Transcript mkt304ch5and6 - brandluxuryindex.com

5&6-1
INTRODUCTION TO MARKETING
MANAGEMENT
Chapter 5 & 6
Consumer Buyer Behavior
and Business Buyer Behavior
Dr. Franck VIGNERON
CSUN – COBE – Dept. Of Marketing
Consumer Buying Behavior
• Consumer Buying Behavior refers to the
buying behavior of final consumers individuals & households who buy goods
and services for personal consumption.
• The central question for marketers is:
“How do consumers respond to various
marketing efforts the company might
use?”
5&6-2
Model of Buyer Behavior
Product
Price
Marketing and
Other Stimuli
5&6-3
Economic
Technological
Place
Political
Promotion
Cultural
Buying
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyer’s Black Box
Buyer’s Response
Buyer
Characteristics
Purchase
Timing
Purchase
Amount
5&6-4
Factors Influencing
Consumer Behavior
Cultural
Social
Culture
Reference
groups
Subculture
Family
Social
class
Roles
and
status
Personal
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psychological
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
Factors Affecting Consumer Behavior:
Culture
5&6-5
Culture
• Most basic cause of a person's wants and
behavior.
• Values, Perceptions, Wants & Behavior
Subculture
• Groups of people with shared
value systems based on
common life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers
Social Class
• Society’s relatively permanent
& ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.
Factors Affecting Consumer Behavior:
Social
Groups
•Membership
•Reference
Family
•Husband, wife, kids
•Influencer, buyer, user
Roles and Status
Social Factors
5&6-6
Factors Affecting Consumer Behavior:
Personal
5&6-7
Personal Influences
Age and Life Cycle
Stage
Occupation
Economic Situation
Personality & Self-Concept
Lifestyle Identification
Activities
Opinions
Interests
VALS 2
5&6-8
Actualizers
Abundant Resources
Principle Oriented
Status Oriented
Action Oriented
Fulfilleds
Achievers
Experiencers
Believers
Strivers
Makers
Strugglers
Minimal Resources
Factors Affecting Consumer Behavior:
Psychological
5&6-9
Motivation
Beliefs and
Attitudes
Psychological
Factors
Learning
Perception
Maslow’s Hierarchy of Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
5&6-10
The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
5&6-11
The Buyer Decision Process
Step 1. Need Recognition
Need Recognition
Buyer Recognizes a Problem or Need
Internal Stimuli
• Hunger
• Thirst
• A person’s normal needs
External Stimuli
• TV advertising
• Magazine ad
• Radio slogan
•Stimuli in the environment
5&6-12
The Buyer Decision Process
5&6-13
Step 2. Information Search
Personal Sources
Commercial Sources
Public Sources
Experiential Sources
•Family, friends, neighbors
•Most effective source of
information
•Advertising, salespeople
•Receives most information from
these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
The Buyer Decision Process
Step 3. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
5&6-14
The Buyer Decision Process
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes
of
Others
Unexpected
Situational
Factors
Purchase Decision
5&6-15
The Buyer Decision Process
Step 5. Postpurchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived Performance
Satisfied Customer!
Dissatisfied Customer
Cognitive Dissonance
5&6-16
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
5&6-17
5&6-18
Early Majority
Innovators
Percentage of Adopters
Adopter Categories
Early
Adopters
34%
Late Majority
16%
13.5%
2.5%
Early
Laggards
34%
Time of Adoption
Late
Influence of Product Characteristics
on Rate of Adoption
Communicability
Relative Advantage
Can results be easily
observed or described
to others?
Is the innovation
superior to existing
products?
Divisibility
Product
Characteristics
5&6-19
Compatibility
Does the innovation
fit the values and
experience of the
target market?
Can the innovation
be used on a
trial basis?
Complexity
Is the innovation
difficult to
understand or
use?
What is a Business Market?
5&6-20
• Business Buyer Behavior refers to the
buying behavior of all the organizations that
buy goods and services for use in the
production of other products and services
that are sold, rented, or supplied to others.
• The business market is huge and involves
many more dollars and items do consumer
markets.
Characteristics of Business Markets
5&6-21
Market Structure and Demand
• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Fluctuating demand
Nature of the Buying Unit
• More buyers
• More professional purchasing
effort
Types of Decisions & the
Decision Process
• More complex decisions
• Process is more formalized
• Buyer and seller are more
dependent on each other
• Build close long-term relationships
with customers
Model of Business Buyer Behavior
Product
Price
Marketing and
Other Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Organizational
Influences
Product or Service
Choice
The Buying Organization
The Buying Center
Buying Decision
Process
Buyer’s Response
5&6-22
Interpersonal
and Individual
Influences
Delivery Terms
and Times
Supplier Choice
Service Terms
Order Quantities
Payment
Business Buying Situations
Involved Decision Making
New Task Buying
Modified Rebuy
Straight Rebuy
5&6-23
Participants in the Business Buying
Process: The Buying Center
Gatekeepers
5&6-24
Users
Buying Center
Buyers
Deciders
Influencers
Major Influences on Business
Buyer Behavior
Environmental
Economic, Technological, Political, Competitive
Organizational
Objectives, Policies, Procedures,
Structure, & Systems
Interpersonal
Authority, Status, Empathy &
Persuasiveness
Individual
Age, Education, Job Position, Personality &
Risk Attitudes
Buyers
5&6-25
Stages of the Business
Buying Process
Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order Routine Specification
Performance Review
5&6-26