INTRODUCTION TO MARKETING BUS108

Marketing Concepts
Consumer buyer behavior - The buying behavior of final consumers— individuals and households that buy
goods and services for personal consumption.

Business buyer behavior - refers to the buying behavior of the organizations that buy goods and services for
use in the production of other products and services that are sold, rented, or supplied to others. It also includes
the behavior of retailing and wholesaling firms that acquire goods to resell or rent them to others at a profit.

Market - refers to the group of consumers or organizations that is interested in the product, has the resources
to purchase the product, and is permitted by law and other regulations to acquire the product.

Consumer market - All the individuals and households that buy or acquire goods and services for personal
consumption.

Business markets - is the process of selling your product and services to other businesses, where those
products and services will either be used as a raw material for the manufacturing of other product.

(4) Major Factors that influence Consumer Buyer Behavior.

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The Stages in the Buyer Decision Process.
1. Need Recognition
The first stage of the buyer decision process,
in which the consumer recognizes a problem
or need. The need can be triggered by internal
stimuli when one of the person’s normal needs
—for example, hunger or thirst—rises to a
level high enough to become a drive. A need
can also be triggered by external stimuli. For
example, an advertisement or a discussion
with a friend might get you thinking about
buying a new car. At this stage, the marketer
should research consumers to find out what
kinds of needs or problems arise, what brought
them about, and how they led the consumer to
this particular product.

2. Information Search
An interested consumer may or may not search for more information. If the consumer’s drive is strong and a
satisfying product is near at hand, he or she is likely to buy it then. If not, the consumer may store the need in
memory or undertake an information search related to the need. For example, once you’ve decided you need a
new car, at the least, you will probably pay more attention to car ads, cars owned by friends, and car
conversations. Or you may actively search the Web, talk with friends, and gather information in other ways.
Consumers can obtain information from any of several sources. These include personal sources
(family, friends, neighbors, acquaintances), commercial sources (advertising, salespeople, dealer
Web sites, packaging, displays), public sources (mass media, consumer rating organizations, Internet searches),
and experiential sources (handling, examining, using the product). The relative influence of these information
sources varies with the product and
the buyer. Generally, the consumer receives the most information about a product from commercial sources—
those controlled by the marketer. The most effective sources, however, tend to be personal.

3. Evaluation of Alternatives
The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands
in the choice set. The consumer arrives at attitudes toward different brands through some evaluation procedure.
How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific
buying situation. In some cases, consumers use careful calculations and logical thinking. At other times, the
same consumers do little or no evaluating; instead they buy on impulse and rely on intuition. Sometimes
consumers make buying decisions on their own; sometimes they turn to friends, online reviews, or salespeople
for buying advice. Suppose you’ve narrowed your car choices to three brands. And suppose that you are
primarily interested in four attributes—styling, operating economy, warranty, and price. By this time, you’ve
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probably formed beliefs about how each brand rates on each attribute. Clearly, if one car rated best on all the
attributes, the marketer could predict that you would choose it. However, the brands will no doubt vary in
appeal. You might base your buying decision on only one attribute, and your choice would be easy to predict. If
you wanted styling above everything else, you would buy the car that you think has the best styling. But most
buyers consider several attributes, each with different importance.

4. Purchase Decision
In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer’s
purchase decision will be to buy the most preferred brand, but two factors can come between the purchase
intention and the purchase decision. The first factor is the attitudes of others. If someone important to you
thinks that you should buy the lowest priced car, then the chances of you buying a more expensive car are
reduced. The second factor is unexpected situational factors. The consumer may form a purchase intention
based on factors such as expected income, expected price, and expected product benefits. However, unexpected
events may change the purchase intention. For example, the economy might take a turn for the worse, a close
competitor might drop its price, or a friend might report being disappointed in your preferred car. Thus,
preferences and even purchase intentions do not always result in actual purchase choice.

5. Post-purchase behavior
The stage of the buyer decision process in which consumers take further action after purchase based on their
satisfaction or dissatisfaction with a purchase. What determines whether the buyer is satisfied or dissatisfied
with a purchase? The answer lies in the relationship between the consumer’s expectations and the product’s
perceived performance. If the product falls short of expectations, the consumer is disappointed; if it meets
expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap
between expectations and performance, the greater the consumer’s dissatisfaction. This suggests that sellers
should promise only what their brands can deliver so that buyers are satisfied.

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Adoption Process for New Products.

Stages in the Adoption Process

Consumers go through five stages in the process of adopting a new product:

Awareness: - The consumer becomes aware of the new product but lacks information about it.

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Interest: - The consumer seeks information about the new product.
Evaluation:- The consumer considers whether trying the new product makes sense.
Trial: - The consumer tries the new product on a small scale to improve his or her estimate of its value.
Adoption: - The consumer decides to make full and regular use of the new product.

(4) Major Factors that influence Business Buyer Behavior.

Steps in the Business Buying Decision Process.

Unlike consumer buying habits, businesses usually have a more formal approach toward purchasing. Rather
than make impulse purchases, businesses will compare prices, compare suppliers and compare the quality of
goods and services before completing a sale. Although some companies may spend more time on specific steps
in the process or they may eliminate certain steps altogether, most business-to-business purchases can be
divided into eight distinct steps.

1. Problem recognition
The first stage of the business buying process in which someone in the company recognizes a problem or need
that can be met by acquiring a good or a service.

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2. General need description
The stage in the business buying process in which a buyer describes the general characteristics and quantity of a
needed item.

3. Product specification
The stage of the business buying process in which the buying organization decides on and specifies the best
technical product characteristics for a needed item.

4. Supplier search
The stage of the business buying process in which the buyer tries to find the best vendors.

5. Proposal solicitation
The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.

6. Supplier selection
The stage of the business buying process in which the buyer reviews proposals and selects a supplier or
suppliers.

7. Order-routine specification
The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s),
listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties.

8. Performance review
The stage of the business buying process in which the buyer assesses the performance of the supplier and
decides to continue, modify, or drop the arrangement.

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 REFERENCES
Kotler P, Amstrong G, (2012) Principles of Marketing(14thEdn)Pearson Prentice Hall

http://www.netmba.com/marketing/market/definition/
https://smallbusiness.chron.com/eight-stages-business-buying-decision-process-21820.html