1. © 2000 South-Western College Publishing Slide #1 Marketing Management 2nd Edition Chapter 4: Understanding the Buyer Michael R. Czinkota and Masaaki Kotabe

2. © 2000 South-Western College Publishing Slide #2 Chapter Outline l Buying Process l Influences on the Consumer l Organizational Purchasing l Usage and Loyalty

3. © 2000 South-Western College Publishing Slide #3 Buying Process Problem or need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

4. © 2000 South-Western College Publishing Slide #4 Buying Process l Consumer recognizes a need l Example: Consumer recognizes that he needs to upgrade his computer. He wants faster processing, more memory, and several other features. Problem or need recognition

5. © 2000 South-Western College Publishing Slide #5 Buying Process l Consumer seeks out information to fulfill the need. l Example: Consumer searches through PC World and other magazines for information on computers. Information Search

6. © 2000 South-Western College Publishing Slide #6 Buying Process l Consumer evaluates the options that may fulfill his needs. l Example: Consumer selects several different brands and models of computers to consider and evaluates them. Evaluation of Alternatives

7. © 2000 South-Western College Publishing Slide #7 Buying Process l Consumer decides which product or brand to purchase. l Example: Consumer decides to buy a Dell Computer by mail. Purchase Decision

8. © 2000 South-Western College Publishing Slide #8 Buying Process l Consumer will use the product and evaluate his or her decision. l Cognitive dissonance: post-purchase tension resulting from a poor decision. l Example: Consumer decides the brand was a good choice. Post-Purchase Behavior

9. © 2000 South-Western College Publishing Slide #9 Influences on the Consumer Social class Occupation Age Geography Organization Values & lifestyle Peer pressure Culture Economy

10. © 2000 South-Western College Publishing Slide #10 Influences on the Consumer Economic factors: l Personal income l Economy l Price Age and Life Cycle: l Age groups l Traditional life cycle l New life cycles

11. © 2000 South-Western College Publishing Slide #11 Influences on the Consumer Geography: l PRIZM zip codes l World regions Social Class: l Occupation l Income level

12. © 2000 South-Western College Publishing Slide #12 Influences on the Consumer Culture: l Nationality l Ethnicity l Age group Peer Pressure: l Reference groups l Aspirational groups l Family

13. © 2000 South-Western College Publishing Slide #13 Reference Groups for a College Athletic club Classmates Spectators at various events Camera club Employees at job Successful young businesspeople Professional athletes and entertainers Friends Family Dorm or roomates Membership groups Reference groups

14. © 2000 South-Western College Publishing Slide #14 VALS 2 Segmentation System Fulfillers Achievers Strivers Strugglers Actualizers Experiencers BelieversMakers Principle Oriented Action Oriented Status Oriented Abundant resources Minimal resources

15. © 2000 South-Western College Publishing Slide #15 Influences on the Consumer Diffusion of innovation: l Innovators l Early adopters l Early majority l Late majority l Laggards Psychological factors: l Dissatisfiers & satisfiers l Hierarchy of needs

16. © 2000 South-Western College Publishing Slide #16 Organizational Purchasing Categories: l Basic raw materials l Components l Capital goods l Supplies

17. © 2000 South-Western College Publishing Slide #17 Organizational Purchasing Roles at buying center: l Users l Influencers l Deciders l Approvers l Buyers l Gatekeepers

18. © 2000 South-Western College Publishing Slide #18 Usage and Loyalty Types of loyalty behavior: l Hard-core loyals l Loyals l Shifting loyals l Switchers