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Foundations of MarketingDavid Jobber and John Fahy

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Chapter 3

Understanding CustomerBehaviour

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Customer Types

Organisational Customers

Purchase:

For use in the operation of a

business or organisation. To manufacture other

products

For resale to others

Private Consumers

Purchase:

For personal or household

use

ORGANISATIONALPRODUCT

CONSUMER

PRODUCT

2

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Understanding Customers

How do

they buy?

What aretheir choice

criteria?

Customers

Who isimportant?

Where dothey buy?

When dothey buy?

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Who Buys?The Buying Decision

Making Process

Decider(Decision

Maker)

Buyer Gatekeeper

InfluencerInitiator

User

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Phillips Juicer

Advertisement

clearly targets parents

of young children whoare concerned about

their nutrition and

health

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How do they buy?The Consumer Decision-Making Process

Needrecognition/problem

awareness

Information Search

Evaluation ofalternatives

Purchase

Post-purchaseevaluation

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How do they buy?The Organizational Decision-Making

Process

Recognition of a problem (need)

Determination of specification and quantity of needed item

Search for and qualification of potential sources

Acquisition and analysis of proposals

Evaluation of proposals and selection of supplier(s)

Selection of an order routine

Performance feedback and evaluation

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Choice Criteria Used When EvaluatingAlternatives

Technical-

ReliabilityDurabilityPerformanceStyle/looks

ComfortDelivery

ConvenienceTaste

Social-

StatusSocial belonging

ConventionFashion

Personal-

Self image

MoralsEmotions

Economic-

PriceValue for moneyResidual valueLife style costs

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Bang & Olufsen

Advertisement

provides

Highlights bothrational andemotional factorslikely to influence

purchase

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Influences on consumerpurchasing behavior

informationprocessing

motivation

beliefs andattitudes

personality

lifestyle

lifecycle

culturesocial class

geodemo-graphics

reference groups

Personalinfluences

Socialinfluences

Consumer

The buyingsituation

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Bravia Campaign

Advertisement

Demonstrates the

visual power ofcolour and conveys

the key brandproposition

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Behavioural Learning Theories:

Classical conditioning:

is the process of using

an establishedrelationship between a

stimulus and a

response to cause

learning

Operant conditioning:

individual respond tothe stimulus that offers

the most satisfactoryrewards andsubsequently thebehaviour is repeated.The more rewarding theresponse, the morelikelihood of a repeatpurchase

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Behavioural Theories and Marketing

Classical conditioning uses an establishedrelationship between stimulus and response tocause learning

In advertising humour is known to elicit a pleasantresponse and is used in the belief that these pleasantfeeling will be a condition of the product.

Operant conditioning is reinforcement through

rewards

The use of free samples is based on these principles

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Red Bull

Advertisement

uses humour to

appeal to its targetmarket of young adults

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Maslow 5 categories of motivation:

1. Physiological

2. Safety

3. Belongingness and love4. Self-actualisation

5. Esteem and status

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Influences on OrganizationalPurchasing Behaviour

straight

re-buy

modifiedre-buy

new task

Buy class

Organizationalbuyer

product

constituentsproductfacilities

MROs

Product type

Importanceof purchase

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Product Types in Organisational Buying:

Components

Plant &

equipment

Products &

ServicesMaterials

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Developments in OrganizationalPurchasing Practice

Just-in-time purchasing

Online purchasing

Centralised purchasingRelationship Marketing

Reverse marketing

Leasing

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Chapter Summary

There are key differences between consumer and organizational

buying.There are 5 roles in the buying decision making group: initiator,

influencer, decider, buyer, user.

The level of involvement is a purchase situation will affect the

number of stages a consumer goes through before making a

purchase decision.

In consumer purchasing choice criteria can be categorised as:

technical, social, economic and personal.

The main influence on consumer buying behaviour are: the buying

situation, personal and social influences.

The main influence on organizational buying behaviour are: the

buy class, the product type, and the importance of the purchase.

There have been key innovations in purchasing practice.