CHAPTER 5

CONSUMER AND BUSINESS BUYING BEHAVIOR

 THE CONSUMER MARKET
• Refers to the market where people buy products for personal use and are
not intended for further sale to other people.

• TYPES OF CONSUMER MARKETS

- Food and beverages
- Retail Stores
- Fast moving consumer products and transportation.
 CONSUMER BUYING PROCESS
• A sequence of steps that a consumer will need to undergo in order to arrive
at the final purchasing decision. There are basically several steps in the
standard model of consumer purchase decision making. These steps consist
of recognition of;
- Needs and Wants
- Information Search
- Evaluation of choices
- Purchase
- Post-Purchase evaluation
 TYPICAL BUYING PROCESS
• According to Philip Kotler, the typical buying process involves five (5) stages
the purchase passes through described as under;
- Problem Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Purchase
- Post-Purchase Evaluation
 SITUATIONAL INFLUENCES
ON CONSUMER BEHAVIOR

• Short-Term conditions that shape how buyers behave, whether they actually
buy a product, buy additional products, or buy nothing at all from a store.
• Consumer react to the following;
- Temporal Perspective
- Time pressure
- Time of year
- Time of day
- Purchase Task
- Social Surrounding
 SITUATIONAL INFLUENCES
ON CONSUMER BEHAVIOR
- Atmospherics in the Physical Surroundings
- Point-of-purchase display
- Color
- Smell
- Music
- Crowds
- Promotional deals
- Stock-out
- Antecedents State
- Momentary moods
- Momentary condition
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

• Human psychology has an important role to play in manipulating the

consumer’s preferences and likes or dislikes for a specific product and
services.
- Motivation ( Maslow’s Hierarchy of needs)
- Physiological needs
- Safety and Security
- Love and Belonging
- Esteem
- Self-actualization
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR

- Perception
- Selective attention
- Selective distortion
- Selective retention
- Learning
- Conditional Learning
- Values, Beliefs, and Attitudes
 SOCIO-CULTURAL INFLUENCES
ON CONSUMER BEHAVIOR

• Social factors are the factors that are common in the society where a
consumer resides. Cultural factors are the factors that an individual learns
while growing up due to socialization with in the family and other key
institutions.
- Reference groups - The marketers should strive to discover the rules with
the reference group that influences the behavior of others, such as;
- Initiator
- Influencer
- Decision maker
- Buyer
 SOCIO-CULTURAL INFLUENCES
ON CONSUMER BEHAVIOR

- Roles and Status

Status is the position a person occupies in a particular situation. Role is
a set of norms, values, behaviors, and personality characteristics connected to
a status.
- Family
There are basically two ways in which the family can have an
influence on the buying preferences and behavior of an individual which are;
1. Influences the personality, attitude, beliefs, and characteristics of a person.
2. Influences the decision-making of a person on the acquisition of some
goods and services.
 SOCIO-CULTURAL INFLUENCES
ON CONSUMER BEHAVIOR

- Two types of families, namely;

1. Family of Orientation
2. Family of Procreation
- Family Life Cycles
- Single/Bachelor stage - Empty nest I
- Newly married couples - Empty nest II
- Full nest I - Solitary survivor
- Full nest II - Retired solitary survivor
- Full nest III
 SOCIO-CULTURAL INFLUENCES
ON CONSUMER BEHAVIOR

- Social Class
relatively a permanent and ordered division in the society whose
members share the same value, interest and behavior.
- Culture
refers to the beliefs, customs, rituals and practice that a particular
group of people follows.
- Subculture
culture can be further divided into subculture wherein the people are
categorized more particularly based on their shared customs and beliefs.
 PERSONAL INFLUENCES
ON CONSUMER BEHAVIOR

• Personal factors are the individual features of customers that highly control their
buying behavior.
- Age
- Centennials (under the age of 21)
- Millennials (age 22-37)
- Generation X (age 38-52)
- Baby Boomers (age 52-73)
- Gender
- Education
- Occupation
- Lifestyle
 ECONOMIC INFLUENCES
ON CONSUMER BEHAVIOR

• Are the features that speaks about the level of sales in the market and the
financial position of the costumers.
- Personal Income
- Family Income
- Income Expectations
- Consumer Credit
- Liquid Assets and Savings of the Consumer
 THE BUSINESS MARKET
• Consists of all organizations that obtain goods and services used in the
production of other products or services that are sold, rented or supplied to
others.
Types:
-Industrial Markets
- consists mainly of companies making business in durable goods
such as machinery, materials, chemicals vehicles and office furniture and
supplies.

-Resale Markets
- purchases finished products and retrade them their customers
for the intention of making profit.
 THE BUSINESS MARKET
-Government Markets
- government organizations are the key buyer of goods and
services.

-Institutional Markets
- includes schools, hospitals, nursing homes, prisons and other
institutions that must be supplied with goods and services to people in their
care.
 BUYING SITUATIONS
IN THE BUSINESS MARKET

• Business buyers face loads of decisions in making a purchase. Following are

the three types of business buying situations.
- Straight Rebuy
the prior routine order is made by the industrial business buyer
without any adjustments.
- Modified Rebuy
a certain business wants to change its order in respect of
specification of product, its price or terms and so on.
- New task
when a business buys an exact product or service for the first
time, then this case is called new task buying.
 PARTICIPANTS IN THE BUSINESS
BUYING PROCESS

• Business Buying behavior has become complex also because of the

participation and interest of many people in the buying process, besides the
various nature of the products being PURCHASED.

DIFFERENT PEOPLE PLAY DIFFERENT ROLES IN THE BUYING PROCESS:

- INITIATORS- are those who start the buying process.

- INFLUENCERS- are those people who give information and put in

decision standards during the buying process.
 PARTICIPANTS IN THE BUSINESS
BUYING PROCESS

- DECIDERS- are those who have power to choose a supplier.

- USERS- are individuals or groups that use the product.

- BUYERS- they are focused on the value that they want to gain.

- GATEKEEPERS- controls the flow of information, or allows or prevents

access to a DMU member.
 BUSINESS BUYING PROCESS
• It is a quite different from the consumer buying process, because in this case
the business market is involved in different set of characteristics and
demands.

The business buying process is split into eight stages. These stages are as
follows:
-Problem Recognition
-Description of General Need
-Specification of the Product
 BUSINESS BUYING PROCESS
-Search of the Supplier
-Proposal Solicitation
-Selection of Supplier
1. Quality of the product
2. Delivery Time
3. Ethical corporate behavior
4. Reasonable price
5. Honest communication
6. Past performance and reputation
7. Repair and maintenance services etc.
 BUSINESS BUYING PROCESS
-Order Routine Specification
-Performance Review
 THE NOTS

Thank you 
Reporters;

Pacnot

Lanot

Chanot

Rafanot

Vernot