Consumer Behavior

Customer vs. Consumer Behavior
• Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products • Consumer behavior: the process through which the ultimate buyer makes purchase decisions

• • • • Factors Influencing Buyer Behavior Buyer Decision Process Consumer Psychology Industrial Buyer Behavior Vs. domestic Buyer Behavior • Customer Satisfaction Vs. Customer Delight

Consumer Behavior

Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

Importance of understanding Consumer Behavior




Factors affecting Consumer Behavior
• Model of Consumer Behavior • Factors affecting Buyer Behavior • Types of Buying Decisions

Model of Consumer Behavior Product Price Place Promotion Marketing and Other Stimuli Economic Technological Political Cultural Factors Buyer’s Decision Process Buyer’s Black Box Affecting Consumer Behavior Product Choice Brand Choice Dealer Choice Buyer’s Response Purchase Timing Purchase Amount .

Factors Affecting Consumer Behavior Cultural Social Personal Psychological Buyer .

Factors Affecting Consumer Behavior: Cultural Culture Subculture Social class .

traditions. attitudes and ways of doing things of a reasonably homogeneous set of people. . beliefs.Culture Culture is a whole set of values.

perceptions. beliefs. – A father owning the responsibility of getting his Daughter married in a well to do family. Indian Culture: – Children feel the responsibility of taking care of aged parents.• Cultural Influences – Culture: values. and tastes handed down from one generation to the next. . preferences.

basic core values do not – Examples of core values include: • Importance of family and home life • The way of dressing • Working habits Values are shared beliefs formed through Socialization & Acculturisation process .• Core Values in the Culture – While some cultural values change over time.

. and attitudes. based on common life experiences.Subcultures Subcultures are subgroups within the larger. ideas. or national culture with unique values.

recreation & career aspirations.• Subcultures: subgroup of culture with its own. . – Subcultures can differ by: • Religion • Place of residence Subculture influences food preferences. clothing choices. distinct modes of behavior – Cultures are not homogeneous entities with universal values.

& community participation where a person lives. .Social class A group of people who have approximately equal social position as viewed by others in society. It can be related to occupation. education.

E. interests and behavior. Caste-system in India .g.• It comprises of relatively homogeneous & enduring divisions in a society which are hierarchically ordered & whose members share similar values.

income. Lloyd Warner identified six classes: 1. Working class .• Social classes: groups whose rankings are determined by occupation. Lower-upper 4. Upper-upper 3. Upper-middle 5. Lower class 2. family background. and residence location W. Lower-middle 6. education.

. leisure etc. furnishings.• Social classes show distinct product & brand preferences in many areas such as clothing.

Factors Affecting Consumer Behavior: Social Reference Groups Family Social Factors Roles and Status .

Reference Groups Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. .

• Reference groups: groups whose value structures and standards influence a person’s behavior – Requires two conditions: • The purchased product must be one that others can see and identify • The purchased item must be conspicuous. a brand or product that not everyone owns . it must stand out as something unusual.

• Reference Groups  Membership Group ( primary. secondary)  Aspiration Group (like to belong)  Dissociative Group (like not to belong) .

Influence a persons attitude & selfconcept.Expose individual to new behavior & lifestyle 2.Create pressures for conformity-actual product/brand choice. 1. . 3.Reference groups influence in at least three ways.

• Personal Influence  Opinion Leadership • Opinion Leaders • Word of Mouth .

.Opinion Leaders Opinion leaders are individuals who exert direct or indirect social influence over others.

• Opinion leaders: trendsetters who purchase new products before others in a group and then influence others in their purchases .

Pierce Brosnan and Anna Kournikova Why use celebrity spokespersons? .

.Word of Mouth Word of mouth is the influencing of people during conversations.

Family • Family Influence  Consumer Socialization  Family Life Cycle  Family Decision Making • Information Gatherer • Influencer • Decision Maker • Purchaser • User .

. each phase bringing with it identifiable purchasing behaviors.Family Life Cycle The family life cycle describes the distinct phases that a family progresses through from formation to retirement.

Haggar Clothing What role do women play in this purchase? .

– Wife-dominant role is when the wife makes most of the decisions.• Family Influences – Husband-dominant role is when the husband makes most of the decisions. . – Syncratic role is when both partners jointly make most decisions.

