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Buyer Behaviour
• Dominant Family Purchase - Cozenza 1985
• Demographic Factors
• The Consumer Buying Process
• Maslow’s hierarchy of needs
• UK socioeconomic classification scheme
• Types of buyer behaviour
• The Buying Decision Process
• Organisational Buyer Behaviour
Dominant Family Purchase - Cozenza 1985
PRODUCT DOMINANT
DECISION
MAKER
TYPICAL
DECISION
Women’s casual
clothing
Wife Price, style
Vacations Syncratic (both) Whether to go, where
Men’s casual clothing Husband Type, price, style
Life insurance Husband Company, coverage
Homeowner’s
insurance
Husband Company, coverage
Household appliances Wife Style, brand, price
Demographic Factors
• Age
• Stage in family life cycle
• Occupation
• Economic circumstances
• Lifestyle
• social influence variables
• family background
• reference groups
• roles and status
The Consumer Buying Process
Consumer
Purchase Decisions
Product Choice
Location Choice
Brand Choice
Other Choices
Psychological Inputs
Culture
Attitude
Learning
Perception
Based on Cohen (1991)
Marketing Inputs
Product
Price
Promotion
Place
Maslow’s Hierarchy of Needs
Physiological
Safety
Social
Esteem
Self
Actualisation
UK socioeconomic classification scheme
Class name Social status Occupation of head of
household
% of
population
A Upper middle Higher managerial,
administrative or professional
3
B Middle Intermediate managerial,
administrative or professional
14
C1 Lower middle Supervisors or clerical, junior
managerial, administrative or
professional
27
C2 Skilled working Skilled manual workers 25
D Working Semiskilled and unskilled
workers
19
E Those at lowest levels of
subsistence
Pensioners, widows, casual or
lower-grade workers
12
Types of buyer behaviour
• Complex buyer behaviour e.g. Intel Pentium
Processor
• Dissonance-reducing behaviour (brand
reduces after-sales discomfort)
• Habitual buying behaviour e.g. salt - little
difference
• variety seeking behaviour - significant
brand differences e.g soap powder
The Buying Decision Process
• recognition of the need e.g a new PC
• choice of involvement level (time and effort justified) e.g.
two week ends
• identification of alternatives e.g. Dell, PC World
• evaluation of alternatives I.e. price, customer service,
software support, printer/scanner package
• decision - choice made e.g Epsom
• action e.g buy Epsom model from Comet
• post-purchase behaviour I.e. use, breakdowns, etc
Organisational Buyer Behaviour
‘The decision-making process by which
formal organisations establish the need for
purchased products and services, and
identify, evaluate, and choose among
alternative brands and suppliers’
Kotler and Armstrong 1989
Characteristics of organisational
buyer behaviour
• Organisation purpose - Goodyear Tyres
• Derived demand - follows cars and lorries
• Concentrated purchasing - stockholdings of rubber
• Direct dealings - large purchaser of basic rubber -
no intermediaries
• Specialist activities - learns about the product
• Multiple purchase influences - DMU - Decision
making unit

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motivation&cbehavior.ppt

  • 1. Buyer Behaviour • Dominant Family Purchase - Cozenza 1985 • Demographic Factors • The Consumer Buying Process • Maslow’s hierarchy of needs • UK socioeconomic classification scheme • Types of buyer behaviour • The Buying Decision Process • Organisational Buyer Behaviour
  • 2. Dominant Family Purchase - Cozenza 1985 PRODUCT DOMINANT DECISION MAKER TYPICAL DECISION Women’s casual clothing Wife Price, style Vacations Syncratic (both) Whether to go, where Men’s casual clothing Husband Type, price, style Life insurance Husband Company, coverage Homeowner’s insurance Husband Company, coverage Household appliances Wife Style, brand, price
  • 3. Demographic Factors • Age • Stage in family life cycle • Occupation • Economic circumstances • Lifestyle • social influence variables • family background • reference groups • roles and status
  • 4. The Consumer Buying Process Consumer Purchase Decisions Product Choice Location Choice Brand Choice Other Choices Psychological Inputs Culture Attitude Learning Perception Based on Cohen (1991) Marketing Inputs Product Price Promotion Place
  • 5. Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self Actualisation
  • 6. UK socioeconomic classification scheme Class name Social status Occupation of head of household % of population A Upper middle Higher managerial, administrative or professional 3 B Middle Intermediate managerial, administrative or professional 14 C1 Lower middle Supervisors or clerical, junior managerial, administrative or professional 27 C2 Skilled working Skilled manual workers 25 D Working Semiskilled and unskilled workers 19 E Those at lowest levels of subsistence Pensioners, widows, casual or lower-grade workers 12
  • 7. Types of buyer behaviour • Complex buyer behaviour e.g. Intel Pentium Processor • Dissonance-reducing behaviour (brand reduces after-sales discomfort) • Habitual buying behaviour e.g. salt - little difference • variety seeking behaviour - significant brand differences e.g soap powder
  • 8. The Buying Decision Process • recognition of the need e.g a new PC • choice of involvement level (time and effort justified) e.g. two week ends • identification of alternatives e.g. Dell, PC World • evaluation of alternatives I.e. price, customer service, software support, printer/scanner package • decision - choice made e.g Epsom • action e.g buy Epsom model from Comet • post-purchase behaviour I.e. use, breakdowns, etc
  • 9. Organisational Buyer Behaviour ‘The decision-making process by which formal organisations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers’ Kotler and Armstrong 1989
  • 10. Characteristics of organisational buyer behaviour • Organisation purpose - Goodyear Tyres • Derived demand - follows cars and lorries • Concentrated purchasing - stockholdings of rubber • Direct dealings - large purchaser of basic rubber - no intermediaries • Specialist activities - learns about the product • Multiple purchase influences - DMU - Decision making unit