The document provides an overview of buyer behaviour topics for a marketing course. It defines consumer behaviour and discusses key concepts like the consumer decision-making process, factors that influence consumer behaviour, and different types of buying decisions. It also compares consumer markets to business-to-business markets, outlining similarities and differences in models of buyer behaviour and the buying process for each. The summary highlights the key topics covered in the reading.

1. Buyer Behaviour
• LECTURE 3
• Consumer market behaviour – chapter 5
• Business market behaviour – chapter 6
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2. CONSUMER BEHAVIOUR
A DEFINITION
The study of the processes involved when individuals and groups
select, purchase, use or dispose of:
products,
services,
ideas, or
experiences
to satisfy needs and desires.
Michael Solomon (1996)
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3. What to cover
The following topics must be covered:
• Why marketers need to study buyer behaviour
• Model of consumer behaviour
• Factors influencing consumer behaviour
• Roles in the buying process
• Levels of involvement
• The buying decision process
• Differentiate between consumer and B2B markets
• Compare models of consumer and business buyer behaviour
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4. WHY MARKETERS SHOULD ANALYSE BUYER
BEHAVIOUR
• Buyers' reactions to a firm's marketing strategy have a impact
on the firm’s success.
• The marketing concept stresses that a firm should create a
marketing mix that satisfies customers.
• To find out what satisfies customers, marketers must examine
the main influences on WHAT, WHERE, WHEN and HOW
consumers buy.
• By gaining a better understanding of the factors that affect
buying behaviour, marketers can better predict how consumers
will respond to marketing strategies.
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5. Why should a company identify these roles?
• Because they have implications for -
designing the product
determining messages
allocating promotional budgets.
• If the husband decides on the car's make, then the motor vehicle
company will direct most of the advertising to reach the
husband.
• The company might design some car features to please the wife
and place some advertisement in the media reaching wives.
• Knowing the main participants and the roles they play helps the
marketer to fine-tune the marketing program.
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6. A Model of Buyer Behaviour
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7. Factors Influencing Consumer
Psychological
Behaviour •Household type
Personal
•Age & lifecycle stage
Social
•Occupation •Reference groups
•Motivation
•Education •Roles & status
•Perception
•Economic situation
•Learning (memory)
•Beliefs & attitudes
•Personality &
self-concept Consumer Buyers’ responses
•Product service &
BUYER DECISION category selection
PROCESS •Brand selection
Marketing programs Experiences •Reseller selection
•Marketing objectives •Purchase timing &
Lifestyle repurchase intervals
•Marketing strategy
•Marketing mix •Purchase amount
Cultural
Environmental influences
•Economic •Culture
•Technological •Subculture
•Political •Social Class
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8. FACTORS INFLUENCING BUYING DECISION
PROCESS
(1) Personal Factors
(2) Psychological Factors
(3) Social Factors
(4) Cultural Factors
(5) Environmental Influences
(6) Marketing Programs
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9. PERSONAL FACTORS THAT INFLUENCE
BUYER RESPONSES
• Numerous personal factors
• Age and lifecycle stages
• Occupation
• Level of education
• Economic situation (income level)
• Level of involvement
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10. PSYCHOLOGICAL FACTORS THAT INFLUENCE
BUYER RESPONSES
• PERCEPTION - our perception of reality drives our behaviour.
• MOTIVES or motivation plays an important role in the consumer decision
process - particularly at problem recognition stage. A need exists and the
person is motivated to search for alternatives.
• LEARNING - changes in a person's behaviour caused by information and
experience.
• BELIEFS & ATTITUDE - knowledge and positive or negative feeling.
• PERSONALITY & SELF-CONCEPT- a person’s distinguishing
psychological characteristics that leads to relatively consistent and lasting
responses to his or her environment
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11. SOCIAL FACTORS THAT INFLUENCE BUYER
RESPONSES
• Household Type can strongly influence buyer behaviour eg parents in
families
• The wife, husband and children’s roles in buying decisions is very important
for marketers
• Reference Groups - groups people generally identify with. Most people
have reference groups - such as family, friends, religious or professional
organisations.
• An individual's roles influences both general behaviour and buying
behaviour.
• To develop a marketing mix that precisely meets the needs of the target
market, marketers must know:
- who does the actual buying
- what other roles influence the position.
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12. CULTURAL FACTORS THAT INFLUENCE
BUYER RESPONSES
• Culture is the basic determinant of much of our decision-
making and buying behaviour. Each of us belongs to several
cultural groups.
• We are also members of smaller groups and sub-cultures -
which reflect geographic, religious or ethnic differences. A
group of people with shared value systems based on common
life experiences and situations
• Social Class has a bearing on many aspects of a person's life - it
also affects buying decisions. Members of a social class tend to
share similar vakues, interests and behaviours
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13. Consumer Buying Roles
User Initiator
Key
Family
Decision
Buyer Roles Influencer
Decider
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14. The Buyer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Behaviour
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15. Types of Buying Decisions
High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between
brands Behaviour Behaviour
Few Dissonance- Habitual
differences
between Reducing Buying Buying
brands Behaviour Behaviour
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16. TYPES OF BUYING DECISION BEHAVIOUR
Involvement Levels
Insert Fig 5.6 pp164
• Complex Buying Behaviour – significant differences between brands - buyer
is highly involved when purchase is expensive, risky and highly self
expressive (like buying a present for someone special)
• Dissonance-reducing buyer behaviour – similar to above but there is very
little difference s among brands. Emphasis in on reducing dissatisfaction
after purchase – or making the wrong choice.
