1. Consumer and Business Buyer Behavior
Chapter Five
Consumer and Business Buyer Behavior

2. Identify and discuss the stages in the buyer decision process.
3/25/2017
Understand the consumer market and the major factors that influence consumer buyer behavior.
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 behavior.
List and define the steps in the business buying decision process.
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3. Case Study
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4. Harley-Davidson – Devoted Consumers
Case Study
Harley-Davidson – Devoted Consumers
Building Success
Offers good bikes, upgraded showrooms and sales tactics.
Research has helped to understand customers’ emotions and motivation.
Consumer emotions, motivations, and lifestyle have been translated into effective advertising.
Measuring Success
Currently has 23% of all U.S. bike sales and 50% of heavyweight segment.
Demand above supply with waiting lists up to 2 years.
Sales doubled in the past six years while earnings have tripled.
2005: 19th straight year of record sales and income.
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5. Consumer Buying Behavior
Refers to the buying behavior of people who buy goods and services for personal use.
These people make up the consumer market.
The central question for marketers is:
“How do consumers respond to various marketing efforts the company might use?”
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6. Model of Buying Behavior
Buyer responses influence choice of the product, brand, vendor, as well as the timing and amount of purchase.
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7. Stimulus Response Model
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9. Culture
Culture is the most basic cause of a person's wants and behavior.
Culture is learned from family, church, school, peers, colleagues.
Culture reflects basic values, perceptions, wants, and behaviors.
Cultural shifts create opportunities for new products or may otherwise influence consumer behavior.
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10. Culture
Subculture
Groups of people with shared value systems based on common life experiences.
Major Groups in US
Hispanic Consumers
African-American Consumers
Asian-American Consumers
Mature Consumers
THAI SUBCULTURE
Major groups:
CHINESE CULTURE
INDIAN CULTURE
YOUNG GENERATION
OLDER GENERATION
TOURIST/WESTERN CULTURE
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11. Social Class
Society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.
Measured by a combination of: occupation, income, education, wealth, and other variables.
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12. Social Factors Groups: Family: Roles and Status:
Membership, Reference (Opinion Leaders), Aspirational
Family:
Most important consumer buying organization
Roles and Status:
Role = Expected activities
Status = Esteem given to role by society
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13. Personal Factors Age and Life-Cycle Stage Occupation
People change the goods they buy over their lifetimes.
Occupation
Occupation influences the purchase of clothing and other goods.
Economic Situation
Some goods and services are especially income-sensitive.
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14. Personality factors Lifestyle:
Pattern of living as expressed in psychographics
Activities
Interests
Opinions
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15. Personality & Self-Concept
Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment.
Generally defined in terms of traits.
Self-concept suggests that people’s possessions contribute to and reflect their identities.
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16. Psychological factors
A person’s buying choices are further influenced by four major psychological factors.
They are motivation, perception, learning, beliefs and attitudes.
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17. Motives and Needs
A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction.
Maslow’s hierarchy of needs explains why people are driven by needs at particular times.
Maslow’s hierarchy of needs implies that lower level needs must be satisfied prior to higher level needs.
Physiological needs
Safety needs
Social needs
Esteem needs
Self-Actualization
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18. Maslow’s hierarchy of needs
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19. Need for a Car
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20. Buying Decision Process
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21. Step-1:Need recognition
The buying process starts with need recognition.
The buyer recognizes a problem or need.
Marketers may use sales personnel, advertising, and packaging to trigger recognition of needs or problems.
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22. Step-II: Sources of Information
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23. Step-III: Alternative Evaluation
Consumer is now confronted with a number of options
Choice involves element of risk
Consumer will evaluate product options based on different “evaluative criteria” or attributes
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24. Alternative Evaluation
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25. Step-IV: Purchase Decision
Factors that influence purchase decision:
Attitudes of others
Unexpected situational factors
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26. Step V: Post Purchase
Consumer could experience satisfaction, dissatisfaction or dissonance.
Marketers job is to reduce customers fear of negative outcomes and provide post purchase (after sales) services
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27. Post Purchase
Consumer satisfaction is a function of consumer expectations and perceived product performance.
Performance < Expectations Disappointment
Performance = Expectations Satisfaction
Performance > Expectations Delight
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28. Buying Decision Process
Cognitive dissonance: a buyer’s doubts shortly after a purchase about whether it was the right decision.
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