Consumer Markets

V.S.
Business Markets

Consumer Market

Consumer buying behavior:

Refers to the buying behavior of people who buy

goods and services for ________ use.
These people make up the consumer ________.

The central question for marketers is:

How do consumers respond to various

marketing efforts the company might use?

Model of Consumer Behavior Stimulus-Response

Buyers
BuyersResponse
Response

Buyer
characteristics
Cultural
Social
Personal
Psychological

Marketing and
Other Stimuli

Buyers
BuyersBlack
BlackBox
Box

Product
Price
Place
Promotion

Product choice
Brand choice
Purchase timing
Purchase quantity

Economic
Technological
Political
Cultural
Buyer decision
process
Five stages

The Consumers Buying Decision Process

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

Triggering Need Recognition

Marketers can facilitate need recognition through their

choice of media and the timing of their ad insertions.
Restaurants frequently use billboards (above) in high
traffic locations and run radio ads during meal hours.

Information Search

For some types of

purchases, consumers
will search for more
information before
they are willing to
make a decision.

Evaluation of Alternatives

Marketers must study how targeted consumers make

evaluations, so they will be in a better position to
influence evaluations.

Purchase Decision

Intentions to purchase a particular brand are

not always acted upon.
Factors that influence the purchase decision:

Context

Attitudes of others

Unexpected situational
factors

Post Purchase Behavior

Cognitive Dissonance: after making a purchase,

buyers often doubt whether they made the right
decision.

Marketers can minimize dissonance by:

Reassuring consumers they made the right choice and

minimizing the potential for product misuse (product
literature and instructions).
Offering mechanisms for lodging complaints
(1-800 phone numbers, Web forms, etc.).
Being responsive to problems and questions.

How to React to Consumers Buying Decision Process

1. Need recognition

Encourage consumers
to see existing state is
not desired state

2. Information search

Provide information
when/where consumers
search for info

3. Evaluation of alternatives

Understand criteria and

communicate superiority

4. Purchase decision

Stress brand loyalty and

address choice heuristic

5. Post-purchase behavior

Manage expectations and

outcomes

Consumer Markets
V.S.
Business Markets

Business
Buyers
Fewer and larger
Geographically
concentrated
More decision
participants
Professional
purchasers

Buying Centers
INFLUENCER

USER

DECIDER

BUYER

GATEKEEPER

Business Markets and Business Buyer

Behavior

Business buyer behavior:

Refers to the buying behavior of the organizations that buy goods

and services for use in the production of other products and services
or for the purpose of reselling, or renting them to others for a profit.

Commercial Business, Government, Institutions

Buyers and sellers are much more dependent on each other

in business markets.

Business Markets

Business buyers usually face more complex buying

decisions.

The business buying process tends to be more

formalized.
Need to provide more value than competitors do

Value in Business Markets

Not Relevant to
Customers

Relevant to
Customers

Points of
Parity
Points of
Contention
Points of
Difference
2-21

Differences in value importance between

Consumer and Business Markets
100%
90%
80%
70%
60%

Relationship Value
Brand Value
Personal Value
Economic Value

50%
40%
30%
20%
10%
0%

Consumer

Business