Model Of Business Buyer Behavior And Consumer Buyer

Model of business buyer behavior and consumer buyer behavior

Consumer Buying Behavior

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Refers to the buying behavior of people who buy goods and services for personal use. These people make up the consumer market. The central question for marketers is:

“How do consumers respond to various marketing efforts the company might use?”

Model of Buyer Behavior

Factors Influencing Consumer Behavior

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Culture is the most basic cause of a person's wants and behavior. – Culture is learned. – Culture reflects basic values, perceptions, wants, and behaviors. – Cultural shifts create opportunities for new products or may otherwise influence consumer behavior. – Subcultures are of interest to marketers. – Social class

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Society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

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Measured by a combination of: occupation, income, education, wealth, and other variables.

Personal Factors •

Lifestyle:

– Pattern of living as expressed via a person’s activities, interests, and opinions. •

Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment. • Generally defined in terms of traits. • Self-concept suggests that people’s possessions contribute to and reflect their identities.

Buyer Decision Process

Model of Business Buyer Behavior

Stages in buying process

Market Research techniques

Secondary Research Information already collected for another purpose • • • • • • • • • • • • •

Internal Company Accounts Internal Reports and Analysis Previous company research Retail data - loyalty cards, purchase data, etc. Customer feedback Salespeople feedback External Government Statistics Trade publications Magazine surveys Other firms’ research Published research documents – publications, journals, etc.

Primary Research •

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Qualitative Research – Discovery/identification of new ideas, thoughts, feelings – Preliminary insights/understanding of ideas – Open-ended questions – Results cannot be generalized Types: – Customer Interviews – Focus Groups – Observation

Market Research •

Advantages of Market Research – Helps focus attention on objectives – Aids forecasting, planning and strategic development – May help to reduce risk of new product development – Communicates image, vision, etc. – Globalisation makes market information valuable (HSBC adverts!!)

Exploratory Research • Initial research conducted to clarify and define the nature of a problem • Does not provide conclusive evidence • Subsequent research expected

Descriptive Research • Describes characteristics of a population or phenomenon • Some understanding of the nature of the problem