BEHAVIOR

NEW PRODUCT INNOVATIONS

MODEL OF BEHAIOVR

CONSUMER MARKET

BUYER BEHAVIOR

CONSUMER DECISION MAKING PROCESS

INFLUENCE OF SOCIAL SCIENCE ON BUYER BEHAVIOR STUDIES

MASLOW HIERACHY OF NEEDS

BUSINESS BUYER BEHAVIOR

Business Markets

^[5] Business markets are all the organisations that buy G&S to use them in production (or services) or for the purpose of supplying, renting or reselling. These include the industrial, reseller & institutional/govt markets. Business buyers determine which products are needed, find potential products & make an evaluation.

Market Structure And Demand

Business markets have far fewer but far larger buyers than consumer markets. There is more dependencies & a need for closer relationships. Demand is derived from consumer demand. Some markets are inelastic while some fluctuate more than consumer markets.

The Nature Of The Buying Unit

Business purchases involve more decision participants & a professional purchasing effort. Trained purchasing agents do most buying, so B2B marketers face a harder task.

Types of Decisions And Decision Processes

Business buyers face more complex buying decisions; they involve large sums of cash, technical & economic considerations & interaction among many people in different levels of the firm. This increases length of formalised purchasing decisions. Leasing instead of outright purchases is an option to conserve capital & get latest products (& tax advantages). Buyers/Sellers are more reliant upon one another. Must work closely with customers on all stages of the buying process (problems, solutions, after sale) for supplier development - the systematic development of networks of supplier-partners to ensure an appropriate & dependable supply. There is a reciprocity tendency in these direct purchases.

Business Buyer Behaviour

^[6] Markets want to know how business buyers respond to various marketing & external stimuli. Many firm’s prefer a complete solution from 1 seller instead of buying many goods & services from many sellers - Systems (Solution) Selling.

Main Types of Buying Situations

• Straight Re-buy - routinely re-order the same thing, suppliers maintain quality & try to create automatic reordering
• Modified Re-buy - modifies product specifications, price, terms or suppliers. More decision participants
• New Task - purchases a G/S for the 1st time. More decision participants

Participants in the Business Buying Process

The decision making unit of a buying organisation is the buying center. There are users, influencers, buyers (formal authority to select purchases), Deciders (approve the buyers), and gatekeepers (control flow of information).

Main Influences On Business Buying

• Environmental – economic, technological, political, competitive & social & cultural developments. E.g. GFC – Value
• Organisational – objectives, policies, procedures,

BUYER DECISION PROCESS

Consumer Buying Roles

Each person within a group (e.g. family) has a certain (or many roles) role in carrying consumptive responsibilities. For example, Pepsi marketed to mums (buys & decides for Kids).

• Initiator – first thinks of or suggests the idea (e.g. run out of cereal)
• Influencer – persons views & opinions carry weight in the final decision (e.g. Dr. Dietary Requirements)
• Decider – makes any part of the buying decisions (whether to buy, what, how & where)
• Buyer – makes the actual purchase
• User – consume the good or service

Types Of Consumer Buying Decisions

• Routine Response Behaviour - Buy 1st, evaluate later, quick decisions, little involvement, frequently low cost goods (pen)
• Limited Decision Making - Low involvement, moderate cost goods, evaluation of a few brands, short decision (clothing)
• Extensive Decision Making - High involvement, high cost of goods, evaluation of many brands, lengthy decision (house)

Buyer Decision Process

^[3]

1. Need Recognition – problems recognised when people sense a difference between actual & desired states

   • Triggered by internal stimuli (drive) or external stimuli (advertisement)

2. Information Search – may or may not - depend on urgency/drive. Personal sources more influential than commercial
3. Evaluation of Alternatives – compare product attributes with alternatives (weight each attribute according to need, belief)
4. Purchase Decision – buy or not buy - attitudes of others & situational factors may change purchase intentions
5. Post-Purchase Behaviour – satisfied? comparing products expected performance against perceived performance received

   • Cognitive Dissonance – discomfort cause by post purchase conflict - losing benefits that other products provide
   • Satisfaction = relationship with customer 

