Consumer and Business Buyer Behaviour

1. Model of Consumer Behaviour

a. Consumer buyer behavior: the buying behavior of final consumers,
individuals and households, who buy goods and services for personal
consumption
b. Consumer market: all the individuals and households that buy or acquire
goods and services for personal consumption.
c. The Environment : Marketing stimuli, Product, Price, Place, Promotion,
other, Economic, Technological, Social, Cultural.
d. Buyer’s Black Box : Buyer’s Characteristic, Buyer’s Decision Process.
e. Buyer Responses : Buying attitudes and preferences purchase behavior
(What the buyer buys, when, where, and how much), brand and company
relationship behavior.
2. Types of Buying Decision Behaviour

3. Characteristic affecting consumer behavior

Culture: the set of basic values, perceptions, wants, and behaviors learned by a
member of society from family and other important institutions.
Subculture: a group of people with shared value systems based on common
life experiences and situations.
Social class: relatively permanent and ordered divisions in a society whose
members share similar values, interests, and behaviors.
Group and social networks : two or more people who interact to accomplish
individual or mutual goals.
- Word of mouth influence, buzz marketing, opinion leaders
- Online social networks
 Family : Marketers are interested in the roles and influence of the husband,
wife, and children on the purchase of different products and services.
Roles and status : People usually choose products appropriate to their roles
and status.
Age and life cycle stage : People change the goods and services they buy over
their lifetimes.
Occupation : A person’s occupation affects the goods and services bought.
Economic situation : A person’s economic situation will affect product choice.
Lifestyle : A person’s pattern of living as expressed in his or her
psychographics.
Personality and self-concept : Personality refers to the unique psychological
characteristics that lead to relatively consistent and lasting responses to one’s
own environment.
Brand personality : s the specific mix of human traits that may be attributed to
a particular brand.
Motivation : a need that is sufficiently pressing to direct the person to seek
satisfaction of the need.
Perception : the process by which people select, organize, and interpret
information to form a meaningful picture of the world.
Learning : changes in an individual’s behavior arising from experience.
Beliefs : descriptive thought that a person has about something.
Attitudes : consistent evaluations, feelings, and tendencies toward an object or
idea.
4. The Buyer Decision Process
a. Need Recognition
 Occurs when the buyer recognizes a problem or need triggered by:
 Internal stimuli
 External stimuli
b. Information Search

c. Evaluation of alternatives
The stage of the buyer decision process in which the consumer uses
information to evaluate brands in the choice set.
d. Purchase Decision
 In the evaluation stage, the consumer rank brands and forms purchase
intentions. Generally, the consumer’s purchase decision will be to buy the
most preferred brand, but 2 factors can come between the purchase
intention and purchase decision.
The purchase decision can be affected by:
Attitudes of others
Unexpected situational factors
e. Post Purchase Behavior
After purchasing the product, the consumer will either be satisfied or
dissatisfied and will engage in postpurchase behaviour of interest to the
marketer.
Relationship between:
 Consumer’s expectations
 Product’s perceived performance
The larger the gap between expectation and performance, the greater the
consumer’s dissatisfaction. Cognitive dissonance is the discomfort caused
by a post-purchase conflict.
5. The Buyer Decision Process New Product
New product : a good, service, or idea that is perceived by some potential
customers as new.
Adoption process : the mental process through which an individual passes
from first hearing about an innovation to final adoption.
Stages in adoption process : Awareness, Interest, Evaluation, Trial, Adoption.
6. Business Markets
Business buyer behavior refers to the buying behavior of the organizations that
buy goods and services for use in production of other products and services or
for the purpose of reselling or renting them to others at a profit.
Business buying process is the process where business buyers determine
which products and services are needed to purchase, and then find, evaluate,
and choose among alternative suppliers and brands.
7. Business Buyer Behaviour
Major Types of Buying Situations
a. Straight rebuy is a business buying situation in which the buyer routinely
reorders something without any modifications.
b. Modified rebuy is a business buying situation in which the buyer wants to
modify product specification, prices, terms, or suppliers.
c. New task is a buying business situation in which the buyer purchases a
product or service for the first time.
d. Systems selling (solutions selling): buying a packaged solution to a
problem from a single seller, thus avoiding all the separate decisions
involved in a complex buying situation.

The Business Buying Process