Introduction
Organizations put a great deal of efforts in
analyzing their markets for one basic reason , they
want to know why the customer selects one product
and rejects. The field of consumer behavior studies
how individual, groups, and organization select,
buy, use, and dispose of goods, services, ideas of
experiences to satisfy their needs & desires.
 
Types of Buying Decision
Behavior

 The types of consumer buying behavior is based on the

degree of buyer involvement and the degree of differences
among brands is as illustrated below.
Complex Buying Behavior
 Consumers engage in complex buying behavior when they
are highly involved in a purchase and aware of significant
differences among brands.
 This is usually the case when the product is expensive,
bought infrequently, risky, and highly self expressive.
Typically the consumer does not know much about the
product category.
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 2. Dissonance – Reducing Buying Behavior
 Sometimes the consumer is highly involved in a purchase but sees little difference in brands.
 3. Habitual Buying Behavior
 Many products are bought under conditions of low involvement and the absence of
significant brand differences. Consider salt, consumers have little involvement in this
product category.
 4. Variety Seeking Buying Behavior

 Some buying situations are characterized by low involvement but significant brand
differences.
The Stages of the Buying Decision Process

 This model emphasizes that the buying process starts

long before the actual purchase and continues after the
purchase. Buyers may not need to pass through all stages
with every purchase they make. In more routine
purchases, consumers may skip some of these stages..
Problem Recognition
 The buying process starts when problem or need is
recognized. The need can be triggered by internal as well
as external factors. The marketer needs to determine the
factors and situations that usually trigger consumer
problem recognition.
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Information search
 The consumer can obtain information from any of
several sources: consumers information sources
include:
 Personal sources: family, friends, neighbors etc.
 Commercial sources: advertising, sales people,
dealers, packaging, displays etc.
 Public sources: mass media, consumer rating
organizations etc.
 Experiential sources: handling, examining, and using
the product
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  

 Evaluation of Alternatives
 The marketer needs to know about alternative evaluation that is,
how the consumer processes information to arrive at brand
choices.
 Purchase Decision
 Generally, the consumer’s purchase decision will be to buy the
most preferred brand, but two factors can come between the
purchase intention and the actual purchase.

 The first factor is the attitude of others. Suppose you have the
intention to buy an expensive player. But your husband or wife
may feel strongly that you should buy the lowest priced player.
Then the chance of your buying a more expensive player will be
reduced.
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 Purchase intention is also influenced by
unexpected situational factors. The consumer
forms a purchase intention based on such
factors as expected family income, expected
price, and expected benefits from the
product.
 Post Purchase Behavior
 The marketer’s job does not end when the
product is bought. After purchasing the
product; consumer will be satisfied or
dissatisfied and will be engaged in post
Major Factors Influencing
Consumer Buying Behavior
 Age & life cycle stage
1. Cultural  Occupation

Factors 


Economic circumstances
Lifestyle
 Culture  Personality & self concept
 Subculture
 Social class
 4. Psychological
2. Social Factors Factors
 Motivation
 Reference groups
 Perception
 Family
 Learning
 Roles & status
 Belief & attitudes
 3. Personal Factors
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 Summary: A person's buying behavior is
the result of the complex interplay of all
these cultural, social, personal, and
psychological factors. Many of these
factors cannot be controlled by
marketers, but they are useful in
identifying and understanding the
consumers that marketers are trying to
influence.
Consumer Buying Role
 Initiator: A person who first suggests the idea of buying
the product or service
 Influencer: A person whose view or advice influences
the decision
 Decider: A person who decides on any component of
buying decision- whether to buy, what to buy, how to
buy, or where to buy.
 Buyer: The person who makes the actual purchase
 User: A person who consumes or uses the product or
services.
 Gatekeeper: people who have the power to prevent
sellers or information from reaching members of the
buying center.
Organizational Buying
Behavior
 The business market consists of all
business users, organization that buys
goods and services for one of the
following purposes.
 To make other goods and services
 Toresell to other business users or to
consumers and
 To conduct the organizations operations
Characteristics of Business Market
Demand