• Children and Teenagers in Family Purchases – Growing numbers are assuming responsibility for family shopping – They also influence what parents buy .

Roles & Status – Roles define behavior that members of a group expect of individuals who hold specific positions within the group – Status: is the relative position of any individual member in a group. Each role carries a Status .

• Roles influence Buyer behavior. . • Marketers should be aware of the status symbol potential of products & brands. People choose products that communicate their role & status in society.

Factors Affecting Consumer Behavior: Personal Personal Influences Age and Life Cycle Stage Economic Situation Occupation Personality & Self-Concept Lifestyle Identification Activities Opinions Interests .

clothes. furniture. recreation etc.Age & life-cycle stage • Affects choice of food. .

Purchasing patterns of white collar workers will be different from those of blue collar workers.g. . e.Occupation • Affects consumption pattern .

Economic circumstances • • • • • Spendable income Savings & assets Debts Borrowing power Attitude towards spending & savings .

Personality • A person’s distinguishing psychological characteristics that lead to relatively consistent & enduring responses to environment .

• • • • • • • • • Based on traits people can be described as Confident Warm Loving Caring Outgoing Introvert Extrovert Aggressive Not Responsible .

.• Personality types affect product/brand choices. A Marketer should adapt his selling style to suit the customer’s personality.

Self-concept • Self-concept (Self-image) • Marketers try to develop brand images that match the target market’s self-image. .

• Actual self-concept • Ideal self. .concept • Other’s self -concept • It sometimes may become difficult to answer which self will one try to satisfy while choosing a product.

Lifestyle • It is the person’s pattern of living as expressed in the person’s activities . . interests & opinions. • Lifestyle portrays whole person interacting with the environment.

• Achievement-oriented • Belongingness-oriented .

Factors Affecting Consumer Behavior: Psychological Motivation Beliefs and Attitudes Psychological Factors Perception Learning .

Types of Buying Decisions • Involvement • Differences between brands .

social.Involvement Involvement consists of the personal. and economic significance of the purchase to the consumer. .

Types of Buying Decisions High Involvement Significant differences between brands Low Involvement Complex Buying Behavior DissonanceReducing Buying Behavior VarietySeeking Behavior Habitual Buying Behavior Few differences between brands .

The Buyer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior .

.The Buyer Decision Process The buyer decision process is the stages a buyer passes through in making choices about which products and services to buy.

Consumer Buying Decisions Process for a Wireless Phone 1. Evaluation of Alternatives (narrow down to consideration set) 6. Disposition (Discard phone. Choice/ Purchase (choosing one alternative provider and phone from the set) . Recognition of a Need (for reliable mobile telephone communication) 2. Post-purchase Evaluation (actual versus expected satisfaction with both phone and service provider) 4. cancel wireless service when no longer wanted or needed) 5. Search for Information (about wireless service providers and phones) 3.

The Buyer Decision Process Step 1. Need Recognition Need Recognition Difference between an actual state and a desired state Internal Stimuli • Hunger • Thirst External Stimuli • TV advertising • Magazine ad • A person’s normal needs • Radio slogan •Stimuli in the environment .

water. shelter) while wants are learned responses to satisfying those needs. • Needs are biologically determined (food. .Need recognition: the process that occurs whenever the consumer sees a significant difference between his or her current state of affairs and some desired or ideal state. • Marketers want to know how consumers learn so that they can attempt to influence this process.

friends. salespeople •Receives most information from these sources •Mass Media •Consumer-rating groups •Handling the product •Examining the product •Using the product Public Sources Experiential Sources . neighbors •Most influential source of information •Advertising.The Buyer Decision Process Step 2. Information Search Personal Sources Commercial Sources •Family.

– Passively acquired. • Information search can be: – Purposeful: looking for it. • Of key interest is what influences the amount and quality of search? . – Externally: everywhere else. • The Internet has enabled this process by huge leaps and bounds.Information search: the process whereby a consumer searches for appropriate information needed to make a reasonable decision. • Information search takes place: – Internally: our own memory bank.

.The Buyer Decision Process Step 3. how satisfied would I be with each product? Total Product Satisfaction Evaluation Procedures Choosing a product (and brand) based on one or more attributes. Evaluation of Alternatives Product Attributes Evaluation of Quality. & Features Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Based on what I’m looking for. Price.

