Marketing: An Introduction

Fourteenth Edition
Global Edition

Chapter 05
Understanding Consumer
and Business Buyer Behavior

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objectives Outline (1 of 4)
5.1 Understand the consumer market and the major
factors that influence consumer buyer behavior.
5.2 Identify and discuss the stages in the buyer
decision process.
5.3 Describe the adoption and diffusion process for
new products.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objectives Outline (2 of 4)
5.4 Define the business market and identify the major
factors that influence business buyer behavior.
5.5 List and define the steps in the business buying
decision process.
5.6 Discuss how online, mobile, and social media have
changed business-to-business marketing.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

First Stop: Lenovo: Understanding
Customers and Building Profitable
Relationships
The global success of Lenovo
is rooted in its deep and
sound understanding of
customers and its ability to
build profitable relationships.
The business model is thus
built on customer satisfaction,
innovation, and operational
efficiency.
Copyright © 2020 Pearson Education Ltd. All Rights Reserved.
Objective Outline 5-1
• Understand the consumer market and the major
factors that influence consumer buyer behavior.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Consumer Buyer Behavior and
Consumer Markets
Consumer buyer behavior
• Buying behavior of final consumers

Consumer market
• All the individuals and households that buy or acquire
goods and services for personal consumption

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.1 The Model of Buyer
Behavior

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.2 Factors Influencing
Consumer Behavior

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Cultural Factors (1 of 2)
Culture
• Set of basic values, perceptions, wants, and behaviors learned
by an individual from family and other important institutions
Subculture
• Group of people with shared value systems based on common
life experiences and situations
• Total market strategy integrates ethnic themes and cross-
cultural perspectives within a brand’s mainstream marketing.
Social class
• Relatively permanent and ordered divisions in a society whose
members share similar values, interests, and behaviors
Copyright © 2020 Pearson Education Ltd. All Rights Reserved.
Cultural Factors (2 of 2)

Bloomingdale’s features
themed events and
promotions during the
Chinese New Year.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Social Factors
• Groups
• Word-of-mouth influence
• Opinion leaders
• Online social networks
• Family
• Roles and status

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Personal Factors (1 of 2)
• Occupation
• Age and family life-cycle
• Economic situation
• Lifestyle
• Personality and self-concept

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Personal Factors (2 of 2)
MINI owners—who times call
themselves “MINIacs”—have
a strong and emotional
connection with their cars.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Psychological Factors
• Motivation
• Perception
• Learning
• Beliefs and Attitudes

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.3 Maslow’s Hierarchy of
Needs

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-1 Summary
• Consumer market and consumer buyer behavior
• Model of buyer behavior
– The environment, buyer’s black box, and buyer
responses
• Factors influencing consumer behavior
– Cultural
– Social
– Personal characteristics
– Psychological factors

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-2
• Identify and discuss the stages in the buyer
decision process.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.4 Buyer Decision Process

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Postpurchase Behavior
Postpurchase customer
satisfaction is a key to
building profitable
customer relationships.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-2 Summary
• Stages in the buyer decision process
– Need recognition
– Information search
– Alternative evaluation
– Purchase decision
– Postpurchase behavior

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-3
• Describe the adoption and diffusion process for new
products.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Stages in the Adoption Process
• Awareness
• Interest
• Evaluation
• Trial
• Adoption

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.5 Adopter Categories Based on
Relative Time of Adoption of Innovations

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Characteristics Influencing an
Innovation’s Rate of Adoption
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-3 Summary
• Five stages of the adoption process
– Awareness
– Interest
– Evaluation
– Trial
– Adoption
• The diffusion process for new products
– Innovators, early adopters, early mainstream, late
mainstream, or lagging adopters

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-4
• Define the business market and identify the major
factors that influence business buyer behavior.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Business Buyer Behavior
• Business buyer behavior
– Purchasing goods and services are used in the
production of other products and services
• Business-to-business (B-to-B) marketers must
understand business markets and business buyer
behavior
• Business buying process: Determining which
products and services to purchase
– Finding, evaluating, and choosing among alternative
suppliers and brands

