Presentation on theme: "Consumer and Business Buyer Behaviour Chapter 6. Discussion Questions Think about a specific major purchase you’ve made recently. What buying process."— Presentation transcript:
Discussion Questions Think about a specific major purchase you’ve made recently. What buying process did you follow (How did you decide)? What major factors influenced your decision? Pick a company. Does the company you chose understand its customers and their buying behaviour? Explain.
Decision Making: Situations Less Involvement More Involvement Routine Response Behavior Routine Response Behavior Limited Problem Solving Limited Problem Solving Extensive Decision Making Extensive Decision Making
Traditional factors affecting consumer purchasing behaviours Demographics (age, gender, income, etc.) Heredity and home environment Family life cycle Life changing events Cultural environment Social environment Situational environment
Information Search – Step 2 Two ways of gathering information: 1.Internally 2.Externally – requires time and effort Consumers look to reduce risks and uncertainty associated with their purchases Consumer risks include: performance, financial, physical, social and time.
Evaluation of Alternatives – Step 3 Choice criteria 1. Evoked set 2. Inept set 3. Inert set Product/service features Need/want factors
The Purchase/Buy Decision – Step 4 Decision to purchase a particular product may be based on several factors: Brands Price Need Quality Situation Attitudes of others Enticements And many others,…..
Individual factors that shape the decision-making process Motivation Perception Learning Attitudes Personality and Self-Concept
Business Markets and Organizational Buying Chapter 7
Common Types of Organizational Consumers – Exhibit 7-1
Factors affecting Organizational purchasing behaviours Product and service quality Customer related services – examples? Price and terms of purchase Delivery and inventory management systems Collaboration
Distinguishing Characteristics of Business Markets Concentrated Demand Derived Demand Higher Levels of Demand Fluctuation Purchasing Professionals/Buyer expertise Multiple Buying Influences Close Buyer-Seller Relationships due to repeat buying
Characteristics of the Three Types of Buying Decisions Straight Rebuy Modified Rebuy New Task Newness of Problem or Need Information Requirements Information Search Consideration of New Alternatives Multiple Buying Influence Financial Risks Low Minimal Minimal None Very Small Low Medium Moderate Limited Limited Moderate Moderate High Maximum Extensive Extensive Large High
Steps in Organizational Decision Making (Exhibit 7-4) 1. Identification of a Need 2. Deciding on Objectives and Specifications 3. Identification of Suppliers and Evaluation of Alternatives 4. Selection of Suppliers and Negotiations 5. Establishing a Valued Customers Relationship
Roles of the Buying Center Users Gatekeepers Influencers Deciders Buyers Organizational Buying Center