• Students choosing a university may use many different selection criteria. programs. • Some criteria are more important than others. costs. location. reputation. . or social life.Evaluation of alternatives: the process whereby a consumer evaluates the different purchase alternatives identified. so we still need to know how the decision will be made. living accommodations. such as: size. • Evaluation criteria: the dimensions that consumers use to compare competing product alternatives.

• Product choice: the process whereby a consumer makes a choice between the different purchase alternatives identified. • Heuristics: a mental rule of thumb that leads to a speedy decision by simplifying the process. .

Heuristics • The human mind seeks to simplify the amount of decision making required whenever possible. • What happens when it doesn’t in the short and long run? . • We hold attitudes for the same reason. • Does higher price equal more quality? If it is a Rolex. and we apply them to purchase decisions. yes.

• Brand names can serve as an expectation of performance and can be used to facilitate new product acceptance.Brand Loyalty • Brand loyalty: a pattern of repeat product purchases. . which is based on the belief that the brand makes products superior to its competition. accompanied by an underlying positive attitude toward the brand.

• Brand equity: the value of the brand name’s acceptance. . • Companies use brand equity to facilitate new product acceptance.

Purchase Decision Purchase Intention Desire to buy the most preferred brand Attitudes of others Unexpected situational factors Purchase Decision .The Buyer Decision Process Step 4.

The Buyer Decision Process Step 5. Post purchase Behavior Consumer’s Expectations of Product’s Performance Product’s Perceived Performance Satisfied Customer! Dissatisfied Customer Cognitive Dissonance .

• Post-purchase evaluation: the process whereby a consumer evaluates the quality of the purchase decision made. • Customer (dis)satisfaction: the overall feelings or attitude a person has about a product after purchasing it. as a result of consumption and learning. .

Consumer Psychology • • • • • Perception Learning Motivation Beliefs & Attitudes Lifestyles .

Perception • • • • • • What is Perception Images Process Sensation & Perception Picturing the Perceptual Process Psychological influences on consumer behavior .

What is Perception? • Process to recognize. organize. . and make sense of sensations.

organizes.Perception Perception is the process by which an individual selects. and interprets information to create a meaningful picture of the world. .

Look at this picture: what do you see? Images nearby ... and far away .

How many Horses can you find in this picture? .

Find faces in this tree .

Can you find hidden images? .

Find the baby .


and it means something to me”) . (“I know. etc. recognize.Sensation and Perception • Sensation: Conscious outcome of sense organs and projection regions. and not necessarily meaningful) • Perception: Means by which information acquired from the environment via the sense organs is transformed (organized) into experiences of objects. not necessarily conscious. events. appreciate what I am sensing. tastes. sounds. (“I detect something”.

Picturing the Perceptual Process Three steps in the sensation and perception of a stimulus .

taste. hearing. and smell. • Perceptual screens: the filtering processes through which all inputs must pass .• Perceptions: the meaning that a person attributes to incoming stimuli gathered through the five senses – sight. touch.

Psychological Influences of consumer behavior • Selective perception • Subliminal Perception • Perceived Risk .

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception  (Three perceptual processes) • Selective Attention • Selective Distortion • Selective Retention  Subliminal Perception .

– Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want. – Subliminal advertising is aimed at the subconscious level of awareness.• Subliminal Perception: subconscious receipt of information – Almost 50 years ago. a New Jersey movie theater tried to boost concession sales by flashing the words Eat Popcorn and Drink Coca-Cola. and is exceedingly unlikely that it can induce purchasing. – Subliminal advertising has been universally condemned as manipulative. .

Perceived Risk Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. .

Risk is perceptual. physical. therefore it can be influenced. . they look for information. either financial. or social.• • • • Perceived risk: the belief that use of a product has potentially negative consequences. How do marketers reduce the risk perceived by consumers? What do consumers do to reduce their perceived risk? Mostly. The consequences of making a bad choice may vary from minimal (chocolate bar) to severe (university program or choice of mate!).

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception  Perceived Risk • Obtain Seals of Approval • Secure Endorsements from Influential People • Provide Free Trials of the Product • Give Extensive Usage Instructions • Provide Warranties and Guarantees .

