Consumer Buying Process & Organizational Buying Behavior
-
Upload
aamirdalvi -
Category
Documents
-
view
155 -
download
2
Transcript of Consumer Buying Process & Organizational Buying Behavior
Consumer Buying Process & Organizational buying
behavior
Marketing ManagementA South Asian Perspective, 13th ed
Marketing Management By: Rafana. Kazi
What Influences Consumer Behavior?
Cultural FactorsCultural Factors
Social FactorsSocial Factors
Personal FactorsPersonal Factors
Marketing Management By: Rafana. Kazi
What is Culture?
Culture is the fundamental determinant of a person’s wants and behaviors
acquired through socialization processes with family and other key
institutions.
Marketing Management By: Rafana. Kazi
Subcultures
Nationalities Nationalities
ReligionsReligions
Racial groupsRacial groups
Geographic regionsGeographic regions
Marketing Management By: Rafana. Kazi
Social Classes
Upper uppersLower uppersUpper middlesMiddle class
Working classUpper lowersLower lowers
Marketing Management By: Rafana. Kazi
Characteristics of Social Classes
• Within a class, people tend to behave alike
• Social class conveys perceptions of inferior or superior position
• Class may be indicated by a cluster of variables (occupation, income, wealth)
• Class designation is mobile over time
Marketing Management By: Rafana. Kazi
Social Factors
Referencegroups
Social roles
Statuses
Family
Marketing Management By: Rafana. Kazi
Reference Groups
Membership groupsMembership groups
Primary groupsPrimary groups
Secondary groupsSecondary groups
Aspirational groupsAspirational groups
Dissociative groupsDissociative groups
Marketing Management By: Rafana. Kazi
Roles and Status
What degree of status is associated with various occupational roles?
Marketing Management By: Rafana. Kazi
Personal Factors
Age
Values
Life cyclestage
Occupation
Personality
Self-concept
Wealth
Lifestyle
Marketing Management By: Rafana. Kazi
The Family Life Cycle
Marketing Management By: Rafana. Kazi
Brand Personality
SinceritySincerity
ExcitementExcitement
CompetenceCompetence
SophisticationSophistication
RuggednessRuggedness
Marketing Management By: Rafana. Kazi
Lifestyle Influences
Multi-tasking
Time-starved
Money-constrained
Marketing Management By: Rafana. Kazi
(Lifestyles of Health and Sustainability) Market Segments
• Sustainable Economy
• Healthy Lifestyles
• Ecological Lifestyles
• Alternative Health Care
• Personal Development
Marketing Management By: Rafana. Kazi
Model of Consumer Behavior
Marketing Management By: Rafana. Kazi
Key Psychological Processes
Motivation
MemoryLearning
Perception
Marketing Management By: Rafana. Kazi
Motivation
Freud’sTheory
Behavioris guided by subconsciousmotivations
Maslow’sHierarchyof Needs
Behavioris driven by the lowest, unmet need
Herzberg’sTwo-Factor
Theory
Behavior isguided by motivating
and hygienefactors
Marketing Management By: Rafana. Kazi
Perception
Selective Attention
Subliminal Perception
Selective Retention
Selective Distortion
Marketing Management By: Rafana. Kazi
State Farm Mental Map
Marketing Management By: Rafana. Kazi
Consumer Buying Process
Problem Recognition
Information Search
Evaluation
Purchase Decision
PostpurchaseBehavior
Marketing Management By: Rafana. Kazi
Problem Recognition
Marketing Management By: Rafana. Kazi
Sources of Information
Personal
ExperientialPublic
Commercial
Marketing Management By: Rafana. Kazi
Successive Sets Involved in Consumer Decision Making
Marketing Management By: Rafana. Kazi
Sales and ProductLife Cycle
Marketing Management By: Rafana. Kazi
Stages between Evaluation of Alternatives and Purchase
Marketing Management By: Rafana. Kazi
Non-Compensatory Models of Choice
• Conjunctive
• Lexicographic
• Elimination-by-aspects
Marketing Management By: Rafana. Kazi
Perceived Risk
FunctionalFunctional
PhysicalPhysical
FinancialFinancial
SocialSocial
PsychologicalPsychological
TimeTime
Marketing Management By: Rafana. Kazi
How Customers Use and Dispose of Products
Marketing Management By: Rafana. Kazi
Rural Consumer Behaviour
• Rural consumers are more brand loyal• Restrictions on consumption• Collective consumption behaviour: for
family rather than individual• Seasonality of consumption based on
seasonality of agricultural production/income
• Specific patterns in the five-stage buying decision process
Marketing Management By: Rafana. Kazi
Mental Accounting
• Consumers tend to…
• Segregate gains
• Integrate losses
• Integrate smaller losses with larger gains
• Segregate small gains from large losses
Marketing Management By: Rafana. Kazi
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.
