L1 Understanding Buyers Behavior

7/30/2019 L1 Understanding Buyers Behavior

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Understanding Buyers Behavior


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TYPES OF CONSUMERS

1: Personal Consumer

2 Organizational Consumer


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Factors Influencing

Consumer Behavior

Cultural Factors

Social Factors

Personal Factors


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What is Culture?

Culture is the fundamental determinant of a

persons wants and behaviors acquired

through socialization processes with family

and other key institutions.


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Subcultures

Nationalities

Religions

Racial groups

Geographic regions


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Social Classes

Upper uppers

Lower uppers

Upper middlesMiddle class

Working class

Upper lowersLower lowers


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Social Factors

Reference

groups

Socialroles

Statuses

Family


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Reference Groups

Membership groups

Primary groups

Secondary groups

Aspirational groups

Dissociative groups


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Provogue uses teenage icons as brand

ambassadors and a youth targeted

website to connect to its customers


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Roles and Status

What degree of status is

associated with various

occupational roles?


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Personal Factors

Age

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Wealth

Lifestyle


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The Family Life Cycle


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Lifestyle Influences

Multi-tasking

Time-starved

Money-constrained


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Figure 6.1

Model of Consumer Behavior


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Key Psychological Processes

Motivation

MemoryLearning

Perception


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Copyright 2009 Dorling

Kindersley (India) Pvt. Ltd.

-

Motivation

Freuds

Theory

Behavior

is guided by

subconscious

motivations

Maslows

Hierarchy

of Needs

Behavior

is driven by

the lowest,

unmet need

Herzbergs

Two-Factor

Theory

Behavior is

guided by

motivating

and hygiene

factors


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-

Maslows Hierarchy of Needs


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-

Herzbergs Two-Factor Theory


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Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion


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Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase

Behavior


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Sources of Information

Personal

ExperientialPublic

Commercial


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Figure 6.5 Successive Sets Involved in

Consumer Decision Making


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Stages between Evaluation of Alternatives and

Purchase


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Perceived Risk

Functional

Physical

Financial

Social

Psychological

Time


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Figure 6.7 How Customers Use and Dispose of

Products


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What is Organizational Buying?

Organizational buying refers to the

decision-making process by which formal

organizations establish the need for

purchased products and services, andidentify, evaluate, and choose among

alternative brands and suppliers.


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Characteristics of Business Markets

Fewer, larger buyers

Close supplier-customer

relationships

Professional purchasing

Many buying influences

Multiple sales calls

Derived demand

Inelastic demand

Fluctuating demand

Geographically

concentrated buyers

Direct purchasing


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Buying Situation

Straight rebuy

Modified rebuy

New task


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The Buying Center

Initiators

Users

Influencers

Deciders

Approvers

Buyers

Gatekeepers


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Of Concern to Business Marketers

Who are the major decision participants?

What decisions do they influence?

What is their level of influence? What evaluation criteria do they use?


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Stages in the Buying Process:

Buyphases Problem recognition

General need description

Product specification

Supplier search

Proposal solicitation

Supplier selection

Order-routine specification

Performance review


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Factors Affecting

Buyer-Supplier Relationships

Availability of

alternatives

Supply market

dynamism

Complexity of

supply

Importance of

supply


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The End

L1 Understanding Buyers Behavior

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