Download Consumer and Business Buyer Behavior

CHAPTER 5
Consumer and
Business Buyer
Behavior
Roadmap: Previewing the Concepts
 Understand the consumer market and the
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
major factors that influence consumer buyer
behavior.
Identify and discuss the stages in the buyer
decision process.
Describe the adoption and diffusion process for
new products.
Define the business market and identify the
major factors that influence business buyer
behavior.
List and define the steps in the business buying
decision process.
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HARLEY-DAVIDSON – Devoted Consumers
Building Success
 Offers good bikes,
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
upgraded showrooms
and sales tactics.
Research has helped to
understand customers’
emotions and motivation.
Consumer emotions,
motivations, and lifestyle
have been translated into
effective advertising.
Copyright 2007, Prentice-Hall Inc.
Measuring Success
 Currently has 23% of all
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U.S. bike sales and 50%
of heavyweight segment.
Demand above supply with
waiting lists up to 2 years.
Sales doubled in the past
six years while earnings
have tripled.
2005: 19th straight year of
record sales and income.
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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?”
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Figure 5-1
Model of Buyer Behavior
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Figure 5-2
Factors Influencing Consumer Behavior
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Culture
 Culture is the most basic cause of a
person's wants and behavior.
– Culture is learned.
– Culture reflects basic values, perceptions,
wants, and behaviors.
– Cultural shifts create opportunities for
new products or may otherwise influence
consumer behavior.
– Subcultures are of interest to marketers.
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Marketing in Action
Marketing to Subcultures
A subculture is a group of
people who share value
systems based on common
life experiences. Hispanics,
Asians, African Americans,
and mature consumers are
increasingly targeted by
marketers.
Procter & Gamble targets
Hispanics using print and TV.
P&G has also developed
special Spanish versions of
some brands.
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Social Class
 Society’s relatively permanent and
ordered divisions whose members
share similar values, interests, and
behaviors.
 Measured by a combination of:
occupation, income, education, wealth,
and other variables.
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Figure 5-3
The Major American Social Classes
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Social Factors
 Groups:
– Membership, Reference (Opinion
Leaders), Aspirational
 Family:
– Most important consumer buying
organization
 Roles and Status:
– Role = Expected activities
– Status = Esteem given to role by society
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Marketing in Action
Toyota caters to family buying influences.
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Personal Factors
 Age and Life-Cycle Stage
– People change the goods they buy over
their lifetimes.
 Occupation
– Occupation influences the purchase of
clothing and other goods.
 Economic Situation
– Some goods and services are especially
income-sensitive.
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Personal Factors
 Lifestyle:
– Pattern of living as
expressed via a
person’s activities,
interests, and opinions.
 VALS:
– Widely used system
– Classifies consumers
with respect to how
they spend their time
and money.
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Marketing in Action
Lifestyle Marketing by American Express
The “My Life, My Card” campaign invites
consumers to choose the card and
rewards that best fit their lifestyles. americanexpress.com
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Personality and 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.
 Self-concept suggests that people’s
possessions contribute to and reflect
their identities.
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Psychological Factors
 A motive (or drive)

is a need that is
sufficiently pressing
to direct the person
to seek satisfaction.
Maslow’s hierarchy
of needs explains
why people are
driven by needs at
particular times.
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Figure 5-4
Maslow’s Hierarchy of Needs
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Perception
Process by which people select,
organize, and interpret
information to form a
meaningful picture of the world.
People can form different perceptions
of the same stimulus.
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Selective Attention
 People screen out most of the information to
which they have been exposed.
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Selective Distortion vs. Retention
 Selective Distortion
– Tendency of people to interpret
information in a way that supports what
they already believe.
 Selective Retention
– Consumers are likely to remember good
points made about a brand they favor and
to forget good points made about
competing brands.
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Learning
 A relatively permanent change in behavior
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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.
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Beliefs and Attitudes
 A belief is a descriptive

