4. Buying Behavior (2)
Content
Buying behavior
Factors influencing buying
behavior; stages in buying
The 7 O’s framework of research
1.
2.
3.
4.
5.
6.
7.
Who constitutes the markets? Occupants
What does the market buy? Objects
Why does the market buy? Objectives
Who participates in the buying? Organizations
How does the market buy? Operations
When does the market buy? Occasions
Where does the market buy? Outlets
The 7 O’s framework of research
1.
2.
3.
4.
5.
6.
7.
Who constitutes the markets? Occupants
What does the market buy? Objects
Why does the market buy? Objectives
Who participates in the buying? Organizations
How does the market buy? Operations
When does the market buy? Occasions
Where does the market buy? Outlets
In this lecture we focus on -
Factors influencing buyer behavior
Factors
Factors Influencing
Influencing
Consumer
Consumer Behavior
Behavior
Cultural
Social
Personal
Culture
Reference
groups
Subculture
Family
Social
class
Roles
and
status
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psychological
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
Factors
Factors Affecting
Affecting Consumer
Consumer
Behavior:
Behavior:
Culture
Culture
Culture
••
••
Culture
Most
Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and behavior.
behavior.
Values,
Values, Perceptions,
Perceptions, Wants
Wants && Behavior
Behavior
Subculture
Subculture
Social
Social Class
Class
•• Groups
Groupsof
ofpeople
peoplewith
withshared
shared •• Society’s
Society’srelatively
relatively
value
permanent
valuesystems
systemsbased
basedon
on
permanent&&ordered
ordered
common
divisions
commonlife
lifeexperiences.
experiences.
divisionswhose
whosemembers
members
share
similar
values,
share
similar
values,
•• Hispanic
HispanicConsumers
Consumers
interests,
interests,and
andbehaviors.
behaviors.
•• African
AfricanAmerican
AmericanConsumers
Consumers •• Measured
Measuredby:
by:Occupation,
Occupation,
Income,
•• Asian
Income,Education,
Education,Wealth
Wealth
AsianAmerican
AmericanConsumers
Consumers
and
Other
Variables.
and
Other
Variables.
•• Mature
Consumers
Mature Consumers
Cultural Factors
• Culture exerts a broad and deep influence on
consumer behavior, it is a result if the person’s
upbringing.
• Subculture includes nationalities, religion, racial
groups and geographic regions
• Social class are relatively homogeneous and
enduring divisions in society, which are
hierarchically ordered and whose members
share similar values, interests and behavior
Factors
Factors Affecting
Affecting Consumer
Consumer
Behavior:
Behavior:
Social
Social
Groups
Groups
••Membership
Membership
••Reference
Reference
Family
Family
••Husband,
Husband, wife,
wife, kids
kids
••Influencer,
Influencer, buyer,
buyer, user
user
Roles
Roles and
and Status
Status
Social
Social Factors
Factors
Social Factors
• Referenced groups – all groups that have a direct, face
to face (primary groups) or indirect (secondary groups)
influence on a person’s attitude or behavior. Reference
groups can also be groups of which an individual is not a
member (aspirational group)
• Family – is the most important consumer- buying
organization, members of a family are the most
important primary reference group
• Roles and statuses – people choose products that
communicate their role and status in life (therefore the
importance of the status symbol potential of brands)
Factors
Factors Affecting
Affecting Consumer
Consumer
Behavior:
Behavior:
Personal
Personal
Personal Influences
Personal Influences
Age
Age and
and Life
Life Cycle
Cycle
Stage
Stage
Occupation
Occupation
Economic
Economic Situation
Situation
Personality
Personality && Self-Concept
Self-Concept
Lifestyle
Lifestyle Identification
Identification
Activities
Activities
Opinions
Opinions
Interests
Interests
Personal factors
1. Buyers age and stage in lifecycle
1. From a consumer of baby food to ginseng tablets
2. There is a family lifecycle too – bachelor to solitary
survivor
2. Occupation
3. Economic circumstances
4. Lifestyle
1. Psychographics – the science of measuring and
categorizing consumer lifestyles – AIO framework and
VALS
5. Personality and self concept
AIO statements identify consumer
activities, interests, and opinions
– Activity questions ask consumers to indicate
what they do, what they buy, and how they
spend their time.
– Interest questions focus on what the
consumers’ preferences and priorities are.
– Opinion questions ask for consumers’ views
and feelings on such things as world, local,
moral, economic, and social affairs.
