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Buyer Behaviour

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Consumer Buying?

???

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Influences on thePurchase

Decision Process

Influences on thePurchase

Decision Process

ConsumerPurchaseDecisionProcess

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Factors influencing Consumer Behaviour

A Systems View (Input Process Output)

Marketing

ProductPrice

PromotionDistribution

OtherEconomic

TechnologicalPolitical

Social/Cultural

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

Buyer Influences

CulturalSocial

Personal

Psychological

Decision MakingProcess

Problem RecognitionInfo SearchEvaluation

Purchase / ChoicePost-purchase

Marketing &Other Stimuli

BuyersBlack Box

BuyerResponses

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Consumer Purchase Decision ProcessConsumer Purchase Decision Process

ProblemRecognition

ProblemRecognition

InformationSearch

InformationSearch

Evaluation ofAlternatives

Evaluation ofAlternatives

PurchaseDecisionPurchaseDecision

Post PurchaseBehavior

Post PurchaseBehavior

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Maslows Hierarchy of Needs

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INFORMATIONSEARCH

The Classic Decision Making ModelNEED/PROBLEMRECOGNITION

Internal search

Past experiences

External search

Personal: family, friends, reference

group Commercial: advertising, promotional

brochures, packaging, sales people, in-store displays

Public: government agencies, consumerinterest groups, Choice

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INFORMATIONSEARCH

The Classic Decision Making ModelNEED/PROBLEMRECOGNITION

EVALUATION OFALTERNATIVES

Formation of Evoked Set

(A group of Relevant Brands)

Evaluation criteria

Cost attributes

i.e. purchase price, operating costs,

Performance attributes

i.e. quality of materials, functionalperformance, efficiency, safety

Social attributes Reputation of brand, popularity with

friends/family, style, fashion

Availability attributes

Carried by local stores, credit terms, qualityof service, delivery time

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INFORMATIONSEARCH

The Classic Decision Making ModelNEED/PROBLEMRECOGNITION

EVALUATION OFALTERNATIVES

PURCHASEDECISION

Selection: A Mental Winner

Purchase: A Physical Winner

Guess where the money is ?

Goal: Translate Selection into

Purchase

Interference between intention topurchase and actual purchase

Out of stock

Special displays

Promotions

Opinions of others

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Post Purchase

Cognitive DissonanceCognitive Dissonance

??Did I make a good decision?Did I make a good decision?Did I buy the right product?Did I buy the right product?Did I get a good value?Did I get a good value?

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INFORMATIONSEARCH

The Classic Decision Making ModelNEED/PROBLEMRECOGNITION

EVALUATION OFALTERNATIVES

PURCHASEDECISION

POST-PURCHASEBEHAVIOUR

Evaluation of the gap betweenconsumers expectations and reality

Satisfaction

repeat purchase

brand loyaltypositive word-of-mouth

Dissatisfaction

negative word-of-mouth

Cognitive dissonance

Buyer discomfort caused by post-purchaseconflict

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RELATION!I"

"#R$!AE

"RE%EREN$E

$ONIDERATION

&NO'LED(E

A'ARENE

I(NORAN$E

INFORMATION

SEARCH

NEED/PROBLEMRECOGNITION

EVALUATION OFALTERNATIVES

PURCHASEDECISION

POST-PURCHASEBEHAVIOUR

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Low Involvement Decision Making Model

PURCHASEDECISION

POST-PURCHASEEVALUATION

Different Need/Problem Recognition

Solution costs less

Many (equally good) alternativesolutions

Frequent purchasing Familiar product and brands

Low perceived importance

Reduced decision making time

Different decision making model:Low Involvement Decision Making

NEED/PROBLEMRECOGNITION

& brief internal search

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Low Involvement Decision Making Model

PURCHASEDECISION

POST-PURCHASEEVALUATION

Low Involvement Decision Making

- NOT

Think - Feel - Do - BUT

Think - Do - Feel

Different Hierarchy of Effects

NEED/PROBLEMRECOGNITION

& brief internal search

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RE)"#R$!AE

TRIAL

A'ARENE

I(NORAN$E

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What is Organizational Buying?

Organizational buying refers to the decision-making process by which formal organizationsestablish the need for purchased products andservices, and identify, evaluate, and chooseamong alternative brands and suppliers.

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Organisational Buying Behaviour

MarketingProduct

PricePromotionDistribution

PeopleProcesses

Physical evidence

OtherEconomic

TechnologicalPoliticalCultural

Product or ServiceChoice

Supplier Choice

Order quantities

Delivery termsand times

Service terms

Payment terms

Interpersonal and

Individual influences

OrganisationalInfluences

Buying Centre

Decision MakingProcess

Marketing &Other Stimuli

BuyersBlack Box

BuyerResponses

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Organisational Decision Making Process

ProblemRecognition

General NeedDescription

ProductSpecification

SupplierSearch

ProposalSolicitation

SupplierSelection

Order-RoutineSpecification

PerformanceReview

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Buying Centre

Gatekeepers

Initiators

Buyers

Influencers

Deciders

Users

Approvers

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Power in the Buying CentreReinforcement Power

Referent Power

Legitimate Power

Expert Power

Information Power

Departmental Power

The ability to give rewards or punishment

The attractiveness/charisma of the person

The authority granted by the persons position

A persons knowledge of the situation

A persons access to and control of information

The relative importance of departments withinthe organization

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Session Take Away

The basis for Marketing Strategy

Research on Potential Customers: Needs/Wants

Research on Existing Customers: Decision Making