• Habitual buying behaviour – routine purchase. Low involvement. Brands
very similar. Low cost, frequently purchased item
• Varity-seeking buying behaviour – low involvement but significant brand
differences
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17. THE CONSUMER BUYING DECISION
PROCESS
• The actual act of purchasing is only one stage in the process.
• The process begins several stages before the actual purchase.
• Not all decision processes will lead to a purchase.
• All consumer decisions do not always include all five stages.
• Usually limited d-m and routine response behaviour may omit
some stages.
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18. EXAMPLE:
Beliefs about a product or service
• Beliefs are often based on opinion or faith, especially for
products such as life insurance.
• Actual experience with a product may be the most powerful
way to shape beliefs about it.
• These beliefs make up the product or service’s brand image
• These beliefs will have a strong effect on a person’s:
– repurchase habits and
– the type of comments they make to others about it.
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19. EXAMPLE:
ROLES IN BUYING PROCESS
Children'S Breakfast Cereal:
• the child would be the initiator and influencer,
• the parent who does the grocery shopping would be the decider
and buyer,
• and the child would be the user.
L'eggs pantyhose:
• It is likely that four roles are played by the same woman: she
initiates, decides, buys, and uses the product, perhaps with some
influence from a friend.
•
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20. EXAMPLE:
ROLES IN BUYING PROCESS
Purina Dog Chow:
• The owner is the initiator, decider, and buyer.
• The dog is the influencer (it won't eat an unpalatable product, so
the owner changes brands) and the user.
A VCR is an expensive and complicated purchase.
• In a family situation, children may be initiators,
• A friend who is an electronics buff and a salesperson might be
influencers,
• One or both parents would be the deciders and buyers, and
• All members of the family would be users.
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21. IMPORTANCE OF POSTPURCHASE
BEHAVIOUR
• Satisfied customers are likely to buy the product again and
recommend it to their friends.
• Dissatisfied customers may stop buying the product, steer their
friends away from it, or even sue the manufacturer.
• Post purchase behaviour is also relevant because it may suggest
new marketing opportunities. For example, resealable cereal and
hot-dog packages were designed to overcome postpurchase
problems with product freshness.
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22. POSTPURCHASE BEHAVIOUR AND
MARKETING OPPORTUNITIES
• Unusual postpurchase behaviour, such as using a product in an
unexpected way, can also alert companies to new opportunities.
• This is common with food products, EG
suggesting oatmeal as a cookie ingredient,
cream of mushroom soup as a sauce, or
dry onion soup as a dip mix.
• It can work in other areas as well, such as Avon's promotion of
Skin-So-Soft bath oil as a mosquito repellent-a use discovered
by consumers.
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23. Question?
• The consumer buying decision involves 5
stages
• What stages do consumers go through in
adopting a new product?
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24. Definitions
New product: a good, service or idea that is
perceived by some potential customers as new
Adoption process: the mental process through
which an individual passes from first learning
about an innovation to final adoption
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25. Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
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26. Markets
• There are two types of markets
• (1) Consumers or end-user markets – which we
have just considered (Chapter 5)
• (2) Business-to-business markets – (also called
organisational markets) where buying
conditions and buying processes differ. This is
covered below (Chapter 6)
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27. A Model of Business Buying Behaviour ( fig 6.2)
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28. Model of Consumer Behaviour
Marketing and Other Stimuli
Buyer’s Black Box
? ?
Buyer’s Response
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29. Stages in the Business Buying Process
Problem Recognition
General Need Description
Product Specification Proposal Solicitation
Supplier Search Supplier Selection
Order Routine Specification
Performance Review
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30. Major Types of Business Buying
Situations
Straight Modified
Rebuy Types of Rebuy
Business
Buying
Situations
New Task
Buying
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31. Three Types of Buying Situations (figure 6.3)
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32. Characteristics of Business Markets
Market Structure
and Demand
Characteristics
Other of Nature of
Characteristics Business Buying
Markets Unit
Types of Decisions
and Decision Process
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33. A Model of Business Buying Behaviour
The Environment
The Buying Organisation
The Buying Centre
Buying
Decision
Process
Buyer’s Response
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34. Participants in the Business Buying Process
Users
Gatekeepers
Buying Centre
Deciders Influencers
Buyers
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35. Major influences on Business Buying
Environmental
Organisational
Interpersonal
Individual
Buyers
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36. Major influences on Business Buying
(figure 6.4)
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37. Institutional and Government Markets
Institutional Markets
Low Budgets Captive Patrons
Government Markets
Centralized Buying Public Review
Outside Publics Submit Bids
Non-economic Criteria
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