05 Arm Mar7c PPT 05

Marketing: An Introduction
Seventh Canadian Edition
Chapter 05
Understanding Consumer
and Business Buyer
Behaviour
Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Consumer Buyer Behaviour and
Consumer Markets
• Consumer behavior
– The study of how individuals, groups, and organizations
select, buy, use, and dispose of goods, services, ideas,
or experiences to satisfy their needs and wants
– Influenced by cultural, social, personal, and
psychological factors
Consumer market
• All the individuals and households that buy or acquire
goods and services for personal consumption

Figure 5.1
Consumption Process

Figure 5.2
Factors Influencing Consumer Behaviour

Cultural Factors (1 of 2)
Culture is the fundamental determinant of a person’s wants and
behaviors. It is the set of basic values, perceptions, wants and
behaviors learned by a member of society from family and other
important institutions (e.g., Canadians value freedom and have
beliefs in respect and fair treatment).
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 behaviours
Cultural Factors (2 of 2)
Mukta Advertising LLC (a

leading multicultural
marketing agency in
Toronto: https://m-a.ca/)
helps companies reach
South Asian Canadians
with ethnic advertising
and social media
campaigns.

• Subcultures include:
Nationalities
Religions
Racial groups
Geographic regions
When subcultures grow large and affluent enough, companies often

design specialized marketing programs to serve them.
E.g., https://www.tntsupermarket.com/eng

Social class members (members share similar values, interests, and
behaviors) show distinct product and brand preferences in many
areas, including clothing, home furnishings, leisure activities,
and automobiles. They also differ in media preferences. The
most common being the upper, middle and lower classes. For
example, upper-class consumers often prefer magazines and
books. Lower-class consumers often prefer television. Most
Canadians see themselves as middle class.
The lines between social classes are not fixed and people can move
to a higher social class or drop into a lower class.
Caste system in India?

Social Factors
• Reference groups
• Family
• Roles and status

Reference Groups
• A person’s reference groups are all the groups that have a direct
(face-to-face) or indirect influence on his/her attitudes or
behaviors.
• Groups having a direct influence are called membership groups.
Some of these are primary groups with whom the person
interacts fairly continuously and informally, such as family,
friends, neighbors, etc. Secondary groups (such as religious,
professional, and trade-union groups, which tend to be more
formal and require less continuous interaction)
• Opinion leader (is the person who offers informal advice about a
specific product)

Roles and status
A working mother plays the role of wife and mother in her family.
As a marketing manager, she will buy the kind of clothing that
reflects her role and status in her company.

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

• People change the goods and services they buy over their
lifetimes. Tastes in food, cloths, furniture, and recreation are
often age related.
• Blue-collar workers tend to buy more rugged work clothes,
where white-collar workers buy more business suits.
• Lifestyle is a person’s pattern of living and it involves measuring
consumers’ major AIO dimensions- activities (e.g., work,
hobbies, sports), interests (e.g., food, fashion, recreation), and
opinions (e.g., social issue, business, products).
• Personality is usually described in terms of traits such as self-
confidence, dominance, sociability, defensiveness,
aggressiveness, etc.

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

Motivation
• A person has many needs at any given time. A need
becomes a motive when it is aroused to a sufficient level of
intensity to drive us to act.

• WeChat is a mobile instant text and voice messaging
communication service and has become an important social
media platform in China. The objectives of this article are to
examine the effects of psychological motivations (entertainment,
sociality, and information) and trust on WeChat users’
attitudes……. (Lien & Cao, 2014)
• Entertainment is defined as the extent to which WeChat is fun

and entertaining to its users. It dominates in influencing WeChat
users’ attitudes.
• Information refers to the extent to which WeChat provides users
with resourceful, timely, and convenient information.
• Sociality is defined as individuals interested in connecting with
old friends, keeping relationships with existing friends, and
meeting new people through WeChat.
Motivation
• Freud’s Theory
– Behavior is guided by subconscious motivations
• Maslow’s Hierarchy of Needs
– Behavior is driven by lowest, unmet need
• Herzberg’s Two-Factor Theory
– Behavior is guided by dis-satisfiers and satisfiers

• Sigmund Freud assumed that the psychological forces shaping
people’s behavior are largely unconscious, and that a person
cannot fully understand his/her own motivations.
• Abraham Maslow sought to explain why people are driven by

particular needs at particular time. People will try to satisfy their
most important needs first and then try to satisfy the next
important. For example, a starving man will not take an interest
in the latest happenings in the art world.

Figure 5.3
Maslow’s Hierarchy of Needs

IMPACT OF SOCIAL SUPPORT AND RECIPROCITY ON CONSUMER
WELL-BEING IN VIRTUAL COMMUNITIES (LIEN ET AL., 2021)
• Being beautiful gradually becomes an essential topic in modern people’s life,
especially for young females.
• Medical cosmetics are attractive for those beauty-loving individuals who
want to make changes on their appearance. Cosmetic surgery is viewed as an
effective approach to boost individual self-esteem (Yoon and Kim, 2020). As
suggested by Baumeister et al. (2003), self-esteem highly relates to
happiness, which represents a state of well-being (Hsieh et al., 2018).
• Yoon and Kim (2020) found that after cosmetic surgery, the overall quality of
life for those people having cosmetic surgery improved.

