Unit1

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Buyer Behaviour -Who buys, why, when and where?

Subhajit Sanyal

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

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)

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)

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?

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

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B 10

C1 24

C2

D

30

25

E8

Indian household distribution

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Source: NCAER (2003) India Market Demographics Report – 2002, New Delhi: NCAER

Urban rural household incomes

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Source: NCAER (2003) India Market Demographics Report – 2002, New Delhi: NCAER

Occupational income distribution

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Source: NCAER (2003) India Market Demographics Report – 2002, New Delhi: NCAER

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

Personal Influences

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• Gender• Race/caste/community• Physical attributes• Colour• Culture• Subculture• Religion• Nationality

Large Group Influences

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• Standard of living• Materialism• Political correctness• Laws and conformity• Value of education• Value of professions

Small group influences

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• Values• Morals• Ethics• Aspiration• (Motivations)

Unpredictable’s

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• Climate• Health• Mental state• Previous activities• Relationships• Time available• Future activities

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

The exchange process in organisational buying

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Information

Product

Financial

Social

Selling company

Buyingcompany

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.

Organisational Roles in Buying

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• User• Influencer• Decider• Buyer• Gatekeeper

Refreshing Break

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THANK YOU FOR YOUR

ATTENTION.

Have you prepared your case study?