MARK922 T3 WK4 Lnote CH78 Vping 2sld

9/3/2014
MARK922
MARKETING MANAGEMENT
TRIMESTER 3, 2014 – Week 4
DR. URAIPORN KATTIYAPORNPONG (PING)
pingk@uow.edu.au; Bldg 40, Room 148
Consultation Times:
Wednesday 1100-1200, 15.45-17.15,
Thursday 13.45-15.15
VISIONARY / PASSIONATE / DYNAMIC

CONNECT: UOW
Chapter 7
Consumer behaviour
Objective 1 Define the consumer market and construct a simple
model of consumer buyer behaviour
Objective 2 Name the four main factors that influence consumer
buyer behaviour
Objective 3 List and define the main types of buying decision
behaviour and the stages in the buyer decision process
Objective 4 identify the key components of bounded rationality
and behavioural economics, and discuss the
implications for marketers

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Copyright © 2013 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442549425/Kotler, Burton, Deans, Brown, Armstrong /Marketing/9e
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A model of consumer behaviour

Understanding the whys of buying behaviour is very difficult

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Characteristics influencing
consumer behaviour

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Cultural factors
Culture is the set of

basic values, Sub-
perceptions, wants and Culture
culture
behaviours learned by a
member of society from
family and other Social class
important institutions

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Social factors –
Groups and social networks
Reference
Groups
groups
Memberships Aspirational
groups groups
Online Buzz
leaders marketing
Online social
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Family and household

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Roles in the buying process

Roles and status
Initiator
• A person can belong to
User Influencer many groups – family,
clubs, organisations, online
Buying
Decision communities. The person’s
position in a group can be
defined in terms of both
Buyer Decider role and status.

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Personal factors
• People change the goods and services they buy over
Age and life-cycle stage their lifetime
• A person’s occupation affects the goods and services

Occupation bought
• A person’s economic situation will affect their product

Economic situation choice
• People coming from the same subculture, social class

Lifestyle and occupation may live quite different lifestyles
Personality and self-

© Commonwealth of Australia, reproduced by permission
• Brand personality is the specific mix of human traits that
are attributed to a particular brand
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Psychological factors
• A motive is a need that is sufficiently pressing to direct the
Motivation person to seek satisfaction of the need
• The process by which people select, organise and interpret

Perception information to form a meaningful picture of the world
• Changes in an individual’s behaviour arising from experience

Learning
• A descriptive thought or conviction that a person holds about

Beliefs and attitudes
© Commonwealth of Australia, reproduced by permission
something
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Types of buying decision behaviour

Some purchases are simple and routine, even habitual.
Others are far more complex

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The buyer decision process

The actual purchase decision is part of a much larger
buying process

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Bounded rationality
and behavioural economics
Segregation
Mental
and
accounting
integration
Losses are
weighted more
heavily than
gains
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Summary
• The consumer market is made up of all the individuals and households who buy
or acquire goods and services for personal consumption.
• Consumer buyer behaviour is influenced by four key sets of byer characteristics:
cultural, social, personal and psychological.
• Stages in the buyer decision process include problem recognition, information
search, evaluation of alternatives, purchase decision and post-purchase
behaviour.
• In practice, people make decisions based on bounded rationality – that is, based
on the limited information that they have – and on their limited ability to make
the best choice. Behavioural economics studies how people make decisions when
an outcome is uncertain, and how relatively predictable departures occur from
what might be considered ‘rational’ behaviour.

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Chapter 8
Business-to-business marketing
Objective 1 Describe the structure of business-to-business markets
and the nature of demand
Objective 2 Describe the business buyer behaviour model, and identify the
three types of buying situations it applies to
Objective 3 Discuss the participants in the business-to-business buying
centre, and describe the major influences on them
Objective 4 Identify and define the eight steps in the business buying
process, and compare and contrast these with the consumer
market
Objective 5 Understand the growth and importance of e-procurement
(buying on the internet)
Objective 6 Identify the differences between business markets, institutional
markets and government markets.
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Business-to-business markets
Business or
Reseller Business markets operate
industrial ‘behind the scenes’ to most
market
market consumers
Institutional Government
market market

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Characteristics of business markets

Market structure and demand
The nature of the buying unit
Types of decisions and the decision

process involved
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Market structure and demand

Close buyer-
Fewer buyers Larger buyers supplier
relationships
Geographically
Derived Inelastic
concentrated
demand demand
buyers
Market
VISIONARY / PASSIONATE / DYNAMIC fluctuation
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Nature of the buying unit
Professional More purchase

purchasing participants

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Types of decisions
and the decision process
More
complex
More
Leasing formalise
d

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More dependent
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Industry classification schemes

It allows analysis and comparisons across sectors, over time and between
countries

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Industry classification schemes (con’t)

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Business buyer behaviour

It differs from consumer buyer behaviour in a number of important ways.
An important difference is the types of decisions that are made by
businesses.

