Chap 4 Consumer Markets and Consumer Buyer Behaviour2023

Tunis Business School
2022 - 2023
Fundamentals of Marketing
BCOR 210
Chapter 4
Consumer Markets and Consumer Buyer Behaviour

Business Markets and Business Buyer Behaviour
Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals
1. Define the consumer market and construct a
simple model of consumer buyer behaviour
2. Name the four major factors that influence
buyer behaviour
3. List and understand the types of buying
decision behaviour and stages in the buying
decision process
4. Describe the adoption and diffusion process
for new products
5. Define the business market and explain the
business buyer behavior
Copyright © 2008 Pearson Education Canada 6-2 Principles of Marketing, Seventh Canadian Edition
Consumer Markets
and Consumer
Buyer Behaviour
Definitions
• Consumer buyer behaviour refers to the
buying behaviour of final consumers –
individuals and households who buy
goods and services for personal
consumption
• Consumer Market : All the individuals
and households that buy or acquire goods
and services for personal consumption.
Model
Modelof
ofBuyer
BuyerBehavior
Behavior
Product Marketing
Marketing and
and Economic
Other
Other Stimuli
Stimuli
Price Technological
Place Political
Promotion Cultural
Buyer’s Buyer
Decision Buyer’s
Buyer’s Black
Black Box
Box Characteristics
Process
Purchase
behavior :
what the
Buying attitude
Buyer’s buyers buys;
and preference Buyer’s Response
Response where; how
Brand and much;when
company
relationship
Figure 6.1 (cont.)
Factors Influencing Consumer
Behaviour
Factors Affecting Consumer Behaviour
• Culture
The most basic cause that influence a
• Cultural person’s wants and behaviour
• Social The set of basic values, perceptions,
• Personal wants, and behaviors learned by a
member of society from family and
• Psychological other important institutions
• Subculture
Smaller groups with shared value
systems
• Social Class
– Society’s divisions who share values,
interests and behaviours
Factors Affecting Consumer behaviour
• Groups Two or more people who interact
to accomplish individual or mutual goals.
• Cultural Membership group: groups that have a direct
influence and to which a person belongs
• Social
Reference group : serve as direct or indirect
• Personal points of comparison or reference in
• Psychological forming a person’s attitude or behavior
( like aspirational group is one to which the
person wishes to belong )
Opinion leaders :A person within a
reference group who, because of special
skills, knowledge, personality, or other
characteristics, exerts social influence on
others. marketers must figure out how to
reach them
• Family
– Many influencers : wife-husband-
• Cultural
children.
• Social – The interaction between
• Personal partners/spouses and the number
• and ages of children (if any) in the
Psychological family can have a significant effect
on buying behaviour
• Roles and status
The person’s position each group can be
defined in terms of role and status. A
role consists of the activities people
are expected to perform according to
the people around them
• Cultural • Age and life-cycle stage

• Social • Occupation
• Personal • Economic situation
• Psychological • Lifestyle
– AIO - Activities, interests and opinions
– Lifestyle segmentation
• Personality and self-concept
• Motivation
– A need that drives the person to seek
• Cultural satisfaction of the need
• Social • Perception
• Personal
• Psychological – The process by which people select,
organize, and interpret information
• Learning
– Changes in an individual’s behaviour
arising from experience
• Beliefs
– A descriptive thought about something
based on real knowledge, opinion, or
faith
• Attitudes
– A person’s consistently favourable or
unfavourable evaluations, feelings, and
tendencies towards something
The
The Buyer
Buyer Decision
Decision Process
Process
Need
Need Recognition
Recognition
Information
Information Search
Search
Evaluation
Evaluation of
of Alternatives
Alternatives
Purchase
Purchase Decision
Decision
Postpurchase
Postpurchase Behavior
Behavior
The Buyer Decision Process
• Need Recognition
– Triggered by internal (person’s normal needs)
or external stimuli (advertisements, friends)
– Must reach an intensity high enough to
become a drive
• Information Search
– Influenced by level of involvement (interest)
in the decision
– Memory (internal) search
– External search: personal, commercial, public,
experiential sources of information
– Word-of-mouth sources are most influential
(credibility)
• Evaluation of Alternatives
– Evaluation procedure depends on the
consumer and the buying situation
– Attributes and importance weights are chosen
as criteria
– Alternatives compared against the criteria
• Marketers should study buyers to find out how
they actually evaluate brand alternatives. If
marketers know what evaluative processes go
on, they can take steps to influence the buyer’s
decision.
Evaluation
Evaluation of
of Alternatives
Alternatives
Consumer
ConsumerMay
MayUse
UseCareful
Careful
Calculations
Calculations&&Logical
LogicalThinking
Thinking
Consumers
ConsumersMay
MayBuy
BuyononImpulse
Impulseand
and
Rely
Relyon
onIntuition
Intuition
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
.on
.onTheir
TheirOwn
Own
Consumers
ConsumersMay
MayMake
MakeBuying
BuyingDecisions
Decisions
.Only
.OnlyAfter
AfterConsulting
ConsultingOthers
Others
Marketers Must Study Buyers to Find Out

