Ch._5 - 5 Consumer and Business Buyer Behavior Consumer...

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Unformatted text preview: 5 Consumer and Business Buyer Behavior Consumer Buying Behavior Refers to the buying behavior of people who buy goods and services for personal use. These people make up the consumer market. The central question for marketers is: "How do consumers respond to various marketing efforts the company might use?" 5-2 Model of Buyer Behavior 5-3 Factors Influencing Consumer Behavior Cultural Culture Subculture Social Class Social Reference Groups Family Roles & Status Personal Age & LifeCycle Stage Occupation Economic Situation Lifestyle Personality & Self-Concept Psychological Motivation Perception Learning Beliefs & Attitudes 5-4 Culture Culture is the Most Basic Cause of a Person's Wants and Behavior. Culture is learned from family, church, school, peers, colleagues. Culture includes basic values, perceptions, wants, and behaviors. 5-5 Culture Subculture Groups of people with shared value systems based on common life experiences. Major Groups Hispanic Consumers AfricanAmerican Consumers AsianAmerican Consumers Mature Consumers 5-6 Culture Social Class Society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. combination of: occupation, income, education, wealth, and other variables. 5-7 Measured by a Major American Social Classes 5-8 Social Factors Groups Membership Reference (opinion leaders) Aspirational Family Most important consumer buying organization Roles & Status Role =Expected activities Status = Esteem given to role by society 5-9 Personal Factors Age and LifeCycle Stage Occupation Economic Situation 5-10 Personal Factors Lifestyle Pattern of Living as Expressed in Psychographics Activities Interests Opinions 5-11 Personality & 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. Selfconcept suggests that people's possessions contribute to and reflect their identities. 5-12 Maslow's Hierarchy of Needs 5-13 Perception Perception Information Inputs Interpretation Selective Exposure Selective Distortion Selective Retention 5-14 Perception Information inputs are the sensations received through the sense organs. Perception is the process of selecting, organizing, and interpreting information inputs to produce meaning. 5-15 Learning Learning: a relatively permanent change in behavior due to experience. Interplay of drives, stimuli, cues, responses, and reinforcement. Strongly influenced by the consequences of an individual's behavior Behaviors with satisfying results tend to be repeated. Behaviors with unsatisfying results tend not to be repeated. 5-16 Beliefs & Attitudes belief A belief is a descriptive thought that a person holds about something. Attitude Attitude describes a person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea. 5-17 Buying Decision Process 5-18 Buying Decision Process Step #1 = Need Recognition Buyer becomes aware of a difference between a desired state and an actual condition. Individual may be unaware of the problem or need. Marketers may use sales personnel, advertising, and packaging to trigger recognition of needs or problems. Recognition speed can be slow or fast. 5-19 Buying Decision Process Step #2 = Information Search This stage begins after the consumer becomes aware of the problem or need. The search for information about products will help resolve the problem or satisfy the need. There are various sources of information. 5-20 Sources of Information Personal Most effective source Family, friends, neighbors Advertising, salespeople Receives the most information from these sources Mass Media Consumerrating groups Commercial Public Experiential Handling the product Examining the product Using the product 5-21 Buying Decision Process Consumers May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own Consumer May Make Decisions After Talking With Others 5-22 Buying Decision Process Factors That Influence Purchase Decision Attitudes Of Others Unexpected Situational Factors 5-23 Buying Decision Process Consumer satisfaction is a function of consumer expectations and perceived product performance. Performance < Expectations Disappointment Performance = Expectations Satisfaction Performance > Expectations Delight 5-24 Buying Decision Process Cognitive dissonance: a buyer's doubts shortly after a purchase about whether it was the right decision. 5-25 Stages in the Adoption Process .Awareness: Consumer becomes aware of the new --. .Interest: Consumer seeks information about new . .Evaluation: Consumer considers whether trying . .Trial . : Consumer tries new product on a small scale .Adoption: Consumer decides to make full and . regular use of the new product. 5-26 product, but lacks information about it. product. the new product makes sense. to improve his or her estimate of its value. Product Adopter Categories Product Adopter Categories 2.5% Innovators 16% Laggards 13.5% Early Adopters 34% Late Majority 34% Early Majority 5-27 Influence of Product Characteristics on Rate of Adoption Relative Advantage Relative Advantage: Is the innovation superior to existing products? Compatibility: Does the innovation fit the values Compatibility and experience of the target market? Complexity: Is the innovation difficult to Complexity understand or use? Divisibility: Can the innovation be used on a Divisibility limited basis? Communicability: Can results be easily observed Communicability or described to others? 5-28 Business Markets & Business Buyer Behavior The business market is vast and involves far more dollars and items than do consumer markets. 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 that are sold, rented, or supplied to others. 5-29 Types of Decisions and the Decision Process Business buyers usually face more complex buying decisions. Business buying process tends to be more formalized. Buyers and sellers are much more dependent on each other. 5-30 Model of Business Buyer Behavior 5-31 Major Types of Buying Situations Straight Rebuy The buyer routinely reorders something without any modifications. Modified Rebuy The buyer wants to modify product specifications, prices, terms, or suppliers. New Task The buyer purchases a product or service for the first time. 5-32 Participants in the Business Buying Process Decisionmaking unit of a buying organization is called its buying center. Not a fixed and formally identified unit. Membership will vary for different products and buying situations. Buying Center Members: Users Deciders Influencers Buyers Gatekeepers 5-33 The Business Buying Process 5-34 ...
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This note was uploaded on 09/11/2008 for the course BNAD 303 taught by Professor Hardesty during the Spring '07 term at University of Arizona- Tucson.

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