Ind. Buyer Behavior

7/31/2019 Ind. Buyer Behavior

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MARKETINGBuyer Behaviour

Session 5


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OBJECTIVES

Why study buyer behaviour?

How do we describe buyer behaviour?

What are the major factors that influencebuyer behaviour?

How do industrial buyers differ from theconsumer buyers?


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Marketers Customers

which came first?the chicken or the egg?the marketer or the customer?

Why study buyer behaviour?


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Why do you do what you do?


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What is Consumer Behaviour?

Activities people engage in when selecting, purchasing, and using

products so as to satisfy needs and desires.


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Creating & using buyerbehaviour information

research & model typical buyers

behaviour

recognize behaviour groups/segments

identify marketing leverage points


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Decision-Making Process

Problem Recognition

Awareness that there is a discrepancy between an actual

and a desired condition.

My car hasdied!


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Information Search.

Internal and external search for information to make a

decision.


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Decision-Making Process: Information

Search

Perceived risk: Consumers uncertainty about the consequences of

future actions.

Types of risk:

Performance risk

Financial risk

Physical risk

Social risk

Time-loss risk


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Decision-Making Process: Information

Search

Internal Search:

Scan memory

External Search:

Shopping

Personal sourcesPublic media

Advertisements


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Evaluation of Alternatives.

Determine choice criteria to evaluate product alternatives.

Performance Lots of storage

Variety ofcolours

Safety


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Purchase Decision

Choose which brand to buy or not to buy

Ill takethat one.


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Post-purchase Evaluation

Purchase satisfaction

Cognitive dissonance

Why did I buysuch an expensivecar?


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Decision involvement

HIGH INVOLVEMENT

Extensive problem-

solving (EPS)

LOW INVOLVEMENT

Limited problem-

solving (LPS)

Routinized response

behavior (RRB)


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Decision-Making Process:

High Involvement Products

ProblemRecognition

Extensiveinformationsearch

Extensiveweighing ofalternatives

Purchasedecision

Dont

Buy

Buy

Problem

stillfaced

Post-purchaseevaluation


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Decision-Making Process:Low Involvement Products

ProblemRecognition

Minimalinformationsearch

Purchasedecision

Postpurchaseconsumption;minimalevaluation


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Individual Influences

Individual factors that shape thebuyer behavior process

involvement

motivation

perception

learning attitudes

personality / self-concept


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Interpersonal Influences

Interpersonal influences that shapethe buyer behavior process

social values / norms / roles

culture / subculture

social class

reference groups / opinion leaders family

social situations


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Industrial vs Consumer BB

How does the industrial buyer differ froma consumer buyer?

What is business-to-businessmarketing?


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Business-to-Business Marketing

Marketing aimed at bringing about an exchange in which a product

is sold for any use other than personal consumption.

Buyers can be:

Manufacturers or resellersGovernments

Not-for-profit organisations


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Characteristics of the Business Market

Relativelyfew customers

Derived demandfor goods &services

Prefer to buydirect from

manufacturer

Expertise inbuying

Importanceof repeat

transactions


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Steps in Buying Process

Step 1:Recognizeneed.

Step 2:Determineproduct &

quantity.

Step 3:Describespecifications.

Step 4:Search forpotential

sources.

Step 5:Acquire and

analyzeproposals.

Step 6:Evaluate &

selectsupplier.

Step 7:Select an

orderroutine.

Step 8:Evaluate

performance.


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Three Kinds of Buying

Straight rebuy: Automatic and regular purchase of familiar products.

Modified rebuy: Buyer is not completely satisfied with current

suppliers and shops around.

New task buying: Buyer seeks to fill a need never before addressed.


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Buying Center

Buying Center:Informal, cross-

departmentaldecision unit whichacquires,

disseminates, andprocesses purchaseinformation.


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Roles in Organisational Buying

Users

Buyers

Gatekeepers

DecidersInfluencers


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Why Organisations Buy

Product

QualityRelatedServices

Price

Delivery &Inventory

BottomLine


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KEY POINTS

Know your customer! create a customized model of your buyers

behaviour decision process

Identify key buyer groups

(segments)

Identify key marketing influenceopportunities (marketing levers)

Ind. Buyer Behavior

Documents

Transcript of Ind. Buyer Behavior