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PRESENTATION ON – CONSUMER AND INDUSTRIAL BUYING BEHAVIOUR

Presented By Prof. Khushboo Awasthi Mahakal institute of management Ujjain (M.P.)

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Consumer Buying Behaviour An important part of the marketing process is to
understand why a customer or buyer makes a purchase. Without such an
understanding, businesses find it hard to respond to the customer’s needs and wants.
Marketing theory traditionally splits analysis of buyer or customer behaviour into two
broad groups for analysis – Consumer Buyers and Industrial Buyers   Consumer buyers
are those who purchase items for their personal consumption Industrial buyers are
those who purchase items on behalf of their business or organization . Businesses now
spend considerable sums trying to learn about what makes “customers tick”. The
questions they try to understand are: • Who buys? • How do they buy? • When do they
buy? • Where do they buy? • Why do they buy?

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Why Consumers Buy customers make purchases in order to satisfy needs. Some of
these needs are basic and must be filled by everyone on the planet (e.g., food, shelter)
while others are not required for basic survival and vary depending on the person. It
probably makes more sense to classify needs that are not a necessity as wants or
desires. consumer are referring to the actual buyer, the person spending the money.
But is should also be pointed out that the one who does the buying is not necessarily
the user of what is bought and that others may be involved in the buying decision. What
Influences Purchasing

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Types of Consumer Purchase Decisions: Minor New Purchase – these purchases
represent something new to a consumer but in the customer’s mind is not a very
important purchase in terms of need, money or other reason (e.g., status within a
group). Minor Re-Purchase – these are the most routine of all purchases and often the
consumer returns to purchase the same product without giving much thought to other
product options (i.e., consumer is brand loyalty).

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Major New Purchase – these purchases are the most difficult of all purchases because
the product being purchased is important to the consumer but the consumer has little or
no previous experience making these decisions. The consumer’s lack of confidence in
making this type of decision often (but not always) requires the consumer to engage in
an extensive decision-making process.

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Major Re-Purchase - these purchase decisions are also important to the consumer but
the consumer feels confident in making these decisions since they have previous
experience purchasing the product.
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Consumer Buying Centers: Initiators Influencers Deciders Buyers Users

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COMPLEX BUYING VARIETY SEEKING DISSONENCE HABITUAL BUYING Buying
Behavior Matrix: HIGH INVOLMENT LOW INVOLVEMNT SIGNIFICANT DIFFERENCE
BETWEEN BRANDS FEW DIFF BETWEEN BRANDS

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BUYING BEHAVIOUR PROCESS

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ORGANISZATIONAL BUYING Organization buying as the decision making process by
which formal organizations establish the need for the purchased products and services
and identify, evaluate, and choose among alternative brands and suppliers. -Webster
and wind BUYING SITUATIONS: The business buyers face many decisions in making
purchase. Mainly there are three types of buying situations: Straight Rebuy: The straight
rebuy is a buying situation is a situation in which the purchasing department reorders on
a routine basis .The buyer chooses supliers on an “approved list”.

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2.Modified Rebuy: The modified rebuy is a buying situation in which the buyer wants to
modify product specification, prices, delivery requirements, or other terms. 3. New task:
The new task situation is a situation in which purchaser buys a product or service for the
first time . The greater the cost or risk, the larger the no. of decisions participants and
the greater their information search and therefore e the longer time to decision
completion.

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Industrial Products: Raw material Fabrication parts and material Installation Accessories
equipments Operating supplies Industrial marketing Im consists of all activities :
Involved in marketing of products and services. To organization that use products and
services in the production of consumer or industrial goods. And to facilitate the
operation of their enterprises. IM is that human activity directed towards satisfying wants
and needs of organizations through exchange process. -Philip kotler

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Exchange process involves: - Product / Service exchange - Information Exchange -
Financial Exchange SYSTEMS BUYING AND SELLING: Many business buyers prefer
to buy a total solution to their problem from one seller called system buying, this
practice originated with government purchases of major weapons and communication
systems. One variant of systems selling is system contracting , where a single supplier
provides the buyer with his/her entire requirement of MRO (maintenance, repair,
operating ) supplies.   Participants in Buying process: Initiators: Those who request that
something be purchased. Users: Those who will use the product or service. Influencers:
People who influence the the buying decision.
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Deciders: People who decide on product requirements or on suppliers. Approvers:
People who authorize the action of deciders or buyers. Buyers: People who have formal
authority to select the supplier and arrange and arrange the purchase terms.
Gatekeepers: People who have the power to prevent sellers or information from
reaching members of the buying centers. STAGES IN BUYING PROCESS:   Problem
Recognition General need description and product specification Supplier search
Proposal solicitation Supplier selection Order routine specification: Blanket contract or
stockless purchase plan 7. Performance review