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Consumer Behavior: Introduction

Consumer Behavior: Introduction Definitions/Frameworks General issues about consumer & Industrial buying behavior

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Consumer Behavior: Introduction

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  1. CONSUMER BEHAVIOR: INTRODUCTION DEFINITIONS/FRAMEWORKS GENERAL ISSUES ABOUT CONSUMER & INDUSTRIAL BUYING BEHAVIOR

  2. DEFINITIONS : BUYING BEHAVIOR: THE DECISION PROCESSES AND ACTIONS OF PEOPLE INVOLVED IN BUYING AND USING PRODUCTS. • CONSUMER BUYING BEHAVIOR: THE BUYING BEHAVIOR OF ULTIMATE CONSUMERS - THOSE WHO ACTUALLY PURCHASE PRODUCTS FOR PERSONAL/HOUSEHOLD USE. • ORGANIZATIONAL BUYING BEHAVIOR: • THE PURCHASE BEHAVIOR OF PRODUCERS, RE-SELLERS, GOVERNMENT UNITS AND INSTITUTIONS.

  3. CONSUMER BEHAVIOR PROCESS • CULTURAL/SOCIAL FACTORS • CULTURE • SOCIAL CLASS • REFERENCE GROUPS • FAMILY • PERSONAL • ROLES & STATUS IN THE SOCIETY.

  4. SITUATIONAL FACTORS : • PHYSICAL AND SOCIAL SURROUNDINGS (I.E. THE ACTUAL ENVIRONMENT WITHIN WHICH A PERSON LIVES. • TIMING (I.E. THE PROPENSITY/OPPORTUNITY TO PURCHASE). • TYPE OF PURCHASE. • PRIOR EXPERIENCE.

  5. CONSUMER BEHAVIOR PROCESS • NEED RECOGNITION • INFORMATION SEARCH • EVALUATE ALTERNATIVES • PURCHASE DECISION • POST-PURCHASE BEHAVIOR. • MARKETING

  6. CHARACTERISTICS OF ORGANIZATIONAL MARKETS • FEWER BUYERS • LARGE PURCHASES • SUPPLIER RELATIONSHIPS • GEOGRAPHIC CONCENTRATION • DERIVED DEMAND • INELASTIC DEMAND • FLUCTUATING DEMAND • PROFESSIONAL PURCHASING • MULTIPLE INFLUENCES • SOURCE: KOTLER 1996

  7. CHARACTERISTICS OF ORGANIZATIONAL MARKETS • FEWER BUYERS • LARGE PURCHASES • SUPPLIER RELATIONSHIPS • GEOGRAPHIC CONCENTRATION • DERIVED DEMAND • INELASTIC DEMAND • FLUCTUATING DEMAND • PROFESSIONAL PURCHASING • MULTIPLE INFLUENCES

  8. INFLUENCES ON ORGANIZATIONAL BUYING BEHAVIOR • ENVIRONMENTAL FACTORS/CHARACTERISTICS • LEVEL OF DEMAND; ECONOMIC OUTLOOK; PESTL ENVIRONMENT; COMPETITIVE BEHAVIORS • ORGANIZATIONAL FACTORS/CHARACTERISTICS • OBJECTIVES/GOALS; HISTORY; POLICIES; PROCEDURES; STRUCTURE; SYSTEMS • INTERPERSONAL FACTORS/CHARACTERISTICS • AUTHORITY; STATUS; EMPATHY; PERSUASIVENESS; CO-OPERATION; CONFLICT; POWER RELATIONSHIPS • INDIVIDUAL FACTORS/CHARACTERISTICS • AGE; INCOME; EDUCATION; POSITION; PERSONALITY; RISK AVERSION.

  9. ORGANIZATIONAL BUYING PROCESS • PROBLEM RECOGNITION • DETERMINATION OF CHARACTERISTICS • DESCRIPTION OF CHARACTERISTICS • SEARCH FOR SOURCES • REQUEST FOR AND ANALYSIS OF PROPOSALS • EVALUATION AND SELECTION • SELECTION OF AN ORDER • EVALUATION OF PROCEDURE.

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