1. Consumer and Business Buyer Behavior
Chapter 6
Consumer 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?”

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

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

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

7. Factors Affecting Consumer Behavior: Culture
Social Class
Society’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 Aspirational
Family Most Important Consumer Buying Organization
Roles and Status

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

10. Jeep
Ad 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”.

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

12. Maslow’s Hierarchy of Needs (Fig. 6-3)

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

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

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

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

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

18. The Buyer Decision Process Step 6. Postpurchase Behavior
Cognitive Dissonance
Satisfied Customer!
Consumer’s
Expectations of Product’s Performance
Product’s Perceived
Performance
Dissatisfied 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.

21. Adopter Categories (Fig. 6-5)

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

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. Characteristics of Business Markets
Types of Decisions and the Decision Process
Business 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

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

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

27. Discussion Question
Identify 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)

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

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. 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.