Global Edition

Understanding
Consumer and Business
Buyer Behavior
Chapter 5
Rest Stop: Previewing 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

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Rest Stop: Previewing the Concepts
• 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
 First Stop: Apple: The Keeper of All
Things Cool
• Apple customers are intensely loyal
• Apple’s products are simpler to use because
Apple understands consumer behavior
• Apple is obsessed with understanding
customers and deepening their Apple
experience
• It gives its consumers a life-feels-good
experience

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Consumer buying behavior

• The buying behavior of individuals

and households who buy goods and
services for personal consumption

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Figure 5.1 - Model of Buyer Behavior

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Figure 5.2 - Factors Influencing
Consumer Behavior

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 Culture
• Culture is the most basic cause of a person’s
wants and behavior
• Culture is learned from the society, family, and
other institutions
• Culture reflects basic values, perceptions, wants,
and behaviors
• Cultural shifts create opportunities for new
products or may otherwise influence consumer
behavior

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Subculture

• Groups of people with shared

value systems based on common
life experiences and situations

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 Subculture
• Major subculture groups in Singapore
• Chinese
• Malays
• Indians
• Eurasians
• Others

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Social class

• Relatively permanent and

ordered divisions in a society
whose members share similar
values, interests, and
behaviors

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 Social Factors: Groups and Social
Networks
• Membership, reference, and aspirational
groups
• Marketers attempt to reach opinion leaders
within groups important to the target market
• Opinion leaders are recruited as brand
ambassadors or for buzz marketing

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Opinion Leaders at JetBlue

JetBlue CrewBlue program

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 Marketing at Work
• Mountain Dew runs
“DEWmocracy”
campaigns that
invite avid Mountain
Dew customers to
participate at all
levels in launching a
new Mountain Dew
Mountain Dew’s DEWmocracy
flavor campaign

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 Groups and Social Networks
• Online social
networks allow
marketers to interact
with consumers

Blendtec has developed a kind of

cult following for its flood of “Will
It Blend?” videos on YouTube,
resulting in a fivefold increase in
Blendtec’s sales

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 Social Factors
• Family
• Strongly influences buying behavior
• Children are very influential, and have substantial
disposable income of their own
• Roles and status
• Role = Expected activities
• Status = Esteem given to role by society

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Lifestyle

• A person’s pattern of living as

expressed in his or her activities,
interests, opinions

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 Personal Factors
• People within the same subculture, social
class, and occupation may have different
lifestyles
• People buy the lifestyles represented by
products or services

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 Personal Factors
• PersonicX 21 life-stage
groupings lets marketers see
customers as they really are
and target them precisely

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 Personal Factors
• Triumph doesn’t just
sell motorcycles; it
sells an independent,
“Go your own way”
lifestyle

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 Personal Factors
• Personality
• Refers to the unique psychological characteristics
that distinguish a person or group
• Generally defined in terms of traits
• Can be useful in analyzing consumer behavior for
certain product or brand choices
• Brands may also have personalities

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Motivation
• A motive is a need that is sufficiently
pressing to direct the person to seek
satisfaction

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Figure 5.4 - Maslow’s Hierarchy of
Needs

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Perception
• Process by which people
select, organize, and interpret
information to form a meaningful
picture of the world

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 Psychological Factors
• Learning
• Changes in an individual’s behavior arising from
experience
• Occurs due to an interplay of drives, stimuli,
cues, responses, and reinforcement
• Strongly impacted by the consequences of an
individual’s behavior
• Behaviors with satisfying results tend to be
repeated

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Belief

• A descriptive thought that a person holds

about something

Attitude

• A person’s consistently favorable or

unfavorable evaluations, feelings, and
tendencies toward an object or idea

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 Beliefs and Attitudes

Beliefs and attitudes: By matching today’s attitudes about

life and healthful living, the SoBe brand has become a
leader in the New Age beverage category
Figure 5.5 - Buyer Decision Process

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 Need Recognition and
Information Search
• Need recognition
can be triggered by
internal or external
stimuli
• Advertising can
be very helpful in
stimulating need
recognition

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 Need Recognition and
Information Search
• Several sources of information may be used
as part of the information search
• Personal sources
• Commercial sources
• Public sources
• Experiential sources

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 Evaluation of Alternatives and
Purchase Decision
• Evaluation process is dependent upon the
specific buying situation and the individual
consumers
• Purchase decision - Two factors may interfere
with realization of purchase intentions:
• Attitudes of others
• Unexpected situational factors

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 Post-Purchase Behavior
• Consumer satisfaction is a function of
consumer expectations and perceived
product performance
• Performance < Expectations --- Disappointment
• Performance = Expectations --- Satisfaction
• Performance > Expectations --- Delight

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 Stages in the Adoption Process
Consumer becomes aware of the new product,
Awareness but lacks information about it

Interest: Consumer seeks information about new product

Consumer considers whether trying the new
Evaluation product makes sense
Consumer tries new product on a small scale to
Trial improve his or her estimate of its value
Consumer decides to make full and regular use
Adoption of the new product
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Figure 5.6 - Adopter Categorization

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 Product Characteristics That
Influence the Rate of Adoption
Relative
advantage Is the innovation superior to existing products?

Compatibility Does the innovation fit the values and experience of the
target market?

Complexity
Is the innovation difficult to understand or use?

Divisibility
Can the innovation be used on a limited basis?

Communicability
Can results be easily observed or described to others?

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Business Buyer Behavior

• Refers to the buying behavior of

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

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 Business Markets
• Involve far more dollars and items than do
consumer markets
• Market structure and demand differs from
consumer markets:
• Contains far fewer but larger buyers
• Business demand is derived from consumer
demand
• Business markets have more fluctuating demand

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 Business Markets
• Nature of the buying unit:
• Business purchases involve more decision
participants
• Business buying involves a more professional
purchasing effort

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 Business Markets
• Key differences exist between business and
consumer buying situations:
• Business buyers usually face more complex
buying decisions
• The business buying process tends to be more
formalized
• Buyers and sellers are much more dependent on
each other in business markets

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Figure 5.7 - A Model of Business
Buyer Behavior

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 Marketing at Work
• CSL’s key strategy is to
interact with their
consumers using social
networks and the
internet.
 Types of Buying Situations

Straight rebuy Buyer routinely reorders something without any

modifications

Modified rebuy Buyer wants to modify product specifications, prices,

terms, or suppliers

New task Buyer purchases a product or service for the first

time

Systems
(solution) selling
Becoming more common among companies

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Participants in the Business Buying
Process
• Buying center: All the individuals and units
that participate in the business buying-
decision process
• The buying center is not a fixed or formally
identified unit
• It is a set of buying roles assumed by different
people for different purchases

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Figure 5.8 - Major Influences on
Business Buyer Behavior

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Figure 5.9 - Stages of the Business
Buying Process

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 E-procurement
• Online purchasing (e-procurement) can be
implemented in many ways:
• Reverse auctions
• Trading exchanges
• Company buying sties
• Extranet links with key suppliers
• E-procurement presents several benefits and
problems

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 E-procurement
• The Shaw Floors site
builds strong links with
Shaw’s retailers
• It provides marketing
ideas and tools that
make retailers more
effective in selling
Shaw’s products to
final customers

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Rest Stop: 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

5 - 48
Rest Stop: Reviewing the Concepts
• 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