Buyer Behaviour

Consumer Buying?

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Influences on the Purchase Decision Process

Consumer Purchase Decision Process

Factors influencing Consumer Behaviour

A Systems View (Input Process Output) Marketing & Other Stimuli
Marketing Product Price Promotion Distribution Other Economic Technological Political Social/Cultural

Buyers Black Box

Buyer Influences Cultural Social Personal Psychological Decision Making Process Problem Recognition Info Search Evaluation Purchase / Choice Post-purchase

Buyer Responses

Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount

Consumer Purchase Decision Process

Problem Recognition

Post Purchase Behavior

Information Search

Purchase Decision

Evaluation of Alternatives
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Maslows Hierarchy of Needs

The Classic Decision Making Model

NEED/PROBLEM RECOGNITION INFORMATION SEARCH

Internal search
Past experiences

External search
Personal: family, friends, reference group Commercial: advertising, promotional brochures, packaging, sales people, instore displays Public: government agencies, consumer interest groups, Choice

The Classic Decision Making Model

NEED/PROBLEM RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES

Formation of Evoked Set (A group of Relevant Brands) Evaluation criteria

Cost attributes
i.e. purchase price, operating costs,

Performance attributes
i.e. quality of materials, functional performance, efficiency, safety

Social attributes
Reputation of brand, popularity with friends/family, style, fashion

Availability attributes
Carried by local stores, credit terms, quality of service, delivery time
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The Classic Decision Making Model

NEED/PROBLEM RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES PURCHASE DECISION

Selection: A Mental Winner Purchase: A Physical Winner

Guess where the money is ?

Goal: Translate Selection into Purchase Interference between intention to purchase and actual purchase
Out of stock Special displays Promotions Opinions of others

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Post Purchase
Cognitive Dissonance

Did I make a good decision? Did I buy the right product? Did I get a good value?

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The Classic Decision Making Model

NEED/PROBLEM RECOGNITION INFORMATION SEARCH EVALUATION OF ALTERNATIVES PURCHASE DECISION POST-PURCHASE BEHAVIOUR

Evaluation of the gap between consumers expectations and reality Satisfaction

repeat purchase brand loyalty positive word-of-mouth

Dissatisfaction
negative word-of-mouth

Cognitive dissonance
Buyer discomfort caused by post-purchase conflict

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POST-PURCHASE BEHAVIOUR PURCHASE DECISION

RELATION !I" "#R$!A E "RE%EREN$E

EVALUATION OF ALTERNATIVES INFORMATION SEARCH NEED/PROBLEM RECOGNITION

$ON IDERATION &NO'LED(E A'ARENE I(NORAN$E

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Low Involvement Decision Making Model

NEED/PROBLEM RECOGNITION
& brief internal search

Different Need/Problem Recognition

Solution costs less Many (equally good) alternative solutions Frequent purchasing Familiar product and brands Low perceived importance Reduced decision making time

PURCHASE DECISION POST-PURCHASE EVALUATION

Different decision making model: Low Involvement Decision Making

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Low Involvement Decision Making Model

NEED/PROBLEM RECOGNITION
& brief internal search

Low Involvement Decision Making

- NOT

Think - Feel - Do
- BUT

Think - Do - Feel
Different Hierarchy of Effects
PURCHASE DECISION POST-PURCHASE EVALUATION
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RE) "#R$!A E

TRIAL

A'ARENE

I(NORAN$E
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What is Organizational Buying?

Organizational buying refers to the decisionmaking process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.

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Organisational Buying Behaviour

Marketing & Other Stimuli
Marketing Product Price Promotion Distribution People Processes Physical evidence Other Economic Technological Political Cultural

Buyers Black Box

Buyer Responses
Product or Service Choice Supplier Choice

Interpersonal and Individual influences Organisational Influences Buying Centre Decision Making Process

Order quantities Delivery terms and times Service terms Payment terms
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Organisational Decision Making Process

Problem Recognition General Need Description

Product Specification

Supplier Search

Proposal Solicitation

Supplier Selection

Order-Routine Specification

Performance Review

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Buying Centre
Users Initiators Gatekeepers Buyers Approvers
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Influencers

Deciders

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Power in the Buying Centre

Reinforcement Power The ability to give rewards or punishment Referent Power Legitimate Power Expert Power Information Power
Departmental Power
The attractiveness/charisma of the person The authority granted by the persons position A persons knowledge of the situation A persons access to and control of information The relative importance of departments within the organization
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Session Take Away

The basis for Marketing Strategy
Research on Potential Customers: Needs/Wants Research on Existing Customers: Decision Making

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