Chapter - 2

Buying Behaviour

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Meaning

 “Consumer behaviour is the process whereby

individuals decide what, when, how and from
whom to purchase goods and services.”
Walters & Packsay

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Consumer Buying Behaviour Model

 Marketing and other stimuli

 Consumer`s Black Box

 Consumer Response

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 Marketing and other stimuli includes:-

Products, Price, Place, Promotion, Economic,
Technological, Political, Culture
 Consumer`s Black Box Includes:-
Consumer psychology (Motivation, Perception,
Learning, Memory)
Consumer Characteristics (Cultural, Social,
Personal)
 Consumer response includes its buying process.

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Factors Affecting Consumer Buying
Behaviour
 Cultural Factors
 Culture
 Sub Culture
 Social Class
 Social Factors
 Family
 Reference Group
1) Membership Group
a) Primary
b) Secondary
2) Aspiration Group
3) Dissociative Group
 Roles and Status 5
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 Personal Factors
 Age and stage in life cycle
 Occupation
 Economic Circumstances
 Life style
 Personality and self concept
 Psychological Factors
 Learning
 Belief.
 Attitude.
 Motivation. 6
Consumer Buying Behaviour Process

1. Problem Identification
a) Internal Stimuli
b) External Stimuli
2. Information Search
 Sources
a) Personal Sources
b) Commercial Sources
c) Public Sources
d) Experimental Sources
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 Search Dynamics
 Price Dominant
 Brand
 Quality
 Special Feature
3. Evaluation of Alternatives
 Benefits and Attitudes
 Expectancy Model.

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4. Purchase Decision
 Factors Affecting at the time of Purchase decision
a) Attitude of others
b) Unanticipated Situation
c) Brand Decision
d) Vendor Decision
e) Quantity Decision
f) Timing Decision
g) Payment Method Decision
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5. Post Purchase Decision

a) Post – Purchase Satisfaction
b) Post – Purchase Action
c) Post – Purchase use and Disposal

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Organisational Buying Behaviour

 “Organisational buying behaviour as the

decision making process by which formal
organisational establish the need for
purchased products and services and identify,
evaluate and choosing among alternative
brands and suppliers.”
Webster & Wind

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Difference between Consumer and Industrial
Buying Behaviour

1. Number of Buyers
2. Close supplier – Customer Relationship
3. Professional Purchasing
4. Multiple Buying Influences
5. Multiple Sales Call
6. Derived Demand
7. Inelastic Demand
8. Geographically concentrated buyers
9. Direct Purchasing
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Factors affecting Industrial Buying
Behaviour
 Environmental Factors
1. Level Of Demand
2. Economic outlook
3. Rate of Interest
4. Technological Changes
5. Political & Regulatory Development
6. Competition

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 Organisational Factors
1. Objective, Mission and Goal
2. Organisational Policy
3. Procedure
4. Organisational Structure
5. System
 Interpersonal Factors
1. Authority
2. Status
3. Influence
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 Individual Factors
1. Age
2. Education
3. Job Position
4. Risk Taking Attitude
5. Personality

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Participants in the business buying
Process
 Initiators
 Users
 Influences
 Deciders
 Approvers
 Buyers
 Gatekeepers

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Industrial Buying Process

 Problem Recognition
1. Internal Stimuli
2. External Stimuli

 General Need Description

 Determine general characteristic and size

 Product specification

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 Supplier Search
 Sources- Trade Directories, from other company,
Trade Advertisement, Trade show, Internet
 Proposal Solicitation
 Supplier Selection
 Place Order
 Performance Review

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