2nd GroupNira Puspitasari110810251009Andy Dinastyo110810251010Marza Ramadhan110810251011Mahadiyyah Rahmi110810251012Eka Ardha N.110810251013

• Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfly their needs and wants.

• A consumer’s buying behavior is influenced by cultural, social, and personal factors.

What influences consumer behavior?

Cultural Factors

• Cultur• Subculture• Social class They are particularly important influences on consumer buying behavior.

In addition to cultural

factors, social factors such

as reference groups, family.

And social roles and statuses

affect our buying behavior.

Social Factors

Personal FactorsA buyer’s decisions are also influenced by personal characteristics. There are include:a. the buyer’s age and stage in the life cycleb. occupation and economic circumstancesc. personality and self-conceptd. lifestyle and values.

MotivationFreud’s Theory

Behavioris guided

by subconsci

ousmotivatio

ns

Maslow’s Hierarchyof Needs

Behavioris driven by

lowest, unmet need

Herzberg’s Two-Factor

Theory

Behavior isguided by motivating and hygiene

factors

How the motivated person

actually acts is influenced by his or her

view or perception of the situation.

Perception is the process by which

an individual selects, organizes, and

interprets information inputs to create

a meaningful picture of the world.

Perception

Maslow’s Hierarchy of Needs

Perception Selective Attention

Subliminal Perception

Selective Distortion

Selective Retention

Selective Attention

It has been estimated that a person is exposed to over 1,500 ads or brand communi cations a day. Because a person cannot possibly attend to all of these, most stimuli will be screened out—a process called selective attention.

Selective attention means that marketers have to work hard to attract consumers’ notice.

People are more likely to notice stimuli that relates to a current need.

Selective Distortion

Selective distortion is the tendency to interpret information in a way that will fit our preconceptions. Consumers will often distort information to be consistent with prior brands and product beliefs.

Selective Retention• People will fail to register much information

to which they are exposed in memory, but will tend to retain information that supports their attitudes and beliefs.

• Because of selective retention, we are likely to remember good points about a product we like and forget good points about competing products.

Key Psychological Processes

Motivation

MemoryLearning

Perception

FIGURE 6.4 CONSUMER BUYING PROCESS

Problem Recognition

Information Search

Evaluation

Purchase Decision

PostpurchaseBehavior

THE BUYING PROCESS STARTS WHEN THE BUYER RECOGNIZES A PROBLEM OR NEED.

THE NEED CAN BE TRIGGERED BY INTERNAL OR EXTERNAL STIMULI.

MARKETERS NEED TO IDENTIFY THE CIRCUMSTANCES THAT TRIGGER A PARTICULAR NEED SO THAT THEY CAN DEVELOP MARKETING STRATEGIES THAT TRIGGER CONSUMER INTEREST.

Problem Recognition

Evaluation of Alternatives

No single process is used by all consumers or by one consumer in all buying situations. The most current models see the process as cognitively orientated.

First, the consumer is trying to satisfy a need.

Second, the consumer is looking for certain benefits from the product solution.

Third, the consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy this need.

Purchase DecisionThere are three

such choice heuristics here:

• conjunctive heuristic

• lexicographic heuristic

• elimination-by-aspects heuristic

Consumers may perceive many types of risk in buying and consuming a product:• Functional risk• Physical risk • Financial risk • Social risk • Psychological

risk • Time risk

Marketers must monitor post purchase satisfaction, post purchase actions, and post purchase product users.a.Post purchase use and disposalb.Post purchase satisfactionc.Post purchase actions

Post Purchase Behavior

Other Theories of Consumer Decision Making1. Level of Consumer Involvement2. Elaboration likelihood model3. Low Involvement Marketing Strategies4. Variety Seeking Buying Behavior5. Decision Heuristics and Biases:

a. The availability heuristicb. The representative heuristicc. The anchoring and adjustment heuristic

6. Mental Accounting Mental accounting is based on a set of key core principles:

a. Consumers tend to segregate gainsb. Consumers tend to integrate lossesc. Consumers tend to integrate smaller losses

with larger gainsd. Consumers tend to segregate small gains from

larger losses.7. Profiling the Costumer Buying Decision Process

What is Organizational Buying?

