CHAPTER 5: Consumer Markets and Buyer Behavior • Occupation

A person’s occupation affects the goods and

Consumer buyer behavior services bought
• Refers to the buying behavior of final consumer’s • Age and Life Stage
individuals and households that buy goods and People change the goods and services they buy
services for personal consumption. over their lifetimes.
• Economic Situation
MODEL OF BUYER BEHAVIOR A person’s economic situation will affect his or her
store and product choices.
• Lifestyle
A person’s pattern of living as expressed in his or
her activities, interests, and opinions.

 Personal Factors
-Occupation
-Age and Life Stage
-Economic Situation
 CHARACTERISTICS AFFECTING CONSUMER BEHAVIOR -Lifestyle
-Cultural Factors
-Social Factors • Motivation
-Personal Factors is a need that is sufficiently pressing to direct the
-Psychological Factors person to seek satisfaction
• Perceptions
Cultural Factors the process by which people select, organize, and
exert a broad and deep influence on consumer behavior. interpret information to form a meaningful picture of the
Marketers need to understand the role played by the world.
buyer’s culture, subculture, and social class. • Learning
describes changes in an individual’s behavior
• Culture arising from experience
the most basic cause of a person’s wants and behavior. • Beliefs and Attitudes
learns basic values, perceptions, wants, and behaviors from • A belief is a descriptive thought that a person holds about
his or her family and other important institutions. something.
• Attitude describes a person’s relatively consistent
• Subcultures evaluations, feelings, and tendencies toward an object or
Groups of people with shared value systems based idea
on common life experiences and situations.
• Social classes  Psychological Factors
Relatively permanent and ordered divisions whose - Motivation
members share similar values, interests, and behaviors - Perceptions
- Learning
 Cultural Factors - Beliefs and Attitudes
-Culture
-Subcultures MASLOW’S HIERARCHY OF NEEDS
-Social classes

Social Factors
Groups and Social Networks
3 type of groups
• Membership groups
• Reference groups
• Aspirational group
• Family
Husband, Wife, children
• Roles and Status
THE BUYER DECISION PROCESS THE BUYER DECISION PROCESS FOR NEW PRODUCTS
5 STAGES
New product
A good, service, or idea that is perceived by some
potential customers as new.

Adoption process
The mental process through which an individual
passes from first hearing about an innovation to final
adoption.

Adoption is the decision by an individual to become

NEED RECOGNITION a regular user of the product.
 the buyer recognizes a problem or need
STAGES IN THE ADAPTION PROCESS
-Internal Stimuli -Consumers go through five stages in the process of
-External Stimuli adopting a new product:

INFORMATION SEARCH
 The stage of the buyer decision process in which the
consumer is motivated to search for more information.

Consumers can obtain information from any of several sources;

1. Personal Sources
2. Commercial Sources
3. Public Sources  FIVE CHARACTERISTICS IMPORTANT IN INFLUENCING
4. Experiential Sources AN INNOVATION’S RATE OF ADAPTION

1. Relative advantage
EVALUATION OF ALTERNATIVES -The degree to which the innovation appears
superior to existing product
 The stage of the buyer decision process in which
the consumer uses information to evaluate 2. Compatibility
alternative brands in the choice set. -The degree to which the innovation fits the values
 How consumers go about evaluating purchase and experiences of potential consumers
alternatives depends on the individual consumer
3. Complexity
and the specific buying situation.
-The degree to which the innovation is difficult to
understand or use.

PURCHASE DECISION 4. Divisibility

-The degree to which the innovation may be tried
 The buyer’s decision about which brand to
on a limited basis.
purchase.

POSTPURCHASE BEHAVIOR 5. Communicability

-The degree to which the results of using the
 The stage of the buyer decision process in which innovation can be observed or described to others.
consumers take further action after purchase,
based on their satisfaction or dissatisfaction

Cognitive dissonance
>Buyer discomfort caused by postpurchase conflict
CHAPTER 6: BUSINESS MARKET AND BUSINESS BUYER System Selling/Solution Selling
BEHAVIOR • Buying a packaged solution to a problem of a single seller.

BUSINESS BUYER BEHAVIOR Buying Center

-refers to the buying behavior of organizations that • The decision-making unit of a buying organization is
buy goods and services for use in the production of other called buying center.
products and services that are sold, rented, or supplied to
others. Members of the Buying Center
Users Influencers
-It also includes the behavior of retailing and Buyers Deciders Gatekeepers
wholesaling firms that acquire goods to resell or rent to
others at a profit
Key Factors
BUSINESS BUYING PROCESS • Environmental
-The decision process by which business buyers • Organizational
determine which products and services their organizations • Interpersonal
need to purchase and then find, evaluate, and choose • Individual
among alternative suppliers and brands.
Environmental
 BUSINESS MARKET • The Economy
-similar to consumer markets. Both involve • Supply Conditions
people who assume buying roles and make purchase • Politics/Regulations
decisions to satisfy needs. However, business markets differ • Competition
in many ways from consumer markets. • Culture and Customs

 The main differences are in; Organizational

1. Market Structure and Demand • Objectives
2. The Nature of the Buying Unit • Strategies
3. The Types of Decisions and the Decision Process • Structure
Involved • Systems
• Procedures
CHARACTERISTICS OF BUSINESS MARKET
Interpersonal
1. MARKET STRUCTURE AND DEMAND • Influence
-The business marketer normally deals with far fewer • Expertise
but far larger buyers than the consumer marketer does. • Authority
• Dynamics
2. THE NATURE OF THE BUYING UNIT
-involves more decision participants Individual
-professional purchasing effort. • Age/Education
• Job Position
3. THE TYPES OF DECISION AND THE DECISION PROCESS • Motives
INVOLVED • Personality
-Business buyers usually face more complex buying • Preferences
decisions than do consumer buyers. • Buying Style
Major Types of Buying Situations Model of Business Buyer Behavior
•Straight Rebuy -Key Factors
- Reordering without modification -Environmental
•Modified Rebuy -Organizational
- Requires modification to prior purchase -Interpersonal
•New Task -Individual
- First-time purchaser
Stages in the Business
Buying Process

Stage 1: Problem Recognition

Stage 2: General Need Description
Stage 3: Product Specification
Stage 4: Supplier Search
Stage 5: Proposal Solicitation
Stage 6: Supplier Selection
Stage 7: Order-Routine Specification
Stage 8: Performance Review

E-Procurement and Online Purchasing

E-Procurement Benefits
• Access to new suppliers
• Lower purchasing Cost
• Quicker order processing and delivery

Institutional Markets
-Consist of churches, schools, prisons, hospitals, and
nursing homes and other institution that provide goods and
services to people in their care.

Government Markets
-Consist of government units-federal, state, and local
that purchase or rent goods and services for carrying out
the main functions of the government.