SRI developed two psychographic
inventories: VALS and VALS 2
• VALS is based upon motivational and
developmental psychological theories
particularly Maslow’s hierarchy of needs
theory.
• VALS 2 was developed specifically to
measure consumer buying patterns.
The VALS 2 Inventory
• Goal of VALS 2 is to identify specific relationships
between consumer attitudes and purchase behavior.
• Three self-identify orientations: principle oriented people,
status oriented people, and action oriented people.
• Three resource orientations: financial, psychological, and
material. Based upon total number of resources, people
could be categorized based upon their level of resources.
• VALS 2 used by corporations to understand the basis for
consumer lifestyles, which is useful for developing
promotional strategy and even where to place retail
stores such as The Sharper Image.
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological
Motivation
Motivation
Beliefs
Beliefs and
and
Attitudes
Attitudes
Psychological
Factors
Learning
Learning
Perception
Perception
Psychological factors
1. Motivation – a need becomes a
motivation only when there is an intensity
to satisfy it. Many theories namely
Freudian, Maslow’s and Herzberg’s
2. Perception
3. Learning
4. Belief
Maslow’s
Maslow’s Hierarchy
Hierarchy of
of Needs
Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Psychological factors
1. Motivation
2. Perception – How the motivated person acts is
determined by his/her perceptions. Peoples
perceptions are skewed – they experience selective
attention, selective distortion and selective retention
3. Learning – Involves changes in peoples behavior
post experience. They arise from interplay of drives,
stimuli, cues, responses and reinforcement
4. Belief – through doing and learning, people develop
beliefs
The
The Buyer
Buyer Decision
Decision Process
Process
Need
Need Recognition
Recognition
Information
Information Search
Search
Evaluation
Evaluation of
of Alternatives
Alternatives
Purchase
Purchase Decision
Decision
Post-purchase
Post-purchase Behavior
Behavior
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition
Need
NeedRecognition
Recognition
Buyer
BuyerRecognizes
RecognizesaaProblem
Problemor
orNeed
Need
Internal
Internal Stimuli
Stimuli
••Hunger
Hunger
••Thirst
Thirst
••AAperson’s
person’snormal
normalneeds
needs
External
External Stimuli
Stimuli
••TV
TVadvertising
advertising
••Magazine
Magazinead
ad
••Radio
Radioslogan
slogan
••Stimuli
Stimuliin
inthe
theenvironment
environment
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 2.
2. Information
Information Search
Search
Personal
PersonalSources
Sources
Commercial
CommercialSources
Sources
Public
PublicSources
Sources
Experiential
ExperientialSources
Sources
•Family, friends, neighbors
•Most effective source of
information
•Advertising, salespeople
•Receives most information from
these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Consumer
ConsumerMay
MayUse
UseCareful
Careful
Calculations
Calculations&&Logical
LogicalThinking
Thinking
Consumers
ConsumersMay
MayBuy
Buyon
onImpulse
Impulseand
and
Rely
Relyon
onIntuition
Intuition
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
on
onTheir
TheirOwn.
Own.
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
Only
OnlyAfter
AfterConsulting
ConsultingOthers.
Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 4.
4. Purchase
Purchase Decision
Decision
Purchase
PurchaseIntention
Intention
Desire
Desireto
tobuy
buythe
themost
mostpreferred
preferredbrand
brand
Attitudes of
Others
Unexpecte
d
Situational
Factors
Purchase
PurchaseDecision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 5.
5. Post-purchase
Post-purchase Behavior
Behavior
Consumer’s
Consumer’sExpectations
Expectationsof
of
Product’s
Product’sPerformance
Performance
Product’s
Product’sPerceived
PerceivedPerformance
Performance
Satisfied
SatisfiedCustomer!
Customer!
Dissatisfied
DissatisfiedCustomer
Customer
Cognitive
CognitiveDissonance
Dissonance
Stages
Stages in
in the
the Adoption
Adoption Process
Process
Awareness
Awareness
Interest
Interest
Evaluation
Evaluation
Trial
Trial
Adoption
Adoption
Early Majority
Innovators
Percentage of Adopters
Adopter
Adopter Categories
Categories
Early
Adopters
34%
Late Majority
16%
13.5%
2.5%
Early
Laggards
34%
Time of Adoption
Late
Influence
Influence of
of Product
Product Characteristics
Characteristics
on
on Rate
Rate of
of Adoption
Adoption
Relative Advantage
Is the innovation
superior to existing
products?