Webster and Wind define organizational buying as the decision making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

Business markets have several characteristics that contrast sharply with those of consumer markets:

The Business Market

VS

The Consumer Market

• fewer, larger buyers• close supplier

customer relationship

• professional purchasing

• multiple buying influences

• Multiple sales calls• Derived Demand• Inelastic Demand• Fluctuating Demand• Geographically

concentrated buyers

• Direct Purchasing

Buying Situations

The three kinds of buying situations are :–STRAIGHT REBUY

–MODIFIED REBUY–NEW TASK

Systems Buying and Selling

• One variant of systems selling is systems contracting, where a single supplier provides the buyer with his entire requirement of MRO (maintenance, repair, operating) supplies.

• Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects.

• With systems selling, customers present potensial suppliers with a list of project specifications and requirements.

Participants in the Business Buying Process

The Buying Center• Initiators • Users• Influencers• Deciders• Approvers• Buyers• Gatekeepers

Buying Center Influences

o Buying centers usually include several participants with differing interest, authority, status and persuasiveness and sometimes very different decision criteria.

o Business buyers also have personal motivations, perceptions and preferences that are influenced by their age, income, education, job position, personality, attitudes toward risk and culture.

o There are “keep-it-simple” buyers, “own-expert” buyers, “want-the-best” buyers and “want-everything-done” buyers. Some younger, highly educated buyers are computer experts who conduct rigorous analyses of competitive proposals before choosing a supplier.

There are four questions must known by business

marketer:• Who are the major decision participants?• What decisions do they influence?• What is their level of influence?

What evaluation criteria do they use? Small sellers concentarte on reaching the key

buying influencers. Larger sellers go for multilevel-in depth selling to reach as many participants are possible.

Companies must rely more heavily on their communications programs to reach hidden buying influences and keep current customers informed.

Buying Center Targeting

The Purchasing / Procurement Process

It’s includes of Purchasing Departments Perceptions and Purchasing Organizations and Administration.

Purchasing Department Perceptions• In the past, purchasing department occupied a low position

in the management hierarchy, in spite of often managing more than half he company’s costs.

• These now, more strategically oriented purchasing deparments have a misson to seek the best value elevated them to “strategic supply departments”, with responsibility for globla sourching and partnering.

• The upgrading of purcahsing means that business marketers must upgrade their sales personnel to macth the higher caliber of the business buyers.

Stages in the Buying Process

Stages in the buying process are:• Problem Recognition• General Need Description and

Product Specification• Supplier Search• Proposal Solicitation• Supplier Selection

Some companies handle price-oriented buyers by setting a lower price but establishing restrictive conditions :- Limited quantities,- No refunds,- No adjustments, and- No services.

Overcoming Price Pressures

Number of Suppliers

As part of the buyer selection process, buying centers must decide how many suppliers to use. Companies are increasingly reducing the number of supplies.

• To improve effectiveness and efficiency, business suppliers and customers are exploring different ways to manage their relationship.

• Closer relationships are driven in part by supply chain management, early supplier involvement, and purchasing alliances.

Managing Business to Business Customer Relationship

Much research has advocated greater vertical coordination between buying partners and sellers, so they can transcend merely transacting and instead engage in activities that create more value for both parties.

The Benefits of Vertical Coordination

Business Relationship: Risks and Opportunism

• Specific investments are those expenditures tailored to a particular company and value chain partner (investments in company-specific training, equipment, and operating procedures or systems).• Opportunism is “some form cheating or

undersupply relative to an implicit or explicit contract.

Institutional And Government Market

• Institutional market consists of schools, hospitals, nursing homes, prisons, and other institutions that must provide goods and service to people in their care. Many of these organizations are characterized by low budgets and captive clienteles.

• In most countries, government organizations are a major buyer of goods and service. Just as companies provide government agencies with guidelines about how best to purchase and use their products, government provide would-be suppliers with detailed guidelines describing how to sell to the government.

SESI

TANYA

JAWAB

THANK YOUSO MUCH