5-1

5-1

Consumer
and Business
Buyer Behavior

Consumer
Consumer Buying
Buying Behavior
Behavior
Consumer Buying Behavior refers to the
buying behavior of final consumers
-individuals & households who buy goods
and services for personal consumption.
The central question for marketers is:
How do consumers respond to various
marketing efforts the company might use?

5-2
5-2

Model
Model of
of Buyer
Buyer Behavior
Behavior
Product
Price

Marketing
Marketing and
and
Other
Other Stimuli
Stimuli

5-3
5-3

Economic
Technological

Place

Political

Promotion

Cultural

Buying
Decision
Process

Product Choice
Brand Choice
Dealer Choice

Buyers
Buyers Black
Black Box
Box

Buyers
Buyers Response
Response

Buyer
Characteristics

Purchase
Timing
Purchase
Amount

5-4
5-4

Factors
Factors Influencing
Influencing
Consumer
Consumer Behavior
Behavior
Cultural
Social
Culture

Reference
groups

Subculture

Family

Social
class

Roles
and
status

Personal
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept

Psychological
Motivation
Perception
Learning
Beliefs and
attitudes

Buyer

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Culture
Culture

5-5
5-5

Culture
Culture
Most
Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and behavior.
behavior.
Values,
Values, Perceptions,
Perceptions, Wants
Wants && Behavior
Behavior
Subculture
Subculture
Groups
Groupsof
ofpeople
peoplewith
withshared
shared
value
valuesystems
systemsbased
basedon
on
common
commonlife
lifeexperiences.
experiences.
Hispanic
HispanicConsumers
Consumers

African
AfricanAmerican
AmericanConsumers
Consumers
Asian
AsianAmerican
AmericanConsumers
Consumers

Mature
MatureConsumers
Consumers

Social
Social Class
Class
Societys
Societysrelatively
relativelypermanent
permanent&&
ordered
ordereddivisions
divisionswhose
whose
members
membersshare
sharesimilar
similarvalues,
values,
interests,
interests,and
andbehaviors.
behaviors.
Measured
Measuredby:
by:Occupation,
Occupation,
Income,
Income,Education,
Education,Wealth
Wealthand
and
Other
OtherVariables.
Variables.

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Social
Social
Groups
Groups
Membership
Membership
Reference
Reference
Family
Family
Husband,
Husband, wife,
wife, kids
kids
Influencer,
Influencer,buyer,
buyer,user
user

Roles
Roles and
and Status
Status

Social
Social Factors
Factors

5-6
5-6

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Personal
Personal

5-7
5-7

Personal
Personal Influences
Influences
Age
Age and
and Life
Life Cycle
Cycle
Stage
Stage

Occupation
Occupation

Economic
Economic Situation
Situation

Personality
Personality&& Self-Concept
Self-Concept

Lifestyle
Lifestyle Identification
Identification
Activities
Activities

Opinions
Opinions
Interests
Interests

Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological

5-8
5-8

Motivation
Motivation

Beliefs
Beliefsand
and
Attitudes
Attitudes

Psychological
Factors

Learning
Learning

Perception
Perception

Maslows
Maslows Hierarchy
Hierarchy of
of Needs
Needs
Self
Actualization

(Self-development)

Esteem Needs

(self-esteem, status)
Social Needs

(sense of belonging, love)

Safety Needs

(security, protection)

Physiological Needs
(hunger, thirst)

5-9
5-9

The
The Buyer
Buyer Decision
Decision Process
Process
Need
Need Recognition
Recognition

Information
Information Search
Search

Evaluation
Evaluation of
of Alternatives
Alternatives

Purchase
Purchase Decision
Decision
Post-purchase
Post-purchase Behavior
Behavior

5-10
5-10

The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition

Need
NeedRecognition
Recognition

Buyer
BuyerRecognizes
RecognizesaaProblem
Problemor
orNeed
Need

Internal
Internal Stimuli
Stimuli
Hunger
Hunger

Thirst
Thirst
AApersons
personsnormal
normalneeds
needs

External
ExternalStimuli
Stimuli
TV
TVadvertising
advertising
Magazine
Magazinead
ad
Radio
Radioslogan
slogan
Stimuli
Stimuliin
inthe
theenvironment
environment