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Business Markets
• Business markets are huge and involve more money
and items than consumer markets.
• Differ from consumer markets in terms of
– Market structure and demand
– Nature of the buying unit
– Types of decisions and the decision process

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Market Structure and Demand
• Business market structure and demand
– Fewer but larger buyers
– Derived demand: Business demand that comes from
the demand for consumer goods
– Inelastic and fluctuating demand

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Nature of the Buying Unit
• Nature of the business market buying unit
– More decision participants
– More professional purchasing effort

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Types of Decisions
• Business purchases
– More complex buying decisions
– Large sums of money
– Complex technical and economic considerations
– Interactions among people at many levels of the
buyer’s organization

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Decision Process
• Buying processes
– Longer and more formalized procedures
– Buyer and seller more dependent on each other
• Supplier development: Systematic development of
networks of supplier-partners to ensure a dependable
supply of products and materials

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.6 A Model of Business
Buyer Behavior

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Types of Buying Situations (1 of 2)
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 selling (or solutions selling)
• Buying a packaged solution to a problem from a single seller
• Avoids the separate decisions involved in a complex buying
situation
Copyright © 2020 Pearson Education Ltd. All Rights Reserved.
Types of Buying Situations (2 of 2)
Solutions selling: IBM
works with Six Flags to
provide a complete
solution.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Participants in the Business Buying
Process
• Buying center: All the individuals and units that play
a role in the purchase decision-making process
– Actual users of the product or service
– People who make the buying decision
– People and units influencing the buying decision
– People who do the actual buying
– Individuals and units controlling the buying information

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.7 Major Influences on
Business Buying Behavior

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-4 Summary
• Buying behavior of organizations
– Business-to-business (B-to-B) marketers
• Business buying process
– Market structure and demand
• Types of buying situations
• Buying center—decision-making unit

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-5
• List and define the steps in the business buying
decision process.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Figure 5.8 Stages of the Business
Buyer Decision Process

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-5 Summary
• Steps in the business buying decision process:
– Problem recognition, general need description, product
specifications, proposal solicitation, supplier selection,
order-routine specification, and performance review

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-6
• Discuss how online, mobile, and social media
have changed business-to-business marketing.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

E-Procurement and Online
Purchasing
• Purchasing through electronic connections between
buyers and sellers—usually online
• E-procurement occurs through
– Reverse auctions
– Online trading exchanges
– Company buying sites
– Extranet links with key suppliers

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Benefits and Problems of E-
Procurement
• Benefits
– Cuts transaction costs
– Results in efficient purchasing for both buyers and
suppliers
– Reduces the time between order and delivery
– Helps an organization keep better track of all
purchases
– Frees buyers from a lot of paperwork
• Problems
– Can affect the customer-supplier relationship
– Pits suppliers against one another
Copyright © 2020 Pearson Education Ltd. All Rights Reserved.
Business-to-Business Digital and
Social Media Marketing
• B-to-B marketers are now using a wide range of digital
and social media marketing approaches.
• Compared with traditional media and sales
approaches, digital and social media can create
greater customer engagement and interaction.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objective Outline 5-6 Summary
• Information and digital technology have given birth to
“e-procurement.”

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objectives Outline (3 of 4)
5.1 Understand the consumer market and the major
factors that influence consumer buyer behavior.
5.2 Identify and discuss the stages in the buyer
decision process.
5.3 Describe the adoption and diffusion process for
new products.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Objectives Outline (4 of 4)
5.4 Define the business market and identify the major
factors that influence business buyer behavior.
5.5 List and define the steps in the business buying
decision process.
5.6 Discuss how online, mobile, and social media have
changed business-to-business marketing.

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.

Copyright

Copyright © 2020 Pearson Education Ltd. All Rights Reserved.