Buyer Behavior Lecture
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Transcript of Buyer Behavior Lecture
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7/30/2019 Buyer Behavior Lecture
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Managerial Marketing
Consumer and Organisational Buyer
Behaviour
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Simple Response Model
Stimulus Organism Response
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Consumers
Individuals or households that obtain
products for the the satisfaction of their ownneeds
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Model of Buying Behavior
Buyers decisionprocess
Problem recognitionInformation searchEvaluationDecisionPostpurchase
behavior
Otherstimuli
Economic
TechnologicalPoliticalCultural
Buyerscharacteristics
CulturalSocialPersonalPsychological
Buyers decisionsProduct choiceBrand choiceDealer choicePurchase timingPurchase amount
Marketingstimuli
Product
PricePlacePromotion
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Culture
Cultural Factors
Subculture
Social Class
Buyer
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Social Factors
ReferenceGroups
Roles &Statuses
Family
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Social Factors
Public
Luxuries
Public
Necessities
Private
Luxuries
Private
Necessities
GroupInfluenceonP
roductCho
ice
Strong Weak
Group Influence on Brand Choice
Strong
Weak
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Family Influences
Age and Life Cycle Stage Occupation
Economic Situation
Lifestyle Identification
Activities Opinions
Interests
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Lifestyle - VALS 2
Achievers
Actualisers
Strugglers
Strivers
Fulfilleds
Believers
Experiencers
Makers
Abundant Resourc es
Minimal Resou rces
Principle OrientedStatus OrientedAction Oriented
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Reference Groups For University
Athletic
club
Classmates
Spectators at
various events
Camera
club
Employees
at job
Successful
young
businesspeople
Professionalathletes and
entertainers
Friends
Family
Dorm or
roommates
Membershipgroups
Reference
groups
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Psychological Factors
Perception Learning
Beliefs &
Attitudes
Motivation
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Psychology
The science of the mind, or of mental states
and processes
Influencing factors that originate from
within the consumer
Three TheoriesFreud, Herzberg & Maslow
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Beliefs and Attitudes
Certainty ofoutcome
Evaluation
of outcome
Evaluation
by referents
Motivation
to comply
Attitude
towards
behaviour
Subjective
norm
Intention
Behaviour
Ajzen & Fishbein, 1980
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Maslows Hierarchy of Needs
Self-Esteem
Belongingness
Safety
Physiological
SelfActualisation
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Perceptual Selectivity
All
Stimuli
Discarded
Selective
Exposure
Selective
AttentionSelective
InterpretationRetention
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Four Types of Buying Behavior
Complex
BuyingBehavior
Dissonance-Reducing Buying
Behavior
Variety-
SeekingBehavior
HabitualBuying
Behavior
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
High Involvement Low Involvement
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Consumer Buying Roles
Decider
Buyer
User
Influencer
Initiator
KeyFamily
DecisionRoles
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The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Behaviour
Consumer recognizes that he
needs to upgrade his computer.
searches through PC World
selects several different brands
and models
buy a Dell Computer by mail.
brand was a good choice.
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Steps Between Evaluation of Alternatives and
a Purchase Decision
Evaluationof
alternatives
Purchasedecision
Unanticipatedsituational
factors
Attitudeof others
Purchaseintention
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Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
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Adoption of Innovations
FrequencyofAd
option
Time of AdoptionEarly Late
Innovators
EarlyAdopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
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Influences on Rate of Adoption
Influences
RelativeAdvantage
Communi-cability
Divisibility Compatibility
Complexity
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A Model of Business Buying
BehaviourThe Environment
The Buying Organisation
Buyers Response
The Buying Centre
BuyingDecisionProcess
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Organisational Buying
Institutional buying: buying products onbehalf of an organization to be consumed inthe course of the organizations business
Buying for resale: buying of products to beresold unchanged as part of theorganizations business
Industrial buying: buying of raw materialsand other inputs to be substantially changedin the course of the organizations business
Government buying:
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Characteristics of Business Markets
Characteristicsof
BusinessMarkets
Market Structureand Demand
Types of Decisionsand Decision Process
OtherCharacteristics
Nature ofBuying
Unit
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Organizational Buying
Characteristics
Sellers serve fewer customers
Purchasers deal direct with suppliers
Focus on relationship rather than transaction
Purchasers are expert buyers
Organizational demand is derived demandRelatively price inelastic
Demand fluctuates
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Institutional & Government Markets
Institutional Markets
Low Budgets Captive Patrons
Government Markets
Centralized Buying Public Review
Non-economic Criteria
Outside Publics Submit Bids
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Buying Centres
Buying Centre
UsersGatekeepers
Deciders Influencers
Buyers
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Stages in the Business Buying
Process
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance Review
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Major Influences on Industrial
Buying Behavior
Level ofdemand
Economicoutlook
Interest rate
Rate of techno-logical change
Political andregulatorydevelopments
Competitivedevelopments
Social responsi-
bility concerns
Environmental
ObjectivesPolicies
Procedures
Organizational
structuresSystems
Organizational
Interests
Authority
Status
Empathy
Persuasive-ness
Interpersonal
AgeIncomeEducationJob positionPersonality
Risk attitudesCulture
Individual
Business
Buyer
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Organizational Factors
Purchasing-Department
Upgrading
Cross-Functional
Roles
CentralizedPurchasing
Decentralized
Purchasingof Small
Ticket Items
Internet
Purchasing
Long-Term
Contracts
Purchasing-Performance
Evaluation &
Pro. Buyers
Lean
Production
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InvolvedDe
cisionMak
ing
Modified Rebuy
New Task Buying
Straight Rebuy
Utilities
Office Supplies
Bulk chemicals
New vehicles
Elec. EquipConsultants
Computer equip.
Custom furniture
Installed components
Buildings
Weapon systems
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Comparison of business & consumer
buying situationsBUYING STEP
1 Need or problem recognition
2 General need description
3 Product specification
4 Information / supplier search
5 Proposal solicitation
6 Supplier selection
7 Order-routine specification
8 Post-purchase performance
review
INDUSTRIAL CONSUMER
Anticipates Reacts
Extensive Limited
Precise / technical Benefits
Extensive Limited
Formal Verbal
Extensive Limited analysis
Calculated re-order Not routinised
Extensive comparisons Little comparison
and benchmarking