I : Classical Conditioning Learning -2: Operant Conditioning Psychological Influences on Consumer Behavior .Learning • • • • Meaning Learning .

What is “learning”? “any relatively enduring change in behavior as the result of experience” .

.Learning Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.

• Learning: a relatively permanent change in behavior caused by acquiring information or experience. Consumers must learn how to satisfy their needs. . • Learning can be either deliberate or vicarious.

• Behavioral learning theories: theories of learning that focus on how consumer behavior is changed by external events or stimuli. • The consumer forms connections between the things that happen to them or within their range of perception. • Freud had a few things to say about these connections. .

Learning I: Classical Conditioning .

near Moscow) • Animal research using live animals • Early research on animal digestion in which taste of food shown to trigger release of gastric juices .Ivan Pavlov • 1849-1936 (b.

Pavlov’s Research on Conditioning • Animals had small incision in jaw to create a channel (fistula) through which saliva would flow and be collected & measured • Pavlov began to research what would happen when he rang a bell or sounded a gong just before he put meat powder in the dog’s bowl .

What is your reaction to this photo? .

What is your reaction to this blue box? .

What is happening here? .

The blue box becomes associated with the lovers + .

It signals that the naturally pleasant or attractive object or situation is about to appear on the scene . the neutral object or situation becomes a mental signal for the pleasant or attractive one.Signals Take a naturally pleasant or attractive object or situation + Associate it with a neutral object or situation If done enough times.

Learning II: Operant Conditioning
B. F. Skinner

“Skinner Box”
• Lever or other target upon which the animal will operate • Signal such as a light • Source of reward such as a food pellet tray or a punishment such as an electrical shock grid • Mechanism to record animal’s behavior (frequency counter) • First used with rats, then with pigeons

New Language I: Contingencies
• Reinforcement = any consequence which increases the likelihood that the behavior will occur again
– Positive Reinforcement: a pleasant reward which leads to an increase in a behavior
• Having a good time on a Saturday night

– Negative Reinforcement: removal of something aversive or unpleasant which leads to increase in a behavior
• Cops stopping loud music of kids outside

• Punishment = Any consequence which decreases the likelihood that the behavior will occur again

they suggest the consequence of behavior • Generalized responses are behaviors which are similar to behaviors which have been rewarded or punished in the past .New Language II: Behavioral Control • Organisms acquire new behaviors • The forms of behaviors are shaped by their consequences • Behaviors are extinguished by a lack of reinforcement when they occur • Discriminative stimuli are cues (signals) that influence behavior.

– The learning process includes the component of: • • • • Drive Cue Response Reinforcement .• Learning – An immediate or expected change in behavior as a result of experience.

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Learning  Behavioral Learning • Drive • Response • Reinforcement • Stimulus Generalization • Stimulus Discrimination  Cognitive Learning  Brand Loyalty .

Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. .

• Applying Learning Theory to Marketing Decisions – Shaping: process of applying a series of rewards and reinforcements to permit more complex behavior to evolve over time .


.Motivation Motivation is the energizing force that stimulates behavior to satisfy a need.

Personality Personality refers to a person’s consistent behaviors or responses to recurring situations. .

Motivation & Personality • • • • Why do people do the things they do? Drive Reduction Theory Kinds of Drives Psychological Influences on Consumer Behavior .

Motivation Why do people do the things they do? • reflexes – simple. beliefs and strategies about consciously directed behaviors that best satisfy drives . unlearned responses to specific stimuli – -often mediated by direct connections in spinal cord • learned (conditioned) behaviors – physiological needs  drives  increase likelihood of behavior • What are the basic drives? • Why are some things more motivating (reinforcing) than others? • cognition – thoughts.

• Motivation  Drive-Reduction Theory  the idea that a physiological need creates an aroused tension state (a drive) that motivates an organism to satisfy the need .

sleep • non-regulatory – long-term maintenance • attachment. nurture. aggression – long-term comfort • self-esteem. self-actualization .Kinds of Drives • regulatory – primary biological maintenance – survival – regulated by homeostasis • breathing. novelty. pain. hunger. thirst. power. achievement.

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Motivation and Personality  Motivation • Physiological Needs • Safety Needs • Social Needs  Personality • Self-Concept • Personal Needs • Self-Actualization Needs .

