Buyer Behavior

Model of Buyer Behavior

(Fig. 5.1)
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli

Marketing Buyer Characteristics Product Choice

Product Buyer Decision Process Brand Choice
Price Dealer Choice
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural
 Approaches to Study of
Buyer Behavior
 Economic model
 Learning theory model
 Psycho-analytic model
 Information processing model
The EBM model of buyer behavior
(Engel, Blackwell, and Miniard)
 Factors Affecting
Consumer Behavior:
Culture
Culture is the Most Basic Cause of a
Person's Wants and Behavior.
Subculture
• Group of people with
shared value systems
based on common life
experiences.
• Hispanic Consumers
• African American
Consumers
• Asian American Consumers
• Mature Consumers
 Factors Affecting
Consumer Behavior:
Culture
Culture is the Set of Values, Perceptions,
Wants & Behavior Learned by a Member of
Society from Family.
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
Groups
••Membership
Membership
••Reference
Reference

Family
Family (most
(most
important)
important) Social
Social Factors
Factors
••Husband,
Husband, wife,
wife, kids
kids
••Influencer,
Influencer, buyer,
buyer, Family Buying Influence
user
user Children can exert a
strong influence on
family buying decisions.
Johnson & Johnson reminds
customer’s of its commitment

Roles
Roles and
and Status
Status
to the American Family.

What other companies use

children to influence
family buying decisions?

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 Factors Affecting
Consumer Behavior:
Personal
Personal
Personal Influences
Influences

Age
Ageand
and Life
Life Economic
Economic Personality &
Personality &
Cycle Occupation
Occupation
CycleStage
Stage Situation
Situation Self-Concept
Self-Concept

Lifestyle
LifestyleIdentification
Identification

Activities
Activities Interests
Interests Opinions
Opinions
 SRI Values and Lifestyles
(VALS) (Fig. 5.3)
Actualizers
Actualizers
High Innovation
High Resources

Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers

Believers
Believers Strivers
Strivers Makers
Makers

Strugglers
Strugglers
Low Resources Low Innovation
 Factors Affecting
Consumer Behavior:
Psychological
Motivation

Psychological
Factors
Beliefs and Affecting Perception
Attitudes Buyers
Choices

Learning
Maslow’s Hierarchy of
Needs
(Fig. 5.4)
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem)

Social Needs
(sense of belonging,
love)
Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
 Consumer Evaluation
What criteria do consumers use to
make evaluations? What do
consumers care about?
 Values

 Benefits

 Attributes

 Means-End Value Chains

 Means-End Value Chains
•Power •$$ security
•Status •Family
•Self esteem •Environment

•Protection
•Peer admiration •Value
•Speed •Reliability
•Exclusivity •Low emissions

•Horse power •Air bags

•Prestige brand •High mpg
•Styling •Price/resale
•Extras •Japanese
•Honda
•BMW
•Toyota
•Lexus
•Nissan
•Mercedes
Multi-attribute evaluation
Belief x Importance Model:
 Evaluation is reflected by brand attitude

 Attitude is the sum of salient beliefs,

 Weighted by the importance of each belief

Atto = Σ(Bi x Ii) Summed for each attribute i.

• The Bi component indicates the strength of the association.
• The Ii component indicates the importance of that association to brand
attitude.
 Buyer Decision Process
(Fig. 5.6)
Purchas
e
Evaluation Decisio
Postpurchase
of n Behavior
Alternatives
Informatio
n
Search
Need
Recognitio
 Buyer Decision Process
Step 1. Need Recognition

Buyer
Recognizes Needs Arising
State Where From:
the Buyer’s a
Needs are Problem Internal
Fulfilled and or a Stimuli –
the Buyer is Need.
Hunger
Satisfied.
External
Stimuli-
Friends
 Process
Step 2. Information
Search

•Family, friends, neighbors

Personal
Personal Sources
Sources •Most effective source of
information
•Advertising, salespeople
Commercial
Commercial Sources
Sources •Receives most information from
these sources

•Mass Media
Public
Public Sources
Sources •Consumer-rating groups

•Handling the product

Experiential
Experiential Sources
Sources •Examining the product
•Using the product
 Process
Step 4. 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
The Buyer Decision
Process
Step 5. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand

Attitude Unexpecte
s of d
Others Situational
Factors

Purchase Decision
Process
Step 6. Postpurchase
Behavior

Satisfied Customer!

Consumer’s

Cognitive Dissonance
Expectations of Product’s Performance.
Product’s Perceived
Performance.

Dissatisfied Customer
Role of Consumer
Involvement
 Sometimes consumers make
evaluations/choices very carefully
 Sometimes consumers make
evaluations/choices with little care
 Involvement—strength of motivation,
importance
 High involvement—B X I model
Low involvement
evaluations
 Cognitive shortcuts (heuristics)

 Habit

 Affective responses
 Stages in the Adoption
Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.

Evaluation: Consumer considers

trying new product.
Trial: Consumer tries new
product on a small scale.

Adoption: Consumer decides

to make regular use of product.
 Adopter Categories (Fig.
5.7)
Percentage of Adopters

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late
 Influence of Product
Characteristics
on Rate of Adoption
Communicability Relative Advantage
Can results be easily
Is the innovation
observed or described
superior to existing
to others?
products?

Divisibility Compatibility
Can the innovation Does the innovation
be used on a fit the values and
trial basis? experience of the
target market?
Complexity
Is the innovation
difficult to
understand or use?
 What is a Business
Market?
 A business market comprises 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 goods
than do consumer markets.
 Characteristics of Business
Markets
Marketing Contain
Contain fewer,
fewer, but
but
larger
larger buyers
buyers
Structure and
Demand Customers
Customers are
are more
more
geographically
geographically concentrated
concentrated
Buyer
Buyer demand
demand isis derived
derived from
from
final
final consumer
consumer demand
demand
Demand is often more
inelastic
Demand often
fluctuates more, and
more quickly
Characteristics of Business
Markets
 Nature of the
Buying Unit
 Business purchases
involve more buyers.
 Business buying
involves a more
professional
purchasing effort.
 Characteristics of Business
Markets
Types of Decisions and
Business the Decision Process
buyers
usually face Business
more buying In business
complex process is buying,
buying more buyers and
decisions. formalized. sellers work
more closely
together.
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To develop
long-term
partnerships,
business
marketers work
closely with
their customers.

Fujitsu promises high-end

support to go along with
its high-tech products .
 This Unisys ad of fers servic es from technologica l consulting to
database set up a nd maintenance.

Model of Business Buyer

Behavior (Fig. 6.1)
Buyer Responses
The Environment The Buying
Organization
Product or
Marketing
service choice
Stimuli: The buying
•Product center
•Price Supplier Choice
•Place
•Promotion Buying decision Order Quantities
process
Other Stimuli: Delivery terms
•Economic (Interpersonal and and times
•Technological individual influences)
•Political Service terms
•Cultural (Organizational
•Competitive Influences) Payment
 Organizational Buying
Professional purchasing
Fewer buyers
Larger purchases
Closer, longer relationships/ reciprocity
Geographic concentration
Derived demand
Lower price sensitivity
Buying center
 Participants in the
Business Buying Process
Users
Ethical Influencer
Decision-a
to
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Roles Buying Buyers

Include Organizati
Attitudes
Attitudes
on is
of
of Its
Called
Others
Others
Buying
Center. Gatekeepe Deciders
rs