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Copyright © 2007 Pearson Education Canada6-1
Chapter SixConsumer and Business Buyer
Behaviourwith Duane Weaver
OUTLINE• Consumer Buyer Behaviour defined• Model of Buyer Behaviour• Consumer Influences
– Culture & Sub-culture– Social Class– Personal Factors– Psychological (lifestyle, motivation, perception,
learning, beliefs and attitudes)• Business Influences
Copyright © 2007 Pearson Education Canada6-2
Copyright © 2007 Pearson Education Canada6-3
Consumer Buying Behaviour• Refers to the buying behaviour of people who
buy goods and services for personal use.
• The central question for marketers is:“How do consumers respond to various
marketing efforts the company might use?”
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Model of Buyer Behaviour• Marketing and environmental stimuli enter the
buyer’s Black Box.• Black Box consists of the buyer’s
characteristics and buying processes.• Black Box in turn prompts buyers responses.
– Product and brand choice.– Dealer choice.– Payment timing and amount.
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Consumer Buyer Influences• Cultural factors.
» Culture, subculture, social class.
• Social factors.» Reference groups, family, roles, status.
• Personal factors.» Age, lifecycle, occupation, income.
• Psychological factors.» Motivation, perception, learning, beliefs,
attitudes.
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Culture• Cultural is the most basic cause of a
person's wants and behaviour. • Culture is learned from family, church,
school, peers, colleagues.• Culture includes basic values,
perceptions, wants and behaviours.
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Sub-Culture• Groups of people with shared value
systems based on common life experiences.
• Major groups:– Native Canadians.– French-Canadians.– Ethnic consumers.– Internet users.
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Social Class• Relatively permanent, ordered divisions.• Members share similar values, interests
and behaviours.• Determined by a combination of:
– Occupation.– Income.– Education.– Wealth.– Other variables.
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Major Canadian Classes• Upper Class (3-5%)
– Upper Uppers (< 1%)– Lower Uppers (2-4%)
• Middle Class (40 -50%)– Upper Middles– Average Middles
• Working Class (33%)
• Lower Class (20%)– Upper Lowers– Lower Lowers
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Social Factors• Groups.
– Reference groups, aspirational groups.– Importance of opinion leader.
• Family.– Most important consumer buying organization.
• Roles and status.– Expect activities and esteem given by society to
those roles.
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Personal Factors• Occupation.
» What we do affects what we need and how much we have to spend.
» Trend towards more part-time employment and multiple jobs.
• Economic situation.» Affects real spending and consumer confidence in
borrowing.• Age and family life-cycle stage.
» Consumer needs change over time.» Difference between chronological and perceived age.
• Lifestyle.» A person’s pattern of living as expressed in his or her
activities, interests and opinions.» Also known as psychographics, can capture more detail
than personality or social class.
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Lifestyle and Psychographics
• SRI Consulting Values and Lifestyles typology (VALS) can be used to classify people into one of eight groups.
• Forrester’s Technographics scheme segments people into ten groups.
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Personality and Self-Concept• Personality refers to the unique psychological
characteristics that lead to relatively consistent and lasting responses to one’s own environment.
• Generally defined in terms of traits.
• Self-concept suggests that people’s possessions contribute to and reflect their identities.
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Psychological Factors• Motivation.• Perception.• Learning.• Beliefs.• Attitudes.
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Maslow’s Hierarchy of Needs (Motivation)
SELF-ACTUALIZATION
SELF ESTEEM
LOVE & BELONGING
SAFETY & SECURITY
PHYSIOLOGICAL Highest Priority
UltimateGoal
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• Information inputs. – The sensations received through the sense organs.
• Perception.– The process of selecting, organizing and interpreting
information inputs to produce meaning.
• Selective attention. – Selecting some inputs to attend to while ignoring others.
• Selective distortion.– Changing or twisting of information when it is inconsistent
with personal feelings or beliefs.
• Selective retention.– Remembering information that supports personal feelings and
beliefs and forgetting inputs that do not.
Perception
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Learning• A relatively permanent change in behaviour
due to experience.
• Interplay of drives, stimuli, cues, responses and reinforcement.
• Strongly influenced by the consequences of an individual’s behaviour.– Behaviours with satisfying results tend to be repeated.– Behaviours with unsatisfying results tend not to be repeated.
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Beliefs and Attitudes• Belief
– Descriptive thought that a person holds about something.
• Attitude – Describes a person’s consistently favourable or
unfavourable evaluations, feelings and tendencies toward an object or idea.
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Consumer Buyer Decisions• Need recognition – Realize requirement.
• Information search – Assess various products.
• Evaluation of alternatives – Determine relative • value of each.
• Purchase decision – Select best value.
• Post purchase behaviour – Assess degree of satisfaction.
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Post Purchase Behaviour• Consumer satisfaction is a function of
consumer expectations and perceived product performance.– If performance is below expectation, dissatisfaction
results.– If performance meets expectations, satisfaction
results.– If performance exceeds expectations, delight
results.
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• The consumer compares performance against expectations for the product.
• Level of satisfaction will influence repeat purchase.
• Is it better to over-promise and under-deliver, or under-promise and over-deliver?
Post Purchase Behaviour
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• Buyer discomfort caused by post-purchase conflict.
• Affects major purchases; anxiety of not knowing if the right choice was made.
• Customer follow-up programs help to reduce this problem.
Cognitive Dissonance
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New Product Adoption Stages• Awareness – become aware of new product.• Interest – seek information about product.• Evaluation – decide whether trial makes
sense.• Trial – try product on small scale.• Adoption – decide to purchase product.
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Product Adopter Categories• Innovators are the first adopters of new
products (2.5% of buyers).– They are venturesome – they try new ideas at
some risk.• Early adopters are guided by respect (13.5%).
– They are opinion leaders in their communities and adopt new ideas early but carefully.
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Business Markets• Market structure.
– Fewer but larger buyers, concentrated.• Derived demand.
– Based on purchases by consumers.• Nature of the buying unit.
– Multiple decision-makers, rational.• The decision process.
– More complex, formalized, dependent.
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Buying Situations• Straight rebuy.
– The buyer routinely reorders something without any modifications.
• Modified rebuy.– The buyer on reorder want to modify specifications,
price, terms or suppliers.• New task buy.
– The buyer purchases a product or service for the first time.
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Business Buying Process• New or first-time purchase – new task.
– Problem recognition.– General need description.– Product specification.– Supplier search.– Proposal solicitation.– Supplier selection.– Order-routine specification.– Performance review.
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Business Buying Centre• Decision-making unit of a buying
organization is called its buying centre.• Buying centre members:
– Users.– Deciders.– Influencers.– Buyers.– Gatekeepers.
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