Consumer and Buyer Business Behaviour

Consumer and Business Buyer Behaviour

a. model of customer behaviour

• Consumer buyer behavior: the buying behavior 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 of consumer behaviour:

b. characteristic affecting consumer behaviour

• factors influencing consumer behaviour:

c. types of buying desion behaviour

• 4 types of buying behaviour:

d. the buyer decision process

• occurs when the buyer recognizes a problem or need triggered by:
• internal stimuli
• external stimuli
• sources of information:
• personal sources: family and friends
• commercial sources: advertising and internet
• public sources: mass media and consumer organizations
• experiental sources: handling, examining, and using the product 
• evaluation of alternatives: how the consumer uses information to evaluate alternative brands in the choice set.
• purcahse decision: 
• consumer rank brands and forms purchase intentions in the evaluation stage.
• can be affected by:
• attitudes of others
• unexpected situational factors
• postpurchase behaviour: costumer will react after purachasing the product, either be satisfied or dissatisfied.
• relationship between: ( the larger the gap between expectation and performance, the greater the consumer's dissatisfaction)
• consumer's expectaions 
• product's preceived performance
• cognitive dissonance: the discomfort caused by a post- purchase conflict.

e. the buyer decision process for new product

• new product: a good, service, or idea that is preceived by some potential costumers as new.
• adoption process: the mental process through which an individual passes from first hearing abot an innvation to final adoption.
• stages in adoption process:

f. business markets

• Business buyer behavior: the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. 
• Business buying process: the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands.
• market structure and demand: 

• nature of the buying unit: 
• more complex 
• more decsion participants
• more professional purchasing effort
• supplier development: systematic development of networks of the supplier partners to ensure and appropriate and dependable supply of products and materials that they will use in making their own products or resell.

g. business buyer behaviour

• 4 major types of 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 specification, prices, terms, or suppliers.
• New task: a buying business situation in which the buyer purchases a product or service for the first time.
• Systems selling (solutions selling): buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

• participants in the business buying process:
• buying center: all of the individuals and units that play a role in the purchase decision making process.
• the buying process:
• E- procurement: purchasing through electronic connections between buyers and sellers. usually online, dine in several ways: reverse auctions, online trading exhcange, company buying sites, extranet links with key suppliers.
• advantages:
• Access to new suppliers
• Lowers costs
• Speeds order processing and delivery
• Shares information
• Sales
• Service and support
• disadvanatges: 
• Can erode relationships as buyers search for new suppliers
• Security

h. institutional and government markets

• Institutional markets :consist of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care.
• Characteristics:
• Captive patrons
• Low budgets
• Government markets :Consist of governmental units – federal, state, and local – that purchase or rent goods and services for carrying out the main functions of government.
• Characteristics:
• Tend to favor domestic suppliers and require suppliers to submit bids and normally award to the lowest bidder
• Affected by environmental factors
• Non-economic factors considered – minority suppliers, depressed suppliers, small businesses