Chapter 8 The Buying Process and Buyer Behavior

Develop a Customer Strategy Understand the buying process Understand buyer behavior Develop prospect base

Consumer Buyer Behavior The buying behavior of individuals and households who buy goods and services for personal consumption

Consumer Buyers Purchases for individual or household consumption Decisions usually made by individuals Purchases often made based on brand reputation or personal recommendations with little or no product expertise Purchases based primarily on emotional responses to product or promotions Individual purchasers may make quick decisions Products: consumer goods and services for individual use

Business Buyer Behavior The organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

Organizational Buyer Purchases made for some purpose other than personal consumption Decisions frequently made by several people Purchases made according to precise technical specification based on product expertise Purchases based on primarily rational criteria Purchasers may engage in lengthy decision process Products: often complex; classified based on how organizational customers use them

Buying Center A cross-functional team of decision makers who often represent several departments

Business Buying Situations New task buy--a first-time purchase of a product or service Straight rebuy--a routine purchase of items needed by a business-to-business customer Modified rebuy--changes to product specification, delivery schedules or prices Systems selling--buyers who prefer to purchase a packaged solution to a problem from a single seller

Consumer Buying Situations Habitual buying decisions--used for frequently purchased, low-cost items Variety-seeking buying decisions--brand switching motivated by the desire for variety rather than dissatisfaction Complex buying decisions--used for items that are expensive, purchased infrequently, and highly self-expressive

Steps in the Typical Buying Process Needs awareness Evaluation of solutions Resolution of problems Purchase Implementation

Buyer Resolution Theory Why should I buy? (need) What should I buy? (product) Where should I buy? (source) What is a fair price? (price) When should I buy? (time)

Maslow’s Hierachy of Needs Physiological needs--food, water, sleep and shelter Security needs--free from danger and uncertainty Social needs--identification with a group and approval from others Esteem needs--feel worthy in the eyes of others Self-actualization needs--need for self- fulfillment

Group Influences Role--a set of characteristics and expected social behaviors based on the expectations of others Reference group--categories of people that you see yourself belonging to, and with which you habitually compare yourself Social class--society’s relatively permanent and ordered divisions whose members share similar values, interests, and behavior Cultural--accumulation of values, rules of behavior, forms of expressions, religious beliefs, transmitted behavior patterns, and the like for a group of people who share a common language and environment

Perception The process through which sensations are interpreted, using our knowledge and experience

Buying Motives An aroused need, drive, or desire

Emotional and Rational Motives Emotional--prompts the prospect to act because of an appeal to some sentiment or passion Rational--appeals to the prospect’s reason or judgment based on objective thought processes

Emotional Buying Motives Adventure Affection Appearance Change/variety Comfort/convenience Fear Health Leisure time Pleasure Recognition Recreation Security Social or group approval

Rational Buying Motives Accuracy Convenience Dependability Durability Economy Efficiency Health Increased production Knowledge Low cost/maintenance Profit Quality of workmanship/materials Safety Service Simplicity Versatility

Patronage and Product Motives Patronage--one that causes the prospect to buy products from one particular business Product Buying--one that causes the prospect to purchase one product in preference to another

Patronage Buying Motives Customer services and policies Price Courteous sales force Quality of merchandise Assortment of merchandise Fashion

Product Buying Motives Brand Quality Price Design or engineering