 Consumer And Business Behaviour: Understanding Buyer Behaviour

Contents  [hide]  1 Required Reading 2 Model Of Consumer Behaviour 3 Characteristics Affecting Consumer Behaviour 3.1 Cultural Factors – Culture, Subculture (Cultural Groups), Social Class, Family 3.2 Social Factors – Groups, Family, Social Roles And Social Status 3.3 Personal Factors – Age & Life Cycle, Occupation, Education, Economic Situation, Lifestyle, Personality, Self Concept 3.4 Psychological Factors – Motivation, Perception, Learning, Beliefs And Attitudes 4 Consumer Buying Roles 5 Types Of Consumer Buying Decisions 6 Buyer Decision Process 7 Adoption Process - Buyer Decision Process For New Products 7.1 Stages In The Adoption Process 7.2 Influence Of Product Characteristics On The Rate of Adoption 7.3 Individual Differences in Buyer Readiness 8 Business Markets 8.1 Market Structure And Demand 8.2 The Nature Of The Buying Unit 8.3 Types of Decisions And Decision Processes 9 Business Buyer Behaviour 9.1 Main Types of Buying Situations 9.2 Participants in the Business Buying Process 9.3 Main Influences On Business Buying 10 Business Buying Process 11 End

CONSUMER VALUE

Consumer Value
‘Serving the customer’ and ‘customer satisfaction’ are central to every formulation
of the marketing concept, yet few books delve with sufficient depth into issues
concerning the dimensions that such service to the customer entails.
This comprehensive volume fills the gap by bringing together leading US and
UK scholars to explore this contentious issue—the nature and types of consumer
value. Various contrasting methodological and theoretical domains are employed
to provide a comprehensive analytical framework that is applied to the full range
of consumption-related phenomena.
The framework provides eight interrelated ways to think about these issues:
• efficiency
• excellence
• status
• esteem
• play
• aesthetics
• ethics
• spirituality
With an international range of contributors and a highly individual approach,
Consumer Value offers a useful teaching supplement to anyone studying a course
on marketing in general or consumer behaviour in particular.
Morris B.Holbrook is Professor of Marketing at The Graduate School of Business,
Columbia University. His previous publications include Consumer Research (1995)
and he’s the co-author of The Semiotics of Consumption (1993) and Postmodern

MARKETING CONCEPT A BUSINESS ORIENTION

MARKETING CONCEPT, A BUSINESS ORIENTATION:

è The field of consumer behaviour is rooted in the marketing concept, a business orientation that evolved in the 1950s through several alternative approaches toward doing business referred to respectively: -

1) The Production Concept.

2) The Product Concept.

3) The Selling Concept.

4) The Marketing Concept.

5) The Societal Marketing Concept.

1) THE PRODUCTION CONCEPT:

ð The production concept assumes that consumers are mostly interested in product availability at low prices; its implicit marketing objectives are cheap, efficient product and intensive distribution.

ð It makes sense when consumer are more interested in buying what’s available rather than wait for what they really want.

ð The main objective is to expand the market.

2) THE PRODUCT CONCEPT:

ð The product concept assumes that consumers will buy the product that offers them the highest quality, the best performance, and the most features.

ð It ensures the company to improve the quality of its product and add new features.

ð The product concept often leads to “marketing myopia” that is focusing on the product rather than the customer needs.

3) THE SELLING CONCEPT:

ð The assumption of the selling concept is that consumers are unlikely to buy the product unless they are aggressively persuaded to do so – mostly through “hard sell” approach.

ð The problem in this concept is that it fails to satisfy a customer.

ð Promotion can be done through advertisement, sales promotion and public relation.

ð Today the selling concept is utilize be marketers of unsought products – that is which people are not willing to buy it (such as life insurance).

4) THE MARKETING CONCEPT:

ð It started in 1950’s when some marketers realized we can sell more products by determining what consumer would buy.

ð Consumer need and wants became the firm’s primary focus.

ð The marketers should made product what t can sell, instead of what it has made.

STARTING POINT FOCUS MEANS ENDS

SELLING CONCEPT

Factory à Product à Selling & Promotion à Profit through sale volume

MARKETING CONCEPT

Market à Needs à Marketing à Profit via customer satisfaction

 

5) THE SOCIETAL MARKETING CONCEPT:

ð Developing that product which benefits the society. Doing marketing in such a way that it helps you in increasing your production & also giving benefits to society.

ð The organization should determine the needs, wants and interest of target markets and deliver the desired satisfaction more effectively and efficiently then do competitors in a way that maintains or improves the customers and society’s well being.

consumer behavior

Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.^[1] It blends elements from psychology, sociology, social anthropology, marketing and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups such as how emotions affect buying behaviour. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.