Lesson 5 Buying behavior of consumers and organizations – Analyzing consumer and business markets

n     Consumers´ decision process and buying behavior

n     Types of consumers´purchasing decisions

n     Nature of organizational markets (b2b markets) and goods and services purchased

n     Organizational buying behavior

Consumer behaviour

n  study of how people buy, what they buy, when they buy and why they buy

n   it blends elements from psychology, sociology, sociopsychology, anthropology and economics

n  it attempts to understand the buyer decision processes/buyer decision making process

n  it studies characteristics of consumers such as demographics, psychology,...

The Consumer Buying Process

Marketing Inputs

Product

Price

Promotion

Place

Demographic Factors

n  Age �

n  Stage in family life cycle (single, married, married with children, „empty nest“, retired

n  Occupation

n  Economic circumstances

n  Lifestyle

n  social influence variables

n  family background

n  reference groups

n  roles and status

Reference groups/opinion leader

n  reference group – people to whom an individual looks when forming attitudes about a particular
topic

n  opinion leader – a person who influences others (each social class and age group tends to have
its own opinion leader)

n  culture – beliefs , attitudes and ways of doing things

Family as a Purchasing Unit

n   Úplné rodiny = mother-and-father families

n   Neúplné rodiny = single parent families

n   Nerodinné domácnosti = unmarried couples

n   Domácnosti jednotlivců = singles



The PSSP Hierarchy of Needs



The Learning Process

Lifestyle Dimensions

Social Class Dimensions

The Consumer Problem Solving Process

Types of Buying Decisions

The Adoption Process

Adoption of Innovations

Organisational Buyer Behaviour

    ‘The decision-making process by which formal organisations establish the need for purchased
 products and services, and identify, evaluate, and choose among alternative brands and suppliers’



                                                                          Kotler and Armstrong 1989



n   Few customers

n   Big customers (size of contract)

n   Strong relations in B2B

n   B2B related to B2C

n   Professional teams of negotiators

Overlapping Needs

Buying Center

Organizational Buying Processes

Buyer-Seller Relationships

Conclusions

n  Many variables influencing the behaviour of people

n  The sum of variables will result to a byuing decision

n  Most purchasing has several steps, begins with a need and finished with reconfirmation

n  Organizational behaviour is different as the motivation is different too