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Unit1
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Buyer Behaviour -Who buys, why, when and where?
Subhajit Sanyal
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Week two - learning outcomes
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o Different types of consumer
o Different types of purchasing
o The buying decision process
o Influences on Buyer Behaviour
o Organisational roles in buying
o Models of Buying Behaviour
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Content of this week’s lecture
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• The Black Box• Types of Buying Decision & The Decision
process• Dissatisfaction • Adoption of Innovation• Industrial Applications
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Person making buying decision
Product purchased or not purchased
Product offerings
Other stimuli
The simple ‘black box’ model of buying behaviour
Adcock et al (2001,pp77)
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Model of buyer behaviour
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Marketing stimuli
Otherstimuli
Buyer’sCharact-eristics
Buyer’sdecision process
Buyer’s decisions
4 P’s
Econ.Tech.Pol.Cult.
Cult.Soc.Pers.Psy.
Prob. recog.Info. searchEval. of alt.Purch. decisionPost-purch.beh.
Pdct. choiceBrand choiceDealer choicePurchase timingPurchase amount
(Kotler, 2003)
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Understanding Customers -Key Questions
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• Who is important?• Why?• How do they buy?• When do they buy? • How often?• Where are purchases made?• What are the selection criteria?
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Consumer buying decision process and possible influences on the process
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Psychological influences
• Perception• Motives• Ability and Knowledge• Attitudes• Personality
Personal influences
• Demographic• Situational• Involvement
Social influences
• Roles and family• Reference groups• Social classes• Culture and subcultures
Evaluation of alternatives
Post -purchase evaluation
PurchaseInformation search
Problem recognition
Feedback
Consumer buying decision process
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TABLE 4.2 Socio-economic classification (JICNARS)TABLE 4.2 Socio-economic classification (JICNARS)Table 4.2 Socio-economic classification (JICNARS)
SOURCE: From Peter M. Chisnall, Marketing: A Behavioural Analysis (Berkshire, England: McGraw-Hill Publishing Co. Ltd, 1976), pp. 114-115. Reprinted by permission.
SOCIAL GRADE SOCIAL STATUS
HEAD OF HOUSEHOLD’S OCCUPATION
APPROXIMATE PERCENTAGE OF
FAMILIES
A Upper middle class
Middle class
Lower middle class
Skilled working class
Working class
Those at lowest levels of subsistence
Higher managerial, administrative or professional
Intermediate managerial, administrative or professional
Supervisory or clerical and junior managerial, administrative or professional
Skilled manual workers
Semi and unskilled manual workers
State pensioners or widows (no other earner), casual or lowest grade workers
3
B 10
C1 24
C2
D
30
25
E8
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Indian household distribution
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Source: NCAER (2003) India Market Demographics Report – 2002, New Delhi: NCAER
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Urban rural household incomes
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Source: NCAER (2003) India Market Demographics Report – 2002, New Delhi: NCAER
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Occupational income distribution
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Source: NCAER (2003) India Market Demographics Report – 2002, New Delhi: NCAER
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A Hierarchy of Influences
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• Socio cultural• Group influences• Influence of individuals• Personal factors• Situational factors• Promotional factors• Product factors • Marketing mix - other elements
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Personal Influences
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• Gender• Race/caste/community• Physical attributes• Colour• Culture• Subculture• Religion• Nationality
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Large Group Influences
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• Standard of living• Materialism• Political correctness• Laws and conformity• Value of education• Value of professions
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Small group influences
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• Values• Morals• Ethics• Aspiration• (Motivations)
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Unpredictable’s
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• Climate• Health• Mental state• Previous activities• Relationships• Time available• Future activities
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Purchase situation
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• Perceived risk• Relative cost• Availability• Choice• Information available• Previous experience• Environment• Others present (their impact)
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Maslow’s Hierarchy
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The exchange process in organisational buying
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Information
Product
Financial
Social
Selling company
Buyingcompany
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Organisational buying decision process and factors that may influence it
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Decision processDecision process
Recognise problem
Develop product specifications to solve problem
Search for products and suppliers
Evaluate products and supplies relative to specifications
Select and order most appropriate products and supplies
Evaluate product and supplier performance
Feed
back
Possible influencing factorsPossible influencing factors
• Competitive factors• Legal and regulatory forces• Economic conditions• Sociocultural issues• Technological changes
• Objectives• Purchasing policies• Resources• Buying centre structure
Environmental
Organisational
Interpersonal
• Co-operation• Conflict• Power relationships
• Age• Education level• Job status• Personality• Income
Individual
SOURCE: Adapted from Frederick E. Webster, Jr, and Yoram Wind, Organisational Buying Bahaviour (Englewood Cliffs, N.J.: Prentice-Hall, 1972), pp. 33-37. Adapted by permission.
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Organisational Roles in Buying
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• User• Influencer• Decider• Buyer• Gatekeeper
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Refreshing Break
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THANK YOU FOR YOUR
ATTENTION.
Have you prepared your case study?