CUSTOMER BEHAVIOR

CUSTOMER BEHAVIOR

1. CONSUMER MARKET AND BUYING BEHAVIOR

   • Model of Consumer Behavior
     • Inputs (Environment): Marketing mix (4Ps): product, price, place, promotion Environmental factors: culture, society, personal, psychological, etc
     • Consumer’s Black Box: Includes: personal characteristics + decision-making process This is the internal thinking process of the consumer (Invisible
     • Outputs (Buyer’s responses): Decision to buy or not What, where, when, how much to buy, and level of brand loyalty
   • Characteristics Affecting Consumer Behavior
     • Cultural: Culture, subculture, and social class affect values, beliefs, and consumer behavior.
     • Social: Includes reference groups, family, roles, and social status
     • Personal: Age, occupation, income, lifestyle, and stage of life.
     • Psychologica: Motivation, perception, learning, beliefs, and attitudes.
   • Types of Buying Decision Behavior
     • Complex buying behavior –high involvement, big brand differences
     • Variety-seeking buying behavior – low involvement, big brand differences
     • Habitual buying behavior –low involvement, few brand differences
     • Dissonance-reducing buying behavior –high involvement, few brand differences
   • The Buyer Decision Process
     • Need Recognition is the first step in the buying process.
     • Information Search = Buyer seeks info → learns → narrows choices.
   • The Buyer Decision Process for New Products
     • The buyer decision process for new products includes: Awareness → Interest → Evaluation → Trial → Adoption
     • Five product characteristics affect adoption speed: Relative Advantage Compatibility Complexity Divisibility Communicability

2. BUSINESS MARKET AND BUSINESS BUYING BEHAVIOR

   • Business Markets
     • Business buyer behavior is how organizations buy goods/services for: Production, resale, or rental to others. Includes retailers and wholesalers. The business buying process involves: Identifying needed products/services Finding, evaluating, and choosing among brands
     • Buying Behavior , More decision participants, More professional purchasing ,Market Structure & Demand Fewer but larger buyers Geographic concentration Derived demand leads to: -Inelastic demand (less sensitive to price) -Fluctuating demand (more unstable Strong buyer–seller dependency
     • Types of Decisions and the Decision-Making Process
   • Business Buyer Behavior
     • Participants in the Business Buying Process: Buying center = All people involved in the buying decision Users: use the product Influencers: suggest or evaluate Buyers: arrange the purchase Deciders: make final decision Gatekeepers: control information flow
     • Major influences on business buyers include: Environmental: economy, competition, technology Organizational: goals, policies, structure Interpersonal: relationships, authority, conflict Individual: age, experience, personality
     • Business buying process includes: Problem recognition → General need description → Product specification → Supplier search → Proposal solicitation → Supplier selection → Order routine specification → Performance review
     • Major Types of Buying Situations Straight Rebuy: Routine purchase with no modifications. Modified Rebuy: Purchase with changes in product, price, terms, or supplier. New Task: First-time purchase requiringextensive research.