How They Evaluate Brand Alternatives
Purchase Decision: Two factors intercede
between purchase intentions and the actual
decision:
• Attitudes of others : For example : 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
• Unexpected situational factors :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 choice).
• Postpurchase Behaviour :
What the consumer thinks and does after
purchasing and using the product or
service
 Satisfaction: relationship between
consumer’s expectation and product’s
perceived performance
Delighted consumers engage in positive word-of-
mouth.
 Cognitive dissonance : Buyer discomfort
caused by postpurchase conflict.
Buyer Decision Process
for New Products
• New Products
– Good, service or idea that is perceived by customers
as new.
• The Adoption Process
– Mental process through which an individual passes
from first hearing about an innovation to final
adoption.
• Five Stages in the Adoption Process
– Awareness, interest, evaluation, trial, and adoption.
Stages
Stagesin
inthe
theAdoption
AdoptionProcess
Process
Awareness
Awareness
Interest
Interest
Evaluation
Evaluation
Trial
Trial
Adoption
Adoption
Buyer Decision Process
for New Products
• Individual Differences in Innovativeness
– Consumers can be classified into five adopter
categories, each of which behaves differently
toward new products.
Influence
Influenceof
ofProduct
ProductCharacteristics
Characteristics
on
onRate
Rateof
ofAdoption
Adoption
Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
?to others ?products
Product
Product
Divisibility Characteristics
Characteristics Compatibility
Can the innovation Does the innovation
be used on a fit the values and
?trial basis experience of the
?target market
Complexity
Is the innovation
difficult to
?understand or use
Business Markets
and Business Buyer
Behaviour
What
WhatisisaaBusiness
BusinessMarket?
Market?
• Business Buyer Behavior refers to the

buying behavior of all 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.
• The business market is huge and involves

many more dollars and items do consumer
markets.
Characteristics
Characteristics of
of Business
Business Markets
Markets
Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Demand
Demand derivedfrom
derived fromconsumers
consumers
••Fluctuating demand
Fluctuating demand
Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
BBto
toBBpurchase
purchaseInvolves
Involvesmore
moreprofessional
professional
purchasing effort and many participants
purchasing effort and many participants
Types
TypesofofDecisions
Decisions&&the
the
Decision Process
Decision Process
••More
Morecomplex
complexdecisions
decisions
••Process
Processisismore
moreformalized
formalized
••Buyer
Buyer and seller aremore
and seller are more
dependent
dependenton oneach
eachother
other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with customers
with customers
Model
Model of
ofBusiness
BusinessBuyer
BuyerBehavior
Behavior
Product Marketing
Marketing and
and Economic
Other
Other Stimuli
Stimuli
Price Technological
Place Political
Promotion Cultural
The
TheBuying
BuyingOrganization
Organization
Organizational Interpersonal
The Buying Center
Influences and Individual
Buying Decision
Process
Influences
Product or Service Delivery Terms

Choice Buyer’s
Buyer’s Response
Response and Times
Supplier Choice Service Terms
Order Quantities Payment
Business Buying Situations
• Straight rebuy : A business buying situation in
which the buyer routinely reorders something
without any modifications.
• Modified rebuy : A business buying situation in
which the buyer wants to modify product
specifications, prices, terms, or suppliers.
• New task : A business buying situation in which
the buyer purchases a product or service for the
first time.
Participants in the Business Buying Process
Buying Center The decision-making unit of a buying organization. It
consists of all the individuals and units that play a role in
the purchase decision-making process.
The buying center includes all members of the organization
who play any of five roles in the purchase decision process :
1. Users Members of the buying organization who will actually use the
purchased product or service
2. Deciders People in an organization’s buying center who have formal or

informal power to select or approve the final suppliers
3. Buyers People in an organization’s buying center who make an actual

purchase
4. Influencers People in an organization’s buying center who affect the

buying decision; they often help define specifications and also
provide information for evaluating alternatives
5. Gatekeepers People in an organization’s buying center who control the flow

of information to others. ( for example : purchasing agent,
Major
MajorInfluences
Influenceson
onBusiness
Business
Buyer
BuyerBehavior
Behavior
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive
Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure, & Systems
Structure, & Systems
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes
Buyers
Buyers
Stages
Stagesof
ofthe
theBusiness
Business
Buying
BuyingProcess
Process
Problem
ProblemRecognition
Recognition
General
GeneralNeed
NeedDescription
Description
Product
ProductSpecification
Specification
Supplier
SupplierSearch
Search
Proposal
ProposalSolicitation
Solicitation
Supplier
SupplierSelection
Selection
Order
OrderRoutine
RoutineSpecification
Specification
Performance
PerformanceReview
Review

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Tunis Business School

Consumer Markets and Consumer Buyer Behaviour

• Cultural • Age and life-cycle stage

Marketers Must Study Buyers to Find Out

Communicability Relative Advantage

• Business Buyer Behavior refers to the

• The business market is huge and involves

Product or Service Delivery Terms

2. Deciders People in an organization’s buying center who have formal or

3. Buyers People in an organization’s buying center who make an actual

4. Influencers People in an organization’s buying center who affect the

5. Gatekeepers People in an organization’s buying center who control the flow

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