thought that a person
holds about something.
An attitude is a person’s
consistently favorable
or unfavorable feelings,
evaluations, and
tendencies toward an
object or idea.
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Let’s Talk!
What types of attitudes
and beliefs are the most
difficult to change?
Is advertising the only
way marketers can
influence change?
Explain.
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Figure 5-5
Buyer Decision Process
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Need Recognition
Buyers recognize a
need or problem as a
result of internal or
external stimuli.
Marketing communications often
stimulate need recognition.
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Marketing in Action
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.
Copyright 2007, Prentice-Hall Inc.
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Information Search
 For some types
of purchases,
consumers will
search for more
information
before they are
willing to make
a decision.
edmunds.com
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Information Search
 Information Sources  Information Sources
– Personal
 Family, friends,
neighbors, and
casual or work
acquaintances
– Commercial
 Advertising,
salespeople,
dealers, Web
sites, packaging,
and displays
Copyright 2007, Prentice-Hall Inc.
– Public
 Mass media
articles or news
programs,
Internet searches,
consumer rating
organizations
– Experiential
 Using, handling,
or examining the
product
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Evaluation of Alternatives
 Some decisions involve a careful, logical,
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and systematic evaluation by the consumer.
Other decisions – such as impulse buys –
are made with virtually no thought at all.
Friends, consumers guides, or salespeople
may or may not influence the decision.
Marketers must study how targeted
consumers make evaluations, so they will be
in a better position to influence evaluations.
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Purchase Decision
 Intentions to purchase a particular
brand are not always acted upon.
 Factors that influence the purchase
decision:
– Attitudes of others
– Unexpected situational
factors
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Postpurchase Behavior
 Consumer satisfaction is a function of
consumer expectations and perceived
product performance.
– If Performance Is BELOW
Expectations = Disappointment
– If Performance EQUALS
Expectations = Satisfaction
– Performance Is GREATER
than Expectations = Delight
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Cognitive Dissonance
 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.
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Stages in the Adoption Process
1. Awareness: Consumer becomes aware of the
new product, but lacks information about it.
2. Interest: Consumer seeks information about new
product.
3. Evaluation: Consumer considers whether trying
the new product makes sense.
4. Trial: Consumer tries new product on a small scale
to improve his or her estimate of its value.
5. Adoption: Consumer decides to make full and
regular use of the new product.
Copyright 2007, Prentice-Hall Inc.
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Figure 5-6
Adopter Categorization
Based on Time of Adoption
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Product Adopter Categories
 Innovators: venturesome, try new ideas at
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some risk.
Early adopters: opinion leaders who adopt
new ideas early, but carefully.
Early majority: deliberate adopters, who
adopt before the average person.
Late majority: skeptical, adopt only after the
majority of people have tried a product.
Laggards: last to adopt, tradition bound,
and skeptical of change.
Copyright 2007, Prentice-Hall Inc.
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Let’s Talk!
Which one of
the adopter
categories is
most likely to
be buying the
Toyota Prius
hybrid car
now?
www.toyota.com/prius/
Copyright 2007, Prentice-Hall Inc.
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Product Characteristics That
Influence the Rate of Adoption
 Relative Advantage: Is the innovation
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superior to existing products?
Compatibility: Does the innovation fit the
values and experience of the target market?
Complexity: Is the innovation difficult to
understand or use?
Divisibility: Can the innovation be used on a
limited basis?
Communicability: Can results be easily
observed or described to others?
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Marketing in Action
Rate This Product’s Characteristics!
Color-a-Cookie Kits contain
a cookie and four nontoxic
food coloring markers. No
baking is required, and the
food-color pens can be used
to color macaroni, pop-tarts,
bread, and more.
How will key product
characteristics influence the
rate of adoption? Explain.
www.coloracookie.com
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International Consumer Behavior
 Values, behaviors, and attitudes vary
greatly.
 Physical differences and cultural
differences must also be understood.
 Marketers must decide whether to
adapt or standardize their marketing
mix offering to other countries.
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Business Markets and
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.
Copyright 2007, Prentice-Hall Inc.
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Business Markets
 Market Structure
and Demand:
– Contains far fewer
but larger buyers.
– Buyers are more
geographically
concentrated.
– Business demand
is derived from
consumer demand.
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 Nature of the Buying
Unit:
– Business purchases
involve more
decision
participants.
– Business buying
involves a more
professional
purchasing effort.
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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.
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Marketing in Action
Business to Business Ad
Volvo stresses both practical and emotional concerns.
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Figure 5-7
Model of Business Buyer Behavior
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Types of Buying Situations
 Straight rebuy:
– Fairly routine purchase decision.
 Modified rebuy:
– Requires some research and modified
product specifications, prices, terms, or
suppliers.
 New task:
– Requires extensive research and
evaluation of products, suppliers, etc.
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Participants in the
Business Buying Process
 Buying center:
The decisionmaking unit of a
buying firm.
– Not fixed or formally
identified unit.
– Membership varies
for different buying
tasks and products.
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 Center members:
– Users, deciders,
influencers, buyers,
gatekeepers
 Members can play
multiple roles.
Video Snippet
Eaton deals with many
buying center members
when selling to its
business clients.
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Marketing in Action
Buying Centers
Buying centers include all members within a firm
that play a role in purchase decision process.
Cardinal Health deals with
a wide range of buying
influences, from the
purchasing executives and
the hospital administrators
to the surgeons who
actually use the products.
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Figure 5-8
Major Influences on Business Behavior
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Figure 5-9
Stages in the Business Buying Process
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e-Procurement
 Key benefits:
– Reduces costs to buyers and sellers, and makes
for more efficient purchasing.
– Reduces the time between order and delivery.
– Frees purchasing staff to focus on more strategic
issues.
– Share information
– Sell products and services
– Provide support services
– Maintain relationships
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Marketing in Action
e-Procurement
HP’s Web site offers product overviews, detailed
information, purchasing solutions, and much more.
Copyright 2007, Prentice-Hall Inc.
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Rest Area: Reviewing the Concepts
 Understand the consumer market and the




major factors that influence consumer buyer
behavior.
Identify and discuss the stages in the buyer
decision process.
Describe the adoption and diffusion process
for new products.
Define the business market and identify the
major factors that influence business buyer
behavior.
List and define the steps in the business
buying decision process.
Copyright 2007, Prentice-Hall Inc.
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