1. Understanding Consumer and Business Buyer Behavior
Chapter 5

2. Rest Stop: 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

3. Rest Stop: Previewing the Concepts
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

4. First Stop: Apple: The Keeper of All Things Cool
Apple customers are intensely loyal
Apple’s products work better and are simpler to use because Apple has deep understanding of consumer behavior
Apple’s obsession with understanding customers and deepening their Apple experience shows in everything the company does
It gives a life-feels-good experience to its consumers

5. The buying behavior of individuals and households who buy goods and services for personal consumption
Consumer buying behavior

6. Figure 5.1 - Model of Buyer Behavior
Note to Instructor: We can measure the whats, wheres, and whens of consumer buying behavior. But it’s very difficult to “see” inside the consumer’s head and figure out the whys of buying behavior (that’s why it’s called the black box). Marketers spend a lot of time and dollars trying to figure out what makes customers tick.

7. Figure 5.2 - Factors Influencing Consumer Behavior
Note to Instructor: Cultural factors: Many brands now target specific subcultures—such as Hispanic American, African American, and Asian American consumers—with marketing programs tailored to their specific needs and preferences. For example, P&G’s CoverGirl Queen cosmetics line was inspired by Queen Latifah to “celebrate the beauty of women of color.”
Personal factors: People’s buying decisions reflect and contribute to their lifestyles—their whole pattern of acting and interacting in the world. For example, Pottery Barn sells more than just home furnishings. It sells an upscale yet casual, family- and friend-focused lifestyle.
An individual's buying decisions are affected by an incredibly complex combination of external and internal influences.

8. Culture
Culture is the most basic cause of a person’s wants and behavior
Culture is learned from the society, family, and other institutions
Culture reflects basic values, perceptions, wants, and behaviors
Cultural shifts create opportunities for new products or may otherwise influence consumer behavior

9. Groups of people with shared value systems based on common life experiences and situations
Subculture
Note to Instructor: Subcultures include nationalities, religions, racial groups and geographic regions. Ask students to research and list products from a single company that have multiple versions catering to more than one distinct subculture.

10. Subculture Major subculture groups in the U.S. Hispanic consumers
African-American consumers
Asian-American consumers
Mature consumers

11. Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
Social class
Note to Instructor: People in the U.S. can change their social class easier than can those living in many other countries. Discuss how this aspect of the U.S. population affects marketers.

12. Figure 5.3 - The Major American Social Classes
Note to Instructor: Social class is not determined by a single factor but by a combination of all of these factors. America’s different social classes show distinct brand preferences.

13. Social Factors Groups and social networks
Membership, reference, and aspirational groups
Marketers attempt to reach opinion leaders within groups important to target market
Opinion leaders are recruited as brand ambassadors or for buzz marketing

14. Opinion Leaders at JetBlue
JetBlue CrewBlue program
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15. Social Factors Groups and social networks:
Online social networks allow marketers to interact with consumers
Mountain Dew’s DEWmocracy
campaign

16. Marketing at Work
BlendTec developed a cult following after releasing several “Will it Blend” videos on YouTube
Resulted in a stunning five-fold increase in sales
BlendTec puts iPhones, Silly Putty, Golf Balls, Marbles and more to the test

17. Social Factors Family Roles and status
Strongly influences buying behavior
Gender stereotypes for certain types of purchases are relaxing in the U.S.
Children are very influential, and have substantial disposable income of their own
Roles and status
Role = Expected activities
Status = Esteem given to role by society

18. A person’s pattern of living as expressed in his or her activities, interests, opinions
Lifestyle
Note to Instructor: Lifestyle is expressed in terms of an individual’s psychographics.

19. Personal Factors
People within the same subculture, social class, and occupation may have different lifestyles
People buy the lifestyles represented by products or services
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20. Personal Factors
PersonicX 21 life-stage groupings lets marketers see customers as they really are and target them precisely

21. Marketing at Work
Triumph doesn’t just sell motorcycles; it sells an independent, “Go your own way” lifestyle

22. Personal Factors Personality
Refers to the unique psychological characteristics that distinguish a person or group
Generally defined in terms of traits
Can be useful in analyzing consumer behavior for certain product or brand choices
Brands may also have personalities

23. A motive is a need that is sufficiently pressing to direct the person to seek satisfaction
Motivation
Note to Instructor: The term motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. Consumers often don’t know or can’t describe why they act as they do. Thus, motivation researchers use a variety of probing techniques to uncover underlying emotions and attitudes toward brands and buying situations.

24. Figure 5.4 - Maslow’s Hierarchy of Needs
Note to Instructor: According to Maslow, human needs are arranged in a hierarchy. Starving people will take little interest in the latest happenings in the art world.

