© 2004 Mark H. Hansen

Buyer BehaviorBuyer Behavior

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Buyer Behavior

A purchase is an exchange

• the parties to that exchange are the consumerand the marketer

• the interests of the parties must be satisfiedif the exchange is to occur

• the marketer needs to understand the interestsof the consumer so as to anticipate the behaviorof the consumer

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Buyer Behavior

Consumer behavior is really just problem solving

• an unmet need is a problem to be solved

• the problem will be solved by the consumer’sfilling of that need

• effective marketers will help the consumersolve the problem

• the marketer that offers the ‘best’ solution willget the ‘sale’

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Buyer Behavior

Consumers have needs, but…

…they want to satisfy those needs in acertain way.

• consumer needs clothing—wants Levi’s

Why does the consumer want Levi’s?

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Buyer Behavior

Consumers wants lead them to have preferences in filling their needs

• effective marketers align their productofferings with consumers’ preferences

• alignment can occur in two ways:

1 – change the product

2 – change the preferences

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Buyer Behavior

Buyer behavior can be modeled in multipleways

• a process model identifies stages aconsumer goes through in filling a need

• marketers benefit by understandingeach stage

- influence the stage

- respond to the stage

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Buyer Behavior

Complex vs. Simple Decision Making

• complex presents more opportunity formarketer to influence or respond

• marketers want to make complexbecome simple due to loyalty

• complex – new or significant purchase

• simple – habit or routine

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Buyer Behavior

A Process Model

NeedIdentification

InformationSearch

EvaluateAlternative

ProductSelection

PurchaseDecision

PostpurchaseBehavior

Complex Process

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Buyer Behavior

A Process Model

NeedIdentification

ProductSelection

PurchaseDecision

PostpurchaseBehavior

Simple Process

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Buyer Behavior

Complex vs. Simple Decision Making

• information search and evaluation ofalternatives drop out in a simple process

• either the buyers knows or doesn’t carewhich product

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Buyer Behavior

Information Search & Processing

• Exposure

• Attention

• Perception

• Retention

• Retrieval and Application

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Buyer Behavior

Influencing Factors

Situational Influences

External Influences

Internal Influences

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Buyer Behavior

Situational Influences

• high vs. low involvement

• available market offerings

• demographics

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Buyer Behavior

External Influences

• Culture (beliefs, values, customs)

• Social Class

• Reference Groups

-- opinion leaders

• Family

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Buyer Behavior

Internal Influences

• Learning and Socialization

--experiential & non-experiential

--modeling (peer pressure)

--reinforcement

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Buyer Behavior

• Motivation

Internal Influences

--Maslow’s Hierarchy

--introvert vs. extrovert

1 - physiological

2 - safety & security

3 - love

4 - esteem

5 - self-fulfillment

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Buyer Behavior

Internal Influences

• Lifestyle

--attitudes

--interests

--opinions

Can marketers:

1 – influence?

2 – exploit?

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Buyer Behavior

Organizational Buying

• more formal than consumer

1 – Problem Recognition

2 – General Need Description

3 – Product Specification

4 – Supplier Search

5 – Proposal Solicitation

6 – Supplier Selection

7 – Order routine

8 – Performance Review

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Buyer Behavior

Summary

• understanding buyer behavior allowsmarketers to either:

1 – influence behavior

2 – respond with the product

• recognize the links between buyer behavior, segmentation, & market research