• Previous research in other contexts suggested social support and sense of
belonging as important antecedents of immigrants’ (Hombrados-Mendieta et
al., 2019) and online social networking users’ (Oh et al., 2014) life
satisfaction.
• Sense of belonging is derived from psychology (Liu et al., 2018) and is

considered as a significant affective reaction (Lin et al., 2014). A sense of
belonging is a human emotional need (Hagerty and Patusky, 1995). To belong
or not to belong is a subjective experience (Liu et al., 2020).
• Lien et al. (2021) define sense of belonging as a member’s feeling of

cohesion or attachment to a virtual community. The mediating role of sense
of belonging is not fully explored and justified between social support,
reciprocity, and well-being in an online context as well.

• Considering online social support is intangible in nature, Lien et al. (2021)
measure two types of social support including emotional support and
informational support.
• Reciprocity is a process of exchanging things with other people in order to gain a

mutual benefit (Chen and Hung, 2010). If someone does a favor for you, you then
feel obligated to return the favor.
• Research participants were members of online medical cosmetic communities

in Taiwan. A Google questionnaire form was posted on two popular medical
cosmetic discussion platforms (i.e., Facebook (
https://www.facebook.com/tinybluebook) and D-card (
https://www.dcard.tw/topics/%E9%86%AB%E7%BE%8E%E6%9D%BF)).

• One criticism of Maslow’s theory involves the order of needs
within the hierarchy. Some critics say that while it is logical to
put physiological needs first and self-actualization last, people
do not necessarily pursue or obtain the needs in this order.

• Herzberg developed a two-factor theory that distinguishes dis-
satisfiers (factors that cause dissatisfaction) from satisfiers
(factors that cause satisfaction). The absence of dis-satisfiers
(e.g., computer warranty) is not enough to motivate a purchase.
Satisfiers (e.g., ease of use) must be present.
• E.g., a computer that does not come with a warranty is a
dissatisfier. Yet the presence of product warranty does not act as
a satisfier or motivator of a purchase because it is not a source of
intrinsic satisfaction. Ease of use is a satisfier.
• Implications: (1) Sellers should do their best to avoid
dissatisfiers (2) the seller should identify the major satisfiers in
the market and then supply them.

• Perception
– The process by which we select, organize, and interpret
information inputs to create a meaningful picture of the
world.
Selective attention: people are more likely to notice stimuli that relate to a
current need. People are more likely to notice stimuli they anticipate
Selective distortion: consumers will often distort information to be consistent
with prior brand and product beliefs and expectations. Coffee may seem to taste
better, a car may seem to drive more smoothly, depending on the brand
Selective retention: we’re likely to remember good points about a product we
like and forget good points about competing products.

• Learning
– Induces changes in our behavior arising from experience.
Learning theorists say that most human behavior is learned.
– If the experience of using Nikon camera is rewarding, the
consumer will probably use the camera more and more, and
his or her response will be reinforced.
– Through experience and learning, people acquire beliefs and
attitudes
• A belief means a descriptive thought that an individual holds
about something. People get beliefs and attitudes through their
learning and doing things. These, in turn, influence their buying
behavior

Figure 5.4
Buyer Decision Process

Problem recognition
The buyer recognizes a problem/need triggered by
internal/external stimuli
Information search
Personal sources
Commercial sources
Public sources
Experiential sources

Evaluation of Alternatives

Multi-Attribute Model
• This model holds that consumers use product attributes that are
important to them, to evaluate and compare alternative offerings
of firms in their consideration set. Each attribute has an
important weight. A higher weight means that the attribute is
more important. For example, let’s assume that Susan has three
alternative dry cleaners in her consideration set: current dry
cleaner, campus dry cleaner, and new dry cleaner.
• The multi-attribute model assumes that consumers can evaluate

all important attributes before purchase. However, this is not
often the case.
• Many services are difficult to evaluate before purchase.

• Using the linear compensatory rule, Susan computes a total score
for each dry cleaner. Therefore, the choice would be the on-
campus dry cleaner.
In the conjunctive rule, the consumer will make the decision

based on the total overall score in conjunction with minimum
performance level on one or several attributes. For example,
Susan may only consider a dry cleaner that scores a minimum of 9
for convenience of location. The choice would be the new dry
cleaner.

• Suppose Linda assigned 40% of the importance to memory capacity, 30% to
graphics capability, 20% to size and weight, and 10% to price. We multiply
by Linda’s beliefs about each computer’s attributes.
Laptop A = 0.4x8 + 0.3x9 + 0.2x6 + 0.1x9 = 8.0

Laptop B = 0.4x7 + 0.3x7+ 0.2x7 + 0.1x7 = 7.0
Laptop C = 0.4x10 + 0.3x4 + 0.2x3 + 0.1x2 = 6.0
Laptop D = 0.4x5 + 0.3x3 + 0.2x8 + 0.1x5 = 5.0
Based on linear compensatory rule, Linda will favor laptop A, which (at 8.0) has
the highest score.

