1. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-1 Chapter 17: Contemporary topics in consumer behaviour Chapter 17: Business-to-business buying behaviour Chapter 18: Consumers and society

2. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-2 Business-to-business buying behaviour Similarities and differences between consumer/household behaviour and the behaviour of businesses Analysing business buying behaviour and developing marketing strategies The ways in which large, complex organisations approach different types of purchase decisions How certain consumer behaviour concepts can be adapted to studying and understanding business- to-business buying behaviour

3. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-3 Overall model of organisational buying behaviour

4. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-4 Organisational culture and organisational decisions

5. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-5 External factors influencing organisational culture: Organisational demographics – Size – Activities and objectives – location – Industry category – Organisational composition – Macro segmentation – Reference groups

6. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-6 External factors influencing organisational culture (cont.) Reference groups Like consumer behaviour, organisational behaviour and purchasing decisions are influenced by Reference groups In industrial markets, the most powerful type of reference group is that of lead users Trade associations Financial analysts

7. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-7 External factors influencing organisational culture (cont.) Lead users Lead users are innovative organisations that derive a great deal of their success from leading change As a result, their adoption of a new product, service, technology, or manufacturing process is watched and emulated by the majority

8. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-8 Role of lead users in encouraging development and adoption of online services

9. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-9 Internal factors influencing organisational culture: Organisational values Different values create different corporate cultures – Qantas versus Virgin Blue  Qantas is corporate, formal and takes itself seriously  Virgin Blue is less formal, creative and promotes a more open organisational style

10. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-10 Organisational values that influence organisational culture

11. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-11 A corporate culture of environmental responsibility

12. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-12 Internal factors influencing organisational culture Shared values and value conflicts Perception Motives and emotions—organisational decisions tend to be less emotional than many consumer purchase decisions Learning—organisations learn through their experiences and perceptions

13. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-13 Personal, organisational and shared values

14. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-14 Organisational buying processes Perception The critical activity that links individual consumers to group, situation, and marketer influences Branding is also important for B2B buyers

15. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-15 An ad using attention-grabbing visual and headline for a B2B audience

16. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-16 Organisational buying processes (cont.) Motives and emotions Firms have objectives for purchasing, and therefore a rational approach to purchasing Can appeal to the emotions of the individuals making the decision Develop a communication to ‘excite’ the buyers

17. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-17 Organisational buying processes (cont.) Learning Like individuals, organisations learn Seen as guidelines and policies for purchasing Can be cognitive or experiential

18. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-18 Unlearning high-involvement negative experiences

19. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-19 The organisational purchase process: purchase situation Straight-rebuy – Low-involvement decisions – Made by a single person in the organisation Modified re-buy – Decision requires more effort and includes more people because of modification to the product, delivery, price or terms and conditions New task – First-time buy – Lots of individuals influencing and involved with decision-making process

20. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-20 Types of organisational decisions and high-/low-involvement processes

21. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-21 Ad acknowledging the importance of repeat purchases

22. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-22 The decision-making unit Also called buying centres because they make purchase decisions; Can be categorised in terms of area of functional responsibility and type of influence Similar organisational customers can be micro segmented into groups

23. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-23 Service attributes, importance for retail and wholesale buyers and operations

24. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-24 Organisational decision process Problem recognition Information search Evaluation and selection Purchase and decision implementation Usage Postpurchase evaluation

25. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-25 Ad highlighting a problem and offering a solution

26. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-26 Purchase and postpurchase evaluation Purchase and decision implementation Postpurchase evaluation - Measuring customer satisfaction

27. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-27 Technology and B2B marketing Advances in technology having a huge impact in the B2B market Many marketing functions are now implemented online

28. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-28 Comparison between B2B and B2C online marketing activities

29. Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by Dr Wayne Binney 17-29 Next Lecture Chapter 18: Consumers and Society