3. Buyer Behaviour

Question 1

B2C characteristics

Answer 1

Emphasis on personal/family need
Short decision making process
Impulse based
Standardised products
Small quantities frequently 
Easy to switch suppliers

Question 2

B2B characteristics

Answer 2

Emphasis on economic benefit
Lengthy, formalised discussion
Relationship based 
Customised product package 
Buy large quantities infrequently 
Negotiate on price
Will find it v. difficult to switch suppliers

Question 3

Outline the consumer decison-making process

Answer 3

Problem recognition

Information search (media, recommendations, SM)

Information evaluation (criteria)

Decision

Post-purchase evaluation
(Festinger - post purchase dissonance)

Question 4

What influences buyer behaviour?

Answer 4

Both environmental and psychological (personal) factors

Question 5

What is post-purchase dissonance and how can it be reduced?

Answer 5

When the buyer makes a decision on what product to buy, there is a feeling of psychological discomfort and all alternative products that were rejected seem more attractive.
Affects likelihood of repeat purchase

Ways to reduce:
Post purchase reassurance -
After-sales follow up
Customer service 
Ensure customer has all info about product before purchasing

Question 6

Give the four environmental influences of buying behaviour

Answer 6

Sociocultural

e. g. social pressures on parents to make sure their kids have the ‘right’ stuff
e. g. trend towards environmentally friendly products

Technological
e.g. database technology allows firms to collect data about customers - can tap into desires

Economic
Purchasing power of consumer depends on economic welfare, state of the economy

Political
regulatory influences e.g. safety requirements, product standards

Question 7

Give some examples of psychological influences of buying behaviour

Answer 7

Personality - ambitious, impulsive, calm, reasoning

Perception - how individuals analyse, interpret info

Learning and memory - what an individuals remembers about a product (repeat purchase)

Motivation - needs and wants

Attitudes - a feeling towards a product/ service/ marketing mix

Question 8

How can an individuals’ motivation affect buying behaviour?

Answer 8

Maslow’s Hierarchy of Needs (1954)

Physiological - hunger, thirst
Safety - security
Belongingness and love - group membership
Esteem - success
Self-actualisation - fulfilment

Marketers capitalise on each of these needs.

e. g. Match.com on the need for belongingness and love
e. g. Lynx on the need for love (sexual attraction)
e. g. Soft drink manufacturers ensure their adverts show peoples’ thirsts being quenched

Question 9

How can attitudes affect buying behaviour?

Answer 9

Williams (1981) - attitudes have 3 different componants

Cognitive - belief/disbelief
Affective - negative/positive feeling
*Conative - based on behaviour e.g. this attitude leads to this behaviour
*This is the most important class of attitude for marketers because it is the link between thinking and doing i.e. buying.

Question 10

Define B2B

Answer 10

The management process responsible for the facilitation of exchange between producers of goods/services and their organisational customers.

B2B marketing and purchasing is a complex and risky business involving a number of different parties

Question 11

Context of B2B markets

Answer 11

Nature of demand -
derived from consumer demand
inelastic demand

Structure of demand -
industrial experience and geographic concentration.

Buying process complexity -
B2B purchasing policy
Procedure

Buyer-seller relationships - important for long term business

Question 12

Organisational decision making model example

Answer 12

Hill and Hillier 1977

Precipitation

• need realisation
• e.g. changes in the wider business environment

Product Specification

• determination in exact detail the criteria
• combined expertise of engineers, purchasers, marketers, R&D

Supplier Selection

• trusted reputation
• relationship tested out

Commitment
- contract