1.
5-1
Consumer
and Business
Buyer Behavior
Nathan George

2.
Consumer Buying Behavior 5-2
• Consumer Buying Behavior refers to the
buying behavior of final consumers
-individuals & households who buy goods
and services for personal consumption.
• The central question for marketers is:
“How do consumers respond to various
marketing efforts the company might use?”

3.
Model of Buyer Behavior 5-3
Product Marketing and Economic
Price Other Stimuli Technological
Place Political
Promotion Cultural
Buying Buyer
Decision Characteristics
Buyer’s Black Box
Process
Product Choice Purchase
Timing
Brand Choice Buyer’s Response
Purchase
Dealer Choice Amount

4.
5-4
Factors Influencing
Consumer Behavior
Cultural
Social
Personal
Age and Psycho-
Culture Reference life-cycle logical
groups
Occupation Motivation
Economic Perception Buyer
Sub-
culture Family situation Learning
Lifestyle Beliefs and
Roles Personality attitudes
Social and and
class status self-concept

5.
Factors Affecting Consumer Behavior: 5-5
Culture
Culture
• Most basic cause of a person's wants and behavior.
• Values, Perceptions, Wants & Behavior
Subculture Social Class
• Groups of people with shared • Society’s relatively permanent &
value systems based on ordered divisions whose
common life experiences. members share similar values,
interests, and behaviors.
• Hispanic Consumers
• Measured by: Occupation,
• African American Consumers
Income, Education, Wealth and
• Asian American Consumers Other Variables.
• Mature Consumers

6.
Factors Affecting Consumer Behavior:
5-6
Social
Groups
Membership
• •
Reference
Family
Husband, wife, kids Social Factors
• •
Influencer, buyer, user
Roles and Status

7.
Factors Affecting Consumer Behavior: 5-7
Personal
Personal Influences
Age and Life Cycle
Occupation
Stage
Economic Situation Personality & Self-Concept
Lifestyle Identification
Activities Opinions
Interests

8.
Factors Affecting Consumer Behavior: 5-8
Psychological
Motivation
Beliefs and Psychological
Factors Perception
Attitudes
Learning

9.
5-9
Perception
• Perception
– Information Inputs
– Interpretation
– Selective Exposure
– Selective Distortion
– Selective Retention

10.
Maslow’s Hierarchy of Needs 5-10
Self
Actualization
(Self-development)
Esteem Needs
( self-esteem, status)
Social Needs
(sense of belonging, love)
Safety Needs
(security, protection)
Physiological Needs
(hunger, thirst)

11.
The Buyer Decision Process 5-11
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Behavior

12.
The Buyer Decision Process 5-12
Step 1. Need Recognition
Need Recognition
Buyer Recognizes a Problem or Need
Internal Stimuli External Stimuli
• Hunger • TV advertising
• Thirst • Magazine ad
• A person’s normal needs • Radio slogan
•Stimuli in the environment

13.
The Buyer Decision Process 5-13
Step 2. Information Search
•Family, friends, neighbors
Personal Sources •Most effective source of
information
•Advertising, salespeople
Commercial Sources •Receives most information from
these sources
•Mass Media
Public Sources •Consumer-rating groups
•Handling the product
Experiential Sources •Examining the product
•Using the product

14.
5-14
The Buyer Decision Process
Step 3. 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

15.
The Buyer Decision Process 5-15
Step 4. Purchase Decision
Purchase Intention
Desire to buy the most preferred brand
Attitudes of Unexpected
Others Situational
Factors
Purchase Decision

16.
The Buyer Decision Process 5-16
Step 5. Post-purchase Behavior
Consumer’s Expectations of
Product’s Performance
Product’s Perceived Performance
Satisfied Customer! Dissatisfied Customer
Cognitive Dissonance

17.
5-17
Buying Decision Process
Consumer satisfaction is a function of consumer
expectations and perceived product performance.
Performance < Expectations Disappointment
Performance = Expectations Satisfaction
Performance > Expectations Delight

18.
5-18
Buying Decision Process
• Cognitive dissonance: a buyer’s doubts shortly
after a purchase about whether it was the right
decision.

19.
Stages in the Adoption Process 5-19
Awareness
Interest
Evaluation
Trial
Adoption

20.
5-20
Stages in the Adoption Process
• Awareness: Consumer becomes aware of the new
product, but lacks information about it.
• Interest: Consumer seeks information about new
product.
• Evaluation: Consumer considers whether trying the
new product makes sense.
• Trial: Consumer tries new product on a small scale to
improve his or her estimate of its value.
• Adoption: Consumer decides to make full and regular
use of the new product.

21.
5-21
Adopter Categories
Percentage of Adopters
Early Majority Late Majority
Innovators
Early Laggards
Adopters 34% 34%
13.5% 16%
2.5% Time of Adoption
Early Late

22.
Influence of Product Characteristics 5-22
on Rate of Adoption
Communicability Relative Advantage
Can results be easily Is the innovation superior
observed or described to existing products?
to others?
Product
Compatibility
Divisibility Characteristics Does the innovation
Can the innovation fit the values and
be used on a experience of the
trial basis? target market?
Complexity
Is the innovation
difficult to
understand or use?

23.
What is a Business Market? 5-23
• 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 than do
consumer markets.

24.
5-24
The Business Buying Process

25.
Characteristics of Business Markets 5-25
Market Structure and Demand
• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Fluctuating demand
Nature of the Buying Unit
• More members
• More professional purchasing
effort
Types of Decisions & the
Decision Process
• More complex decisions
• Process is more formalized
• Buyer and seller are more
dependent on each other
• Build close long-term relationships
with customers

26.
5-26
Participants in the Business
Buying Process
• Decision-making unit of • Buying Center
a buying organization is Members:
called its buying center. – Users
• Not a fixed and formally – Deciders
identified unit.
– Influencers
• Membership will vary for – Buyers
different products and
– Gatekeepers
buying situations.

27.
Participants in the Business Buying 5-27
Process: The Buying Center
Gatekeepers Users
Buying Center
Buyers Deciders
Influencers

28.
Model of Business Buyer Behavior 5-28
Product Marketing and Economic
Price Other Stimuli Technological
Place Political
Promotion Cultural
Organizational The Buying Organization
The Buying Center Interpersonal
Influences and Individual
Buying Decision
Process Influences
Product or Service Delivery Terms
Choice Buyer’s Response and Times
Supplier Choice Service Terms
Order Quantities Payment

29.
Major Influences on Business 5-29
Buyer Behavior
Environmental
Economic, Technological, Political, Competitive
Organizational
Objectives, Policies, Procedures,
Structure, & Systems
Interpersonal
Authority, Status, Empathy &
Persuasiveness
Individual
Age, Education, Job Position, Personality &
Risk Attitudes
Buyers

30.
5-30
Major Types of Buying Situations
The buyer routinely reorders
Straight Re-buy something without any
modifications.
The buyer wants to modify
Modified Re-buy product specifications,
prices, terms, or suppliers.
The buyer purchases a
New Task product or service for the
first time.

31.
Business Buying Situations 5-31
New Task Buying
Involved Decision Making
Modified Re-buy
Straight Re-buy

32.
Rest Stop: 5-32
Reviewing
the
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.