CHAPTER 4

BUYER BEHAVIOR

Concept of Buyer behaviour:

Buyer behaviour refers to the people or organization’s conduct , activities and actions
together with the impact of various influences on them towards making decisions on
purchase of products and services in a market. Buyer behaviour is the study of new
individuals and groups make their decisions to use their resources in terms of time, money
and effort. It includes the study of various aspects of buying, using and disposing products
and services. The buyer behaviour relates to the purchase behaviour of individuals, groups
and organizations who buy products to meet their needs and solve problems.
"Buying behavior is the decision processes and acts of customers involved in buying and
using products." - Philip Kotler
 Contd..

Buyer’s behaviour refers to the behaviour that customer display

in searching information for purchasing, using, evaluating and
disposing of products and services that they expect will satisfy.
There are two facets of the buyer behaviour,
1. Consumer behaviour
2. Organization buyer behaviour
 Concept of consumer buying
behavior:

Human behavior is a very complex process. Consumer behavior

is the sub-set of human behavior focusing on the consumption
role. Buyer behavior influences customer's willingness to buy. It
studies how customers select, buy, use and dispose of products
to satisfy their needs.
"Consumer behavior is the process whereby individuals decide
whether what, when, where, how and from whom to purchase
goods and services." - L Glen Walter & G W Paul
 Contd..

1) Who participate in buying? → Participants of buying

2) What do they buy? → Objects of buying.
3) Why do they buy? → Reasons of buying.
4) When do they buy? → Occasions of buying.
5) Where do they buy? → Channels of buying.
6) How do they buy? → Frequency of buying.
7) Who decide to buy? → Decide of buying.

The field of buyer behavior analyses how individuals, groups and organizations buy products
to satisfy their needs & desires. Buyer behavior influences customer's willingness to buy.
Consumer behavior is more than
just purchasing

Consumer Behavior involves

1. Exposure to the media
2. Browsing
3. Influencing others
4. Being influenced by others
5. Complaining about and returning
products
 Consumer Behavior is….

The field of buyer behavior studies how individuals, groups

and organizations buy products to satisfy their needs and
desires.
study of ultimate consumers, those people who purchase
products for personal or household use.
Organizational buying behavior refers to buying by business
organizations, social institutions and government.
 Formal Definitions of
Consumer Behavior
• According to J. C. Mowen "consumer behavior is
the study of the decision-making units and
processes involved in acquiring, consuming and
disposing of goods, services, experiences and
ideas.”

• According to Leon G. Schiffman and Leslie L.

Kanuk "the term consumer behavior refers to
the behavior that consumers display in
searching for, purchasing, using, evaluating, and
disposing of products and services that they
expect will satisfy their needs”.
 Aspects Covered by the
Definitions
• Acquiring: includes the study of the process through which
consumers become aware of their needs and products that
can satisfy the needs, evaluation of the products in terms of
end benefits and purchase actions.
• Consumption: analyses how consumers actually use a
product and the experiences the consumers obtain from such
use.
• Disposition: studies what consumers do with the product
once they have completed its use .
 Nature of Consumer
Behavior

Subset of Human Behavior

Consumer Behavior is a Process
Several Factors Influence Consumer Behavior
Many People’s Involvement:
Applied Discipline
Multidisciplinary:
Importance of Consumer Behavior
Analysis
1. Significance in Daily Lives
2. Public Policy Decisions
3. Business Decisions
4. Social Marketing
 Importance /Application Areas of
Consumer Behavior in Marketing

1. Efficient use of marketing resources

2. Location of new marketing opportunities
3. Selection of market segments
4. Product positioning
5. Market research
6. Improving the marketing strategy
 CHARACTERISTICS OF LOW INVOLVEMENT AND
Characteristics Low Involvement High Involvement
HIGH INVOLVEMENT
Purchase
PURCHASE
Purchase
a) Brand of the product Many Few

b) Level of buying risk Low High

c) Amount of money Small Large

involve
d) Purchase time period Short Long

e) Interest in product Passive Active

information
f) Attitude towards product Positive Uncertain

g) Product benefits Short term Long term

h) Interest in the product Limited High

 Consumer buying decision
process
Consumer buying process is the process of decision making leading to purchase function.
It is a composed of number of stages and is influenced by an individual’s personality,
motivations, perceptions and attitudes. The stage mode of the consumer buying process
can be expressed are as follows:
Stage 1 Need or Problem Recognition
Stage 2 Information Search
Stage 3 Evaluation of alternatives
Stage 4 Purchase decision
Stage 5 Post-purchase evaluation
Influencing factors of consumer buying
decision
A consumer's buying behavior is influenced by four different groups of factors. They are,
1) Demographic /Personal Factors
 Age
 Sex or gender
 Family size and family life cycle
 Occupation
 Life style
 Self-concept or self image
2) Economic Factors
 personal income
 family income
 Expected future income
 Liquid assets
 Credit facility
 price level
 National income
 Contd..
3. Psychological factors:
 perception
 learning
 beliefs
 attitude
 motivation
 personality
4. Cultural factors
 culture
 subculture
5. Social factors
 family
 reference group
 opinion leaders
 social class & caste class
 roles and status
 CONCEPT OF ORGANIZATIONAL BUYING BEHAVIOR
OR
BUSINESS
Organizational buying behaviorBUYING
refers toBEHAVIOR
the buying behavior of
organizations that buy products for business use, resell and to make
other product. It refers to buying process and decisions of business
organizations, social institutions and government. Organizational buyer
behavior is less complex than consumer buying as it is mostly driven
by reasons and logic.
According to Philip Kotler, "Organizational buying is the decisions
making process by which formal organization establish the need for
purchased products and services and identify, evaluate and choose
among alternative brands and suppliers"
Similarly, according to S.P. Robbins," organizational behavior is
concerned with the study of what people do in organization and how
that behavior affects the performance of the organization"
 Contd..

• From the above definitions, the characteristics of organizational buying

behavior are as follows,
• a. Buyers
• b. derived and fluctuating demand
• c. Relationship
• c. Rationality
• d. professionalism
• e. Channels
Organizational or business buyersBUYING
ORGANIZATIONAL buy goodsDECISION
and services PROCESS
to make money or to
reduce operating costs or to satisfy a social or legal obligation.
The purchasing process will vary with different types of product. Business
marketers need to adapt to the buyer's normal steps in a specific buying
decision in order to win and maintain the account. The organizational buying
process is less complicated than the consumer buying process. The major
stages in the organizational buying are presented in the following,
Stage 1 Problem or Need recognition
Stage 2 Need description
Stage 3 Product specification
Stage 4 Supplier search
Stage 5 Analysis of Proposals
Stage 6 Supplier selection
Stage 7 Placing the purchase order
Stage 8 Post purchase evaluation
 INFLUENCING FACTORS
Organizational buyers respond to four main influences which
ORGANIZATIONAL
are as follows, BUYING DECISION
1. Environmental factors
Economic factors
Technological factors
Political – legal factors
Social responsibility factors
2. Organizational factors:
objectives
Goodwill
structure
policies
purchase procedures
 Contd…

3. Interpersonal factors:
 Authority
 Interest
 Status
4. Individual factors:
 Age
 Education
 Income
 Personality
 job position
 Background
 Risk attitudes
 Global consumer Movements and
consumer protection

The right to satisfaction of basic needs

The right to safety
The right to be informed
The right to choose
The right to be heard
The right to redress
The right to consumer education