Consumer and Business Buying Behaviour

Question 1

What is Consumer Buyer Behaviour?

Answer 1

The decision PROCESS and purchasing ACTIVITIES of people who purchase PRODUCTS for PERSONAL or HOUSEHOLD USE and not for business purposes.

Question 2

The Consumer Buying Decision Process

Answer 2

1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase
5. Post Purchase Evaluation

Question 3

The Consumer Buying Decision Process:

Problem Recognition…

Answer 3

Occurs when a buyer becomes aware of a difference between a desired state and an actual condition. Marketers use sales personnel, advertising and packaging to help trigger recognition of such needs or problems.

Question 4

The Consumer Buying Decision Process:

Information Search…

Answer 4

Can come in two forms Internal Search (Searches memories for product information) and External Search (Everything else).

Question 5

The Consumer Buying Decision Process:

Evaluation of Alternatives…

Answer 5

Evoked set - Consumers assign a greater value to a brand they have heard of before than one they have not.
Evaluation Criteria - Objective and subjective characteristics that are important to a buyer.

Question 6

The Consumer Buying Decision Process:

Purchase…

Answer 6

Buyer purchases the brand or product

Question 7

The Consumer Buying Decision Process:

Post-Purchase Evaluation…

Answer 7

After purchase, the buyer evaluates the product.

Question 8

What is Consumer’s Level of Involvement?

Answer 8

The degree of interest in a product and the importance of the product for the person.

Question 9

High-involvement products…

Answer 9

Are visible to others and/or are expensive.

Question 10

Low-involvement products…

Answer 10

Tend to be less expensive and have less associated social risk.

Question 11

Different Types of Consumer Problem Solving:

Routinised Response Behaviour:

Answer 11

This is used when buying frequently purchased, low-cost items that require little search and decision making. E.g. Soft drink or a brand of ceral

Question 12

Different Types of Consumer Problem Solving:

Limited Problem-Solving:

Answer 12

This is used when purchasing products occasionally or when they need information about unfamiliar brands in familiar product categories. E.g. Weet Bix bring out a version called Weet Bix Bits and you ask a friend or TV.

Question 13

Different Types of Consumer Problem Solving:

Extended Problem Solving:

Answer 13

This is used when purchasing unfamiliar, expensive or infrequently purchased products. E.g. university education

Question 14

Different Types of Consumer Problem Solving:

Impulse Buying:

Answer 14

An unplanned buying behaviour resulting from a powerful urge to buy something immediately.

Question 15

Factors that Influence Consumer Buying Decision Process:

Answer 15

Situational - Influences that result from the CIRCUMSTANCES, TIME and LOCATION that affects the consumer buying decision process.
Psychological - Factors that in part determine people’s general BEHAVIOUR, thus influencing their behaviour as consumers.
Social - The forces other people exert on one’s buying behaviour

Question 16

Factors that Influence Consumer Buying Decision Process:

Situational Influences:

Answer 16

Physical surroundings - Store location
Social surroundings - Friends pressuring you to buy an item
Consumers' mood
Purchase reason
Time dimension

Question 17

Factors that Influence Consumer Buying Decision Process:

Psychological Influences:

Answer 17

Perception - E.g. In Asia jeans are symbolic of the Western World.
Motives (Cold/Hunger/Fear/Success)
Learning (Changes in an individual’s thought processes and behaviour caused by information and experience)
Attitude - E.g. Australian Made stickers
Self-Concept - E.g. CEOs drive BMW’s because success
Lifestyle -

Question 18

Factors that Influence Consumer Buying Decision Process:

Social Influences:

Answer 18

Roles
Family Influences
Reference Group (Membership, aspirational, dissociative)
Opinion Leaders
Culture (ACCUMULATION of VALUES, KNOWLEDGE, BELIEFS, CUSTOMS, OBJECTS and CONCEPTS that a society uses to cope with its environment and passes on to future generations)

Question 19

What is Business Buying Behaviour?

Answer 19

The decision processes and purchasing activities of people who purchase products for business purposes.

Question 20

Characteristics of Business to Business Transactions:

Answer 20

Large orders
Expensive items
Frequent replenishments
Long-term contractual agreements
Considerable marketing efforts
Purchasing Committees