5-11
5-11

The
The Buyer
Buyer Decision
Decision Process
Process

5-12
5-12

Step
Step 2.
2. Information
Information Search
Search
Personal
PersonalSources
Sources
Commercial
CommercialSources
Sources

Public
PublicSources
Sources

Experiential
ExperientialSources
Sources

Family, friends, neighbors

Most effective source of
information
Advertising, salespeople
Receives most information from
these sources
Mass Media
Consumer-rating groups
Handling the product
Examining the product
Using the product

The
The Buyer
Buyer Decision
Decision Process
Process

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5-13

Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Consumer
ConsumerMay
MayUse
UseCareful
Careful
Calculations
Calculations&&Logical
LogicalThinking
Thinking
Consumers
ConsumersMay
MayBuy
Buyon
onImpulse
Impulseand
and
Rely
Relyon
onIntuition
Intuition
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
on
onTheir
TheirOwn.
Own.
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
Only
OnlyAfter
AfterConsulting
ConsultingOthers.
Others.

Marketers Must Study Buyers to Find Out How

They Evaluate Brand Alternatives

The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 4.
4. Purchase
Purchase Decision
Decision

Purchase
PurchaseIntention
Intention
Desire
Desireto
tobuy
buythe
themost
mostpreferred
preferredbrand
brand

Attitudes of
Others

Unexpected
Situational
Factors

Purchase
PurchaseDecision
Decision

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5-14

The
The Buyer
Buyer Decision
Decision Process
Process

Step
Step 5.
5. Post-purchase
Post-purchase Behavior
Behavior

Consumers
ConsumersExpectations
Expectationsof
of
Products
ProductsPerformance
Performance
Products
ProductsPerceived
PerceivedPerformance
Performance

Satisfied
SatisfiedCustomer!
Customer!

Dissatisfied
DissatisfiedCustomer
Customer

Cognitive
CognitiveDissonance
Dissonance

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5-15

Stages
Stages in
in the
the Adoption
Adoption Process
Process
Awareness
Awareness

Interest
Interest

Evaluation
Evaluation

Trial
Trial

Adoption
Adoption

5-16
5-16

Adopter
Adopter Categories
Categories

5-17
5-17

Innovators

Percentage of Adopters

Early Majority

Early
Adopters

Late Majority

34%

16%

13.5%
2.5%

Early

Laggards

34%

Time of Adoption
Late

Influence
Influence of
of Product
Product Characteristics
Characteristics
on
on Rate
Rate of
of Adoption
Adoption
Relative Advantage
Is the innovation superior
to existing products?

Communicability
Can results be easily
observed or described
to others?

Divisibility

Can the innovation

be used on a
trial basis?

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5-18

Product
Product
Characteristics
Characteristics

Complexity

Is the innovation
difficult to
understand or use?

Compatibility
Does the innovation
fit the values and
experience of the
target market?

What
What is
is aa Business
Business Market?
Market?

5-19
5-19

Business Buyer Behavior refers to the buying

behavior of all the organizations that buy
goods and services for use in the production
of other products and services that are sold,
rented, or supplied to others.
The business market is huge and involves
much high value transactions and items than
do consumer markets.

Characteristics
Characteristics of
of Business
Business Markets
Markets
Market
MarketStructure
Structureand
andDemand
Demand
Fewer,
Fewer,larger
largerbuyers
buyers
Geographically
Geographicallyconcentrated
concentrated
Demand
derived
Demand derivedfrom
fromconsumers
consumers
Fluctuating
demand
Fluctuating demand

Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
More
Morebuyers
buyers

More
Moreprofessional
professionalpurchasing
purchasing
effort
effort

Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process

More
Morecomplex
complexdecisions
decisions

Process
Processisismore
moreformalized
formalized
Buyer
Buyerand
andseller
sellerare
aremore
more
dependent
on
each
other
dependent on each other
Build
Buildclose
closelong-term
long-termrelationships
relationships
with
customers
with customers

