The document discusses buyer behavior models and the factors that influence consumer and business buying decisions. It covers the buyer decision process, from need recognition through post-purchase evaluation. Key factors discussed include culture, social groups, personal characteristics, motivation and values. Business buyers face more complex decisions and a more formalized buying process compared to consumers. Multiple roles, like users, influencers, buyers and deciders, make up the buying center in organizational purchases.

1. Buyer Behavior

2. Model of Buyer Behavior
Marketing and Buyer’s Black Box Buyer Responses
Other Stimuli
Marketing Buyer Characteristics Product Choice
Product Buyer Decision Process Brand Choice
Price Dealer Choice
Place
Promotion
Other Purchase Timing
Economic Purchase Amount
Technological
Political
Cultural

3. Approaches to Study of
Buyer Behavior
 Economic model
 Learning theory model
 Psycho-analytic model
 Information processing model

5. Factors Affecting Consumer
Behavior: Culture
Culture is the Most Basic Cause of a Person's
Wants and Behavior.
Subculture
• Group of people with shared
value systems based on
common life experiences.
• Hispanic Consumers
• African American Consumers
• Asian American Consumers
• Mature Consumers

6. Factors Affecting Consumer
Behavior: Culture
Culture is the Set of Values, Perceptions, Wants &
Behavior Learned by a Member of Society from
Family.
Social Class
• Society’s relatively permanent
& ordered divisions whose
members share similar values,
interests, and behaviors.
• Measured by: Occupation,
Income, Education, Wealth and
Other Variables.

7. Factors Affecting Consumer
Behavior: Social
Groups
Groups
•• Membership
Membership
•• Reference
Reference
Family (most important)
Family (most important)
•• Husband, wife, kids
Husband, wife, kids Social Factors
Social Factors
•• Influencer, buyer, user
Influencer, buyer, user
Family Buying Influence
Children can exert a
strong influence on
Roles and Status
family buying decisions.
Roles and Status
Johnson & Johnson reminds
customer’s of its commitment
to the American Family.
What other companies use
children to influence
family buying decisions?
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8. Factors Affecting Consumer
Behavior: Personal
Personal Influences
Personal Influences
Age and Life
Age and Life Economic
Economic Personality &
Personality &
Cycle Stage Occupation
Occupation Situation Self-Concept
Cycle Stage Situation Self-Concept
Lifestyle Identification
Lifestyle Identification
Activities
Activities Interests
Interests Opinions
Opinions

9. Values and Lifestyles
Actualizers
Actualizers High Innovation
High Resources
Fulfilleds
Fulfilleds Achievers
Achievers Experiencers
Experiencers
Believers
Believers Strivers
Strivers Makers
Makers
Strugglers
Strugglers
Low Resources Low Innovation

10. Factors Affecting Consumer
Behavior: Psychological
Motivation
Psychological
Factors
Beliefs and Affecting Perception
Attitudes Buyers
Choices
Learning

11. Maslow’s Hierarchy of Needs
(Fig. 5.4)
Self
Actualization
(Self-development)
Esteem Needs
(self-esteem)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)

12. Consumer Evaluation
What criteria do consumers use to make
evaluations? What do consumers care
about?
 Values
 Benefits
 Attributes
 Means-End Value Chains

13. Means-End Value Chains
•Power •$$ security
•Status •Family
•Self esteem •Environment
•Protection
•Peer admiration •Value
•Speed •Reliability
•Exclusivity •Low emissions
•Horse power •Air bags
•Prestige brand •High mpg
•Styling •Price/resale
•Extras •Japanese
•Honda
•BMW
•Toyota
•Lexus
•Nissan
•Mercedes

14. Buyer Decision Process
Purchas
e
Evaluation Decision
Postpurchase
of Alternatives Behavior
Information
Search
Need
Recognition

