BUYER BEHAVIOUR

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BUYER BEHAVIOUR

• Marketing Management
• Session 5
• September 29, 1999

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SESSION OUTLINE

• Understanding buyer behaviour
• general framework
• external and internal variables
• Decision-making process
• steps in the process
• influence of involvement and experience
• Issues in organizational buying behaviour

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BUYER BEHAVIOUR

• What products/brands are purchased?
• When, where, and in what quantities are they
  purchased?
• Who uses them? Who makes the decision?
• How are they used?
• How is the decision made?

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Model of Buyer Behaviour
Marketing and other stimuli
Product Price Place Promotion
Economic Technological Political Cultural
Buyers responses
Product choice Brand choice Dealer
choice Purchase timing Purchase amount
Buyers black box
Buyer characteristics
Buyer decision process
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Consumer Behaviour Influences
Cultural Culture Sub- culture Social class
Social Reference groups Family Roles and sta
tus
Personal Age and life-cycle Occupation Economi
c situation Lifestyle Personality and self-conce
pt
Psycho- logical Motivation Perception Learning
Beliefs and attitudes
Buyer
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Consumer Behaviour InfluencesCultural Factors

• Culture
• Set of basic values, perceptions and behaviours
• learned by a member of society
• from family and other important institutions

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Consumer Behaviour InfluencesCharacteristics of
Culture

• Learned behaviour
• Values constantly shifting
• Found in all groups and societies
• Role of Canadian values
• Spotting shifts critical

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Consumer Behaviour InfluencesCultural Factors

• Subculture
• Group of people
• with shared value systems
• based on common life experiences
• and situations

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Consumer Behaviour InfluencesSocial Class

• Relatively permanent
• ordered divisions in a society
• whose members share similar
• Values
• Interests
• Behaviours

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Consumer Behaviour InfluencesSocial Factors

• Groups
• membership
• reference
• Family
• most important consumer influence
• changing family roles
• children may influence strongly

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Consumer Behaviour InfluencesSocial Factors

• Roles
• Activities people expected to perform
• Status
• Esteem given a role by society

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Consumer Behaviour InfluencesPersonal Factors

• Age
• Life-cycle stage
• Occupation
• Economic situation
• Lifestyle
• Personality
• Self-concept

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Consumer Behaviour InfluencesPersonal Factors

• Occupation
• affects goods or services purchased
• identify occupations with product need
• specialized professional products
• Economic situation
• indicator for income sensitive products

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Consumer Behaviour InfluencesPersonal Factors

• Lifestyle (see VALS site)
• A persons pattern of living
• as expressed in his or her
• activities
• interests
• opinions

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Consumer Behaviour InfluencesPsychological
Factors

• Perception
• Process by which people
• select, organize and interpret information
• to form a meaningful picture of the world

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Consumer Behaviour InfluencesPsychological
Factors

• Involvement
• financial risk
• personal/psycho-social risk
• functional risk
• Experience
• knowledge
• previous usage

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Types of Buying Behaviour
Low involvement
High involvement
Complex buying behaviour
Variety- seeking behaviour
Significant differences between brands
Dissonance reducing behaviour
Habitual buying behaviour
Few differences between brands
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Buyer Decision Process
Postpurchase behaviour
Purchase decision
Evaluation of alternatives
Information search
Need recognition
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Buyer Decision ProcessInformation Search

• Personal sources
• Commercial sources
• Public sources
• Experiential sources

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ORGANIZATIONAL BUYING BEHAVIOUR

• Professional buyers
• Product is used as input for clients product
• Buying centre

• Need for information
• Understand clients products and their clients
  needs
• Various buying criteria

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BUYING PROCESSES

• New-task buying
• Modified rebuy
• Straight rebuy

• Bidding process
• Joint development
• Electronic re-ordering

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NEXT CLASS

• Strategic Decisions - Chapter 7
• Segmentation
• Targeting
• Positioning
• Case presentations Omega Paw, teams 7, 8, 9, 12
• Video case Creating Bread