5-20
5-20

Model
Model of
of Business
Business Buyer
Buyer Behavior
Behavior
Product
Price

Marketing
Marketing and
and
Other
Other Stimuli
Stimuli

Economic
Technological

Place

Political

Promotion

Cultural

Organizational
Influences

Product or Service
Choice

The
The Buying
Buying Organization
Organization
The Buying Center
Buying Decision
Process

Buyers
Buyers Response
Response

5-21
5-21

Interpersonal
and Individual
Influences

Delivery Terms
and Times

Supplier Choice

Service Terms

Order Quantities

Payment

5-22
5-22

Organizational Buying
Organizational buying is:

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.

5-23
5-23

Organizational Buying
The Business Market Includes For-Profit
Companies and Two Specialized Groups:
The institutional market
Schools,

hospitals, prisons, etc. with captive

audiences
Cost and quality standards drive purchases

The government market

Bidding

process awards contracts

Business
Business Buying
Buying Situations
Situations

New
New Task
TaskBuying
Buying
Involved Decision Making

Modified
ModifiedRe-buy
Re-buy

Straight
StraightRe-buy
Re-buy

5-24
5-24

5-25
5-25

Organizational Buying
Buying Situations
Straight rebuy
Modified rebuy
New task

Routine reorders
from approved
vendor list
Low involvement,
minimal time
commitment
Example: copier
paper

5-26
5-26

Organizational Buying
Buying Situations
Straight rebuy
Modified rebuy
New task

Specifications, prices,
delivery terms or
other aspects require
modification
Moderate level of
involvement and time
commitment
Example: desktop
computers

5-27
5-27

Organizational Buying
Buying Situations
Straight rebuy
Modified rebuy
New task

Purchasing a product
or service for the first
time
High level of
involvement and time
commitment; multiple
influences
Example: selecting a
web site design firm or
consultant

Participants
Participants in
in the
the Business
Business Buying
Buying
Process:
Process: The
The Buying
Buying Center
Center
Gatekeepers

Buyers

Users

Buying
Buying Center
Center

Influencers

Deciders

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5-28

Major
Major Influences
Influences on
on Business
Business
Buyer
Buyer Behavior
Behavior
Environmental
Environmental

Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive

Organizational
Organizational

Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
&
Systems
Structure, & Systems

Interpersonal
Interpersonal

Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness

Individual
Individual

Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes

Buyers
Buyers

5-29
5-29

5-30
5-30

Influences on Business Buyers

Major Influences
Environmental
Organizational
Interpersonal
Individual

Demand level
Economic outlook
Interest rates
Technological change
Politics/regulations
Competition
Concerns for social
responsibility

5-31
5-31

Influences on Business Buyers

Major Influences
Environmental
Organizational
Interpersonal
Individual

Objectives
Policies
Procedures
Organizational
structures
Systems

5-32
5-32

Influences on Business Buyers

Major Influences
Environmental
Organizational
Interpersonal
Individual

Interests
Authority
Status
Empathy
Persuasiveness

5-33
5-33

Influences on Business Buyers

Major Influences

Age
Income

Environmental
Organizational

Education

Interpersonal
Individual

Personality

Job position
Risk attitudes
Culture

Stages
Stages of
of the
the Business
Business
Buying
Buying Process
Process
Problem
ProblemRecognition
Recognition
General
GeneralNeed
NeedDescription
Description
Product
ProductSpecification
Specification
Supplier
SupplierSearch
Search
Proposal
ProposalSolicitation
Solicitation
Supplier
SupplierSelection
Selection
Order
OrderRoutine
RoutineSpecification
Specification
Performance
PerformanceReview
Review

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5-34

Rest
Rest Stop:
Stop:
Reviewing
Reviewing
the
the
Concepts
Concepts

5-35
5-35

Understand the consumer market and the major

factors that influence consumer buyer behavior.
Identify and discuss the stages in the buyer decision
process.
Describe the adoption and diffusion process for new
products.
Define the business market and identify the major
factors that influence business buyer behavior.
List and define the steps in the business buying
decision process.