1. Chapter 7 Analyzing Consumer Markets and Buyer Behavior by

2. Chapter Objectives In this chapter, we focus on two questions:
How do the buyers’ characteristics – cultural, social, personal, and psychological – influence buying behavior?
How does the buyer make purchasing decisions?

3. Cultural Factors
Culture
Subculture
Social Class
Buyer

4. Social Factors
Reference
Groups
Family
Roles &
Statuses

5. Influences on Consumer Behavior
Personal Influences
Influences on Consumer Behavior
Age and Family Life
Cycle Stage
Lifestyle
Occupation &
Economic Circumstances
Personality &
Self-Concept

6. Psychological Factors
Motivation
Perception
Beliefs &
Attitudes
Learning

7. Maslow’s Hierarchy of Needs
Self-
actualization
(self-development
and realization) 5
Esteem needs
(self-esteem, recognition) 4
Social needs
(sense of belonging, love) 3
Safety needs
(security, protection) 2
Psychological needs
(food, water, shelter) 1

8. The Buying Decision Process
Buying Roles
Initiator
Influencer
Decider
Buyer
User
Buying behavior

9. Types of Buying Behavior
Complex
Buying
Behavior
Variety-
Seeking
Behavior
High
Involvement
Low
Involvement
Significant
differences
between
brands
Few
Dissonance-
Reducing Buying
Behavior
Habitual
Buying
Behavior

10. Consumer Buying Process
Problem
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Post purchase
behavior

11. Model of Buying Behavior
Marketing
stimuli
Product
Price
Place
Promotion
Other
stimuli
Economic
Technological
Political
Cultural
Buyer’s
characteristics
Cultural
Social
Personal
Psychological
Buyer’s decision
process
Problem recognition
Information search
Evaluation
Decision
Post purchase
behavior
Buyer’s decisions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount

12. Decision Making Sets Total Set Aware- ness Consid- Set eration Set
Choice
Set
Decision

13. Chapter 8 Analyzing Business Markets and Business Buying Behavior by

14. Objectives How Business & Consumer Markets Differ
Organizational Buying Situations
Participants in the Business Buying Process
Major Influences on Organizational Buyers
Business Buyer Decision Making
Institutional & Government Buying

15. Business vs. Consumer Fewer buyers Larger buyers
Close supplier-customer relationship
Geographically concentrated
Derived demand
Inelastic demand
Fluctuating demand

16. Business vs. Consumer Professional purchasing
Several buying influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing

17. New Task Buying Modified Rebuy Straight Rebuy
Custom furniture
Installed components
Buildings
Weapon systems
Involved Decision Making
New vehicles
Elec. Equip
Consultants
Computer equip.
Modified Rebuy
Straight Rebuy
Utilities
Office Supplies
Bulk chemicals

18. Participants in the Business Buying Process
Users
Initiators
Influencers
Gatekeepers
Buyers
Deciders
Approvers

19. Major Influences on Industrial Buying Behavior
Level of
demand
Economic
outlook
Interest rate
Rate of techno-
logical change
Political and
regulatory
developments
Competitive
Social responsi-
bility concerns
Environmental
Objectives
Policies
Procedures
Organizational
structures
Systems
Interests
Authority
Status
Empathy
Persuasive-
ness
Interpersonal
Age
Income
Education
Job position
Personality
Risk attitudes
Culture
Individual
Business
Buyer

20. Info Search/ Eval Purchase Post Purchase
Problem Recognition
Need
Recognition
General Need Description
Product Specification
Info
Search/
Eval
Supplier Search
Proposal Solicitation
Supplier Selection
Purchase
Order Routine Specification
Post
Purchase
Performance Review

21. Government Markets Domestic Suppliers Cost Minimization Paperwork
Open Bids
Public Review