MODULE 3

CONSUMER BUYER BEHAVIOR

CONSUMER BUYER BEHAVIOR

Consumer buyer behavior

The buying behavior of final consumers – individuals and
households who buy goods and services for personal
consumption.

Consumer market
All the individuals and households who buy or acquire goods and
services for personal consumption.
 MODEL OF BUYER BEHAVIOR

Marketing and other Buyer’s

Buyer’s black box
stimuli Responses
Marketing Others Buyer Buyer Product Choice
Product Economic Character- Decision Brand choice
Process
Price Technological istics Dealer choice
Place Political Purchase Amount
Promotion Cultural
CONSUMER BUYER BEHAVIOR

FACTORS INFLUENCING CONSUMER BEHAVIOR

Cultural Factors:
 Culture
 Sub-Culture
 Social Class
CONSUMER BUYER BEHAVIOR

Cultural Factors:

 Culture: The set of basic values, perceptions, wants and behaviors

learned by a member of society from family and other important
institutions.

 Sub-Culture: A group of people with shared value systems based on

common life experiences and situations.

 Social Classes: Relatively permanent and ordered divisions in a society

whose members share similar values, interests, and behavior.
CONSUMER BUYER BEHAVIOR

FACTORS INFLUENCING CONSUMER BEHAVIOR

Social Factors:
 Reference Groups
 Family
 Roles and Status
CONSUMER BUYER BEHAVIOR

FACTORS INFLUENCING CONSUMER BEHAVIOR

Personal Factors:
 Age and Lifecycle stage
 Occupation
 Economic situation
 Lifestyle
 Personality and self concept
CONSUMER BUYER BEHAVIOR
 Lifestyle: A person’s pattern of living as expressed in his or her
activities, interests, and opinions.

 Personality : The unique Psychological characteristics that lead

to relatively consistent and lasting responses to one’s own
environment.
CONSUMER BUYER BEHAVIOR

FACTORS INFLUENCING CONSUMER BEHAVIOR

Psychological Factors:

 Motivation
 Perception
 Learning
 Beliefs and attitudes
CONSUMER BUYER BEHAVIOR
 Motive : The need that is sufficiently pressing to direct the person to seek
satisfaction of the need.

 Perception : The process by which people select, organize, and interpret

information to form a meaningful picture of the world.

 Learning: Changes in an individual’s behavior arising from experience.

 Belief : A descriptive thought that a person holds about something.

 Attitude : A person's consistently favorable or unfavorable evaluations,

feelings, and tendencies toward an object or idea.


THE BUYER DECISION PROCESS

 Need recognition.
 Information search.
 Alternative evaluation.
 Purchase decision.
 Post purchase behavior.
 THE BUYER DECISION PROCESS

 Need recognition: The first stage of buyer decision process, in which

the consumer recognizes a problem or a need.

 Information search: The stage of the buyer decision process which the
consumer is aroused to search for information; the consumer may
simply have heightened attention or may go into active information
search.

 Alternative evaluation: The stage of the buyer decision process which

the consumer uses information to evaluate alternative brands in the
choice set.
 THE BUYER DECISION PROCESS

 Purchase decision: The buyer’s decision about which brand to purchase.

 Post purchase behavior: The stage of the buyer decision process which the
consumers take further actions after purchase, based on their satisfaction or
dissatisfaction.
TYPES OF BUYING DECISION BEHAVIOR

 Complex buying behavior

 Dissonance - reducing buying behavior.
 Habitual buying behavior.
 Variety - seeking buying behavior.
TYPES OF BUYING DECISION BEHAVIOR

Complex buying behavior:

Consumer buying behavior in situations characterized by high consumer involvement
in a purchase and significant perceived differences among brands.

Dissonance - reducing buying behavior:

Consumer buying behavior in situations characterized by high involvement but few
perceived differences among brands.
TYPES OF BUYING DECISION BEHAVIOR

Habitual buying behavior:

Consumer buying behavior in situations characterized by low consumer
involvement and few significant perceived brand differences.

Variety - seeking buying behavior:

Consumer buying behavior in situations characterized by low
consumer involvement but significant perceived brand differences.
THE BUYER DECISION PROCESS FOR NEW PRODUCT

New product
A good,sevice, or idea that is perceived by some potential
customers as new.

