Consumer BehaviorConsumer Buyer RelationshipFactors Influencing Consumer BehaviorThe Buying Decision ProcessOther Theories of Consumer Decision Making

Is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experience to satisfy their needs and wants.

Cultural FactorsSocial FactorsPersonal FactorsPsychological Factors

CULTURE fundamental determinants of a persons wants and behavior.

SUBCULTURE provides more specific identification and socialization for their members. (e.g. Nationalities, religions, racial groups, geographic regions)

Reference Groups groups that have a direct (face-to-face) or indirect influence on their attitudes.Examples:Membership groupsPrimary groupsSecondary groupsAspirational GroupsDissociative Groups

Family most important consumer buying organization in society, and family members constitute most influential primary reference group.FAMILY OF ORIENTATION consist of parents and siblings.FAMILY OF PROCREATION a more direct influence on everyday buying behavior. (e.g. Persons spouse and children.)

ROLES AND STATUS

Role consists of the activities a persons is expected to perform. Each role connotes a status.

Personal characteristics that influence a buyers decision include age and stage of life cycle, occupation and economic circumstances, personality and self-concept, and lifestyle and values.

Age taste in food, clothes, furniture and recreation.Stage in the Life Cycle marriage, childbirth, illness, relocation, divorce, first job, career change, retirement and death.Occupation Marketers try to identify the occupational groups that have above-average interest in their products and services.

Economic Circumstances recession = redesign, reposition, and reprice their products.Personality and Self-Concept consumer often choose brands with a brand personality consistent with their actual self-concept, although the match may be based on consumers ideal self-concept or even on others self-concept.

Sincerity down to earth, honest, wholesome, and cheerfulExcitement daring, spirited, imaginative, and up-to-dateCompetence reliable, intelligent, and successfulSophistication upper-class and charmingRuggedness outdoorsy and tough

Lifestyle a persons pattern of living in the world as expressed in activities, interests, and opinions.Money Constrained or Time Constrained.Values the belief systems that underlie attitudes and behavior.

Motivation

Perception

Learning

Memory

Problem RecognitionInformation SearchEvaluation of AlternativesPurchase DecisionPost-purchase Decision

Low-Involvement Consumer Decision Making

Variety-Seeking Buying Behavior

Decision Heuristics

Framing

Mental Accounting

Organizational Buying decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and supplier.

Business Market consists of all the organizations that acquire goods and services that are sold, rented, or supplied to others.Similarities of Business Markets to Consumer MarketsUnderstanding deep customer needs in new wayIdentifying new opportunities for organic business growth

Improving value management techniques and tools

Calculating better marketing performance and accountability metrics

Competing and growing in global markets, particularly in China

Countering the threat of product and service commoditization

Gain support for marketing concept

Fewer, Larger Buyer

Close supplier-customer relationship

Professional purchasing

Multiple buying influences

Multiple sales call

Derived demand

Inelastic demand

Fluctuating demand

Geographically concentrated buyers

Direct Purchasing

Straight rebuy

Modified rebuy

New task

InitiatorsUsersInfluencersDecidersApproversBuyersGatekeepers

Problem recognitionGeneral need description and product specificationSupplier SearchProposal solicitationSupplier selectionOrder-routine specificationPerformance review

Availability of alternatives

Importance of supply

Complexity of supply

Supply market dynanism