5&6-1

5&6-1

INTRODUCTION TO MARKETING
MANAGEMENT

Chapter
Chapter 55 &
& 66
Consumer Buyer Behavior
and Business Buyer Behavior

Dr. Franck VIGNERON

CSUN – COBE – Dept. Of Marketing

Consumer
Consumer Buying
Buying Behavior
Behavior
5&6-2
5&6-2

• Consumer Buying Behavior refers to the

buying behavior of final consumers
-individuals & households who buy
goods and services for personal
consumption.

• The central question for marketers is:

“How do consumers respond to various
marketing efforts the company might
use?”
Model
Model of
of Buyer
Buyer Behavior
Behavior
5&6-3
5&6-3

Product Economic
Marketing
Marketing and
and
Price Other
Other Stimuli
Stimuli Technological
Place Political
Promotion Cultural

Buying Buyer
Decision Characteristics
Process Buyer’s
Buyer’s Black
Black Box
Box

Product Choice Purchase

Timing
Brand Choice Buyer’s
Buyer’s Response
Response
Purchase
Dealer Choice Amount
 5&6-4
Factors
Factors Influencing
5&6-4
Influencing
Consumer
Consumer Behavior
Behavior

Cultural
Social Personal
Age and Psycho-
Culture Reference life-cycle logical
groups
Occupation Motivation
Sub- Economic Perception Buyer
culture Family situation Learning
Lifestyle Beliefs and
Roles Personality attitudes
Social and and
class status self-concept
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
5&6-5
5&6-5

Culture
Culture
Culture
Culture
•• Most
Mostbasic
basiccause
causeof
ofaaperson's
person'swants
wantsand
andbehavior.
behavior.
•• Values,
Values,Perceptions,
Perceptions,Wants
Wants&&Behavior
Behavior

Subculture
Subculture Social
Social Class
Class
•• Groups
Groupsofofpeople
peoplewith
withshared
shared •• Society’s
Society’srelatively
relativelypermanent
permanent
value
valuesystems
systemsbased
basedonon &&ordered
ordereddivisions
divisionswhose
whose
common
commonlife
lifeexperiences.
experiences. members
membersshare
sharesimilar
similarvalues,
values,
interests,
interests,and
andbehaviors.
behaviors.
•• Hispanic
HispanicConsumers
Consumers
•• Measured
Measuredby:by:Occupation,
Occupation,
•• African
AfricanAmerican
AmericanConsumers
Consumers Income,
Income,Education,
Education,Wealth
Wealthand
and
•• Asian
AsianAmerican
AmericanConsumers
Consumers Other
OtherVariables.
Variables.
•• Mature
MatureConsumers
Consumers
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
5&6-6
5&6-6

Social
Social

Groups
Groups
••Membership
Membership
••Reference
Reference

Family
Family
••Husband,
Husband, wife,
wife, kids
kids Social
Social Factors
Factors
••Influencer,
Influencer, buyer,
buyer, user
user

Roles
Roles and
and Status
Status
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
5&6-7
5&6-7

Personal
Personal
Personal
Personal Influences
Influences

Age
Age and
and Life
Life Cycle
Cycle Occupation
Occupation
Stage
Stage

Economic
Economic Situation
Situation Personality
Personality && Self-Concept
Self-Concept

Lifestyle
Lifestyle Identification
Identification

Activities
Activities Opinions
Opinions

Interests
Interests
VALS
VALS 22
5&6-8
5&6-8

Actualizers
Actualizers Abundant
Abundant Resources
Resources

Principle
Principle Oriented
Oriented Status
Status Oriented
Oriented Action
Action Oriented
Oriented

Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers

Believers
Believers Strivers
Strivers Makers
Makers

Strugglers
Strugglers
Minimal
Minimal Resources
Resources
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
5&6-9
5&6-9

Psychological
Psychological

Motivation
Motivation

Beliefs Psychological
Beliefs and
and Perception
Perception
Attitudes Factors
Attitudes

Learning
Learning
Maslow’s
Maslow’s Hierarchy
Hierarchy of
of Needs
Needs
5&6-10
5&6-10

Self
Actualization
(Self-development)

Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)

Safety Needs
(security, protection)

Physiological Needs
(hunger, thirst)
The
The Buyer
Buyer Decision
Decision Process
Process
5&6-11
5&6-11

Need
Need Recognition
Recognition

Information
Information Search
Search

Evaluation
Evaluation of
of Alternatives
Alternatives

Purchase
Purchase Decision
Decision

Postpurchase
Postpurchase Behavior
Behavior
The
The Buyer
Buyer Decision
Decision Process
Process
5&6-12
5&6-12

Step
Step 1.
1. Need
Need Recognition
Recognition

Need
Need Recognition
Recognition
Buyer
BuyerRecognizes
RecognizesaaProblem
Problemor
orNeed
Need

Internal
Internal Stimuli
Stimuli External
External Stimuli
Stimuli
••Hunger
Hunger ••TV
TVadvertising
advertising
••Thirst
Thirst ••Magazine
••AAperson’s Magazinead ad
person’snormal
normalneeds
needs ••Radio
Radioslogan
slogan
••Stimuli
Stimuliininthe
theenvironment
environment
The
The Buyer
Buyer Decision
Decision Process
Process
5&6-13
5&6-13

