This slide is about the buying behavior shown by the industry & Consumer.

1. Consumer
&
Industrial
Buying Behavior.
Presented By:
Sanjeev K.c.

2. • Buyer behavior is the systematic approach consumers follow
when entering the purchase process and making buying decisions.
• Buyer Behavior is the study of how individuals & groups make
their decisions to use resources in terms of Time, money & effort.
• There are two facets of buying Behavior:
i) Consumer Buying Behavior.
ii) Industrial Buying Behavior.
Buyer
Behavior.

3. Consumer Buying Behavior.
• Consumer Behavior refers to the buying behavior of customers, those
people who purchase products for personal or household use.
• Consumer buying behavior has numerous factors as a part of it which
are believed to have some level of effect on the purchasing decisions
of the customers.
• “Consumer behavior is the study of how people buy, what
they buy, when they buy and why they buy.” ..Philip Kotler.
• “The assumption that people have series of needs which lead to drive
state.” ..Faison and Edmund.

4. Consumer Buying Decision
Process.

5. 1) Need or problem recognition:
• Need recognition is the first step of the buying process of
consumers.
• Consumer buying process always starts with the emergence and
recognition of a problem or need.
• Internal stimulation: Hunger, thirsty, shelter.
External stimulation: Advertisement and mix.
2) Search for information:
• When consumers realize the existence of a need or problem they
need adequate information to solve the problem.

6. • Consumer collects information on the products, brands, stores, prices,
quality, and other attributes and benefits of the product or brand
alternatives.
• Information search by the consumers:
i)Passive search.
ii)Active search: There are mainly two types of active
research:
a)Internal search: Experience, previous memory.
b)External search: Consumers seeks information
from the following:
a) Personal sources: Friends, family, relatives.
b) Marketing sources: Advertisement, sales forces, middleman.
c) Public sources: TV, radio, newspaper, internet.
d) Experimental sources: Handling, examine, testing.

7. 3) Evaluation of alternatives:
• Consumers use the information collected by different sources to
clarify various alternatives & relative alternatives.
• Consumers tend to evaluate alternatives in terms of product class
attributes, brand beliefs and utility functions.
i)Product class attributes: Features, brand, price, quality, service,
performance, warranty.
ii)Brand belief: past experience, develop positive and negative
feeling, opinion of other people, family, friends, references.
iii)Utility functions: expected total satisfaction.
iv)Reducing range of alternatives.

8. 4)Purchase Decision:
• Evaluation leads the consumers to form a clear set of product and
brand preferences.
• Consumers tend to purchase the brand for which they have made
purchase intention.
• Three Factors influence the purchase decision of the firm:
i) Social influence: Family members, Friends, & neighbors.
ii) Situation influence: Unexpected change in variables leads to
revise the purchase intention.
iii) Perceived risk.

9. 5) Post Purchase Behavior:
• Understanding the post-purchase behavior of consumers has
become extremely important for marketers as well as the social
planners.
• There are five areas of marketing interest in the post purchase
phase.
• They are Cognitive dissonance, Consumption and usage,
Satisfaction and dissatisfaction, Complaint behavior, and
Product disposition.

10. Industrial Buying Behavior.
• Industrial buying behavior is the pattern of actions by a company
involved in manufacturing, processing and other heavy industry.
• Buying is a major activity in all the organization.
• Industrial buying is the decisions making process by which formal
organizations establish the need for purchased products and services
and identify, evaluate and choose among alternative brands and
suppliers. …Webster & Wind

11. Industrial Buying Decision
Process.

12. 1)Need / Problem recognition:
• Organizational buying process starts with the identification of a need or
a problem that can be solved with the procurement of a product or
service.
• Industrial buying process begins with need recognition through internal
and external factors.
i) Internal factor: Develop to new product, machine break down,
unsatisfied material and opportunity.
ii) External factor: Trade show, advertising, receive mail from
producer, calling. Example; accountant needs calculator.

13. 2) Preparing Product Specifications:
• Once the need has been identified, the technical personnel in the
organization prepare detail specification of the product or
service requirements.
• It involves what types of product, quality, price, standard, size,
and quantity requires by firm.
• Product specification is also known as technical specification
that involves product value analysis (PVA).
3) Supplier search:
• Purchase committee conducts a search for potential suppliers
for the required product or services.

14. • Regularly purchased items are usually purchased from a regular
supplier.
• Purchase committee may search through trade directories or on
the internet for the new product.
4) Proposal Solicitation / Evaluation and
Analysis of Supplier Proposal:
• Purchase manager solicits proposals from potential suppliers of
the product or service.
• Firm will evaluate the proposal in terms of capability, price,
service, documentation, presentation, confidence, company’s
position etc.

15. 5) Supplier Selection and Purchase:
• Purchase committee carefully evaluate the proposals submitted
by potential suppliers in terms of price, delivery capability and
other technical capabilities.
• Before selecting a supplier, the buyer center will specify desired
supplier attributes and indicate their relative importance.
• The purchase committee works with the technical committee to
select the supplier.