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Understanding Buyers Behavior

TYPES OF CONSUMERS
1: Personal Consumer
2 Organizational Consumer

Factors Influencing Consumer Behavior


Cultural Factors

Social Factors

Personal Factors

What is Culture?
Culture is the fundamental determinant of a persons wants and behaviors acquired through socialization processes with family and other key institutions.

Subcultures
Nationalities

Religions Racial groups

Geographic regions

Social Classes
Upper uppers Lower uppers Upper middles Middle class Working class Upper lowers Lower lowers

Social Factors
Reference groups

Family

Social roles

Statuses

Reference Groups
Membership groups Primary groups Secondary groups Aspirational groups Dissociative groups

Provogue uses teenage icons as brand ambassadors and a youth targeted website to connect to its customers

Roles and Status


What degree of status is associated with various occupational roles?

Personal Factors
Age
Selfconcept Lifestyle Values Personality Life cycle stage

Occupation
Wealth

The Family Life Cycle

Lifestyle Influences
Multi-tasking

Time-starved
Money-constrained

Figure 6.1 Model of Consumer Behavior

Key Psychological Processes

Motivation

Perception

Learning

Memory

Motivation
Maslows Hierarchy of Needs Behavior is driven by the lowest, unmet need Herzbergs Two-Factor Theory Behavior is guided by motivating and hygiene factors

Freuds Theory Behavior is guided by subconscious motivations


Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Maslows Hierarchy of Needs

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Herzbergs Two-Factor Theory

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

Perception
Selective Attention
Selective Retention Selective Distortion Subliminal Perception

Figure 6.4 Consumer Buying Process


Problem Recognition Information Search Evaluation Purchase Decision Postpurchase Behavior

Sources of Information

Personal

Commercial

Public

Experiential

Figure 6.5 Successive Sets Involved in Consumer Decision Making

Stages between Evaluation of Alternatives and Purchase

Perceived Risk
Functional Physical Financial Social

Psychological
Time

Figure 6.7 How Customers Use and Dispose of Products

What is Organizational Buying?


Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.

Characteristics of Business Markets


Fewer, larger buyers Close supplier-customer relationships Professional purchasing Many buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing

Buying Situation

Straight rebuy

Modified rebuy

New task

The Buying Center


Initiators Users Influencers Deciders Approvers

Buyers
Gatekeepers

Of Concern to Business Marketers


Who are the major decision participants? What decisions do they influence? What is their level of influence? What evaluation criteria do they use?

Stages in the Buying Process: Buyphases


Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review

Factors Affecting Buyer-Supplier Relationships

Availability of alternatives

Importance of supply

Complexity of supply

Supply market dynamism

The End

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