Buyer Behaviour

1
Buyer Behaviour

• Consumer and Organisational Buying Behaviour

2
Steps in the Consumer Buying Process

• Need recognition
• Alternative search
• Alternative evaluation
• Purchase decision
• Post-purchase evaluation

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Alternative Search

• 5 sources for information about alternatives
• Internal -- own stored information
• Group -- family, friends, neighbors
• Marketing -- ads, salespeople, dealers,
  packaging, displays, promotions
• Public -- publicity, consumer reports, reviews
• Experiential -- trying or viewing the product
  while shopping

4
Alternative Evaluation

• Customer is trying to satisfy a need
• Customer is seeking benefits
• Each product is a bundle of attributes
• Desired attributes vary by purchase situation
• Consumers develop a belief about each brand
  (brand image) that mentally positions the product

5
Purchase Decision

• Purchase decision involves several issues
• vendor, quantity, timing, payment method
• Situation events can influence purchase
• stock-out, long lines, store hours, others
  opinions
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6
Post-Purchase Evaluation

• Perhaps the most important step for long-term
  business development
• Often overlooked by retailers/service providers
• Poor evaluations lead to
• bad word-of-mouth complaints returns etc.

7
Social Influences on Consumer Buying

• Social influences
• cultural and subcultural
• affects everyday behaviour, a basic influence
• transmitted by family, church and schools
• Social class
• affects attitudes and values
• Reference groups and family
• family, close friends, professional associations
• most people have multiple reference groups

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Marketing Influences Consumer Buying

• Product
• appearance, packaging, performance
• Price
• quality, value, prestige, very important!
• Promotion
• advertising, sales promo, salespeople, publicity
• must be consistent and have repeated exposure
• Distribution (place)
• must be located where the buyer wants it
• stock-outs are killers

9
Situation Influences Consumer Buying

• Physical surroundings
• geographic and institutional location, décor,
  sounds, aromas, lighting, weather and
  merchandising
• Social
• who is present? Others roles in consumption?
• Temporal
• time of day or season, holiday, time since last
  purchase, time constraints on consumer

10
Situation Influences Consumer Buying

• Task definition
• shopping intent, selection, obtain information,
  and/or buyer role versus user role
• Antecedent states
• moods, momentary conditions, variety seeking,
  habitual behaviors. These are immediately
  antecedent to the purchase decision

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Organisational Buying

• Steps in the Process
• Problem recognition (need recognition)
• Determination of characteristics and quantity
• Search for qualified potential sources
• Acquisition and analysis of proposals
• Evaluation of proposals and supplier selection
• Selection of an order routine
• Feedback and post-purchase evaluation

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Major Influences in Organisational Buying

• People
• Users, influencers, deciders, approvers,
  gatekeepers, buyers
• Environmental
• Purchasing department evolution
• Cross-functional roles, Centralized purchasing
• Internet purchasing, Long-term contracts
• Lean production (JIT)

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Key Requirements in Organisational Buying

• Value
• lowest total cost of ownership
• Understanding customer requirements
• transaction
• relationship
• partnership

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Key Influences on Organisational Buying

• Company reputation
• quality, price, delivery, previous experience
• Salesperson
• understands buyer requirements
• investigates needs thoroughly
• Technological interface
• Capability