Marketing: An Introduction Consumer and Business Buyer Behaviour Chapter Six Lecture Slides –Express Version Course Professor Date

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-2 Looking Ahead After studying this chapter, you should be able to: Understand the consumer market and the major factors that influence consumer buyer behaviour Identify and discuss the stages in the buyer decision process Describe the adoption and diffusion process for new products Define the business market and identify the major factors that influence business buyer behaviour List and define the steps in the business buying decision process

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-3 Understanding the Consumer Market Consumer market: all of the individuals and households who buy or acquire goods and services for personal consumption. Product Price Place Promotion Economic Technological Political Cultural Buyer’s Black Box Buyer Characteristics Buying Decision Process Buyer’s Responses Product choice Brand choice Dealer choice Purchase timing Purchase amount Figure 6-1 Marketing and other stimuli

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-4 Understanding the Consumer Market Factors influencing consumer behavior: –Cultural Culture, subculture, and social class –Social factors Reference groups, family, roles and status –Personal factors Age and life cycle stage, occupation, economic situation, lifestyle, personality, and self-concept –Psychological factors Motivation, perception, learning, beliefs, and attitudes Figure 6-2

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-5 The Buyer Decision Process Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase behaviour Figure 6-4

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-6 Stages in the Adoption Process Adoption process: the mental process through which an individual passes from first hearing about an innovation to final adoption Stages: –Awareness –Interest –Evaluation –Trial –Adoption

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-7 New Product Adoption Rates Time of adoption of innovations 2.5% Innovators 34% Early majority 34% Late majority Early adopters 13.5% 16% Laggards Source: reprinted with permission of the Free Press, a Division of Simon & Schuster, from Diffusion of Innovations, Fourth Edition, by E.M. Rugers, Figure 6-5

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-8 Influences on the Rate of Adoption Relative advantage –How much better than existing alternatives? Compatibility –Fit current values and experiences? Complexity –Ease of understanding? Divisibility –Can it be tried on a limited basis? Communicability –Can the innovation be observed and communicated?

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 6-9 Business Markets Business market: comprises of all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling them or renting them to others at a profit. –Market structure Fewer but larger buyers, more geographically concentrated –Derived demand Based on purchases by consumers –Nature of the buying unit More decision participants, more professional effort –The decision process More complex, formalized, dependent

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Influences on Business Buying Environmental –Level of primary demand, economic outlook, cost of money, supply conditions, rate of technological change, political and regulatory developments, competitive developments Organizational –Objectives, policies, procedures, organizational structure, and systems Interpersonal –Authority, status, empathy, and persuasiveness Individual –Age, education, job position, personality, and risk attitudes Figure 6-7

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc The Business Buying Decision Process Problem recognition General need description Performance review Supplier selection Product specification Supplier search Proposal solicitation Order routine specification New taskModified rebuyStraight rebuy YesMaybeNo Yes MaybeNo YesMaybeNo YesMaybeNo YesMaybeNo Yes MaybeNo Figure 6-8

Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc Looking Back The consumer market Factors influencing consumer behaviour Stages in the buyer decision process Adoption and diffusion of new products The business market Business buying behaviour The business buying decision process