Consumer Behavior in a Service Context
• Service attributes
1. Search attributes help customers evaluate a product before
purchase.
Style, color, texture, taste, sound. You can assess many attributes
before visiting a particular restaurant, including the type of food,
price, location and availability of parking
2. Experience attributes cannot be evaluated before purchase—

must “experience” product to know it
o Most complex goods and services emphasize experience attributes such
as reliability, ease of use, and customer support. You don’t know how
much you really like the food, the service provided by your waiter.
Vacations, live entertainment performance, sporting events, and many
medical procedures fall into this category. Customers can’t really evaluate
until they experience these activities.
3. Credence attributes are product characteristics that customers
find impossible to evaluate confidently even after purchase and
consumption
In the restaurant example, credence attributes include the hygiene
conditions of the kitchen and the healthiness of the cooking
ingredients (e.g., do they really use high quality olive oil for
cooking?). Determining the quality of repair and maintenance
work performed on a car is not easy. Patients can’t usually evaluate
how well their dentists have performed complex dental procedures.

Post-purchase behaviour
Postpurchase customer
satisfaction is a key to
building profitable
customer relationships.

Stages in the Adoption Process
• Awareness
• Interest
• Evaluation
• Trial
• Adoption
Self-driving car

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

• The five adopter groups have differing values. Innovators try
new ideas at some risk. Early adopters are opinion leaders in
their communities and adopt new ideas early but carefully. Early
mainstream adopters adopt new ideas before the average person.
Late mainstream adopters adopt an innovation only after a
majority of people have tried it. Finally, lagging adopters adopt
the innovation only when it has become something of a tradition
itself.

Characteristics Influencing an Innovation’s Rate of Adoption
• Relative advantage is the degree to which the innovation

appears superior to existing products. (e.g., 5G vs 4G)
• The second characteristic is compatibility, which is the degree
to which the innovation fits the values and experiences of
potential consumers.
• The third characteristic is complexity, which refers to the degree
to which the innovation is difficult to understand or use.
• The fourth characteristic is divisibility, which is the degree to
which the innovation may be tried on a limited basis.
• The fifth characteristic is communicability. This refers to the
degree to which the results of using the innovation can be
observed or described to others.

Business Buyer Behaviour
• Business buyer behaviour
– 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
behaviour
• Business buying process: Determining which
products and services to purchase
– Finding, evaluating, and choosing among alternative
suppliers and brands

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

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 (the total demand for many business products
is not much affected by price change, especially in the
short run) and fluctuating demand

Nature of the Buying Unit
• Nature of the business market buying unit
– More decision participants (e.g., technical experts, top
management)
– More professional purchasing effort

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

Decision Process
• Buying processes
– Longer and more formalized procedures (e.g., written
purchase orders, detailed product specifications).
– 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

Figure 5.6 A Model of Business Buyer
Behaviour

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

Types of Buying Situations (2 of 2)
Solutions selling: IBM
works with Six Flags to
provide a complete
solution.

Figure 5.8 Stages of the Business Buyer
Decision Process

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

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

• Business-to-business e-procurement yields many benefits. First,
it shaves transaction costs and results in more efficient
purchasing for both buyers and suppliers. E-procurement
reduces the time between order and delivery, and eliminates the
paperwork associated with traditional requisition and ordering
procedures. It helps an organization keep better track of all
purchases. Finally, e-procurement frees purchasing people from
a lot of drudgery and paperwork.

• However, the rapidly expanding use of e-procurement also
presents some problems. At the same time that the Internet
makes it possible for suppliers and customers to share business
data and even collaborate on product design, it can also erode
decades-old customer-supplier relationships. Buyers now use the
power of the Internet to pit suppliers against one another and
search out better deals, products, and turnaround times on a
purchase-by-purchase basis.

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.

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Marketing: An Introduction

Seventh Canadian Edition

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Mukta Advertising LLC (a

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

When subcultures grow large and affluent enough, companies often

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Caste system in India?

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

• Entertainment is defined as the extent to which WeChat is fun

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

• Abraham Maslow sought to explain why people are driven by

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

• Sense of belonging is derived from psychology (Liu et al., 2018) and is

• Lien et al. (2021) define sense of belonging as a member’s feeling of

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

• Reciprocity is a process of exchanging things with other people in order to gain a

• Research participants were members of online medical cosmetic communities

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

• The multi-attribute model assumes that consumers can evaluate

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

In the conjunctive rule, the consumer will make the decision

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Laptop A = 0.4x8 + 0.3x9 + 0.2x6 + 0.1x9 = 8.0

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

2. Experience attributes cannot be evaluated before purchase—

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Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

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• Relative advantage is the degree to which the innovation

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved

Copyright © 2021 Pearson Canada, Inc. All Rights Reserved