Communicability
Can results be easily
observed or described
to others?
Divisibility
Can the innovation
be used on a
trial basis?
Product
Product
Characteristics
Characteristics
Complexity
Is the innovation
difficult to
understand or use?
Compatibility
Does the
innovation
fit the values and
experience of the
target market?
What
What is
is aa Business
Business Market?
Market?
• 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
Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demandderived
derivedfrom
fromconsumers
consumers
••Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
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
and
seller
are
Buyer and seller 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
Product
Price
Marketing
Marketing and
and
Other
Other Stimuli
Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Organization
al Influences
Product or Service
Choice
Supplier Choice
Order Quantities
The
Organization
The Buying
Buying
Organization
The
Buying
Center
Buying Decision
Process
Buyer’s
Buyer’s Response
Response
Interpersonal
and Individual
Influences
Delivery Terms
and Times
Service Terms
Payment
Business
Business Buying
Buying Situations
Situations
Involved Decision Making
New
NewTask
TaskBuying
Buying
Modified
ModifiedRe-buy
Re-buy
Straight
StraightRe-buy
Re-buy
Participants
Participants in
in the
the Business
Business
Buying
Buying
Process:
Process: The
The Buying
Buying Center
Center
Gatekeepers
Buyers
Users
Buying
Buying Center
Center
Influencers
Deciders
Major
Major Influences
Influences on
on Business
Business
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
Buying
Process
Problem
Buying
Process
ProblemRecognition
Recognition
General
GeneralNeed
NeedDescription
Description
Product
ProductSpecification
Specification
Supplier
SupplierSearch
Search
Proposal
ProposalSolicitation
Solicitation
Supplier
SupplierSelection
Selection
Order
OrderRoutine
RoutineSpecification
Specification
Performance
PerformanceReview
Review
Rest
Rest Stop:
Stop:
Reviewing
Reviewing
the
the
Concepts
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.
Factors influencing buying
behavior; stages in buying
The 7 O’s framework of research
1.
2.
3.
4.
5.
6.
7.
Who constitutes the markets? Occupants
What does the market buy? Objects
Why does the market buy? Objectives
Who participates in the buying? Organizations
How does the market buy? Operations
When does the market buy? Occasions
Where does the market buy? Outlets
The 7 O’s framework of research
1.
2.
3.
4.
5.
6.
7.
Who constitutes the markets? Occupants
What does the market buy? Objects
Why does the market buy? Objectives
Who participates in the buying? Organizations
How does the market buy? Operations
When does the market buy? Occasions
Where does the market buy? Outlets
In this lecture we focus on -
Factors influencing buyer behavior
Factors
Factors Influencing
Influencing
Consumer
Consumer Behavior
Behavior
Cultural
Social
Personal
Culture
Reference
groups
Subculture
Family
Social
class
Roles
and
status
Age and
life-cycle
Occupation
Economic
situation
Lifestyle
Personality
and
self-concept
Psychological
Motivation
Perception
Learning
Beliefs and
attitudes
Buyer
Factors
Factors Affecting
Affecting Consumer
Consumer
Behavior:
Behavior:
Culture
Culture
Culture
••
••
Culture
Most
Most basic
basic cause
cause of
of aa person's
person's wants
wants and
and behavior.
behavior.
Values,
Values, Perceptions,
Perceptions, Wants
Wants && Behavior
Behavior
Subculture
Subculture
Social
Social Class
Class
•• Groups
Groupsof
ofpeople
peoplewith
withshared
shared •• Society’s
Society’srelatively
relatively
value
permanent
valuesystems
systemsbased
basedon
on
permanent&&ordered
ordered
common
divisions
commonlife
lifeexperiences.
experiences.
divisionswhose
whosemembers
members
share
similar
values,
share
similar
values,
•• Hispanic
HispanicConsumers
Consumers
interests,
interests,and
andbehaviors.
behaviors.
•• African
AfricanAmerican
AmericanConsumers
Consumers •• Measured
Measuredby:
by:Occupation,
Occupation,
Income,
•• Asian
Income,Education,
Education,Wealth
Wealth
AsianAmerican
AmericanConsumers
Consumers
and
Other
Variables.
and
Other
Variables.
•• Mature
Consumers
Mature Consumers
Cultural Factors
• Culture exerts a broad and deep influence on
consumer behavior, it is a result if the person’s
upbringing.
