Buying Behaviour

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Buying Behaviour

• Consumers

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Overview of the Buying Process
SOCIAL INFLUENCES
MARKETING INFLUENCES
SITUATIONAL INFLUENCES
PSYCHOLOGICAL INFLUENCES
CONSUMER DECISION MAKING
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Social Influences

• Culture and Subculture
• The family
• Religious Organizations
• Educational Institutions

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Social Influences

• Social Class
• Rank of people in a society based on
• Wealth
• Skill
• Power

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Social Influences

• Reference Groups
• A set of people a consumer wants to please or
  imitate.
• Family
• Fraternal or professional organizations
• Opinion leaders

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Marketing Influences

• Product
• marketers differentiate their products to create
  the perception of a valuable product purchase.
• Price
• consumers may buy products more on the basis of
  price than other attributes.

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Marketing Influences

• Promotion
• marketing communications plays a critical role in
  informing consumers about products and services.
• Place
• Convenience increases the probability of
  consumers finding and buying certain products.

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Situational Influences

• Temporary forces associated with the immediate
  buying environment that affect behaviour.

• Physical features
• Social features
• Time
• Task features
• Current conditions

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Psychological Influences

• Product knowledge
• the amount of information a consumer has about
  product classes, brands, models and ways to
  purchase them.
• Product involvement
• a consumers perception of the importance or
  personal relevance of an item.
• Perception

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Decision Making Process
NEED RECOGNITION
ALTERNATIVE SEARCH
ALTERNATIVE EVALUATION
PURCHASE DECISION
POSTPURCHASE EVALUATION
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Need Recognition

• Maslows Hierarchy of needs
• Recognition that you have an unsatisfied need.
• Marketers job to identify needs and provide
  solutions.

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Alternative Search

• Individual tries to identify ways to fulfill the
  need.
• Internal sources
• Group sources
• Marketing sources
• Public sources
• Experiential sources

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Alternative Evaluation

• Consumer considers information gathered.
• Ranks features or attributes.
• Compares information to perception of need.

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Purchase Decision

• If no other factors intervene, purchase is made.
• Purchaser may try to reduce risk or uncertainty.

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Post-Purchase Evaluation

• Consumer evaluates the quality of the decision
  made.
• Does the product meet expectations.
• Post-purchase evaluation affects next purchase by
  providing
• Information about need satisfaction
• Information about product features quality

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Business, Government and Institutional Buying
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Organizational Buyers

• Producers
• Buy products to produce other products
• Intermediaries
• Buy products for resale
• Government Agencies
• Buy products for public programs
• Other Institutions
• Hospitals, museums, universities, churches

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Overview of the Buying Process
PURCHASE TYPE INFLUENCES
STRUCTURAL INFLUENCES
BEHAVIOURAL INFLUENCES
ORGANIZATIONAL BUYING PROCESS
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Purchase Type Influences

• New Task Purchase
• Most often used for big-ticket items,
• Happen occasionally,
• Are heavily researched and formal.
• Straight Rebuy
• Routine reordering from a supplier used in the
  past.
• Modified Rebuy
• When some aspects of the buying process are
  unfamiliar.

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Purchase Type Comparison
Complexity
Time Frame
of Suppliers
New Task Purchase
Complex
Long
Many
Straight Rebuy
Simple
Short
One
Modified Rebuy
Moderate
Medium
Few
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Structural Influences

• Purchasing Roles
• Organization-Specific Factors
• Purchasing Policies and Procedures

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Purchasing Roles
Users
Initiators
Gate-keepers
Buying Centre
Influencers
Buyers
Deciders
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Organization-Specific Factors

• Orientation
• Dominant function may control purchasing
• Size
• Larger organizations may require more
  coordination of the process
• Degree of Centralization
• Influences level of joint decision-making

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Behavioural Influences

• Personal Motivations
• Role Perceptions

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Organizational Buying Process
ORGANIZATIONAL NEED
VENDOR ANALYSIS
PURCHASE DECISION
POSTPURCHASE EVALUATION
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Organizational Need

• Non-emotional
• Best means to meet corporate goals

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Vendor Analysis

• Seek and evaluate vendors
• To develop an approved vendor list
• To compare competing vendors
• To compare evaluation criteria and performance

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Purchase Decision

• Must meet the organizations goals and procedures
• Eliminates the emotion of the consumer purchase

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Post-Purchase Evaluation

• Comparison of product and vendor performance to
  purchase criteria
• Whose criteria?
• May lead to straight rebuy contract

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Organizational Buying Distinctions

• More variation in buyer-seller relationships
• Shorter distribution channels
• Greater emphasis on personal selling
• Greater web integration
• Unique promotional strategies

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The End
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Maslows Hierarchy of Needs
SELF ACTUALIZATION
PERSONAL
SOCIAL NEEDS
SAFETY NEEDS
PHYSIOLOGICAL NEEDS