Principles of marketing
Consumer Markets and Consumer
Buyer Behavior
Consumer Markets and Consumer
Buyer Behavior
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Consumer buyer behavior
The buying behavior of final consumers – individuals and households that buy goods
and services for personal consumption
• Consumer Market
All the individuals and households who buy or acquire goods and services for
personal consumption
Understanding the whys of buying behavior is very difficult. The mind is whirling ,
swirling, jumbled mass of neurons bouncing around….”
The environment
Marketing stimuli Other
Product
Economic
Price
Technological
Place
Social
Promotion
Cultural
Buyer's black box
Buyer's characteristics
Buyer's decision process
Buyer responses
Buying attitudes and preferences
Purchase behavior: what the buyer buys,
when where and how much
Brand company relationship behavior
Characteristics Affecting Consumer
Behavior
Maslow’s Hierarchy of Needs
Types of Buying Decision Behavior
High Improvement
Low involvement
Significant differences Complex
between brands
buying
behavior
Varietyseeking
buying behavior
Few differences
between brands
Habitual
buying
behavior
Dissonancereducing
buying behavior
High involvement but few perceived brand differences
Cold feet is apprehension or doubt strong enough to prevent a planned course of action
Consumer Markets and Consumer
Buyer Behaviour
Consumer Markets and Consumer
Buyer Behavior
Consumer Markets and Consumer
Buyer Behaviour
Need
recognition
Information
search
Cognitive dissonance
Time of adoption of innovations
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior
The Buyer Decision Process for New
Products
New product
Adoption process
Awareness
Interest
Evaluation
Trial
Adoption
Time of adoption of innovations
Influence of Product Characteristics
on Rate of Adoption
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability
Influence of Product Characteristics
on Rate of Adoption
Business Markets & Business Buyer
Behavior
Business Markets and Business
Buyer Behavior
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Business buyer behavior
The buying behavior of THE organization that buy goods and services for use in the
production of other products and services or to resell or rent them to others at a
profit
Business markets operate “behind-the-scenes” to most consumers. Most of the
things you buy involve many sets of business purchases before you ever see them
Business buying process
The decision process by which business buyers determine which products and
services their organizations need to purchase, and then find, evaluate, and choose
among alternative suppliers and brands
Derived demand
Business demand that ultimately comes from (derives from) the demand for
consumer goods
Supplier development
Systematic development of networks of supplier-partners to ensure an appropriate &
dependable supply of products & material for use in making products or reselling
them to others
Business Buyer Behavior
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Business buying decisions can range from routine to incredibly complex,
involving only a few or very many decision markers and buying influences
Delivery terms & times
Service terms
Payment
Cultural
Source: Google search
The nature and size of
organizational markets
Source: Google search
Major Types of Buying Situations
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Straight re-buy
Modified re-buy
New task
Systems selling (or solutions selling)
Buying a packaged solution to a problem from a single seller, thus avoiding
all the separate decisions involved in a complex buying situation
Participation in the Business Buying Process
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Buying center
Users
Influencers
Buyers
Deciders
Gatekeepers
Major Influencers on Business
Buyers
Environmental
Economic
developments
Supply conditions
Technological change
Political & regulatory
developments
Competitive
developments
Culture & customs
Social Class
Organizational
Objectives
Policies
Procedures
Organizational structure
Interpersonal
Authority
Status
Empathy
Individual
Age, income
Education
Job position, personality
Risk attitudes
Persuasiveness
Systems
The Business Buying process
Problem
recognition
General need
description
Product
specification
supplier
search
Proposal
solicitation
Supplier
selection
Order-routine
specification
Performance
review
Buyer
Purchase Process
Source: Google search
E-procurement
• Purchasing through electronic connections
between buyers and sellers – usually
online
Institutional & Government Markets
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Institutional market
Schools, hospitals, nursing homes, prisons, and other institutions that
provide goods and services to people in their care
•
Government market
Government units – federal, state, and local – that purchase or rent goods
and services for carrying out the main functions of government
Principles Of Marketing
Building the right relationship with right customers - Quiz
Butterflies: Good fit between company's Offering and customer's needs: high profit potential but short
term customers
True Friends: Good fit between company's Offerings and customer's Needs:Highest profit potential
Strangers: Little fit between company's Offerings and customer's needs: lowest profit Potential
Barnacles: Limited fit between company's offerings and customer's Needs: Low profit potential
High
profitability
Potential
profitability
Low
profitability
Short term customers
Long term customers
Name: ______________
Projected Loyalty
Principles of Marketing - Quiz
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Dividing a market into distinct groups of buyer s who have different needs,
characteristics, or behaviors, and who might require separate products or
marketing programs.
________________
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A group of customers who respond in similar way to a given set of
marketing effort
________________
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The process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter
________________
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Arranging for a product to occupy a clear, distinctive ,and desirable place
relative to competing products in the mind of target customers.
________________
Positioning, Market Targeting, Market Segmentation, Market Segment.
Thank You