Chapter 6

CONSUMER AND ORANGIZATIONAL

BUYING BEHAVIOUR
Introduction:
How do people select a bank?
The most frequent answer is based on being
conveniently located.

However, other factors must influence customers

choice of bank.
 1) Motivation And Consumer Behaviour
Motivation is an internal, energizing force that
orientates a person’s activities towards satisfying needs
or achieving goals.
All human behaviour is motivated. Psychologists agree
that human behaviour is goal directed and revolves
around satisfying needs. For example, a thirsty person
needs water, this unsatified need motivates him to
search for water to satisfy that need.

Motivation process starts with an unsatisfied need. That

need starts a chain of events leading to behaviour.
The unsatisfied need causes a tension. The behaviour is
a response to try to reduce that tension.
 Needs As Motivators Of Consumer’s
Behaviour.
A.H. Maslow developed the hierarchy of needs.
His theory of motivation stresses two fundamental
premises:
1. Humans are a wanting animal whose needs
depend on what they already have (only
unsatisfied needs influence behaviour)
2. Human’s needs are arranged in hierarchy of
importance (lower level satisfied, higher level
needs demanding satisfaction)
5 Classes Of Needs:
1)Physiological Needs: physical needs of the body.
Until they are satisfied no higher level need can
serve as the basis of motivation. For example:
hunger, thirst etc.
2)Need For Security And Safety: need to be
protected from physical harm and crisis. Protection
from physical harm or uncertanity of the future.
3)Need For Belonging And Love: need for
companionship, failure to satisfy affects mental
health. Affection, acceptance or friendship.
4)Need For Esteem (Recognition): awareness of ones own
importance to others, self-esteem and esteem
demonstrated by others.

5)Need For Self Actualization: need to realize one’s

potential talents and capabilities. Becoming what one is
capable of becoming..
Perception and Consumer Behaviour

What motivates different modes of behaviour?

The probable response is perception and attitudes
to the process of how perception influence
behaviour.
Perception can be referred to as the process of
how people receive information through the 5
senses, recognise it and assign it meaning.
 Factors That Influence People’s
Perception:

1.Social Factors: behaviour is greatly influenced by

the people to whom they relate.
 Family influence- basic values and attitudes are
shaped by family
 Reference group influence- people rely on them
for information on various subjects
 Roles and status- everyone has a role, which can
affect how they behave
2.Cultural Factors- emanates from culture at
large, from subculture and social class.

 Culture- encompasses the concepts, habits,

skills and values given to a group of people.
Affects a person’s wants and buying behaviour.
 Subculture- based on national origin, race,
geographic region, or religion. Members share
certain values and attitudes.
 Social class- class can be based on religion,
kinship, wealth, education or occupation.
Different classes have different behaviours.
3.Psychological Factors- psychological and
personal factors are internal factors.
 Learning- means changing behaviour on basis
of past experiences. Its result of; drive, cues,
response and reinforcement.

 Beliefs and attitudes- belief is a deeply held

conviction that influences a person’s
behaviour(accepted facts).
An attitude is a positive/negative evaluation or
tendency towards something(a feeling)
4.Personal Factors:
 Age and family life cycle: stages in life have
influences on your wants and needs.
 Economic circumstances: income changes over
time, use of financial services will change too.
(depends on income level)
 Occupation: employment pattern affects the
purchase of goods and services.
 Personality and self concept: our
characteristics affect our wants and needs.
 Psychographics: personal and psychological
factors influencing buying behaviour.
Consumer Buying Process
This process starts with an unsatisfied
need, individual then searches alternative
ways to satisfy the need- known as
prepurchase activity. This results to a
purchase being made and the rise of
postpurchase feelings.
Then begins again with recognition of
another unsatisfied need.
1)UNSATISFIED NEEDS- motivates consumer to
satisfy this need. Bank marketer needs to identify
the needs of it’s market/s and provide products
to satisfy them.

2)PREPURCHASE ACTIVITY- people are sensitive to

details that they believe will help them satisfy a
need. Banks marketing must be attractive to it’s
market/s.

3)PURCHASE DECISION- ends in a purchase

4)POSTPURCHASE FEELINGS- how the customer

feels after the purchase. Banks want them to feel
satisfied for promise of repeat purchase.
Organizational Buying Process

Organizational buying behaviour- process by which

a formal organization establishes a need for
purchased product or service, and then identify,
evaluate, and choosing among alternative brands
and suppliers.
The process starts when a need is identified.
Once the need has been identified, the
organisation (buyer) defines the objectives and
specifications that the product must fulfil.

The process of evaluating alternative buying

decisions involves the study of services offered by
other banks and evaluating the differences
between them.

The process of selecting a supplier involves a

decision decided by various people.
Hence, the organizational buying behaviour
is different from individual’s buying
behaviour since they don’t purchase goods
and services for consumption.
Also, more people are involved in the
purchasing decision. Each person involved
has a specific role and therefore the process
is more complex.