Consumer Markets and Consumer Buyer Behavior
Consumer Behaviour 5
Dec 23, 2015
Chapter Six
Business Markets and Business Buying Behavior
Business Markets
Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. Also included are retailing and wholesaling firms that acquire goods to resell or rent to others for profit.
Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands
Business Markets
Business Markets
More decision participants
More professional purchasing effort
Business Buyer Behavior
Straight rebuy is a routine purchase decision such as reorder without any modification
Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers
New task is a purchase decision that requires thorough research such as a new product
Major Types of Buying Situations
Business Buyer Behavior
Systems selling involves the purchase of a packaged solution from a single seller
Two-step process of selling:
Interlocking products
System of production, inventory control, distribution, and other services to meet the buyer’s need for a smooth-running operation
Major Types of Buying Situations
Business Buyer Behavior
Buying center is all of the individuals and units that participate in the business decision-making process
Users
Influencers
Buyers
Deciders
Gatekeepers
Participants in the Business Buying Process
Business Buyer Behavior
Users are those that will use the product or service
Influencers help define specifications and provide information for evaluating alternatives
Buyers have formal authority to select the supplier and arrange terms of purchase
Deciders have formal or informal power to select and approve final suppliers
Gatekeepers control the flow of information
Participants in the Business Buying Process
Business Buyer Behavior
Problem recognition occurs when someone in the company recognizes a problem or need
Internal stimuli
Need for new product or production equipment
External stimuli
Idea from a trade show or advertising
The Buying Process
Business Buyer Behavior
General need description describes the characteristics and quantity of the needed item
Product specification describes the technical criteria
The Buying Process
Business Buyer Behavior
Supplier search involves compiling a list of qualified suppliers
Proposal solicitation is the process of requesting proposals from qualified suppliers
The Buying Process
Business Buyer Behavior
Supplier selection is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions
Order-routine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchase
The Buying Process
Business Buyer Behavior
Performance review involves a critique of supplier performance to the purchase terms
The Buying Process
Business Buyer Behavior
Online purchasing
Company-buying sites
Extranets
E-Procurement
Business Buyer Behavior
Advantages
Access to new suppliers
Lowers costs
Speeds order processing and delivery
Shares information
Sales
Service and support
Disadvantages
Can erode relationships as buyers search for new suppliers
Security
E-Procurement
Institutional and Government Markets
Institutional markets consist of hospitals, nursing homes, and prisons that provide goods and services to people in their care
Characteristics
Low budgets
“Captive” audience
Institutional and Government Markets
Government markets tend to favor domestic suppliers and require suppliers to submit bids and normally award to the lowest bidder
Carefully monitored
Business Markets and Business Buying Behavior
Business Markets
Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. Also included are retailing and wholesaling firms that acquire goods to resell or rent to others for profit.
Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands
Business Markets
Business Markets
More decision participants
More professional purchasing effort
Business Buyer Behavior
Straight rebuy is a routine purchase decision such as reorder without any modification
Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers
New task is a purchase decision that requires thorough research such as a new product
Major Types of Buying Situations
Business Buyer Behavior
Systems selling involves the purchase of a packaged solution from a single seller
Two-step process of selling:
Interlocking products
System of production, inventory control, distribution, and other services to meet the buyer’s need for a smooth-running operation
Major Types of Buying Situations
Business Buyer Behavior
Buying center is all of the individuals and units that participate in the business decision-making process
Users
Influencers
Buyers
Deciders
Gatekeepers
Participants in the Business Buying Process
Business Buyer Behavior
Users are those that will use the product or service
Influencers help define specifications and provide information for evaluating alternatives
Buyers have formal authority to select the supplier and arrange terms of purchase
Deciders have formal or informal power to select and approve final suppliers
Gatekeepers control the flow of information
Participants in the Business Buying Process
Business Buyer Behavior
Problem recognition occurs when someone in the company recognizes a problem or need
Internal stimuli
Need for new product or production equipment
External stimuli
Idea from a trade show or advertising
The Buying Process
Business Buyer Behavior
