Buying Behaviour

March 2019

Group F
Introduction

A consumer good costing

A consumer service
less than Rs.100

A consumer product An organizational

costing over Rs. 10,000 Interviews purchase worth millions
of rupees

An organizational service
contract Text

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A consumer good costing less than Rs.100

Consumer: Joseph, a University student

in his mid twenties

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Nestle Milo - 250 ml

- Consumer is satisfied with - A good replacement for

the taste of the product daily intake of calcium

- It quenches thirst and is - Quenches thirst

good for health
- Nutritional value

- Impulse buying arising from - Roadside shops

spontaneous desire to
consume a drink/milk - General stores

- No rigorous thought process - Canteens

involved

- Other energy drink/milk

available

- Examples include
Dayfresh, Pakola Milk
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Factors affecting the buying behavior

Social Influence Price

• Impulse buying • At par with other alternatives

• Brand Loyalty • Consumer is satisfied with the price

tag

Temperature Availability
• Tastes best when served cold • Readily available in almost all
major stores
• The intense heat often forces the
customer to consume the drink • Easily accessible

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A consumer service

Consumer: Mr. Brian, a businessman

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Internet Banking Service/ Digital Services SCB

- Reliable - Requires minimal

handling of cash due to
- User friendly and convenient increased crime rate

- Speed - The need for flexibility

and convenience offerred
by internet banking

- Decision based on the - Family

reputation of the bank
- Friends
- Reliability and quality of
service offerred - Billboards

- Other banks and financial

institutions

- Examples include HBL,

Silk Bank etc.
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Factors affecting the buying behavior

Social Influence Service

• Used and advised by many of his • Friendly
peers and business community
• Quick
• Also influenced by the calls
received from relationship • Reliable
managers

Branch Network
Brand Equity
• Limited branch network but good
• SCB has a high-end bank image
internet banking

• Attractive to those who require

• Branches mostlly loacted at busy
premium treatment
places

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A consumer good or service costing over Rs.
10,000

Consumer: Mr. Steve a mid career

professional

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Samsung 40 inch LED Smart TV

- Interviewee satisfied with - Required a 40 inch LED

the performance and TV for his lounge
aesthetics of the product
- New purchase to furnish
- Serves the intended purpose his new house

- Delivers what was promised

- The decision was influenced - Electronics market

by the wife and relatives
- Ecommerce websites
- Features, price and prior
purchase of same brand - TV advertisements
television influenced the
purchase of this product.

- Other Smart televisions

offerred by other
companies

- Examples include Sony

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Bravia, LG etc.
Factors affecting the buying behavior

Social Influence Features

• Influence of spouse and friends • Smart TV
played a significant role in the
purchase. • High quality LED display

• Previously bought Samsung TV • 1 year local warranty

and appliances

Price
Brand Equity
• Optimal balance between
• Market reputation
benefits/features and price of the
product as compared to other
• The brand has a great goodwill close substitutes.
attached to it

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An organizational purchase worth millions
of rupees

Consumer: String Textile Mills

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Sulzer P-7100 (Loom)

- Currenntly operating at full - The need to expand

capacity existing production
capacity
- Serves the intended purpose
- To realise cost efficiencies
- Minimal breakdown and (economies of scale)
downtime

- Senior Management - Alibaba

approval
- Exhibitions
- Through a formal purchase
process (given an - Agencies
organisational purchase)

- Rapier looms

- Air Jet Looms

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Factors affecting the buying behavior

Economic
• Greater benefit versus cost

• Withinthe budget set for CAPEX

Capacity
• Current machines operating at
Risk Appetite maximum capacity
• In line with long term vision of the
company
• There is a need to extend.

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An organizational service contract

Consumer: Google

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Janitorial Services - Protech

- Interviewee satisfied with - Reliable & efficient

the performance aof the janitorial service
contractor
- Health & Safety is
- Reliable paramount

- Performs to expectation

- Based on the criteria set by - Expression of Interest

the Procurement
Department - Request for Quotations in
newspapers
- Approvals of the Supply
Chain Manager and the
General Manager

- Eight vendors shortlisted

- Filtering criteria include

experience, price, man
power etc.
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Factors affecting the buying behavior

Non-core
• Janitorial services are non-core to
the company

24/7 Availability
• The company operates 24/7 and
therefore needs a vendor that is
reliable

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 Conclusion

All buying decisions were rational

Rationality

Organisational purchases
Value Decisions were made after
were greater in value than Cost vs Benefit
individual purchases weighing costs and benefits

Conclusion

Organisational purchases
were more process Process & Time Involvement Level of involvement is directly
oriented and took a proportional to value
greater time

Centralisation of
Sales

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Q&A

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