Chapter 5 Consumer & Business Buyer Behavior. Professor Marshall Queens College. 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:
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Upper Upper: Social elite who live on inherited wealth
Lower Upper: Earned high income or wealth through exceptional ability
Upper Middle: professionals, independent business people,
& corporate managers - believe in education
Middle: Average pay white & blue collar who live on the ‘better side of town’
Lead a ‘working class lifestyle’ irrespective of income, education, or job.
Depend on relatives for economic and emotional support
Upper Lower: The working poor. They lack education and are poorly
paid for unskilled work. They strive toward a higher class.
Lower Lower: Visibly poor. Often out of work and some depend
on public assistance. Live day-to-day.
For a game designed to test your social class awareness:
Self-actualization needs (self development & realization)
Only when the rest have been satisfied,
can a person make the most of his
or her unique abilities & be at peace.
Esteem needs (self esteem, recognition, status)
Social needs (love, sense of belonging)
Safety needs (security, protection)
Physiological needs (hunger, thirst)
Must satisfy these needs first
The process by which people select, organize, and interpret information.
The buying process starts long before purchase and lasts long after.
Evaluation of Alternatives
Triggered by internal or external stimuli
Personal sources, commercial sources, public sources (consumer rating sources), experiential sources (testing it out)
Depends on the individual & the specific buying situation
Two factors can come between the purchase intention & the purchase decision: attitudes of others & unexpected situational factors
Satisfied or dissatisfied with the purchase?
A routine purchase (ex milk, or toothpaste) might skip from need recognition to purchase decision.
X - 2σX - σ X X + σ
Time of adoption of innovations
Suspicious of change
Try new ideas at some risk.
Before the average person
Opinion Leaders – adopt new ideas early but carefully
Only after majority has tried it
Picture quality & ease of viewing
Programming & broadcasting systems are not very compatible
HDTV is not complex
HDTVs are expensive, but leasing extends the adoption
Lends itself to demonstration
Most large companies sell to other companies (B2B). Examples: Boeing, Cisco Systems, even things like milk and bread have to be sold to retailers.
Contains far fewer but larger buyers.
Customers are more geographically concentrated (CA, NY, OH, IL, MI, TX, PA, NJ).
Business demand is derived from consumer demand (derived demand).Business Markets
Think back to Intel. They increased demand for Intel chips inside PCs. They promoted their product directly to consumers even though the result was an increase in business demand because Dell and other PC manufacturers had to buy more Intel chips.
Business buying process tends to be more formalized.
Buyers and sellers are much more dependent on each other.Types of Decisions and the Decision Process
Not a fixed and formally identified unit.
Membership will vary for different products and buying situations.Participants in the Business Buying Process
The buying center is made up of all of the people involved in the buying decision (users, purchasers, people who influence the decision, even legal or accounting personnel depending on purchase).
The buying Organization
The buying center
Buying Decision Process
(interpersonal & individual preferences)
Product of service choice
Delivery Terms & times
What buying decisions do business buyers make?
Who participates in the buying process?
What are the major influences on buyers?
How do business buyers make their buying decisions?
General Need Description
GE set up Global eXchange Services Network for all GE business units to make
purchases online. It is now open to other companies:
http://www.gxs.com/ see Services, Trading Grid to