Consumer and Business Buyer Behavior - PowerPoint PPT Presentation

Loading...

PPT – Consumer and Business Buyer Behavior PowerPoint presentation | free to download - id: 725de7-NjFhM



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Consumer and Business Buyer Behavior

Description:

Consumer and Business Buyer Behavior Muhammad Imran Wazir Model of Consumer Behavior Marketing and other stimuli Buyer s black box Buyer s responses ... – PowerPoint PPT presentation

Number of Views:20
Avg rating:3.0/5.0
Slides: 27
Provided by: asi138
Learn more at: http://imsciences.net
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Consumer and Business Buyer Behavior


1
Consumer and Business Buyer Behavior
  • Muhammad Imran Wazir

2
Model of Consumer Behavior
  • Marketing and
  • other stimuli Buyers black box
    Buyers responses
  • Product Economic
    Product choice
  • Price Technological Brand
    choice
  • Place Political Dealer
    choice
  • Promotion Cultural
    Buying Purchase timing
  • Buyer
    decision Purchase amount
  • Characteristics process


3
Factors Influencing Consumer Behavior
Cultural Culture Subculture Social class
Social Reference groups Family Roles and
Status
Personal Age lifecycle stage Occupation Econo
mic situation Lifestyle Personality and
self-concept
Psychological Motivation Perception Learning Beli
efs attitudes
Buyer
4
Cultural Factors
  • It exert a broad and deep influence on consumer
    behavior.
  • Culture the set of basic values, perceptions,
    wants, and behaviors learned by a member of
    society from family and other important
    institutions.
  • Marketers are always trying to spot cultural
    shifts in order to discover new products that
    might be wanted.
  • Each culture contains smaller subcultures, or
    groups of people with shared value systems based
    on common life experiences and situations.
  • Subcultures includes nationalities, religions,
    racial groups, and geographic regions.

5
  • Social classes are societys relatively permanent
    and ordered divisions whose members share similar
    values, interests, and behavior.
  • Social class is not determined by a single
    factor, such as income, but is measured as a
    combination of occupation, income, education,
    wealth, and other variables.
  • In some social systems, member of different
    classes are reared for certain roles and cannot
    change their social positions.
  • Marketers are interested in social class because
    people within a given social class tend to
    exhibit similar buying behavior.
  • Seven major American social classes Upper
    uppers, Lower uppers, Upper middles, Middle
    class, Working class, Upper lowers, Lower lowers.

6
Social Factors
  • Group two or more people who interact to
    accomplish individual or mutual goals.
  • Membership groups groups that have a direct
    influence and to which a person belongs.
  • Reference groups serve as direct (face-to-face)
    or indirect points of comparison or reference in
    forming a persons attitudes or behavior.
  • People often are influenced by reference groups
    to which they do not belong. For example, an
    aspirational group is one to which the individual
    wishes to belong.
  • Opinion leaders people within a reference
    group, who, because of special skills, knowledge,
    personality, or other characteristics, exert
    influence on others.

7
  • Family members can strongly influence buyer
    behavior.
  • Marketers are interested in the roles and
    influences of the husband, wife, and children on
    the purchase of different products and services.
  • Husbandwife involvement varies widely by product
    categories and by stage in the buying process.
  • A person belongs to many groupsfamily, clubs,
    organizations. The persons position in each
    group can be defined in terms of both role and
    status.
  • A role consists of the activities people are
    expected to perform according to the persons
    around them.
  • Each role carries a status reflecting the general
    esteem given to it by society.

8
Personal Factors
  • Tastes in food, clothes, furniture, and
    recreation are often age related.
  • Buying is also shaped by the stage of the family
    life cycle the stages through which families
    might pass as they mature over time.
  • Traditional family life-cycle stages include
    young singles and married couples with children.
  • Marketers try to identify the occupational groups
    that have an above-average interest in their
    products and services.
  • Computer software companies will design different
    products for brand managers, accountants,
    engineers, lawyers and doc.

9
  • A persons economic situation will effect product
    choice.
  • Marketers of income-sensitive goods watch trends
    in personal income, savings, and interest rates.
  • People coming from the same subculture, social
    class, and occupation may have quite different
    lifestyles.
  • Lifestyle is a persons pattern of living as
    expressed in his or her psychographics.
  • It involves measuring consumers major AIO
    dimensions activities (work, hobbies, shopping,
    sports, social events), interests (food, fashion,
    family, recreation), and opinions (about
    themselves, social issues, business, products).

10
  • Several research firms have developed lifestyle
    classifications. The most widely used is SRI
    Consultings Values and Lifestyles (VALS)
    typology.
  • VALS classifies people according to how they
    spend their time and money. It divides consumers
    into eight groups based on two major dimensions
    self-orientation and resources.
  • Personality refers to the unique psychological
    characteristics that lead to relatively
    consistent and lasting responses to ones own
    environment.
  • Personality is usually described in terms of
    traits such as self-confidence, dominance,
    sociability, autonomy, defensiveness,
    adaptability, and aggressiveness. e.g. coffee
    sociability.
  • The basic self-concept premise is that peoples
    possessions contribute to and reflect their
    identities that is, we are what we have.

11
Psychological Factors
  • A motive (or drive) is a need that is
    sufficiently pressing to direct the person to
    seek satisfaction.
  • Sigmund Freud assumed that people are largely
    unconscious about the real psychological forces
    shaping their behavior.
  • He saw the person as growing up and repressing
    many urges. These urges are never eliminated or
    under perfect control, they emerge inn dreams, in
    slips of the tongue, in neurotic and obsessive
    behavior, or ultimately in psychoses.
  • Thus, Freud suggested that a person does not
    fully understand his or her motivation.