Hierarchy of needs .

• Example: a homeless person is motivated to find shelter and food.Motivation: an internal state that drives us to satisfy needs by activating goal-oriented behaviour. while only the wealthy have the luxury of spending their time seeking “self-fulfillment”. .

• Needs and Motives
– Need: an imbalance between a consumer’s actual and desired states – Motives: inner states that direct a person toward the goal of satisfying a felt need

Self Concept
Self Concept: the totality of an individual’s thoughts and feelings having reference to him/herself as an object. It is the personal or internal basis for lifestyle but should not be perceived as devoid of social influence.

• Self-Concept
– A person’s multifaceted picture of himself or herself, composed of the:
• • • • Real self Self-image Looking-glass self Ideal self

9.Comfortable Dominating --------------. Rugged ----------------.Delicate Excitable ----------------. 7.Indulgent Pleasant ----------------. and Product Concepts 1. 8. 10.Vain . 12.Submissive Thrifty ----------------. 15. 2.Informal Orthodox ----------------. 11. 5. 4.Liberal Complex ----------------.Mature Formal ----------------.Emotional Youthful ----------------.Calm Uncomfortable -----------. 13. 3. 6. 14.Unorganized Rational ----------------.Colorful Modest ----------------.Unpleasant Contemporary -------------Non-contemporary Organized ----------------.Simple Colorless ----------------. Person Concepts.Measurement Scales for Self-Concepts.

The Relationship between Self-Concept and Brand Image Influence Product Brand Image Behavior Relationshi p Between selfconcept and brand image Seek products and brands that improve or maintain self-concept Satisfaction Purchase contributes to desired selfconcept Consumer Self-concept .

age. family size.Lifestyle/ Psychographics Lifestyle defined: A distinct mode of living -. Lifestyle patterns are influenced by several internal and external factors like: Income. . shifts in social views. social attitude changes. legal changes. $. and education.including how one spends time. and places emphasis on numerous aspects of their life. background. social patterns.

This analysis --a set of dimensions or factors. next these factors are used in formulation clusters or categories of the consumer population.Lifestyle/ Psychographics Psychographics defined: A way of describing the psychological makeup or lifestyle of a consumer or segment of consumers. . Lifestyle dimensions can come from analyzing several activities/interests and opinion items.

Lifestyle and the Consumption Process Lifestyle Determinants • Demographics • Subculture • Social class • Motives • Personality • Emotions • Values • Household • Culture • Past experiences Lifestyle (How we live)      Behavioral Impact Purchases   Activities Interests Like/dislikes Attitudes Consumption    How When Where What With whom Where With whom How When What Consumption        Expectations Feelings .

m Direct Impact Indirect Impact Aspirational Impact .> Choice/use/w.Impact of Lifestyle Lifestyle ----.o.

Impact of Lifestyle Direct Impact Adventuresome. fast-paced. . lifestyle ---> higher desire for sports cars. live-for-now. travel. bungie jumping.

wants to provide nice.Impact of Lifestyle Indirect Impact Modern conservative family. . two career professionals. auto maintenance contracts. safe home and good future opportunities for children ---> lawn care service. fast food services.

wants a family. (but later). designer copy-cat clothes. Marketing messages tell him/her that you need to “dress for success” “look good” ---> CZ ring.Impact of Lifestyle Aspirational Impact Low-income individual.” . young adult. less-expensive but “unique car. profession seeking. 18K gold plated watch. college graduate.

Relationship of Self-concept and Lifestyle Self concept Actual Lifestyle External Factors Private Self Social Self Ideal Actual .

too narrow in scope More recent measures include: Attitudes. Usage characteristics. Media Patterns. Values. Interests.Measures of Lifestyle Originally AIO inventory (200-350 items involving Activities. Activities. VALS VALS2 PRIZM . and Opinions) Problem: Too long. Interests. Demographics and Geographics.

VALS 4 Base categories: Survivors Need Driven Groups Outer directed Groups Sustainers Belongers Emulators Achievers Inner directed Groups I am me Experiential Societally conscious Integrated Both inner and outer directed .