Adoption process
The mental process through which an individual passes from first
hearing about an innovation to final adoption.
ADOPTION PROCESS

Stages in the Adoption process:

 Awareness
 Interest
 Evaluation
 Trial
 Adoption
ADOPTION PROCESS

Adopter Groups:
 Innovators
 Early Adopters
 Early Majority
 Late Majority
 Laggards
BUSINESS BUYER BEHAVIOR

 The buying behavior of the organization that buy goods and

services for use in the production of other products and
services or for the purpose of reselling or renting them to
others at a profit.
BUSINESS BUYING PROCESS

 The decision process by which business buyers determine which

products and services their organizations need to purchase, and
then find, evaluate, and choose among alternative suppliers and
brands.
CHARACTERISTICS OF BUSINESS MARKETS
MARKETING STRUCTURE AND DEMAND:
 Business markets contain fewer but larger buyers.
 Business customers are more geographically concentrated.
 Business buyer demand is derived from final consumer demand.
 Demand in many business markets is more inelastic.
 Demand in business markets fluctuates more, and more quickly.

NATURE OF BUYING UNIT:

 Business purchases involve more buyers.
 Business buying involves a more professional effort.

TYPES OF DECISIONS AND THE DECISION PROCESS:

 Business buyers usually face more complex buying decisions.
 Business buying process is more formalized.
 In business buying, buyers and sellers work more closely together and build close long-
run relationships.
DERIVED DEMAND

 Business demand that ultimately comes from (derives from) the

demand for customer goods.
BUSINESS BUYING SITUATIONS

 Straight rebuy : Business buying situation in which the buyer

routinely reorders something without any modifications.

 Modified rebuy : Business buying situation in which the buyer

wants to modify product specifications, prices, terms, suppliers.

 New task : Business buying situation in which the buyer

purchases a product or service for the first time.
BUSINESS BUYER BEHAVIOR

 Buying centre: All the individuals and units that participate in the
business buying- decision process.
PARTICIPANTS IN THE BUSINESS BUYING
PROCESS

 Users
 Influencers
 Buyers
 Deciders
 Gatekeepers
 MAJOR INFLUENCES ON BUSINESS BUYER
BEHAVIOR

Environmental
Organizational
Economic
developments Interpersonal
Individual
Supply Objective Authority
Age
conditions Policies
Status Education
Political and Procedures
regulatory Empathy Job position Buyers
developments Organization
Personality
al structure Persuasive Risk attitudes
Competitive
Systems ness
developments
Culture and
customs
BUSINESS BUYING PROCESS

 Problem recognition : The first stage of business buying process

in which someone in the company recognizes a problem or need
that can be met by acquiring a good or service.

 General need description : The stage of the business buying

process in which the company describes the general
characteristics and quality of a needed item.

 Product specification : The stage of the business buying process

in which the buying organization decides on and specifies the
best technical product characteristics for a needed item.
BUSINESS BUYING PROCESS

 Supplier search : The stage of the business buying process in

which the buyer tries to find the best vendors.

 Proposal solicitation : The stage of the business buying process

in which the buyer invites qualified suppliers to submit
proposals.

 Supplier selection : The stage of the business buying process in

which the buyer reviews proposals and select a supplier or
suppliers.
BUSINESS BUYING PROCESS

 Order-routine specification: The stage of the business buying process in

which the buyer writes the final order with the chosen supplier.

 Performance review :The stage of the business buying process in which

the buyer assesses the final performance of the chosen supplier and
decides to continue, modify or drop the arrangement.
STAGES OF THE BUSINESS BUYING
BEHAVIOR

Problem Product Supplier

recognition General need
description specification search

Proposal Supplier Order- routine Performance

solicitation selection specification review
BUSINESS BUYER BEHAVIOR

 Institutional market : Schools, hospitals, nursing

home, prisons, and other institutions that provides
goods and services to people in their care.

 Government market : Governmental units – federal,

state, and local – that purchase or rent goods and
services for carrying out the main functions of
government.
 MODEL OF BUSINESS BUYER BEHAVIOR

The Environment Buyer Responses

The Buyer Organization
Product or service
Marketing Other stimuli The buying centre choice
Product Economic Buying Supplier choice
Decision
Price Technological Order quantities
Process
Place Political Delivery terms and
(Interpersonal and times
Promotion Cultural
Individual influences) Service terms
Competitive
(Organizational Payment
Influences)