buyer behavior lecture

7/30/2019 Buyer Behavior Lecture

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Managerial Marketing

Consumer and Organisational Buyer

Behaviour


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Simple Response Model

Stimulus Organism Response


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Consumers

Individuals or households that obtain

products for the the satisfaction of their ownneeds


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Model of Buying Behavior

Buyers decisionprocess

Problem recognitionInformation searchEvaluationDecisionPostpurchase

behavior

Otherstimuli

Economic

TechnologicalPoliticalCultural

Buyerscharacteristics

CulturalSocialPersonalPsychological

Buyers decisionsProduct choiceBrand choiceDealer choicePurchase timingPurchase amount

Marketingstimuli

Product

PricePlacePromotion


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Culture

Cultural Factors

Subculture

Social Class

Buyer


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Social Factors

ReferenceGroups

Roles &Statuses

Family


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Social Factors

Public

Luxuries

Public

Necessities

Private

Luxuries

Private

Necessities

GroupInfluenceonP

roductCho

ice

Strong Weak

Group Influence on Brand Choice

Strong

Weak


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Family Influences

Age and Life Cycle Stage Occupation

Economic Situation

Lifestyle Identification

Activities Opinions

Interests


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Lifestyle - VALS 2

Achievers

Actualisers

Strugglers

Strivers

Fulfilleds

Believers

Experiencers

Makers

Abundant Resourc es

Minimal Resou rces

Principle OrientedStatus OrientedAction Oriented


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Reference Groups For University

Athletic

club

Classmates

Spectators at

various events

Camera

club

Employees

at job

Successful

young

businesspeople

Professionalathletes and

entertainers

Friends

Family

Dorm or

roommates

Membershipgroups

Reference

groups


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Psychological Factors

Perception Learning

Beliefs &

Attitudes

Motivation


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Psychology

The science of the mind, or of mental states

and processes

Influencing factors that originate from

within the consumer

Three TheoriesFreud, Herzberg & Maslow


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Beliefs and Attitudes

Certainty ofoutcome

Evaluation

of outcome

Evaluation

by referents

Motivation

to comply

Attitude

towards

behaviour

Subjective

norm

Intention

Behaviour

Ajzen & Fishbein, 1980


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Maslows Hierarchy of Needs

Self-Esteem

Belongingness

Safety

Physiological

SelfActualisation


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Perceptual Selectivity

All

Stimuli

Discarded

Selective

Exposure

Selective

AttentionSelective

InterpretationRetention


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Four Types of Buying Behavior

Complex

BuyingBehavior

Dissonance-Reducing Buying

Behavior

Variety-

SeekingBehavior

HabitualBuying

Behavior

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

High Involvement Low Involvement


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Consumer Buying Roles

Decider

Buyer

User

Influencer

Initiator

KeyFamily

DecisionRoles


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The Buyer Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post-purchase Behaviour

Consumer recognizes that he

needs to upgrade his computer.

searches through PC World

selects several different brands

and models

buy a Dell Computer by mail.

brand was a good choice.


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Steps Between Evaluation of Alternatives and

a Purchase Decision

Evaluationof

alternatives

Purchasedecision

Unanticipatedsituational

factors

Attitudeof others

Purchaseintention


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Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption


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Adoption of Innovations

FrequencyofAd

option

Time of AdoptionEarly Late

Innovators

EarlyAdopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority


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Influences on Rate of Adoption

Influences

RelativeAdvantage

Communi-cability

Divisibility Compatibility

Complexity


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A Model of Business Buying

BehaviourThe Environment

The Buying Organisation

Buyers Response

The Buying Centre

BuyingDecisionProcess


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Organisational Buying

Institutional buying: buying products onbehalf of an organization to be consumed inthe course of the organizations business

Buying for resale: buying of products to beresold unchanged as part of theorganizations business

Industrial buying: buying of raw materialsand other inputs to be substantially changedin the course of the organizations business

Government buying:


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Characteristics of Business Markets

Characteristicsof

BusinessMarkets

Market Structureand Demand

Types of Decisionsand Decision Process

OtherCharacteristics

Nature ofBuying

Unit


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Organizational Buying

Characteristics

Sellers serve fewer customers

Purchasers deal direct with suppliers

Focus on relationship rather than transaction

Purchasers are expert buyers

Organizational demand is derived demandRelatively price inelastic

Demand fluctuates


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Institutional & Government Markets

Institutional Markets

Low Budgets Captive Patrons

Government Markets

Centralized Buying Public Review

Non-economic Criteria

Outside Publics Submit Bids


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Buying Centres

Buying Centre

UsersGatekeepers

Deciders Influencers

Buyers


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Stages in the Business Buying

Process

Problem Recognition

General Need Description

Product Specification

Supplier Search

Proposal Solicitation

Supplier Selection

Order Routine Specification

Performance Review


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Major Influences on Industrial

Buying Behavior

Level ofdemand

Economicoutlook

Interest rate

Rate of techno-logical change

Political andregulatorydevelopments

Competitivedevelopments

Social responsi-

bility concerns

Environmental

ObjectivesPolicies

Procedures

Organizational

structuresSystems

Organizational

Interests

Authority

Status

Empathy

Persuasive-ness

Interpersonal

AgeIncomeEducationJob positionPersonality

Risk attitudesCulture

Individual

Business

Buyer


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Organizational Factors

Purchasing-Department

Upgrading

Cross-Functional

Roles

CentralizedPurchasing

Decentralized

Purchasingof Small

Ticket Items

Internet

Purchasing

Long-Term

Contracts

Purchasing-Performance

Evaluation &

Pro. Buyers

Lean

Production


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InvolvedDe

cisionMak

ing

Modified Rebuy

New Task Buying

Straight Rebuy

Utilities

Office Supplies

Bulk chemicals

New vehicles

Elec. EquipConsultants

Computer equip.

Custom furniture

Installed components

Buildings

Weapon systems


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Comparison of business & consumer

buying situationsBUYING STEP

1 Need or problem recognition

2 General need description

3 Product specification

4 Information / supplier search

5 Proposal solicitation

6 Supplier selection

7 Order-routine specification

8 Post-purchase performance

review

INDUSTRIAL CONSUMER

Anticipates Reacts

Extensive Limited

Precise / technical Benefits

Extensive Limited

Formal Verbal

Extensive Limited analysis

Calculated re-order Not routinised

Extensive comparisons Little comparison

and benchmarking

buyer behavior lecture

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