Transcript ANALYSING THE BUSINESS ENVIRONMENT

Buyer Behaviour
Consumer and Organisational Buying
Behaviour
Steps in the Consumer Buying Process
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Need recognition
Alternative search
Alternative evaluation
Purchase decision
Post-purchase evaluation
Alternative Search
• 5 sources for information about alternatives
– Internal -- own stored information
– Group -- family, friends, neighbors
– Marketing -- ads, salespeople, dealers,
packaging, displays, promotions
– Public -- publicity, consumer reports, reviews
– Experiential -- trying or viewing the product
while shopping
Alternative Evaluation
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Customer is trying to satisfy a need
Customer is seeking benefits
Each product is a bundle of attributes
Desired attributes vary by purchase
situation
• Consumers develop a belief about each
brand (brand image) that mentally positions
the product
Purchase Decision
• Purchase decision involves several issues
– vendor, quantity, timing, payment method
• Situation events can influence purchase
– stock-out, long lines, store hours, others
opinions
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Post-Purchase Evaluation
• Perhaps the most important step for longterm business development
• Often overlooked by retailers/service
providers
• Poor evaluations lead to:
– bad word-of-mouth; complaints; returns; etc.
Social Influences on Consumer Buying
• Social influences
– cultural and subcultural
• affects everyday behaviour, a basic influence
• transmitted by family, church and schools
– Social class
• affects attitudes and values
– Reference groups and family
• family, close friends, professional associations
• most people have multiple reference groups
Marketing Influences Consumer Buying
– Product
• appearance, packaging, performance
– Price
• quality, value, prestige, very important!
– Promotion
• advertising, sales promo, salespeople, publicity
• must be consistent and have repeated exposure
– Distribution (place)
• must be located where the buyer wants it
• stock-outs are killers
Situation Influences Consumer Buying
• Physical surroundings
– geographic and institutional location, décor, sounds,
aromas, lighting, weather and merchandising
• Social
– who is present? Others roles in consumption?
• Temporal
– time of day or season, holiday, time since last purchase,
time constraints on consumer
Situation Influences Consumer Buying
• Task definition
– shopping intent, selection, obtain information,
and/or buyer role versus user role
• Antecedent states
– moods, momentary conditions, variety seeking,
habitual behaviors. These are immediately
antecedent to the purchase decision
Organisational Buying
• Steps in the Process:
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Problem recognition (need recognition)
Determination of characteristics and quantity
Search for qualified potential sources
Acquisition and analysis of proposals
Evaluation of proposals and supplier selection
Selection of an order routine
Feedback and post-purchase evaluation
Major Influences in
Organisational Buying
• People
– Users, influencers, deciders, approvers,
gatekeepers, buyers
• Environmental
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Purchasing department evolution
Cross-functional roles, Centralized purchasing
Internet purchasing, Long-term contracts
Lean production (JIT)
Key Requirements in
Organisational Buying
• Value
– lowest total cost of ownership
• Understanding customer requirements
– transaction
– relationship
– partnership
Key Influences on
Organisational Buying
• Company reputation
– quality, price, delivery, previous experience
• Salesperson
– understands buyer requirements
– investigates needs thoroughly
• Technological interface
• Capability