• Subculture includes nationalities, religion, racial
groups and geographic regions
• Social class are relatively homogeneous and
enduring divisions in society, which are
hierarchically ordered and whose members
share similar values, interests and behavior
Factors
Factors Affecting
Affecting Consumer
Consumer
Behavior:
Behavior:
Social
Social
Groups
Groups
••Membership
Membership
••Reference
Reference
Family
Family
••Husband,
Husband, wife,
wife, kids
kids
••Influencer,
Influencer, buyer,
buyer, user
user
Roles
Roles and
and Status
Status
Social
Social Factors
Factors
Social Factors
• Referenced groups – all groups that have a direct, face
to face (primary groups) or indirect (secondary groups)
influence on a person’s attitude or behavior. Reference
groups can also be groups of which an individual is not a
member (aspirational group)
• Family – is the most important consumer- buying
organization, members of a family are the most
important primary reference group
• Roles and statuses – people choose products that
communicate their role and status in life (therefore the
importance of the status symbol potential of brands)
Factors
Factors Affecting
Affecting Consumer
Consumer
Behavior:
Behavior:
Personal
Personal
Personal Influences
Personal Influences
Age
Age and
and Life
Life Cycle
Cycle
Stage
Stage
Occupation
Occupation
Economic
Economic Situation
Situation
Personality
Personality && Self-Concept
Self-Concept
Lifestyle
Lifestyle Identification
Identification
Activities
Activities
Opinions
Opinions
Interests
Interests
Personal factors
1. Buyers age and stage in lifecycle
1. From a consumer of baby food to ginseng tablets
2. There is a family lifecycle too – bachelor to solitary
survivor
2. Occupation
3. Economic circumstances
4. Lifestyle
1. Psychographics – the science of measuring and
categorizing consumer lifestyles – AIO framework and
VALS
5. Personality and self concept
AIO statements identify consumer
activities, interests, and opinions
– Activity questions ask consumers to indicate
what they do, what they buy, and how they
spend their time.
– Interest questions focus on what the
consumers’ preferences and priorities are.
– Opinion questions ask for consumers’ views
and feelings on such things as world, local,
moral, economic, and social affairs.
SRI developed two psychographic
inventories: VALS and VALS 2
• VALS is based upon motivational and
developmental psychological theories
particularly Maslow’s hierarchy of needs
theory.
• VALS 2 was developed specifically to
measure consumer buying patterns.
The VALS 2 Inventory
• Goal of VALS 2 is to identify specific relationships
between consumer attitudes and purchase behavior.
• Three self-identify orientations: principle oriented people,
status oriented people, and action oriented people.
• Three resource orientations: financial, psychological, and
material. Based upon total number of resources, people
could be categorized based upon their level of resources.
• VALS 2 used by corporations to understand the basis for
consumer lifestyles, which is useful for developing
promotional strategy and even where to place retail
stores such as The Sharper Image.
Factors
Factors Affecting
Affecting Consumer
Consumer Behavior:
Behavior:
Psychological
Psychological
Motivation
Motivation
Beliefs
Beliefs and
and
Attitudes
Attitudes
Psychological
Factors
Learning
Learning
Perception
Perception
Psychological factors
1. Motivation – a need becomes a
motivation only when there is an intensity
to satisfy it. Many theories namely
Freudian, Maslow’s and Herzberg’s
2. Perception
3. Learning
4. Belief
Maslow’s
Maslow’s Hierarchy
Hierarchy of
of Needs
Needs
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)
Psychological factors
1. Motivation
2. Perception – How the motivated person acts is
determined by his/her perceptions. Peoples
perceptions are skewed – they experience selective
attention, selective distortion and selective retention
3. Learning – Involves changes in peoples behavior
post experience. They arise from interplay of drives,
stimuli, cues, responses and reinforcement
4. Belief – through doing and learning, people develop
beliefs
The
The Buyer
Buyer Decision
Decision Process
Process
Need
Need Recognition
Recognition
Information
Information Search
Search
Evaluation
Evaluation of
of Alternatives
Alternatives
Purchase
Purchase Decision
Decision
Post-purchase
Post-purchase Behavior
Behavior
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 1.
1. Need
Need Recognition
Recognition
Need
NeedRecognition
Recognition
Buyer
BuyerRecognizes
RecognizesaaProblem
Problemor
orNeed
Need
Internal
Internal Stimuli
Stimuli
••Hunger
Hunger
••Thirst
Thirst
••AAperson’s
person’snormal
normalneeds
needs
External
External Stimuli
Stimuli
••TV
TVadvertising
advertising
••Magazine
Magazinead
ad
••Radio
Radioslogan
slogan
••Stimuli
Stimuliin
inthe
theenvironment
environment
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 2.