12
  • Maslows hierarchy of needs

Self- actualization needs Self development and
realization Esteem needs Self-esteem,
recognition, status Social needs Sense of
belonging, love Safety needs Security,
protection Physiological needs Hunger,
thirst
13
  • A motivated person is ready to act. How the
    person acts is influenced by his or her own
    perception of the situation.
  • All of us learn by the flow of information
    through our five senses sight, hearing, smell,
    touch, and taste.
  • Perception is the 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 because of three perceptual processes
    selective attention, selective distortion, and
    selective retention.
  • Selective attention the tendency for people to
    screen out most of the information to which they
    are exposed means that marketers have to work
    especially hard to attract the consumer's
    attention.
  • Selective distortion the tendency of people to
    interpret information in a way that will support
    what they already believe.
  • Selective retention people tend to retain
    information that supports their attitudes and
    beliefs.

14
  • Learning describes changes in an individuals
    behavior arising from experience.
  • Learning occurs through the interplay of drives,
    stimuli, cue, responses, and reinforcement.
  • A drive is strong internal stimulus that calls
    for action. Drive becomes a motive when it is
    directed toward a particular stimulus object.
  • Cues are minor stimuli that determine when,
    where, and how the person responds.
  • After buying if the experience is rewarding than
    consumer response to the selected good will be
    reinforced.

15
  • Through doing and learning, people acquire
    beliefs and attitudes.
  • A belief is a descriptive thought that a person
    has about something.
  • Beliefs may be based on real knowledge, opinion,
    or faith, and may or may not carry an emotional
    charge.
  • Marketers are interested in the beliefs that
    people formulate about specific products and
    services, because these beliefs make up product
    and brand images that affect buying behavior.
  • Attitude describes a persons relatively
    consistent evaluations, feelings, and tendencies
    toward an object or idea.
  • Attitude are difficult to change. A persons
    attitudes fit into a pattern, and to change one
    attitude may require difficult adjustments in
    many others.

16
Buyer Decision Process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
17
Need Recognition Information Search
  • The need can be triggered by internal stimuli
    when one of the persons normal needs hunger,
    thirst, sex rises to a level high enough to
    become a drive.
  • A need can also be triggered by external stimuli.
    e.g. word-of-mouth, advertisements.
  • The consumer can obtain information from any of
    several sources. These include personal sources,
    commercial sources, public sources and
    experiential sources.
  • Commercial sources normally inform the buyer, but
    personal sources legitimize or evaluate products
    for the buyer.

18
Evaluation of Alternatives Purchase Decision
  • The consumer arrives at attitudes toward
    different brands through some evaluation
    procedure.
  • How consumer go about evaluating purchase
    alternatives depends on the individual consumer
    and the specific buying situation.
  • In some cases, consumers use careful calculations
    and logical thinking.
  • At other times, the same consumers do little or
    no evaluating instead they buy on impulse and
    rely on intuition.
  • Two factors that affects the consumers purchase
    decision.
  • Attitudes of others.
  • Unexpected situational factors.

19
Postpurchase Behavior
  • The answer to whether the buyer is satisfied or
    dissatisfied with a purchase lies in the
    relationship between the consumers expectations
    and the products perceived performance.
  • Almost all major purchases result in cognitive
    dissonance, or discomfort caused by postpurchase
    conflict.
  • Companys sales come from two basic groups new
    customers and retained customers.
  • A satisfied customer tell 3 people about a good
    product experience, a dissatisfied customer
    gripes to 11 people.
  • Some 96 percent of unhappy customers never tell
    the company about their problem.

20
The Buyer Decision Process For New Products
  • 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 hearing
    about an innovation to final adoption.
  • Consumers go through five stages in the process
    of adopting a new product
  • Awareness
  • Interest
  • Evaluation
  • Trial
  • Adoption

21
Individual Differences in Innovativeness
34 Late majority
34 Early majority
2.5 Innovators
13.5 Early adopters
16 Laggards
X 2a
X a
X
X 2a
Time of adoption of innovation
22
Influence of Product Characteristics on Rate of
Adoption
  • Five characteristics are especially important in
    influencing an innovations rate of adoption.
  • For example, consider the characteristics of HDTV
    (High-definition television) in relation to the
    rate of adoption.
  • Relative advantage (superior to existing
    products)
  • Compatibility (fits the values and
    experiences of potential customers)
  • Complexity (difficult to understand
    or use)
  • Divisibility (tried on a limited
    basis but still very expensive)
  • Communicability (results of using can be
    observed or described to others)

23
Business Markets
  • The business market is huge.
  • Many sets of business purchases were made for
    only one set of consumer purchases.
  • The main differences between business markets and
    consumer markets are following.
  • Market structure and demand (derived demand)
  • Far fewer but far larger buyers more
    geographically concentrated
  • Nature of the buying unit
  • More decision participants more professional
    purchasing effort
  • Types of decisions and the decision process
  • More complex more formalized more dependent.

24
Business Buyer Behavior
The Environment The Environment
Marketing Stimuli Other Stimuli
Product Price Place Promotion Economic Technological Political Cultural Competitive
25
Major Types of Buying Situation
  • Straight rebuy a business buying situation in
    which the buyer routinely reorders something
    without any modifications.
  • Modified rebuy a business buying situation in
    which the buyer wants to modify product
    specifications, prices, terms, or suppliers.
  • New task a business buying situation in which
    the buyer purchases a product or service for the
    first time.

26
Stages of the Business Buying Process
Problem recognition
Supplier search
Product specification
General need description
Proposal solicitation
Supplier selection
Order-routine specification
Performance review
About PowerShow.com