VALS2 Lifestyle System Principle Status Actualizer Action Abundant resources Fulfilled Achiever Experiencer Believer Striver Maker Struggler Minimal resources .

and the opinions of others Action oriented: Desire social activity & Physical activity variety and risk taking -. . Status oriented: Heavily influenced by actions. approval. not feelings or other’s approval.VALS2 Lifestyle System Self concept is composed primarily of three dimensions of self orientation: Principle oriented: Choices guided by their own personal beliefs.adventuresome.

less about appearance.Lifestyle Analysis of the Cosmetics Market Cosmetic Lifestyle Segments 1. cool on exercise. Fashion-direct: concerned about fashion and appearance. not about exercise and sport. 6. busy with family responsibilities. Green goddesses: concerned about sport and fitness. 3. fashion. Self-aware: concerned about appearance. 4. Conscience-stricken: no time for self-realization. and exercise. Unconcerned: neutral attitudes to health and appearance. 2. Dowdies: indifferent to fashion. and dress for comfort. 5. .

opinions. Values Culture and Subculture Social class Preference groups Family Personality Lifestyles Decisions Family Individual General behavior .Intrapersonal and Interpersonal Determinants of Consumer Behavior Measurement Psychographics Activities. interests.

Intrapersonal and Interpersonal Determinants of Consumer Behavior General behavior Benefits desired Money Budget expenditures Time budget expenditures Product choices Brands and store choices Benefit delivery .

Beliefs & Attitudes • Beliefs • Attitudes • Psychological Influences on Consumer Behavior .

. advertising. and discussions with other people.Beliefs Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience.


An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

• Attitudes
– A person’s enduring favorable or unfavorable evaluations, emotional feelings, or action tendencies toward some object or idea – Attitude components:
• Cognitive • Affective • Behavioral

• Changing Consumer Attitudes
– Attempt to produce consumer attitudes that will motivate the purchase of a particular product – Evaluate existing consumer attitudes and then make the product characteristics appeal to them

• Modifying the Components of Attitude
– Attitudes change in response to inconsistencies among the three components – Marketers can work to modify attitudes by providing evidence of product benefits and by correcting misconceptions

and Attitudes  Attitude Formation • Attitude • Beliefs  Attitude Change • Change Beliefs About a Brand’s Attributes • Change Perceived Importance of Attributes • Add New Attributes to the Product . Beliefs.PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Values.

Colgate Total Toothpaste and Bayer Extra Strength Aspirin How did these ads change attitudes? .

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Lifestyle  Psychographics  VALS™ • Thinkers • Believers • Achievers • Strivers • Experiencers • Makers • Innovators • Survivors .

VALS™ Consumer Segments How do consumers make purchase decisions? .

Industrial Buying Behavior • • • • • • • Business Market Characteristics of Business Market Model of Business Buying Behavior Business Buying Situation Participants Major Buying Influences Stages .

or supplied to others. • Business markets involve many more dollars and items do consumer markets.all the organizations that buy goods and services to use in the production of other products and services that are sold. rented. .What is a Business Market? • The Business Market .

Characteristics of Business Markets Market Structure and Demand • Fewer. larger buyers • Geographically concentrated • Demand derived from consumers • Inelastic demand • Fluctuating demand Nature of the Buying Unit • More buyers • More professional purchasing effort Types of Decisions & the Decision Process • More complex decisions • Process is more formalized • Buyer and seller are more dependent on each other • Build close long-term relationships with customers .

Model of Business Buyer Behavior Product Price Place Promotion The Buying Organization The Buying Center Buying Decision Process Marketing and Other Stimuli Economic Technological Political Cultural Organizational Influences Interpersonal and Individual Influences Product or Service Choice Supplier Choice Order Quantities Buyer’s Response Delivery Terms and Times Service Terms Payment .

Business Buying Situations New Task Buying Involved Decision Making Modified Rebuy Straight Rebuy .

Participants in the Business Buying Process: The Buying Center Gatekeepers Users Deciders Buying Center Buyers Influencers .

Job Position. Status. Personality & Risk Attitudes Buyers . Education. Procedures. Competitive & Cultural Organizational Objectives. Empathy & Persuasiveness Individual Age. Structure.Major Influences on Business Buying Environmental Economic. Technological. Policies. Political. & Systems Interpersonal Authority.

Stages in the BusinessBuying Process Problem Recognition General Need Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review .