15. Buyer Decision Process
Step 1. Need Recognition
Buyer
Recognizes Needs Arising
State Where the From:
Buyer’s Needs a
are Fulfilled and Problem Internal Stimuli –
the Buyer is or a
Satisfied. Need.
Hunger
External Stimuli-
Friends

16. The Buyer Decision Process
Step 2. Information Search
Personal Sources
Personal Sources
•Family, friends, neighbors
•Most effective source of
information
Commercial Sources •Advertising, salespeople
Commercial Sources •Receives most information from
these sources
Public Sources
Public Sources
•Mass Media
•Consumer-rating groups
•Handling the product
Experiential Sources
Experiential Sources •Examining the product
•Using the product

17. The Buyer Decision Process
Step 4. Evaluation of Alternatives
Consumer May Use Careful
Calculations & Logical Thinking
Consumers May Buy on Impulse and
Rely on Intuition
Consumers May Make Buying Decisions
on Their Own.
Consumers May Make Buying Decisions
Only After Consulting Others.
Marketers Must Study Buyers to Find Out
How They Evaluate Brand Alternatives

18. The Buyer Decision Process
Step 5. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes Unexpected
of Others Situational
Factors
Purchase Decision

19. The Buyer Decision Process
Step 6. Postpurchase Behavior
Satisfied Customer!
Consumer’s
Expectations of Product’s Performance.
Cognitive Dissonance
Product’s Perceived
Performance.
Dissatisfied Customer

20. Role of Consumer Involvement
 Sometimes consumers make
evaluations/choices very carefully
 Sometimes consumers make
evaluations/choices with little care
 Involvement—strength of motivation,
importance
 High involvement—B X I model

21. Low involvement evaluations
 Cognitive shortcuts (heuristics)
 Habit
 Affective responses

22. Stages in the Adoption
Process
Awareness: Consumer is aware of
product, but lacks information.
Interest: Consumer seeks
Information about new product.
Evaluation: Consumer considers
trying new product.
Trial: Consumer tries new
product on a small scale.
Adoption: Consumer decides
to make regular use of product.

23. Influence of Product
Characteristics
on Rate of Adoption
Communicability
Can results be easily Relative Advantage
observed or described Is the innovation
to others? superior to existing
products?
Divisibility Compatibility
Can the innovation Does the 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?

24. What is a Business Market?
 A business market comprises 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 goods than do
consumer markets.

25. Characteristics of Business
Markets
Contain fewer, but
Contain fewer, but
Marketing Structure larger buyers
larger buyers
and Demand Customers are more
Customers are more
geographically concentrated
geographically concentrated
Buyer demand is derived from
Buyer demand is derived from
final consumer demand
final consumer demand
Demand is often more
inelastic
Demand often fluctuates
more, and more quickly

26. Characteristics of Business
Markets
Types of Decisions and the
Business Decision Process
buyers
usually face Business
more buying In business
complex process is buying,
buying more buyers and
decisions. formalized. sellers work
more closely
together.
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To develop
long-term
partnerships,
business
marketers work
closely with
their customers.
Fujitsu promises high-end
support to go along with
its high-tech products.

27. This Unisys ad offers services from technological consulting to
database setup a nd maintenance.
Model of Business Buyer
Behavior (Fig. 6.1)
Buyer Responses
The Environment The Buying
Organization
Product or
Marketing
service choice
Stimuli: The buying
•Product center
•Price Supplier Choice
•Place
•Promotion
Buying decision Order Quantities
process
Other Stimuli: Delivery terms
•Economic (Interpersonal and and times
•Technological individual influences)
•Political Service terms
•Cultural (Organizational
•Competitive Influences) Payment

28. Organizational Buying
Professional purchasing
Fewer buyers
Larger purchases
Closer, longer relationships/ reciprocity
Geographic concentration
Derived demand
Lower price sensitivity
Buying center

29. Participants in the Business
Buying Process
Users
Ethical Influencers
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Attitudes
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Others
Others Deciders
Gatekeeper
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