General need description describes the characteristics and quantity of the needed item
Product specification describes the technical criteria
The Buying Process
Business Buyer Behavior
Supplier search involves compiling a list of qualified suppliers
Proposal solicitation is the process of requesting proposals from qualified suppliers
The Buying Process
Business Buyer Behavior
Supplier selection is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions
Order-routine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchase
The Buying Process
Business Buyer Behavior
Performance review involves a critique of supplier performance to the purchase terms
The Buying Process
Business Buyer Behavior
Online purchasing
Company-buying sites
Extranets
E-Procurement
Business Buyer Behavior
Advantages
Access to new suppliers
Lowers costs
Speeds order processing and delivery
Shares information
Sales
Service and support
Disadvantages
Can erode relationships as buyers search for new suppliers
Security
E-Procurement
Institutional and Government Markets
Institutional markets consist of hospitals, nursing homes, and prisons that provide goods and services to people in their care
Characteristics
Low budgets
“Captive” audience
Institutional and Government Markets
Government markets tend to favor domestic suppliers and require suppliers to submit bids and normally award to the lowest bidder
Carefully monitored
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Consumer Markets and Consumer Buyer
Behavior
5 - 2
Definitions
• Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption
• All of these final consumers combine to make up the consumer market
5 - 3
Factors Influencing Consumer Behavior
5 - 4
Characteristics Affecting Consumer Behavior
Culture•Forms a person’s wants and behavior
Subculture•Groups with shared value systems
Social Class•Society’s divisions who share values, interests and behaviors
CulturalSocialPersonalPsychological
Key FactorsKey Factors
5 - 5
Characteristics Affecting Consumer Behavior
Groups
• Reference• Aspirational
• Opinion Leaders– Buzz marketing
Family• Many influencers
Roles and Status
CulturalSocialPersonalPsychological
Key FactorsKey Factors
5 - 6
Characteristics Affecting Consumer Behavior
Age and life cycle Occupation Economic situation Lifestyle
•Activities, interests and opinions
•Lifestyle segmentation Personality and self-
concept
CulturalSocialPersonalPsychological
Key FactorsKey Factors
5 - 7
Characteristics Affecting Consumer
BehaviorMotivation
Needs provide motives Motivation research Maslow’s hierarchy of needs
Perception Selective attention, selective
distortion, selective retention
Learning cues, responses and
reinforcement
Beliefs and attitudes
Cultural Social Personal Psychological
Key FactorsKey Factors
5 - 8
Types of Buying Behavior
5 - 9
The Buyer Decision Process
5 - 10
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
Needs can be triggered by:
Internal stimuli• Normal needs
become strong enough to drive behavior
External stimuli• Advertisements• Friends of friends
Process Process Stages Stages
5 - 11
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
• Consumers exhibit heightened attention or actively search for information.
• Sources of information: Personal Commercial Public Experiential
• Word-of-mouth
Process Process Stages Stages
5 - 12
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
• Evaluation procedure depends on the consumer and the buying situation.
• Most buyers evaluate multiple attributes, each of which is weighted differently.
• At the end of the evaluation stage, purchase intentions are formed.
Process Process Stages Stages
5 - 13
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
• Two factors intercede between purchase intentions and the actual decision: Attitudes of others Unexpected situational
factors
Process Process Stages Stages
5 - 14
The Buyer Decision Process
Need recognitionInformation searchEvaluation of alternativesPurchase decisionPostpurchase behavior
• Satisfaction is important: Delighted consumers
engage in positive word-of-mouth.
Unhappy customers tell on average 11 other people.
It costs more to attract a new customer than it does to retain an existing customer.
• Cognitive dissonance is common
Process Process Stages Stages
5 - 15
Buyer Decision Process for New Products
New Products Good, service or idea that is
perceived by customers as new.
Stages in the Adoption Process Marketers should help
consumers move through these stages.
5 - 16
Stages in the Adoption Process
Buyer Decision Process for New Products
AwarenessEvaluation
InterestTrial
Adoption
5 - 17
Adopter Categories Based on Relative Time of
Adoption
5 - 18
Buyer Decision Process for New Products
Individual Differences in Innovativeness
Consumers can be classified into five adopter categories, each of which behaves differently toward new products.
Product Characteristics and Adoption
Five product characteristics influence the adoption rate.
5 - 19
Product CharacteristicsProduct Characteristics
Buyer Decision Process for New Products
Relative AdvantageCompatibility
ComplexityDivisibility
Communicability
Related Documents
![[Group 5] Consumer Behaviour](https://static.cupdf.com/doc/110x72/577d27a41a28ab4e1ea47000/group-5-consumer-behaviour.jpg)