2. Information
Information Search
Search
Personal
PersonalSources
Sources
Commercial
CommercialSources
Sources
Public
PublicSources
Sources
Experiential
ExperientialSources
Sources
•Family, friends, neighbors
•Most effective source of
information
•Advertising, salespeople
•Receives most information from
these sources
•Mass Media
•Consumer-rating groups
•Handling the product
•Examining the product
•Using the product
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 3.
3. Evaluation
Evaluation of
of Alternatives
Alternatives
Consumer
ConsumerMay
MayUse
UseCareful
Careful
Calculations
Calculations&&Logical
LogicalThinking
Thinking
Consumers
ConsumersMay
MayBuy
Buyon
onImpulse
Impulseand
and
Rely
Relyon
onIntuition
Intuition
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
on
onTheir
TheirOwn.
Own.
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
Only
OnlyAfter
AfterConsulting
ConsultingOthers.
Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 4.
4. Purchase
Purchase Decision
Decision
Purchase
PurchaseIntention
Intention
Desire
Desireto
tobuy
buythe
themost
mostpreferred
preferredbrand
brand
Attitudes of
Others
Unexpecte
d
Situational
Factors
Purchase
PurchaseDecision
Decision
The
The Buyer
Buyer Decision
Decision Process
Process
Step
Step 5.
5. Post-purchase
Post-purchase Behavior
Behavior
Consumer’s
Consumer’sExpectations
Expectationsof
of
Product’s
Product’sPerformance
Performance
Product’s
Product’sPerceived
PerceivedPerformance
Performance
Satisfied
SatisfiedCustomer!
Customer!
Dissatisfied
DissatisfiedCustomer
Customer
Cognitive
CognitiveDissonance
Dissonance
Stages
Stages in
in the
the Adoption
Adoption Process
Process
Awareness
Awareness
Interest
Interest
Evaluation
Evaluation
Trial
Trial
Adoption
Adoption
Early Majority
Innovators
Percentage of Adopters
Adopter
Adopter Categories
Categories
Early
Adopters
34%
Late Majority
16%
13.5%
2.5%
Early
Laggards
34%
Time of Adoption
Late
Influence
Influence of
of Product
Product Characteristics
Characteristics
on
on Rate
Rate of
of Adoption
Adoption
Relative Advantage
Is the innovation
superior to existing
products?
Communicability
Can results be easily
observed or described
to others?
Divisibility
Can the innovation
be used on a
trial basis?
Product
Product
Characteristics
Characteristics
Complexity
Is the innovation
difficult to
understand or use?
Compatibility
Does the
innovation
fit the values and
experience of the
target market?
What
What is
is aa Business
Business Market?
Market?
• 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
Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demandderived
derivedfrom
fromconsumers
consumers
••Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
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
and
seller
are
Buyer and seller 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
Product
Price
Marketing
Marketing and
and
Other
Other Stimuli
Stimuli
Economic
Technological
Place
Political
Promotion
Cultural
Organization
al Influences
Product or Service
Choice
Supplier Choice
Order Quantities
The
Organization
The Buying
Buying
Organization
The
Buying
Center
Buying Decision
Process
Buyer’s
Buyer’s Response
Response
Interpersonal
and Individual
Influences
Delivery Terms
and Times
Service Terms
Payment
Business
Business Buying
Buying Situations
Situations
Involved Decision Making
New
NewTask
TaskBuying
Buying
Modified
ModifiedRe-buy
Re-buy
Straight
StraightRe-buy
Re-buy
Participants
Participants in
in the
the Business
Business
Buying
Buying
Process:
Process: The
The Buying
Buying Center
Center
Gatekeepers
Buyers
Users
Buying
Buying Center
Center
Influencers
Deciders
Major
Major Influences
Influences on
on Business
Business
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
Buying
Process
Problem
Buying
Process
ProblemRecognition
Recognition
General
GeneralNeed
NeedDescription
Description
Product
ProductSpecification
Specification
Supplier
SupplierSearch
Search
Proposal
ProposalSolicitation
Solicitation
Supplier
SupplierSelection
Selection
Order
OrderRoutine
RoutineSpecification
Specification
Performance
PerformanceReview
Review
Rest
Rest Stop:
Stop:
Reviewing
Reviewing
the
the
Concepts
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.
