Buyer Behaviour

The Individual, Risk and Involvement

Objectives of this session:

• Some factors affecting buying behaviour

• B2B buying behaviour

• ‘Risk’ and Buying Behaviour

• ‘Involvement’ and Buying Behaviour

• Buyer behaviour and the DMU

• Buyer behaviour and communication tasks

Factors affecting all buying behaviour

• Personal Factors– Demographics: Age, Gender, Income, Education– Situational: Lifestyle choices– Experience: previous buying experience

• Social Factors– Culture, Sub-Culture, Reference Groups

• Psychological Factors– Personality Type– Attitudes & Beliefs

Opinions, Attitudes and Beliefs

BELIEFS & VALUES

ATTITUDES

OPINIONS

Long term and deeply held – almost impossible to change

Sets of Attitudes derived from Beliefs – May only be changed over the medium to long term

Derived & Received Opinions – may be changed by Experience, Learning and Persuasion

Three B2B factors affecting the purchaser:

• As an Individual– Psycho-Social factors

• As a ‘Role’– Expectations and responsibilities of role in DMU

• As a Relationship, between:– Buyer & Seller Organisations– Individual and Corporate Image– Individuals involved in DMP

B2B: DMP and Degree of Complexity

• Routine: Straight Re-Buy (Low cost, frequently purchased items)– Strategy:

• Maintain quality / value to retain existing customers• Introduce promotions to attract new buyers

• Limited Problem Solving: Modified Re-Buy (Less frequent purchase. Higher search for information)

– Strategy:• Aid customer search for information• Build confidence in brand

• Extensive Problem Solving: Major or New Buy (Expensive or new product area. Extended search for information)

– Strategy:• Understand evaluation process of DMP• Inform customers of key purchasing criteria• Competitor comparisons

Other influences on B2B purchases

• Stakeholder Factors– Stakeholder networks– Long / short term

relationship– Unsupported or co-

operative relationship– Formalised or casual

purchasing process– Legal, Codes of Practice

and other agreements– Social and cultural

values

• Organisational Factors– Corporate values and

objectives– Resources and costs– Established procedures

• Individual Factors– Interpersonal effects– Relative status of

individuals– Personal rewards and

incentives

Individual Factors: Perceived Risk

• Performance Risk– Will product deliver

promised benefit?

• Financial Risk– Affordability and costs

of incorrect decision

• Physical Risk– Potential harm to

people and equipment

• Social Risk– Peer group attitudes. – Consequences of

incorrect decision

• Ego Risk– ‘Feel good factor’– Fit with corporate / self-

image

• Time Risk– Time taken on decision

Vs other risks

Risk Contexts

1. Situation of the Purchase• Relative importance of purchase• Relation to other activities• Brand and other factors

2. Individual Context• Attitude towards risk taking / risk aversion• Other personality factors

3. Product Context• Prestige / Cost / Social role of product

Individual Factors: Involvement Theory

1. Interest• How interested is the individual in the purchase?

2. Risk Importance• How does individual respond to risk?

3. Risk Probability• How likely is an incorrect decision?

4. ‘Sign’ Value• Significance of prestige and other factors

5. ‘Hedonic’ Value• Pleasure / fun associated with purchase

Involvement Theory: Three Perspectives

• Cognitive– Perceived relevance to the individual

• Predisposition to act– Individual able and resourced to act

• Response-based: Purchase as response to stimulus:– Occurrence of perceived problem– Occurrence of marketing message– Other prompt

Involvement Theory:Degree of Involvement

• High Level Involvement– High perceived relevance or risk– Involved search for information– Trial of alternatives only after attitudes and intentions

already set

• Low Level Involvement– Low cost / risk purchases– Less involved information search– Trial of alternatives before attitudes and intentions

established

• Zero Level Involvement

Reprise: Individuals’ concerns within the DMU

The Gatekeeper

The Initiator

The Decider

The Buyer

The User

The Financier

Other Influencers

The Gatekeeper

Concerns:

“You better have a good reason for disturbing my boss.”

“Let me prove what a good member of the team I am.”

The Initiator

Concerns:

“I’ve got a problem – Help me!”

“Make my job easier!”

The Decider

Concerns:

“Why should I risk my job or reputation on you?”

“If this thing works, how will I get the credit?”

The Buyer

Concerns:

“Don’t give me more problems – or any more work – than I have already.”

The User

Concerns:

“I just want this to work – first time, every time.”

“I’d like to feel good about using this.”

The Financier

Concerns:

“How much?”

“What R.O.I can I expect?”

Influencers

Concerns:

“If I’m going to be your advocate, don’t make a liar out of me.”

What effects would you like your communications to have?

Knowledge

(Think)

Attitudes

(Feel)

Behaviour

(Do)• Who you are• What you do• Why you are better• How you solve problems• Where to buy (Place)• Benefits / Features• New products / services / offers• New / improved specification

• Brand values / image• What you ‘stand for’• Brand – Customer relationship• ‘Like’ / ‘Prefer’ (DAGMAR)

• Find out more• Visit website / stand / store• See sales representative• Purchase• Provide feedback

Summary

• There are many individual factors which affect B2B as well as B2C buying behaviour

• Marketers should accept that their communications can have only limited effect

• Understanding customers’ concerns and attitudes to Risk and Involvement is important to creating successful marketing messages

• Clear objectives should be set for all communication tasks