CB & Business Buyer 2

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Consumer and Business

Buyer Behavior

Chapter 5Chapter 5


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Road Map: Previewing the

Concepts

Understand the consumer market and theUnderstand the consumer market and themajor factors that influence consumer buyermajor factors that influence consumer buyerbehavior.behavior.

Identify and discuss the stages in the buyerIdentify and discuss the stages in the buyerdecision process.decision process.

Describe the adoption and diffusion processDescribe the adoption and diffusion processfor new products.for new products.


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Define the business market and identify theDefine the business market and identify themajor factors that influence business buyermajor factors that influence business buyer

behavior.behavior. List and define the steps in the businessList and define the steps in the business

buying decision process.buying decision process.

Road Map: Previewing the

Concepts


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Consumer Buying Behavior

Refers to the buying behavior ofRefers to the buying behavior ofpeople who buy goods and servicespeople who buy goods and services

for personal use.for personal use. These people make up theThese people make up the

consumer marketconsumer market..

The central question for marketers is:The central question for marketers is:

How do consumers respond to variousHow do consumers respond to variousmarketing efforts the company mightmarketing efforts the company mightuse?use?


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Culture

Culture is the Most Basic Cause ofa Person's Wants and Behavior.

Culture is learned from family, church,

school, peers, colleagues.

Culture includes basic values,

perceptions, wants, and behaviors.


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Culture

Subculture Groups of people with shared value systems

based on common life experiences.

Major Groups Hispanic Consumers

African-American Consumers

Asian-American Consumers

Mature Consumers


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Social ClassSocial Class

Societys relatively permanent andSocietys relatively permanent and

ordered divisions whose membersordered divisions whose membersshare similar values, interests, andshare similar values, interests, and

behaviors.behaviors.

Measured by a combination of:Measured by a combination of:

occupation, income, education,occupation, income, education,

wealth, and other variables.wealth, and other variables.

Culture


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Social Factors

Groups:Groups:

Membership, Reference (OpinionMembership, Reference (Opinion

Leaders) AspirationalLeaders) Aspirational

Family:Family:

Most important consumer buyingMost important consumer buying

organizationorganization

Roles & Status:Roles & Status: Role = Expected activitiesRole = Expected activities

Status = Esteem given to role by societyStatus = Esteem given to role by society


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Personal Factors

Age and LifeAge and Life--Cycle StageCycle Stage

OccupationOccupation

Economic SituationEconomic Situation


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Personal Factors

Lifestyle:Lifestyle:

Pattern of living as expressed inPattern of living as expressed in

psychographicspsychographicsActivitiesActivities

InterestsInterests

OpinionsOpinions


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Personality & Self-Concept

Personality refers to the uniquePersonality refers to the unique

psychological characteristics that leadpsychological characteristics that lead

to relatively consistent and lastingto relatively consistent and lasting

responses to ones own environment.responses to ones own environment.

Generally defined in terms of traits.Generally defined in terms of traits.

SelfSelf--concept suggests that peoplesconcept suggests that peoplespossessions contribute to and reflectpossessions contribute to and reflect

their identities.their identities.


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Maslows Hierarchyof Needs

SelfSelf--ActualizationActualization

Esteem needsEsteem needs Social needsSocial needs

Safety needsSafety needs

Physiological needsPhysiological needs


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Perception

Information InputsInformation Inputs

InterpretationInterpretationSelective ExposureSelective Exposure

Selective DistortionSelective Distortion

Selective RetentionSelective Retention


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Learning

A relatively permanent change inA relatively permanent change inbehavior due to experience.behavior due to experience.

Interplay of drives, stimuli, cues,Interplay of drives, stimuli, cues,responses, and reinforcement.responses, and reinforcement.

Strongly influenced by theStrongly influenced by theconsequences of an individualsconsequences of an individuals

behaviorbehavior Behaviors with satisfying results tend toBehaviors with satisfying results tend to

be repeated.be repeated.

Behaviors with unsatisfying results tendBehaviors with unsatisfying results tend

notnotto be repeated.to be repeated.


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Beliefs & Attitudes

A beliefbeliefis a descriptive thought that

a person holds about something.

An attitudeattitude is a persons

consistently favorable or unfavorableevaluations, feelings, and tendencies

toward an object or idea.


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Buying Decision Process

Need recognitionNeed recognition

Information searchInformation search

Evaluation of alternativesEvaluation of alternatives

Purchase decisionPurchase decision Postpurchase behaviorPostpurchase behavior


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Sourcesof Information

PersonalPersonal

CommercialCommercial PublicPublic

ExperientialExperiential


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Factors that influence purchaseFactors that influence purchase

decision:decision:Attitudes of othersAttitudes of others

Unexpected situational factorsUnexpected situational factors


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Cognitive dissonance:Cognitive dissonance: a buyersa buyers

doubts shortly after a purchasedoubts shortly after a purchaseabout whether it was the rightabout whether it was the right

decision.decision.


