MARKETING Buyer Behaviour

Session 5
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OBJECTIVES
Why study buyer behaviour? How do we describe buyer behaviour? What are the major factors that influence buyer behaviour? How do industrial buyers differ from the consumer buyers?

Why study buyer behaviour?

Marketers

Customers

which came first? the chicken or the egg? the marketer or the customer?
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Why do you do what you do?

What is Consumer Behaviour?

Activities people engage in when selecting, purchasing, and using products so as to satisfy needs and desires.

Creating & using buyer behaviour information

research

& model typical buyers behaviour behaviour groups/segments

recognize identify

marketing leverage points

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Decision-Making Process

Problem Recognition Awareness that there is a discrepancy between an actual and a desired condition.

My car has died!

Decision-Making Process

Information Search. Internal and external search for information to make a decision.

Decision-Making Process: Information Search

Perceived risk: Consumers uncertainty about the consequences of future actions. Types of risk:

Performance risk Financial risk Physical risk Social risk Time-loss risk

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Decision-Making Process: Information Search

Internal Search: Scan memory External Search: Shopping Personal sources Public media Advertisements

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Decision-Making Process

Evaluation of Alternatives. Determine choice criteria to evaluate product alternatives.

Performance

Lots of storage

Safety

Variety of colours
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Decision-Making Process

Purchase Decision Choose which brand to buy or not to buy

Ill take that one.

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Decision-Making Process

Post-purchase Evaluation Purchase satisfaction Cognitive dissonance

Why did I buy such an expensive car?

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Decision involvement

HIGH INVOLVEMENT

LOW INVOLVEMENT

Extensive problemsolving (EPS)

Limited problemsolving (LPS)

Routinized response behavior (RRB)

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Decision-Making Process: High Involvement Products

Dont Buy Problem Recognition Extensive information search Extensive weighing of alternatives Purchase decision

Problem still faced

Buy

Postpurchase evaluation

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Decision-Making Process: Low Involvement Products

Problem Recognition

Minimal information search

Purchase decision

Postpurchase consumption; minimal evaluation

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Individual Influences

Individual factors that shape the buyer behavior process

involvement motivation perception learning attitudes personality / self-concept

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Interpersonal Influences

Interpersonal influences that shape the buyer behavior process

social values / norms / roles culture / subculture social class reference groups / opinion leaders family social situations

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Industrial vs Consumer BB
How does the industrial buyer differ from a consumer buyer? What is business-to-business marketing?

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Business-to-Business Marketing
Marketing aimed at bringing about an exchange in which a product is sold for any use other than personal consumption. Buyers can be: Manufacturers or resellers Governments Not-for-profit organisations

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Characteristics of the Business Market

Relatively few customers Derived demand for goods & services Expertise in buying
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Prefer to buy direct from manufacturer Importance of repeat transactions

Steps in Buying Process

Step 1: Recognize need. Step 2: Determine product & quantity. Step 3: Describe specifications. Step 4: Search for potential sources.

Step 5: Acquire and analyze proposals.

Step 6: Evaluate & select supplier.

Step 7: Select an order routine.

Step 8: Evaluate performance.

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Three Kinds of Buying

Straight rebuy: Automatic and regular purchase of familiar products. Modified rebuy: Buyer is not completely satisfied with current suppliers and shops around. New task buying: Buyer seeks to fill a need never before addressed.

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Buying Center

Buying Center: Informal, crossdepartmental decision unit which acquires, disseminates, and processes purchase information.
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Roles in Organisational Buying

Users Buyers Gatekeepers Deciders Influencers

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Why Organisations Buy

Product Quality

Price

Related Services

Delivery & Inventory

Bottom Line

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KEY POINTS

Know your customer!

create a customized model of your buyers behaviour decision process

Identify key buyer groups (segments)

Identify key marketing influence opportunities (marketing levers)
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