Chapter 4: Buying Behaviour,When you finish this chapter, you should,Chapter Objectives,1. Understand the economic-buyer model of buyer behavior. 2. Understand how psychological variables, social influences and the purchase situation affect consumer buying behavior. 3. Know how consumers use problem-solving processes. 4.Know who the business and organizational customers are.,5. Understand the multiple buying influences in a buying center. 6. Understand the problem-solving behaviour of organizational buyers. 7. Know the basic methods used in organizational buying. 8. Understand the important new terms.,1. What does consumer behavior study?,The aim of marketing? Types of consumers (markets): consumer markets (individuals); organization markets (business; governments; nonprofits /social groups). Consumer behavior studies how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. Providing clues for marketing-mix.,7Os,Occupants Objects Objectives Organizations Operations Occasions Outlets,-Who -What -Why -Who -How -When -Where,2. Individual consumer market,2 assumptions Economic buyers: people who know all the facts and logically compare choices in terms of cost and quality received to get the greatest satisfaction from spending their time and money. Economic needs: needs concerned with making the best use of a consumers time and money, as the consumer judges it. Economic buyers do not define or measure “quality”, “cost” or “satisfaction” in the same way.,2.1 A Model of Buyer Behaviour,Stimulus-response model What happens in the buyers consciousness?,2.2 Psychological influences,Psychological variables motivation perception learning attitude and beliefs personality,2.2.1 Motivation theory,Needs: the basic forces that motivate a person to do something. Wants: needs that are learned during a persons life. Drive: a strong stimulus that encourages action to reduce a need. Consumers seek benefits.,Do you know the story? What does it tell us?,Maslows theory Human needs are arranged in a hierarchy, from the most pressing to the least pressing. People will try to satisfy their most important needs first. As soon as that lower-level need is satisfied, it ceases to be a current motivator, and people will try to satisfy the next-most-important need.,The PSSP Hierarchy of Needs,Humans diversified needs,Physiological needs: biological needs (food, shelter) Safety needs: protection and physical well-being (health, security) Social needs: things involve a persons interaction with others ( love, status, sense of belonging) Personal needs: individuals need for personal satisfaction (self-esteem, self-realization, freedom),Marketers may focus on different levels of needs considering the economic development level in the target market. A particular product may satisfy more than one need at the same time. (Can you give an example?),Humans diversified needs and marketing,2.2.2 perception,Perception- how we gather and interpret information from the world around us. Do you pay attention to all the ads around you? Do you remember everything you read?,Selective process Selective exposure: our eyes and minds seek out and notice only information that interests us. Selective perception/ distortion: people screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs. Selective retention: people remember only what they want to remember. Peoples needs affect the selective processes.,2.2.3 The Learning Process,Learning process,Learning - a change in a persons thought processes caused by prior experience. Learning process: Drives- thirst drive Stimuli/cues- a 7 UP sign Response- buying a 7UP Reinforcement- satisfied and buy again, or dissatisfied and no longer buy Help customers gain positive reinforcement. Try to build an association between the product and some cures or images that have positive associations from some other situation.( E.g. smell of lemon with fresh, natural cleanliness.),2.2.4 Beliefs and Attitudes,Beliefs: a persons opinion about something. Beliefs may help shape attitudes but dont necessarily involve any liking or disliking. Attitudes: a person point of view toward something. Attitudes involve liking or disliking. Attitudes lead to expectations Expectation: an outcome or event that a person anticipates or looks forward to, often focusing on the benefits or values from a marketing mix. Performance , expectations and satisfaction.,2.2.5 Lifestyle Dimensions,2.3 Social influences 2.3.1 family,The roles and relative influence of the family member in the purchase- who makes the decisions? (initiator, influencer, decider, buyer, user) Family life cycle - bachelor, newly married couples, full nest, empty nest, etc. Household patterns- traditional, single live-alones, single-parent, “Dink”, gay house, cohabitor household, etc.,2.3.2 Social Class Dimensions,