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Stagesin the Adoption Process

1.1. AwarenessAwareness:: Consumer becomes awareConsumer becomes awareof the new product, but lacks informationof the new product, but lacks informationabout it.about it.

2.2. InterestInterest:: Consumer seeks informationConsumer seeks informationabout new product.about new product.

3.3. EvaluationEvaluation:: Consumer considersConsumer considerswhether trying the new product makeswhether trying the new product makessense.sense.

4.4. TrialTrial:: Consumer tries new product on aConsumer tries new product on asmall scale to improve his or her estimatesmall scale to improve his or her estimateof its value.of its value.

5.5. AdoptionAdoption:: Consumer decides to makeConsumer decides to makefull and regular use of the new product.full and regular use of the new product.


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Product AdopterCategories

InnovatorsInnovators

Early adoptersEarly adopters Early majorityEarly majority

Late majorityLate majority

LaggardsLaggards


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Influenceof Product Characteristics

onRateof Adoption Relative AdvantageRelative Advantage: Is the innovation

superior to existing products?

CompatibilityCompatibility: Does the innovation fit the

values and experience of the targetmarket?

ComplexityComplexity: Is the innovation difficult tounderstand or use?

DivisibilityDivisibility: Can the innovation be usedon a limited basis?

CommunicabilityCommunicability: Can results be easily

observed or described to others?


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Business Markets & Business

BuyerBehavior

The business marketis vast andinvolves far more dollars and items

than do consumer markets. Business buyerbehaviorrefers to

the buying behavior of theorganizations that buy goods and

services for use in the production ofother products and services that aresold, rented, or supplied to others.


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Business Markets

Market Structure andMarket Structure andDemand:Demand:

Contains far fewer but

larger buyers. Customers are more

geographicallyconcentrated.

Business demand isderived fromconsumer demand.

Nature of theNature of theBuying Unit:Buying Unit:

Businesspurchases involvemore decisionparticipants.

Business buyinginvolves a moreprofessionalpurchasing effort.


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Typesof Decisionsand the

Decision Process

Business buyers usually face moreBusiness buyers usually face more

complex buying decisions.complex buying decisions.

Business buying process tends to beBusiness buying process tends to be

more formalized.more formalized.

Buyers and sellers are much moreBuyers and sellers are much moredependent on each other.dependent on each other.


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Typesof

Buying

Situations

Straight rebuyStraight rebuy

Modified rebuyModified rebuy

New TaskNew Task


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Participantsin theBusiness

Buying Process

Decision-making unit of

a buying organization is

called its buying center. Not a fixed and formally

identified unit.

Membership will vary

for different products

and buying situations.

Buying CenterBuying CenterMembers:Members:

UsersUsers DecidersDeciders

InfluencersInfluencers

BuyersBuyers

GatekeepersGatekeepers


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InfluencesonBusinessBuyer

Behavior

EnvironmentalEnvironmental

OrganizationalOrganizational InterpersonalInterpersonal

IndividualIndividual


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TheBusinessBuying Process

1.1. ProblemProblem

recognitionrecognition

2.2. General needGeneral need

descriptiondescription

3.3. ProductProduct

specificationspecification

4.4. Supplier searchSupplier search

5.5. ProposalProposal

solicitationsolicitation

6.6. SupplierSupplier

selectionselection

7.7. OrderOrder--routineroutine

specificationspecification

8.8. PerformancePerformance

reviewreview


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e-Procurement

Advantages for buyers:Advantages for buyers:

Access to new suppliersAccess to new suppliers

Lowers purchasing costsLowers purchasing costs

Hastens order processing and deliveryHastens order processing and delivery

Advantages for vendors:Advantages for vendors:

Share information with customersShare information with customers

Sell products and servicesSell products and services

Provide customer support servicesProvide customer support services

Maintain ongoing customer relationshipsMaintain ongoing customer relationships


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Rest Stop:Reviewing theConcepts

1.1. Describe the consumer market andDescribe the consumer market andthe major factors that influencethe major factors that influence

consumer buyer behavior.consumer buyer behavior.

2.2. Identify and discuss the stages in theIdentify and discuss the stages in thebuyer decision process.buyer decision process.

3.3. Describe the adoption and diffusionDescribe the adoption and diffusion

process for new products.process for new products.


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Rest Stop:Reviewing theConcepts

4.4. Define the business market andDefine the business market andidentify the major factors thatidentify the major factors that

influence business buyer behavior.influence business buyer behavior.

5.5. List and define the steps in theList and define the steps in thebusiness buying decision process.business buying decision process.

CB & Business Buyer 2

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