25. Process by which people select, organize, and interpret information to form a meaningful picture of the world
Perception
Note to Instructor: Selective attention, selective distortion, and selective retention cause people to perceive differently.

26. Psychological Factors
Learning
Changes in an individual’s behavior arising from experience
Occurs due to an interplay of drives, stimuli, cues, responses, and reinforcement
Strongly impacted by the consequences of an individual’s behavior
Behaviors with satisfying results tend to be repeated

27. A descriptive thought that a person holds about something
Belief
A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
Attitude

28. Beliefs and Attitudes
Beliefs and attitudes: By matching today’s attitudes about life and healthful living, the SoBe brand has become a leader in the New Age beverage category

29. Figure 5.5 - Buyer Decision Process
Note to Instructor: The buying process starts long before the actual purchase and continues long after. In fact, it might result in a decision not to buy. Therefore, marketers must focus on the entire buying process, not just the purchase decision.

30. Need Recognition and Information Search
Need recognition can be triggered by internal or external stimuli
Advertising can be very helpful in stimulating need recognition

31. Need Recognition and Information Search
Several sources of information may be used as part of the information search
Personal sources
Commercial sources
Public sources
Experiential sources

32. Evaluation of Alternatives and Purchase Decision
Evaluation process is dependent upon the specific buying situation and the individual consumers
Purchase decision - Two factors may interfere with realization of purchase intentions:
Attitudes of others
Unexpected situational factors

33. Post-Purchase Behavior
Consumer satisfaction is a function of consumer expectations and perceived product performance
Performance < Expectations --- Disappointment
Performance = Expectations --- Satisfaction
Performance > Expectations --- Delight

34. Stages in the Adoption Process
Consumer becomes aware of the new product, but lacks information about it
Awareness
Consumer seeks information about new product
Interest:
Consumer considers whether trying the new product makes sense
Evaluation
Consumer tries new product on a small scale to improve his or her estimate of its value
Trial
Consumer decides to make full and regular use of the new product
Adoption

35. Figure 5.6 - Adopter Categorization
Note to Instructor: New-product marketers often target innovators and early adopters, who in turn influence later adopters.

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

37. Refers to the buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
Business Buyer Behavior

38. Business Markets
Involve far more dollars and items than do consumer markets
Market structure and demand differs from consumer markets:
Contains far fewer but larger buyers
Business demand is derived from consumer demand
Business markets have more fluctuating demand

39. Business Markets Nature of the buying unit:
Business purchases involve more decision participants
Business buying involves a more professional purchasing effort

40. Business Markets
Key differences exist between business and consumer buying situations:
Business buyers usually face more complex buying decisions
The business buying process tends to be more formalized
Buyers and sellers are much more dependent on each other in business markets

41. Figure 5.7 - A Model of Business Buyer Behavior
Note to Instructor: In some ways, business markets are similar to consumer markets—this model looks a lot like the model of consumer buyer behavior presented in Figure 5.1. But there are some major differences, especially in the nature of the buying unit, the types of decisions made, and the decision process.

42. Types of Buying Situations
Buyer routinely reorders something without any modifications
Straight rebuy
Buyer wants to modify product specifications, prices, terms, or suppliers
Modified rebuy
Buyer purchases a product or service for the first time
New task
Becoming more common among companies
Systems (solution) selling

43. Participants in the Business Buying Process
Buying center: All the individuals and units that participate in the business buying-decision process
The buying center is not a fixed or formally identified unit
It is a set of buying roles assumed by different people for different purchases

44. Figure 5.8 - Major Influences on Business Buyer Behavior
Note to Instructor: Like consumer buying decisions in Figure 5.2, business buying decisions are affected by an incredibly complex combination of environmental, interpersonal, and individual influences, but with an extra layer of organizational factors thrown into the mix.

45. Figure 5.9 - Stages of the Business Buying Process
Note to Instructor: Buyers facing new, complex buying decisions usually go through all of these stages. Those making rebuys often skip some of the stages. Either way, the business buying process is usually much more complicated than this simple flow diagram suggests.

46. E-procurement
Online purchasing (e-procurement) can be implemented in many ways:
Reverse auctions
Trading exchanges
Company buying sties
Extranet links with key suppliers
E-procurement presents several benefits and problems

47. Marketing at Work
The Shaw Floors site builds strong links with Shaw’s retailers
It provides marketing ideas and tools that make retailers more effective in selling Shaw’s products to final customers

48. Rest Stop: 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

49. Rest Stop: Reviewing the Concepts
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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Copyright © 2013 Pearson Education, Inc.
Publishing as Prentice Hall