 Four demand characteristics differentiate

the business market from the consumer
market:.
 Demand is derived
 Demand is inelastic
 Demand is widely fluctuating
 Buyers are well informed
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 Number of buyers
 The business market contains relatively few buying units
compared to the consumer market.
 The business market seems even more limited to most
companies, because they sell to only a small segment of
the total market.
 Size of Business users.
 While the business market may be limited in the total
number of buyers, it is large in purchasing power. A
relatively small percentage of firms account of the
greatest share of the value added to products by
manufacturing.
Buying Situations in
Organizational Buying
 1. New-task buying
 This is the most difficult and complex buying situation because
it is a first-time purchase of a major product. Typically more
people are involved in new task buying than in the other two
situations because the risk is great. Information needs are high
and the evaluation of alternative is difficult .
 2. Straight Re-buy
 This is a routine, low involvement purchase with seminal
information needs and no great considerations of alternatives..
 3. Modified Re-buy
 This buying situation is somewhere between the other two in
terms of time and people involved, information needed, and
alternative considered.
Practical summery of customer and
business buying behavior (Amar pp
bag and plastic factory, Kombolicha)

Information from customer

How the companies serve /treat/
you when come to buy products?

 The company is good in treating costumers equally

and serves with short time but most of the order
that we arrange to buy the product are through the
company’s website (online) and the speed of the
internet is very slow, sometimes completely
disconnected.
 The company also produce almost standard product
in quality and price because of this we cannot
choose among them depend up on our ability to buy
and interest about the quality.
What factor affect/influence/
you to buy the product?
 Economic factor: all of the company is
product have the same price and costumer
who have low ability to buy cannot buy the
product.
 Unsuitable work environment and low
sanitation for the employees common we
observe as we come to buy the products.
 Pollution: the company’s waste product
cannot far away from the resident of the
societies
 Information from the organization

 How can you investigate the costumer interest, ability

to buy and expectation about this kind of product
before starting this business?
 In the beginning we were not make any investigation
about customer, our aim is to produce for self-purpose
only .Before the starting this business the shareholder had
another business what we call MSA exporter. In that
company, there were very high needs of pp bag to store
and handle the product. Because of this need, the
shareholders of MSA agree to build pp bag and plastic
factory for only their own use.
Why open the company in
kombolicha?

 Before opening the company, it was decision

about place and starting the business and finally it
found better to open in Kombolicha because of
the following reason.
 A) Nearness to the airport
 B) Kombolicha is one of the dry port of the
country and
 C) The MSA Exporter Company first established in
Kombolicha, since to supply bag to it has no
distance if established in Kombolicha.
Who participate in the buying
decision?

 Marketing departments
personal
 Quality departments personal
 Production departments
personal
 Head director->financial and
HR director
 ICT department personal
Conclusion
 From the theoretical point of view costumers can a
product with proportional price and buying ability but
the company produce standard product in quality and
sold with uniform price for all costumers.
 From the theoretical view, marketing starts long before
production. That means studying about costumers
income, performance, culture and social attitude
before starting the business but from practical view the
company were no investigation about costumers
before starting the business and the vision and mission
of the company did not related to customer service at
the beginning because it opened for self-purpose .
Therefore, that societal marketing concept cannot work
completely at the beginning.
 Con’d
 Culture is the broadest influencer of buying
behavior but the company didn’t make any
cultural consideration, produce similar
products for domestic as well as export
purpose.
 Generally, in modern business management
and owner should better to be
separated .but in this organization most
strategic and important decisions have been
made by the owners.
Recommendation

 The company should produce a product that

meets customer’s interest in quality and
price. That means customer wants to buy
higher quality product with proportional price
or medium quality product with lower price.
so that producing products depend upon
customers’ ability should be advisable to
satisfy customer.
 The company should examine the costumer’s
culture, income level and expectations before
opening or starting to produce any product.
Conet’d
 The company should investigate the culture of the
societies before distributing its product since culture
has broadest influence in buying behavior of
costumers.
 The company should separate owner from manager to
make strategic decisions without the influence of
owner depend upon marketing knowledge and
strategic way.
 Finally it is better to create sustainable work
environment to become productive
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Thank You