Welcome

Fundamentals of Marketing for BBA

Forth Semester
By
RAJU MANANDHAR
CHAPTER-IV

BUYER BEHAVIOUR
 Concept of Buyer Behavior
• Buyer is a anyone who might buy a given
product.
• Buyer includes both individual and an
organization, who is potentially willing and
able to buy product offered by the marketer.
• Buyer may be individual person or
organization that have an interest in the product
and ability to acquire them.
• Anyone who purchase for personal
consumption or household use are ultimate
buyer or consumer.
• Anyone who purchase for resell or
reproduction or institutional use are
institutional or organizational buyer.
• Behavior refers to the activities such as actions,
reactions or responses.
• Consumer behavior is activities of consumers.
• Consumer behavior is actions, reactions and
responses of people when they are selecting,
purchasing consuming and disposing.
• Buyer behavior refers to activities of buyer
involved in selecting, buying, using and
disposing of product.
• Consumer behavior is the study of customers
that what, when, why and how they select, buy,
use, and dispose products.
• Buyer behavior is the study of individuals,
groups, or organizations activities associated
with the purchase, use and disposal of goods
and services
• Consumer buyer behavior and organizational
buyer behavior
 IMPORTANT OF BUYER BEHAVIOUR

• Planning, implementation and control

• Policies and strategies formulation
• Decision making
• Increase sales volume and profit earning
• Customers satisfaction
• Goals achievement
 Consumer Buying Decision Process
1.Need recognition:
• Need recognition means awareness of needs or
problem.
• Without the fulfillment of which the consumer
becomes dissatisfied and normally builds up tension.
2.Information search:
• Task of information collection
• Information research can focus on availability of
brand, product features, seller character, warranties,
prices etc.
3. Evaluation of alternatives:
• Study and analyzes to understand which
product would be appropriate.
• The consumer evaluates the searched
alternatives on the basis of cost and benefits.
4. Trail:
• Act of using product before purchase.
• Understand whether product is accordingly or
not
5. Purchase decision:
• Task of taking action to purchase.
• After evaluation of all the options, buy needy
product.
6.Post Purchase Evaluation:
• Act of evaluating after consumption.
• After buying the product consumer will either
be satisfied or dissatisfied.
Influencing factors of consumer behavior

1. Demography factors:
It about the age of the people, gender, family
size, occupation, education, martial status etc.
2. Economic factors:
• It includes level of personal income, future
income, family income, availability of
liquidity assets, viability of credit and
purchasing power etc.
3. Socio-cultural factors:
• It consists family, social class, reference
group, and sub-culture.
4. Psychological factors:
• Psychology is state of one’s mind which
cannot be studied with the help of general
information and analysis.
• It includes motivation, perception, learning,
beliefs, attitude and personality etc.
• Personality: Personality is the sum total of
characteristics.
• It is made of three components as Id, Super ego
and ego.
• Motivation: act of encouraging someone to do
better. Need is the basic force.
• Attitude : Attitude is personal judgment on
object, people or event.
• Perception: act of organizing, analyzing,
interpreting of information and giving
meaning of object. Selective attention,
selective distortion and selective retention.
• Learning: process of obtaining knowledge and
changing behavior.
• Beliefs:
 Organizational Buying Decision
• Organization buyer are those who to buy
products for resale, further production or
organizational operation.
• Organizational buying decision process refers
to buying behavior of organization that buy
products for business use , resell or to make
other products.
 Organizational Buying Decision Process

Step 1: Need recognition: Someone in the company

recognizes a need or problem.
Step 2: Need description and specification:
• describes the general characteristics and quantity of
the needed items.
• decides on the product and specifies the best
technical product characteristics for needed time.
• Prepares by technical experts.
Step 3: Supplier search:
• Identifying potential suppliers who can supply
goods and services according to requirement
mentioned on product specification.
Step 4: Solicitation of proposal:
• In this step the buyers invite qualified
suppliers to submit proposals.
Step 5: Evaluation and Supplier Selection:
• In this step, the organizational buyers evaluate
the proposal on the basis of quality, price,
terms and conditions.
• Selects the most reliable capable and supplier
who can supply product to the organization
according to the requirement.
Step 6: Purchase decision:
• Negotiation and agreement
• Ordering products
Step 7: Performance evaluation:
• reviews the supplier’s performance
• rates their satisfaction with suppliers
whether to continue or drop them.
 Factors influencing Organizational buying behavior

1. Environmental Factors:
a)Economic factors includes economic level of demand
such as capacity and desire of buying goods and
economic health (prosperity, recession and recovery). 
b) Technological factors: Technological factors includes
level of technology, pace of technology, technological
transfer and RnD.
• IT has directly affected organization buying decision. 
c) Political and legal environment:
-Political environment includes political system,
situation, and government policies.
-Legal environment includes constitution, laws,
rules and regulations
d) Social responsibility:
-Business organization should consider social
responsibility such as social interest social well
being, consequences.
 
2. Organizational factors:
a) Objectives:
b) Policies : Organization can adopt any one or more
system centralized system, decentralized system
d) Procedure: Goods and services can be purchased
directly through agreement or tender.
e) Organizational structure: Organization structure
defines authority and relations.
• Organization can buy products through purchase
individual, committee and purchase department.
3. Interpersonal Factor: The interpersonal factors
includes following elements:
a) Authority: The personnel whom the organizational
structure gives authority to order for purchase. No
goods can be purchased without his/her order.
Buying decision of such authority plays an important
role in buying.
b) Status: If the status of the buyer is high, his buying
decision becomes rational and quick.
c) Interest: As their interest becomes different, buying
process may be complicated.
4. Personal Factors: The personal factors include
following elements:
a) Age: Younger persons make buying decision
and supplier selection quicker than older aged
persons.
b)  Education: Education makes person able to
analyze good from bad.
-Educated person takes buying decision
rationally whereas uneducated person makes
decision at hit and miss.
c) Job Position: Job position also shows a person’s
status.
d) Personality: Personality affects selection of quality,
brand, price, etc.
e) Risk bearing: Risk bearing capacity of person
becomes different.
-Some can bear more risk and others like to take less
rate.
-Similarly, some like to avoid risk and others like to
face it.
 Global consumer movement and consumer protection

Global consumer movement:

• The global consumer movement was born after
the five of the 17 organizations present signed
papers to create the International Organization
of Consumers Unions (IOCU).
• The first international conference of leaders
from consumer organizations took place in the
Hague on March 1960. In 2054 BS consumer
Protection in Nepal was created.
Identification of Consumer Right’s:
• Right to be protected from the sale and supply of
consumer goods and services.
• Right to be informed about the price, quality,
quantity and other related to products.
• Right to consumer education.
• Right to be assured that an appropriate agency
will hear matters concerning the protection of the
rights and interests of consumer.
• In order to monitor, evaluate and protect
consumer interest against the malpractices, a
Consumer Protection Council was also created
under the chairmanship Minister of State for
Supplies.
 THANK YOU

THANK YOU EVERYONE

THANK YOU EVERYBODY

THANK YOU ALL