1. CH6 CONSUMER AND ORANGIZATIONAL BUYING BEHAVIOUR

2. INTRODUCTION
How do people select a bank? – frequent answer is based on being conveniently located. With many conveniently located, other factors must influence costumers choice of bank.

3. MOTIVATION AND CONSUMER BEHAVIOUR
MOTIVE- an internal, energizing force that orients a persons activities towards satisfying needs or achieving goals. All behaviour is motivated. Psychologists agree that human behaviour is goal directed and revolves around satisfying needs. For example, a thirsty person person needs water, this unsatified need motivates him to search for water to satisfied to satisfy that need. Motivation process starts with an unsatisfied need. That need starts a chain of events leading to behaviour. The unsatisfied need causes a tension. The behaviour is a response to try to reduce that tension.

4. NEEDS AS MOTIVATORS OF BEHAVIOUR
A.H. Maslow developed the hierarchy of needs. His theory of motivation stresses two fundamental premises:
Humans are a wanting animal whose needs depend on what they already have (only unsatisfied needs influence behaviour)
Human’s needs are arranged in hierarchy of importance (lower level satisfied, higher level needs demanding satisfaction)

5. 5 CLASSES OF NEEDS
1)PYSIOLOGICAL NEEDS- physical needs of the body. Until they are satisfied no higher level need can serve as the basis of motivation. For examle, hunger, thirst etc. 2)NEED FOR SECURTY AND SAFETY- need to be protected from physical harm and crisis. Protection from physical harm or uncertanity of the future. 3)NEED FOR BELONGING AND LOVE- need for companionship, failure to satisfy affects mental health. Affection, acceptance or friendship.

6. 4)NEED FOR ESTEEM (Recognition)- awareness of ones own importance to others, self-esteem and esteem demonstrated by others 5)NEED FOR SELF ACTUALIZATION- need to realize one’s potential talents and capabilities. Becoming what one is capable of becoming.. Perception and consumer behaviour What motivates varies modes of behaviour? Answer is perception and attitudes to the process influence behaviour. Perception- process of how people receive information through 5 senses, recognise it and assign it meaning.

7. Perceptions are limited by 3 on-going processes of selectivity: 1
Perceptions are limited by 3 on-going processes of selectivity: 1.SELECTIVE EXPOSURE- people are more likely to notice stimuli that relates to a current need. They are more likely to notice stimuli they expect. They are more likely to notice stimuli that is larger than normal. 2.SELECTION DISTORTION- tendency people have to twist information, for it to conform to their existing perceptions. 3.SELECTION RETENTION- tendency to only retain information that supports existing attitudes and beliefs.

8. FACTORS THAT INFLUENCE THE WAY PEOPLE PRECIEVE STIMULI
1.SOCIAL FACTORS- behaviour is greatly influenced by the people to whom they relate.
Family influence- basic values and attitudes are shaped by family
Reference group influence- people rely on them for information on various subjects
Roles and status- everyone has a role, which can affect how they behave

9. 2.CULTURAL FACTORS- emanate from culture at large, from subculture and social class.
Culture- encompasses the concepts, habits, skills and values given to a group of people. Affects a person’s wants and buying behaviour.
Subculture- based on national origin, race, geographic region, or religion. Members share certain values and attitudes.
Social class- class can be based on religion, kinship, wealth, education or occupation. Different classes have different behaviours.

10. 3.PSYCHOLOGICAL FACTORS- psychological and personal factors are internal factors.
Learning- means changing behaviour on basis of past experiences. Its result of; drive, cues, response and reinforcement.
Beliefs and attitudes- belief is a deeply held conviction that influences a person’s behaviour(accepted facts). An attitude is a positive/negative evaluation or tendency towards something(a feeling)

11. 4.PERSONAL FACTORS
Age and family life cycle- stages in life have influences on your wants and needs.
Economic circumstances- income changes over time, use of financial services will change too. (depends on income level)
Occupation- employment pattern affects the purchase of goods and services.
Personality and self concept- our characteristics affect our wants and needs.
Psychographics- personal and psychological factors influencing buying behaviour.

12. CONSUMER BUYING PROCESS
Starts with an unsatisfied need, individual then searches alternative ways to satisfy the need- known as prepurchase activity. resulting a purchase being made and the rise of postpurchase feelings. Then beginning again with recognition of another unsatisfied need.

13. 1)UNSATISFIED NEEDS- motivates consumer to satisfy this need
1)UNSATISFIED NEEDS- motivates consumer to satisfy this need. Bank marketer needs to identify the needs of it’s market/s and provide products to satisfy them. 2)PREPURCHASE ACTIVITY- people are sensitive to cues that they believe will help them satisfy a need. Banks marketing must be attractive to it market/s. 3)PURCHASE DECISION- ends in a purchase 4)POSTPURCHASE FEELINGS- how the customer feels after the purchase. Banks want them to feel satisfied for promise of repeat purchase.

14. ORGANIZATIONAL BUYING BEHAVIOUR
Is different from individual’s buying behaviour since they don’t purchase goods and services for consumption. Secondly, more people are involved in the purchasing decision. Each person involved has a specific role and therefore the process is more complicated.

15. ORGANIZATIONAL BUYING PROCESS
Begins with recognition a need that needs identifying and the evaluation of alternative purchases. Organizational buying behaviour- process by which a formal organization establishes a need for purchased product or service, and identify, evaluate, and choosing among alternative brands and suppliers.

16. Process starts when a need is identified
Process starts when a need is identified. Once the need has been identified, the organisation (buyer) defines the objectives and specifications that the product must fulfil. The process of evaluating alternative buying decisions involves the study of services offered by other banks and evaluating the differences between them. The process of selecting a supplier involves a decision decided by various people.