understanding consumer and business buyer behavior

Copyright © 2015 Pearson Education, Inc.

Learning Objectives

• Understand the consumer market and the major factors that influence consumer buyer behavior.

• Identify and discuss the stages in the buyer decision process.

• Describe the adoption and diffusion process for new products.

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Learning Objectives

• Define the business market and identify the major factors that influence business buyer behavior.

• List and define the steps in the business buying decision process.

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First Stop: GoPro: Be a Hero!

• Reason for success–Technology-driven cameras with affordable price ranges

• Essential steps in customers’ storytelling and emotion-sharing journeys

• Key to success–Understanding customer needs and motivations

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Consumer Markets and Consumer Buyer Behavior

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Figure 5.1 - Model of Buyer Behavior

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Figure 5.2 - Factors Influencing Consumer Behavior

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Cultural Factors

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Social Factors

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Personal Factors

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Psychological Factors

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Figure 5.5 - Buyer Decision Process

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Stages in the Adoption Process

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Figure 5.6 - Adopter Categories Based on Relative Time of Adoption of Innovations

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Characteristics Influencing an Innovation’s Rate of Adoption

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Business Buyer Behavior

• Buying behavior of organizations • Purchased goods and services are used in the

production of other products and services that are sold, rented, or supplied to others.

• Business buying process: Determining which products and services an organization needs to purchase • Finding, evaluating, and choosing among

alternative suppliers and brands

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Business Markets

• Business markets are huge and involve more money and items than consumer markets.

• Differ from consumer markets in terms of:• Market structure and demand• Nature of the buying unit• Types of decisions and the decision process

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Market Structure and Demand and Nature of the Buying Unit

• Market structure and demand• Fewer but larger buyers • Derived demand: Business demand that comes

from the demand for consumer goods• Inelastic and fluctuating demand

• Nature of the buying unit• More decision participants • More professional purchasing effort

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Types of Decisions

• Business purchases • More complex buying decisions• Large sums of money• Complex technical and economic considerations• Interactions among people at many levels of the

buyer’s organization

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Decision Process

• Buying processes • Longer and more formalized procedures• Buyer and seller more dependent on each other

• Supplier development: Systematic development of networks of supplier-partners• To ensure a dependable supply of products and

materials

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Figure 5.7 - A Model of Business Buying Behavior

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Types of Buying Situations

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Participants in the Business Buying Process

• Buying center: All the individuals and units that play a role in the purchase decision-making process• Actual users of the product or service• People who make the buying decision• People and units influencing the buying decision• People who do the actual buying• Individuals and units controlling the buying

information

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Figure 5.8 - Major Influences on Business Buying Behavior

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Figure 5.9 - Stages of Business Buying Behavior

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E-Procurement

• Purchasing through electronic connections between buyers and sellers–usually online

• E-procurement occurs through:• Reverse auctions• Online trading exchanges• Company buying sites• Extranet links with key suppliers

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Benefits and Problems of E-Procurement

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Learning Objectives

• Understand the consumer market and the major factors that influence consumer buyer behavior.

• Identify and discuss the stages in the buyer decision process.

• Describe the adoption and diffusion process for new products.

5 - 28


Learning Objectives

• Define the business market and identify the major factors that influence business buyer behavior.

• List and define the steps in the business buying decision process.

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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2015 Pearson Education, Inc.Copyright © 2015 Pearson Education, Inc.

understanding consumer and business buyer behavior

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