lesson 5 buying behavior of consumers and organizations – analyzing consumer and business markets...
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Lesson 5 Buying behavior of consumers and organizations
– Analyzing consumer and business markets
Consumers´ decision process and buying behavior
Types of consumers´purchasing decisions Nature of organizational markets (b2b
markets) and goods and services purchased
Organizational buying behavior
Consumer behaviour
study of how people buy, what they buy, when they buy and why they buy
it blends elements from psychology, sociology, sociopsychology, anthropology and economics
it attempts to understand the buyer decision processes/buyer decision making process
it studies characteristics of consumers such as demographics, psychology,...
The Consumer Buying Process
Consumer
Purchase Decisions
Product Choice
Location Choice
Brand Choice
Other Choices
Psychological Inputs
Culture
Attitude
Learning
Perception
Based on Cohen (1991)
Marketing Inputs
Product
Price
Promotion
Place
Demographic Factors
Age Stage in family life cycle (single, married, married with
children, „empty nest“, retired Occupation Economic circumstances Lifestyle social influence variables
family background reference groups roles and status
Reference groups/opinion leader reference group – people to whom an
individual looks when forming attitudes about a particular topic
opinion leader – a person who influences others (each social class and age group tends to have its own opinion leader)
culture – beliefs , attitudes and ways of doing things
Family as a Purchasing Unit
Úplné rodiny = mother-and-father families Neúplné rodiny = single parent families Nerodinné domácnosti = unmarried couples Domácnosti jednotlivců = singles
6-4
The PSSP Hierarchy of Needs
Physiological Needs
Safety Needs
Social Needs
PersonalNeeds
6-5
Drive
Cues
Response
Reinforcement
The Learning Process
Lifestyle Dimensions
OpinionsOpinions
InterestsInterests
ActivitiesActivities??????????????????????????????????????????????????????????????????????
6-6
Exhibit 6-6
6-7
Social Class Dimensions1.5%
32%
12.5%
38%
16%
Lower-middle class
Upper-middle class
Upper-class
Lower-lower class
Upper-lower (“working”) class
Purchase SituationSocial InfluencesPsychological
Variables
Need-want Awareness
Information Search
Set Criteria
Decide on Solution
Purchase Product
Routinized Response
Postpone Decision Postpurchase
EvaluationResponse
Feedback ofinformationas attitudes
Person making decision
Marketing mixes and other stimuli
The Consumer Problem Solving Process
Types of Buying Decisions
ComplexBuying
Behaviour
Dissonance-Reducing Buying
Behaviour
Variety-Seeking
Behaviour
HabitualBuying
Behaviour
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
•Expensive•Risky•Infrequent•Self-Expressive
•Low cost•Low risk•Frequent
The Adoption ProcessAwareness
Interest
Evaluation
Trial
Decision
Confirmation
Adoption of InnovationsP
erce
nta
ge
of
Ad
op
ters
Time of AdoptionEarly Late
Inn
ova
tors
Early Adopters
Early Majority
2.5%
13.5%
34% 34%
16%
Laggards
Late Majority
Organisational Buyer Behaviour‘The decision-making process by which formal
organisations establish the need for purchased products and services, and identify, evaluate, and choose among
alternative brands and suppliers’
Kotler and Armstrong 1989
Few customers Big customers (size of contract) Strong relations in B2B B2B related to B2C Professional teams of negotiators
Innovation
Survival
Customer satisfaction
Growth
Profit
Other needs
Company’s Needs
Overlapin
Needs
Individual’s Needs
Risk
Job security
Comfort
Career advancement
Money-rewards
Other needs
Overlapping Needs
Buying Center
BuyingCenter
InfluencersEnd Users
Gatekeepers Deciders
Buyers
LittleSomeMuch
NoneSomeMuch
LittleSomeMuch
LittleMediumMuch
Information Needed
Review of Suppliers
Multiple Influences
Time Required
CharacteristicsNew-Task
BuyingModifiedRebuy
StraightRebuy
Type of Process
Organizational Buying Processes
Information sharing
Linkages
Cooperation
Legal bonds
Adaptations
RelationshipRelationshipSupplierSupplier CustomerCustomerSalesperson
QualityR&D
AccountingMarketing
Production
Purchasing manager
Quality
Finance
R&D
ProductionAccounting
Engineering
Buyer-Seller Relationships
Conclusions
Many variables influencing the behaviour of people
The sum of variables will result to a byuing decision
Most purchasing has several steps, begins with a need and finished with reconfirmation
Organizational behaviour is different as the motivation is different too
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