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Main types of buying situations

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Participants
in the business buying process
Users
Gatekeepers Influencers
Deciders Buyers

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Major influences on business buyers

Business buyers are subject to many influences when they make
their buying decisions

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The business buying process

The effort spent on each of the eight steps varies according to the
complexity of the purchase

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E-procurement: business buying on the
There are clear

cost savings to be
made when
purchasing online
and many
companies are
realising this
advantage

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Institutional and government markets
Institutional • Schools, universities, hospitals, nursing homes,

prisons and other institutions
markets
• Major influences on government buyers (e.g.,
Government environmental, organisational, interpersonal

and individual factors)
• Government buyer decision process:
markets
government buying practices often seem
complex and frustrating to suppliers
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Summary
• The B-to-B market comprises all • The business buying decision process itself can
organisations that buy goods and be quite involved, with eight basic stages:
services for use in the production of problem recognition, general need description,
other product and services, or for the product specification, supplier search, proposal
purpsoe of reselling or renting them to solicitation, supplier selection, order-routine
others at a profit. specification and performance review.
• Business buyers make decisions that • Recent advances in information technology
vary with the three types buying have given birth to ‘e-procurement’, by which
situations: straight rebuys, modified business buyers are purchasing all kinds of
rebuys and new tasks. products and services online.
• The decision-making unit of a buying • The institutional market consists of schools,
organisation, the buying centre, can hospitals, universities, prisons, and other
consist of many different persons institutions. The government market consists
playing many different roles. of government units – federal, stat and local.

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9/3/2014

VISIONARY / PASSIONATE / DYNAMIC

VISIONARY / PASSIONATE / DYNAMIC

A model of consumer behaviour

VISIONARY / PASSIONATE / DYNAMIC

VISIONARY / PASSIONATE / DYNAMIC

Culture is the set of

VISIONARY / PASSIONATE / DYNAMIC

Family and household

VISIONARY / PASSIONATE / DYNAMIC

Roles in the buying process

VISIONARY / PASSIONATE / DYNAMIC

• A person’s occupation affects the goods and services

• A person’s economic situation will affect their product

• People coming from the same subculture, social class

Personality and self-

• The process by which people select, organise and interpret

• Changes in an individual’s behaviour arising from experience

• A descriptive thought or conviction that a person holds about

Types of buying decision behaviour

VISIONARY / PASSIONATE / DYNAMIC

The buyer decision process

VISIONARY / PASSIONATE / DYNAMIC

VISIONARY / PASSIONATE / DYNAMIC

VISIONARY / PASSIONATE / DYNAMIC

Characteristics of business markets

The nature of the buying unit

Types of decisions and the decision

Market structure and demand

Nature of the buying unit

Professional More purchase

VISIONARY / PASSIONATE / DYNAMIC

VISIONARY / PASSIONATE / DYNAMIC

Industry classification schemes

VISIONARY / PASSIONATE / DYNAMIC

Industry classification schemes (con’t)

VISIONARY / PASSIONATE / DYNAMIC

Business buyer behaviour

VISIONARY / PASSIONATE / DYNAMIC

Main types of buying situations

VISIONARY / PASSIONATE / DYNAMIC

VISIONARY / PASSIONATE / DYNAMIC

Major influences on business buyers

VISIONARY / PASSIONATE / DYNAMIC

The business buying process

VISIONARY / PASSIONATE / DYNAMIC

E-procurement: business buying on the

There are clear

VISIONARY / PASSIONATE / DYNAMIC

Institutional and government markets

Institutional • Schools, universities, hospitals, nursing homes,

• Major influences on government buyers (e.g.,

Government environmental, organisational, interpersonal

VISIONARY / PASSIONATE / DYNAMIC

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