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1 Chapter 6 Consumer and Business Buyer Behavior.

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1 1 Chapter 6 Consumer and Business Buyer Behavior

2 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 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?

4 4 Model of Buyer Behavior (Fig. 6-1)

5 5 Factors Influencing Consumer Behavior (Fig. 6-2)

6 6 Factors Affecting Consumer Behavior: Culture Subculture Groups of people with shared value systems based on common life experiences. Hispanic Consumers African American Consumers Asian American Consumers Mature Consumers Culture is the Most Basic Cause of a Person's Wants and Behavior.

7 7 Factors Affecting Consumer Behavior: Culture Social Class Societys 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 8 Factors Affecting Consumer Behavior: Social Roles and Status Family Most Important Consumer Buying Organization Groups Membership, Reference, or Aspirational

9 9 Personal Influences Age and Life Cycle Stage Age and Life Cycle Stage Occupation Personality & Self-Concept Personality & Self-Concept Economic Situation Economic Situation Activities Interests Lifestyle Identification Opinions Factors Affecting Consumer Behavior: Personal

10 10 Jeep Ad shows how the lifestyle concept (a persons 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.

11 11 Factors Affecting Consumer Behavior: Psychological Psychological Factors Affecting Buyers Choices Motivation Perception Learning Beliefs and Attitudes

12 12 Maslows Hierarchy of Needs (Fig. 6-3)

13 13 Buyer Decision Process (Fig. 6-4)

14 14 Buyer Decision Process Step 1. Need Recognition Internal Stimuli – Hunger External Stimuli- Friends Buyer Recognizes a Problem or a Need Arising From:

15 15 Family, friends, neighbors Most effective source of information Advertising, salespeople Receives the most information from these sources Mass Media Consumer-rating groups Handling the product Examining the product Using the product Personal Sources Commercial Sources Public Sources Experiential Sources The Buyer Decision Process Step 2. Information Search

16 16 Consumer May Use Careful Calculations & Logical Thinking Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own Consumers May Make Buying Decisions on Their Own Consumers May Make Buying Decisions Only After Consulting Others Consumers May Make Buying Decisions Only After Consulting Others Marketers Must Study Buyers to Find Out How They Evaluate Brand Alternatives The Buyer Decision Process Step 4. Evaluation of Alternatives

17 17 Purchase Intention Desire to buy the most preferred brand Purchase Intention Desire to buy the most preferred brand Purchase Decision Unexpected Situational Factors Attitudes of Others The Buyer Decision Process Step 5. Purchase Decision

18 18 Consumers Expectations of Products Performance Products Perceived Performance Dissatisfied Customer Satisfied Customer! The Buyer Decision Process Step 6. Postpurchase Behavior Cognitive Dissonance

19 19 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.

20 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.

21 21 Adopter Categories (Fig. 6-5)

22 22 Divisibility Can the innovation be used on a limited basis? Divisibility Can the innovation be used on a limited basis? Complexity Is the innovation difficult to understand or use? Complexity Is the innovation difficult to understand or use? Communicability Can results be easily observed or described to others? Communicability Can results be easily observed or described to others? Compatibility Does the innovation fit the values and experience of the target market? Compatibility Does the innovation fit the values and experience of the target market? Relative Advantage Is the innovation superior to existing products? Relative Advantage Is the innovation superior to existing products? Influence of Product Characteristics on Rate of Adoption

23 23 Characteristics of Business Markets Market Structure and Demand Contain far fewer, but larger buyers, Customers are more geographically concentrated, Business demand is derived from final consumer demand. Nature of the Buying Unit Business purchases involve more buyers. Business buying involves a more professional purchasing effort.

24 24 Business buyers usually face more complex buying decisions. Characteristics of Business Markets Business buying process is more formalized. Types of Decisions and the Decision Process Buyers and sellers are more dependent on each other.

25 25 Model of Business Buyer Behavior (Fig. 6-6)

26 26 New Task Buying Involved Decision Making Modified Rebuy Major Types of Buying Situations Straight Rebuy

27 27 Identify which of the major types of business buying situations is represented by the following: Chryslers purchase of computers that go in cars and adjust engine performance to changing driving conditions.

28 28 Participants in the Business Buying Process 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. 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?

29 29 Major Influences on Business Buyer Behavior (Fig. 6-7)

30 30 The Business Buying Process (Fig. 6-8)

31 31 Business Buying on the Internet Business buyers may purchase electronically by: Electronic data interchange links (EDI) The Internet E-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 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.


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