Presentation on theme: "Consumer and Business Buyer Behavior"— Presentation transcript:
1 Consumer and Business Buyer Behavior Chapter 6Consumer and Business Buyer Behavior
2 Road Map: Previewing the Concepts Understand the consumer market and the major factors that influence consumer buyer behavior.Identify and discuss the stages in the buyer decision process.Describe the adoption and diffusion process for new products.Define the business market and identify the major factors that influence business buyer behavior.List and define the steps in the business buying decision process.
3 Consumer Buying Behavior Consumer Buying Behavior refers to the buying behavior of final consumers -individuals & households - who buy goods and services for personal consumption.These final consumers make up the consumer market.The central question for marketers is:“How do consumers respond to various marketing efforts the company might use?”
6 Factors Affecting Consumer Behavior: Culture Culture is the Most Basic Cause of a Person's Wants and Behavior.SubcultureGroups of people with shared value systems based on common life experiences.Hispanic ConsumersAfrican American ConsumersAsian American ConsumersMature Consumers
7 Factors Affecting Consumer Behavior: Culture Social ClassSociety’s relatively permanent & ordered divisions whose members share similar values, interests, and behaviors.Measured by a Combination of: Occupation, Income, Education, Wealth and Other Variables.
8 Factors Affecting Consumer Behavior: Social Groups Membership, Reference, or AspirationalFamily Most Important Consumer Buying OrganizationRoles and Status
9 Factors Affecting Consumer Behavior: Personal Personal InfluencesAge and LifeCycle StageOccupationPersonality &Self-ConceptEconomicSituationFactors Affecting Consumer Behavior: PersonalLifestyle IdentificationActivitiesInterestsOpinions
10 JeepAd shows how the lifestyle concept (a person’s pattern of living) can help the marketer understand consumer values and how they affect buying behavior.Ad targets people who want to “leave the civilized world behind”.
14 Buyer Decision Process Step 1. Need Recognition Buyer Recognizes a Problem or a Need Arising From:Internal Stimuli –HungerExternal Stimuli-Friends
15 The Buyer Decision Process Step 2. Information Search Personal SourcesThe Buyer Decision Process Step 2. Information SearchCommercial SourcesPublic SourcesFamily, friends, neighborsMost effective source ofinformationAdvertising, salespeopleReceives the most informationfrom these sourcesExperiential SourcesMass MediaConsumer-rating groupsHandling the productExamining the productUsing the product
16 The Buyer Decision Process Step 4. Evaluation of Alternatives Consumer May Use CarefulCalculations & Logical ThinkingConsumers May Buy on Impulse andRely on IntuitionConsumers May Make Buying Decisionson Their OwnConsumers May Make Buying DecisionsOnly After Consulting OthersMarketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives
17 The Buyer Decision Process Step 5. Purchase Decision Purchase IntentionDesire to buy the most preferred brandUnexpected Situational FactorsAttitudes of OthersPurchase Decision
18 The Buyer Decision Process Step 6. Postpurchase Behavior Cognitive DissonanceSatisfied Customer!Consumer’sExpectations of Product’s PerformanceProduct’s PerceivedPerformanceDissatisfied Customer
19 Interactive Student Assignments Pair with the student on your right. Using the information found in Figure 6-4, trace a recent purchase each of you have made. Be sure to examine each of the five stages of the buyer decision process and detail your experiences in each stage.What could the seller have done to make your buying experience better?Did you experience any cognitive dissonance? Explain.This question allows the student to relate what he or she has learned from the chapter about the consumer buying process. To make sure that students do not stray from the assignment and choose an appropriate example the instructor may wish to provide guidelines or parameters for the selection. Certain industries could be chosen or choices could be limited to a grocery visit or a shopping trip to the mall. Remember, that except for the purchase of an automobile or the selection of an educational institution, most students will not have made very many extended problem solving or high risk decisions.Be sure to save time for the discussion of any cognitive dissonance (discomfort caused by postpurchase conflict). Though everyone may wish to communicate “war stories” here, the point is to examine the conflict and to see how the conflict could have been resolved equitably by the seller. Internet purchasing can also be used here.
20 Stages in the Adoption Process Awareness: Consumer becomes aware of the new product, but lacks information about it.Interest: Consumer seeks information about new product.Evaluation: Consumer considers whether trying the new product makes sense.Trial: Consumer tries new product on a small scale to improve his or her estimate of its value.Adoption: Consumer decides to make full and regular use of the new product.
22 Influence of Product Characteristics on Rate of Adoption Relative AdvantageIs the innovationsuperior to existingproducts?CommunicabilityCan results be easilyobserved or describedto others?DivisibilityCan the innovationbe used on alimited basis?CompatibilityDoes the innovationfit the values andexperience of thetarget market?ComplexityIs the innovationdifficult tounderstand or use?
23 Characteristics of Business Markets Market Structure and DemandContain far fewer, but larger buyers,Customers are more geographically concentrated,Business demand is derived from final consumer demand.Nature of the Buying UnitBusiness purchases involve more buyers.Business buying involves a more professional purchasing effort.
24 Characteristics of Business Markets Types of Decisions and the Decision ProcessBusiness buyers usually face more complex buying decisions.Business buying process is more formalized.Buyers and sellers are more dependent on each other.Build Long-Term Partnerships
26 Major Types of Buying Situations New Task BuyingInvolved Decision MakingModified RebuyStraight Rebuy
27 Discussion QuestionIdentify which of the major types of business buying situations is represented by the following:Chrysler’s purchase of computers that go in cars and adjust engine performance to changing driving conditions.Chrysler's first purchase of a new form of car computers would be a new-task buying situation, with many details to be worked out regarding performance, reliability, and price.
28 Participants in the Business Buying Process Major challenge for the marketer to find out:Who is part of the decision?What decisions do they influence?What is their relative degree of influence?What evaluative criteria does each decision participant use?Decision-making unit of a buying organization is called its buying center.Not a fixed and formally identified unit.Will vary for different products and buying situations.
29 Major Influences on Business Buyer Behavior (Fig. 6-7)
31 Business Buying on the Internet Business buyers may purchase electronically by:Electronic data interchange links (EDI)The InternetE-procurement yields benefits:Eliminates paperwork,Reduces time between order & delivery.E-procurement has problems:Eliminates some jobs,Can erode customer-supplier relationships,Can create security disasters.
32 Road Map: Reviewing the Concepts Understand the consumer market and the major factors that influence consumer buyer behavior.Identify and discuss the stages in the buyer decision process.Describe the adoption and diffusion process for new products.Define the business market and identify the major factors that influence business buyer behavior.List and define the steps in the business buying decision process.