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

3. 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 • ??????????

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

8. 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

11. 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

12. 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)

13. Key Requirements in Organisational Buying • Value • lowest total cost of ownership • Understanding customer requirements • transaction • relationship • partnership

14. Key Influences on Organisational Buying • Company reputation • quality, price, delivery, previous experience • Salesperson • understands buyer requirements • investigates needs thoroughly • Technological interface • Capability