Buying behavior of consumers and organizations

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

Why do we need to study
consumer behaviour?

Failure rates of new products introduced

Out of 11000 new products introduced by 77 companies, only 56%  are present 5 years later.

Only 8% of new product concepts offered by 112 leading companies reached the market. Out of that
83% failed to meet marketing objectives.



Consumer behaviour

n  study of how people buy, what they buy, when they buy, why they buy..where, with whom, with
what…

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,...

Definition of buyer/consumer behaviour

n  „Activities involved in obtaining, consuming, and disposing of products and services, including
the decision processes that precede and follow these actions”

Buyer/consumer behaviour



Factors affecting consumer behavior: culture

                Culture is the Set of Values, Perceptions, Wants & Behavior Learned by a Member of
                                       Society from Family.

Subculture

Group of people with shared value systems based on  common life experiences.





Social factors affecting behaviour

n   Groups

n  Membership

n  Reference

n  Family (most important)

mother-and-father families,

single parent families

unmarried couples, singles

n  Husband, wife, kids

n  Influencer, buyer, user

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)



Psychological factors affecting behaviour

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