Marketing Management By: Rafana. Kazi
Top Business Marketing Challenges
• Expand understanding of customer needs• Compete globally as China and India
reshape markets• Master analytical tools and improve
quantitative skills• Reinstate innovation as an engine of growth• Create new organizational models and
linkages
Marketing Management By: Rafana. Kazi
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
Marketing Management By: Rafana. Kazi
Buying Situation
Straight rebuyStraight rebuy
Modified rebuyModified rebuy
New taskNew task
Marketing Management By: Rafana. Kazi
Systems Buying and Selling
Turnkey solution desired;
bids solicited
Primecontractors
Second-tiercontractors
System subcomponents
assembled
Marketing Management By: Rafana. Kazi
The Buying Center
InitiatorsInitiators
UsersUsers
InfluencersInfluencers
DecidersDeciders
ApproversApprovers
BuyersBuyers
GatekeepersGatekeepers
Marketing Management By: Rafana. Kazi
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?
Marketing Management By: Rafana. Kazi
Sales Strategies
Small Sellers
Large Sellers
Key Buying Influencers
MultilevelIn-depthSelling
Marketing Management By: Rafana. Kazi
Stages in the Buying Process: Buyphases
• Problem recognition• General need description• Product specification• Supplier search• Proposal solicitation• Supplier selection• Order-routine specification• Performance review
Marketing Management By: Rafana. Kazi
Methods of e-Procurement
• Websites organized using vertical hubs
• Websites organized using functional hubs
• Direct extranet links to major suppliers
• Buying alliances
• Company buying sites
Marketing Management By: Rafana. Kazi
Vendor Analysis
Marketing Management By: Rafana. Kazi
Handling Price-Oriented Customers
Limit quantity purchasedLimit quantity purchased
Allow no refundsAllow no refunds
Make no adjustmentsMake no adjustments
Provide no servicesProvide no services
Marketing Management By: Rafana. Kazi
Methods for Researching Customer Value
• Internal engineering assessment
• Field value-in-use assessment
• Focus-group value assessment
• Direct survey questions
• Conjoint analysis• Benchmarks• Compositional
approach• Importance ratings
Marketing Management By: Rafana. Kazi
Order Routine Specification
Stockless purchase plans
Vendor-managedinventory
Continuous replenishment
Marketing Management By: Rafana. Kazi
Establishing Corporate Trust and Credibility
Expertise
LikeabilityTrustworthiness
Marketing Management By: Rafana. Kazi
Trust Dimensions
Transparent
Product/ServiceQuality
Incentive
Partnering
Cooperating Design
Product Comparison
Supply Chain
Pervasive Advocacy
Marketing Management By: Rafana. Kazi
Factors Affecting Buyer-Supplier Relationships
Availability of alternatives
Supply marketdynamism
Complexity ofsupply
Importance ofsupply
Marketing Management By: Rafana. Kazi
Categories of Buyer-Seller Relationships
• Basic buying and selling
• Bare bones• Contractual
transaction• Customer supply
• Cooperative systems
• Collaborative• Mutually adaptive• Customer is king