 34% 34% 13.5% 16% 2.5% Time of Adoption Early Late
  22. 22. Influence of Product Characteristics 5-22on Rate of Adoption Communicability Relative Advantage Can results be easily Is the innovation superior observed or described to existing products? to others? Product Compatibility Divisibility Characteristics Does the innovation Can the innovation fit the values and be used on a experience of the trial basis? target market? Complexity Is the innovation difficult to understand or use?
  23. 23. What is a Business Market? 5-23 • 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 than do consumer markets.
  24. 24. 5-24The Business Buying Process
  25. 25. Characteristics of Business Markets 5-25 Market Structure and Demand• Fewer, larger buyers• Geographically concentrated• Demand derived from consumers• Fluctuating demand Nature of the Buying Unit • More members • More professional purchasing effort Types of Decisions & the Decision Process • More complex decisions • Process is more formalized • Buyer and seller are more dependent on each other • Build close long-term relationships with customers
  26. 26. 5-26Participants in the Business Buying Process • Decision-making unit of • Buying Center a buying organization is Members: called its buying center. – Users • Not a fixed and formally – Deciders identified unit. – Influencers • Membership will vary for – Buyers different products and – Gatekeepers buying situations.
  27. 27. Participants in the Business Buying 5-27Process: The Buying Center Gatekeepers Users Buying Center Buyers Deciders Influencers
  28. 28. Model of Business Buyer Behavior 5-28Product Marketing and EconomicPrice Other Stimuli TechnologicalPlace PoliticalPromotion CulturalOrganizational The Buying Organization The Buying Center InterpersonalInfluences and Individual Buying Decision Process InfluencesProduct or Service Delivery TermsChoice Buyer’s Response and TimesSupplier Choice Service TermsOrder Quantities Payment
  29. 29. Major Influences on Business 5-29Buyer 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
  30. 30. 5-30Major Types of Buying Situations The buyer routinely reorders Straight Re-buy something without any modifications. The buyer wants to modify Modified Re-buy product specifications, prices, terms, or suppliers. The buyer purchases a New Task product or service for the first time.
  31. 31. Business Buying Situations 5-31 New Task Buying Involved Decision Making Modified Re-buy Straight Re-buy
  32. 32. Rest Stop: 5-32 Reviewing the Concepts• Understand the consumer market and the major factors that influence consumer buyer behavior.• Identify and discuss the stages in the buyer decision process.• Describe the adoption and diffusion process for new products.• Define the business market and identify the major factors that influence business buyer behavior.• List and define the steps in the business buying decision process.