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1、CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT Lecture 2: Buyer Behaviour in Consumer and Organisational MarketsLecture ObjectiveslBuyer BehaviourlConsumer Decision Making ProcesslCharacteristics of Organisational BuyingCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT 2Understanding customersHow d
2、o they buy?What are their choice criteria?CustomersWho is important?Where do they buy?When do they buy?CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT The Consumer Decision-Making ProcessNeedrecognition/problemawareness9InformationsearchEvaluationOf alternativesPurchasePost-purchaseevaluation of al
3、ternativesCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT Choice Criteria Used When Evaluating Alternatives5Technical-Technical-Reliability DurabilityPerformanceStyle/looksComfortDeliveryConvenienceTasteEconomic-Economic-PriceValue for moneyRunning costsResidual valueLife style costsSocial-Social-S
4、tatusSocial belongingConventionFashionPersonal-Personal-Self-imageMoralsEmotionsCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT 8Determinants of the extent of problem solvingSelf-imagePerceived riskSocial factorsHedonismDifferentiation and number of alternativesLevel of involvementTime pressureExte
5、nt of problem solvingCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT The consumer decision-making process and level of purchase involvement10StageLow InvolvementHigh InvolvementNeed recognition problem awarenessMinorMajor personality importantInformation searchLimited searchExtensive searchEvaluati
6、on of alternatives and the purchaseFew alternatives evaluated on few choice criteriaMany alternatives evaluated on many choice criteriaPost-purchase evaluation of the decisionLimited evaluation media searchExtensive evaluation including media searchCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT So
7、nyThe importance of emotion and the relationship between feelings and rationalisations is highlighted in this Sony ad.4CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT OrangeMarketers use colour to convey meaning in this advertisement11CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT 12Ford KaMarket
8、ers use colour to convey meaning in this advertise-mentCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT Consumer or Organisational Products Why was the product Purchased ? For personal or household useFor use in the operation of a business or organisation.To manufacture other productsFor resale to o
9、thersORGANISATIONALPRODUCTCONSUMER PRODUCT2CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT Some Examples of Organisational BuyingPaper cups by McDonaldsComputer chips by ToshibaConcrete by Local AuthoritiesOil by Electricity GeneratorsFertiliser by FarmersAccountancy services by Ltd. CompaniesTVs b
10、y Comet or Dixons 3CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT 4Characteristics of Organisational BuyingDerived demandNegotiationsRisksReciprocalbuyingNature and size of customersComplexity of buyingEconomic and technical choice criteriaBuying to specific requirementsOrganisationalPurchasesCHAN
11、AKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT The Buying CentreBuyerDecider(Decision Maker)UserGatekeeperInfluencer5Users actually use the product. They may be the one who initiates the purchase process and may develop the product specification.Influencers supply information and advice. Outsiders suc
12、h as consultants sometimes perform the role.Gatekeepers control the flow of information to the buying centre. Purchasing department Staff frequently fill the role but it could be any member of the organisation.Buyers choose suppliers and negotiate purchaseterms often reducingthe actual purchase to a
13、 clerical task.Deciders (Decision Makers) have the authority to approve the purchase.CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT 6Buy phases: the organizational decision-making processRecognition of a problem (need)Determination of specification and quantity of needed itemSearch for and qualifi
14、cation of potential sourcesAcquisition and analysis of proposalsEvaluation of proposals and selection of supplier(s)Selection of an order routinePerformance feedback and evaluationCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT 8VodaphoneVodaphone recognise the importance of economic choice criteri
15、a in organisational buyingCHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT 9Influences on organizational purchasing behaviourlstraight re-buylmodified re-buylnew taskBuy classOrganizational buyerlproduct constituentslproduct facilitieslMROsProduct typeImportance of purchaseCHANAKA JAYAWARDHENABSP 02
16、2 MARKETING MANAGEMENT New Task Buying The organisation makes an initial purchase of an item to be used to perform a new job or to solve a new problem. Often this involves development of specifications for products and suppliers as well as procedures for future purchases. High information requiremen
17、t from many suppliers.Example: new IT facility11CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT Modified RebuyWhen a new task purchase is changed on repeat purchases. The buyer may require faster delivery lower prices or modified specifications. Regular suppliers become more competitive and new sup
18、pliers may be included in the selection. Moderate amounts of information are required.Example: upgrading office software12CHANAKA JAYAWARDHENABSP 022 MARKETING MANAGEMENT Straight RebuyThe buyer purchases the same products again routinely under approximately the same terms of sale. Suppliers are familiar, have provided satisfactory service in the past and may even have set
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