Step
Step 2.
2. Information
Information Search
Search
•Family, friends, neighbors
Personal
PersonalSources
Sources •Most effective source of
information

•Advertising, salespeople
Commercial
CommercialSources
Sources •Receives most information from
these sources

•Mass Media
Public
PublicSources
Sources •Consumer-rating groups

•Handling the product

Experiential •Examining the product
ExperientialSources
Sources •Using the product
 5&6-14
The
The Buyer
Buyer Decision
Decision Process
Process
5&6-14

Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Consumer
Consumer May
May Use
UseCareful
Careful
Calculations
Calculations&&Logical
Logical Thinking
Thinking

Consumers
ConsumersMay
MayBuy
Buy onon Impulse
Impulseand
and
Rely
Rely on
on Intuition
Intuition

Consumers
Consumers May
May Make
Make Buying
BuyingDecisions
Decisions
on
onTheir
TheirOwn.
Own.

Consumers
ConsumersMay
May Make
MakeBuying
Buying Decisions
Decisions
Only
OnlyAfter
After Consulting
Consulting Others.
Others.

Marketers Must Study Buyers to Find Out

How They Evaluate Brand Alternatives
The
The Buyer
Buyer Decision
Decision Process
Process
5&6-15
5&6-15

Step
Step 4.
4. Purchase
Purchase Decision
Decision

Purchase
Purchase Intention
Intention
Desire
Desireto
to buy
buythe
themost
most preferred
preferred brand
brand

Attitudes Unexpected
Unexpected
Attitudes
of Situational
Situational
of
Others Factors
Factors
Others

Purchase
Purchase Decision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
5&6-16
5&6-16

Step
Step 5.
5. Postpurchase
Postpurchase Behavior
Behavior
Consumer’s
Consumer’s Expectations
Expectations of
of
Product’s
Product’s Performance
Performance

Product’s
Product’s Perceived
Perceived Performance
Performance

Satisfied
Satisfied Customer!
Customer! Dissatisfied
DissatisfiedCustomer
Customer

Cognitive
CognitiveDissonance
Dissonance
Stages
Stages in
in the
the Adoption
Adoption Process
Process
5&6-17
5&6-17

Awareness
Awareness

Interest
Interest

Evaluation
Evaluation

Trial
Trial

Adoption
Adoption
 5&6-18
Adopter
Adopter Categories
Categories
Percentage of Adopters
5&6-18

Early Majority Late Majority

Innovators

Early
34% 34% Laggards
Adopters

13.5% 16%
2.5% Time of Adoption
Early Late
Influence
Influence of
of Product
Product Characteristics
Characteristics
5&6-19
5&6-19

on
on Rate
Rate of
of Adoption
Adoption
Communicability Relative Advantage
Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Product
Characteristics Compatibility
Divisibility Characteristics Does the
Can the innovation 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
What is
is aa Business
Business Market?
Market?
5&6-20
5&6-20

• Business Buyer Behavior refers to the

buying behavior of 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 items do consumer
markets.
Characteristics
Characteristics of
of Business
Business Markets
Markets
5&6-21
5&6-21

Market
Market Structure
Structureand
and Demand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demandderived
derivedfrom
fromconsumers
consumers
••Fluctuating
Fluctuatingdemand
demand

Nature
Natureof
of the
theBuying
BuyingUnit
Unit
••More
Morebuyers
buyers
••More
Moreprofessional
professionalpurchasing
purchasing
effort
effort
Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
••More
Morecomplex
complexdecisions
decisions
••Process
Processis ismore
moreformalized
formalized
••Buyer
Buyerandandseller
sellerare
aremore
more
dependent
dependenton oneach
eachother
other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with
withcustomers
customers
Model
Model of
of Business
Business Buyer
Buyer Behavior
Behavior
5&6-22
5&6-22

Product Marketing Economic

Marketing and
and
Price Other
Other Stimuli
Stimuli Technological
Place Political
Promotion Cultural

Organizational The
The Buying
Buying Organization
Organization Interpersonal
The Buying Center
Influences and Individual
Buying Decision Influences
Process

Product or Service Delivery Terms

Choice and Times
Buyer’s
Buyer’s Response
Response
Supplier Choice Service Terms
Order Quantities Payment
Business
Business Buying
Buying Situations
Situations
5&6-23
5&6-23

New
New Task
TaskBuying
Buying
Involved Decision Making

Modified
ModifiedRebuy
Rebuy

Straight
StraightRebuy
Rebuy
Participants
Participants in
in the
the Business
Business Buying
Buying 5&6-24
5&6-24

Process:
Process: The
The Buying
Buying Center
Center

Gatekeepers Users

Buying
Buying Center
Center
Buyers Deciders

Influencers
Major
Major Influences
Influences on
on Business
Business 5&6-25
5&6-25

Buyer
Buyer Behavior
Behavior
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive

Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&&Systems
Systems
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes

Buyers
Buyers
Stages
Stages of
of the
the Business
Business 5&6-26
5&6-26

Buying
Buying Process
Process
Problem
ProblemRecognition
Recognition

General
GeneralNeed
NeedDescription
Description

Product
Product Specification
Specification

Supplier
SupplierSearch
Search

Proposal
ProposalSolicitation
Solicitation

Supplier
SupplierSelection
Selection

Order
OrderRoutine
RoutineSpecification
Specification

Performance
PerformanceReview
Review