Professional Documents
Culture Documents
User
Payer
INSTITUTION
CUSTOMER
DECISION MAKING
Household Buying
Behaviour
Households are the basic unit of
buying and consumption in a
society
A household is a consumption unit of one or more
persons identified by a common location with an
address
Family household
Nonfamily household
Husband-Wife Decision
Roles
Husbands
Price
<$75,000
Insulation
Number of Y
bedrooms
(4)
N
R
N
Price
Y
<$75,000
R
N
Y
A
1
A
Interior
design
Number of
bedrooms
(4)
R Reject
R
N
R
N
3 bedrooms
A
Y
1
Accept
A
2
Gender-role orientation
Wifes employment status
Stage in family life cycle
Time pressure
Socioeconomic development of the
population
Childrens Influence on
Family Decision Making
Family Orientation
SHARED
INFLUENCE
DIRECT
CONTROL
SHARED
INFLUENCE
FAMILY TYPE
Authoritarian
Low
Low
Low
Low
Neglectful
High
High
Low
Low
Democratic
Moderate
Moderate
Moderate
Moderate
Permissive
High
Moderate
Moderate
Moderate
Consumer Socialization
of the marketplace
Skills in making smart decisions
Learning Mechanisms
Instrumental Conditioning
Children learn those behaviours and the underlying
Modeling
Cognitive
Low involvement
There could be undeliberated adoption of product choices
because of familiarity or because these products were used by
ones parents
High involvement
Socialization influence can occur due to communication and
education by parents about various brands or buying
strategies
Intergenerational Influence
Reverse IGI
From children to parents
Democratic justice
Family Relationship
Relative Expertise
IGI across households
Expertise
Lifestyle similarity
Resource control
Intergenerational Influences
(IGI)
FAMILY RELATIONSHIP
PERCEIVED
EXPERTISE
Negative
Positive
High
Disaffected
IGI
High
IGI
Low
No
IGI
Discounted
IGI
Distributed Roles
Shared Roles
Types of Conflict
GOALS
Divergent
PERCEPTIONS/
EVALUATIONS
Converge
nt
Convergent
Divergent
Solution Conflict
(Family
vacation)
Compounded
Complex,
Important
Purchases
(Home buying)
No Conflict
(Daily
consumption
items)
Goal Conflict
(What to buy)
(Product level
conflict)
Conflict Resolution
VALUES/GOALS
Convergent
Divergent
Divergent
Problem
solving
Politicking
Bargaining
Convergent
No
Conflict
Persuasion
EVALUATIONS
Individual Characteristics
Personality and Lifestyle
Time Pressure
Product Expertise
Education
Separation vs.
Convergence of Roles
Nature of Purchase
Importance
Perceived Risk
Urgency
Shared Vs. Individual Use
Sources of Information
Marketer
Mass Media
Word-of-Mouth
Decision Process
Autonomous
Joint
Conflict Occurrence
Conflict Resolution
Problem Solving
Persuasion
Bargaining
Politicking
CHOICE
Family Characteristics
Family life cycle
Socio-economic status
Dual career
Role specialization
Sex role orientation
22
Business Buying
Behaviour
A business is a licensed entity
engaged in the activity of making,
buying, or selling products for profit
or nonprofit objectives
2008 by Nelson, a division of Thomson Canada Limited
23
HOUSEHOLD BUYING
BUSINESS BUYING
Informal
Strict measures
Internal capabilities
Weak
Complexity of requirement
Little complexity
Components of the
Business Buying Process
Procurement system
Nature of the purchase
Organizational characteristics
Buying centre
Rules and procedures
A decision process
Description of Need
Information Search
Straight rebuy
Modified rebuy
Moderate
Some information is
gathered; new suppliers may
be considered; technical
experts may have input into
decision
New task
Large
Perceived Risk
be wrong
The amount at stake should a wrong choice
occur
Importance
Complexity
Time Pressure
user/requisitioner
Organizational Characteristics
User
Buyer
Analyzer
Influencer
Gatekeepers
Decider
Decision Process
Need assessment
Developing choice criteria
Request for proposals (RFPs)
Supplier evaluation
Supplier selection
Fulfillment and monitoring
Components of a Business
Customers Total Costs
Acquisition Costs
Possession Costs
Usage Costs
Price
Interest cost
Field defects
Paperwork cost
Storage cost
Training cost
Shopping time
Quality control
User labour
cost
Expediting cost
Product
longevity
Shrinkage and
obsolescence
Replacement
costs
Prepurchase product
evaluation costs
General internal
handling costs
Disposal costs
Problem solving
Persuasion
Bargaining
Politicking
Centralization
Purchase Orientation
Decision Process
Nature of Purchase
Buying Task
Straight Rebuy
Modified Rebuy
New task
Perceived risk
Importance
Complexity
Time pressure
Need Identification
Vendor Search
Evaluation
Criteria
Vendor Evaluation
Information Sources
Salespersons
Advertisements
Product literature
Syndicated research
reports
Trade/professional
journals
Trade associations
Word-of-mouth
Vendor referrals
Conflict
Resolution
Problem
solving
Persuasion
Bargaining
Politicking
Decision
37