of 20
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Foundations of MarketingDavid Jobber and John Fahy
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Chapter 3
Understanding CustomerBehaviour
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Customer Types
Organisational Customers
Purchase:
For use in the operation of a
business or organisation. To manufacture other
products
For resale to others
Private Consumers
Purchase:
For personal or household
use
ORGANISATIONALPRODUCT
CONSUMER
PRODUCT
2
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Understanding Customers
How do
they buy?
What aretheir choice
criteria?
Customers
Who isimportant?
Where dothey buy?
When dothey buy?
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Who Buys?The Buying Decision
Making Process
Decider(Decision
Maker)
Buyer Gatekeeper
InfluencerInitiator
User
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Phillips Juicer
Advertisement
clearly targets parents
of young children whoare concerned about
their nutrition and
health
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How do they buy?The Consumer Decision-Making Process
Needrecognition/problem
awareness
Information Search
Evaluation ofalternatives
Purchase
Post-purchaseevaluation
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How do they buy?The Organizational Decision-Making
Process
Recognition of a problem (need)
Determination of specification and quantity of needed item
Search for and qualification of potential sources
Acquisition and analysis of proposals
Evaluation of proposals and selection of supplier(s)
Selection of an order routine
Performance feedback and evaluation
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Choice Criteria Used When EvaluatingAlternatives
Technical-
ReliabilityDurabilityPerformanceStyle/looks
ComfortDelivery
ConvenienceTaste
Social-
StatusSocial belonging
ConventionFashion
Personal-
Self image
MoralsEmotions
Economic-
PriceValue for moneyResidual valueLife style costs
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Bang & Olufsen
Advertisement
provides
Highlights bothrational andemotional factorslikely to influence
purchase
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Influences on consumerpurchasing behavior
informationprocessing
motivation
beliefs andattitudes
personality
lifestyle
lifecycle
culturesocial class
geodemo-graphics
reference groups
Personalinfluences
Socialinfluences
Consumer
The buyingsituation
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Bravia Campaign
Advertisement
Demonstrates the
visual power ofcolour and conveys
the key brandproposition
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Behavioural Learning Theories:
Classical conditioning:
is the process of using
an establishedrelationship between a
stimulus and a
response to cause
learning
Operant conditioning:
individual respond tothe stimulus that offers
the most satisfactoryrewards andsubsequently thebehaviour is repeated.The more rewarding theresponse, the morelikelihood of a repeatpurchase
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Behavioural Theories and Marketing
Classical conditioning uses an establishedrelationship between stimulus and response tocause learning
In advertising humour is known to elicit a pleasantresponse and is used in the belief that these pleasantfeeling will be a condition of the product.
Operant conditioning is reinforcement through
rewards
The use of free samples is based on these principles
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Red Bull
Advertisement
uses humour to
appeal to its targetmarket of young adults
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16
Maslow 5 categories of motivation:
1. Physiological
2. Safety
3. Belongingness and love4. Self-actualisation
5. Esteem and status
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Influences on OrganizationalPurchasing Behaviour
straight
re-buy
modifiedre-buy
new task
Buy class
Organizationalbuyer
product
constituentsproductfacilities
MROs
Product type
Importanceof purchase
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Product Types in Organisational Buying:
Components
Plant &
equipment
Products &
ServicesMaterials
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Developments in OrganizationalPurchasing Practice
Just-in-time purchasing
Online purchasing
Centralised purchasingRelationship Marketing
Reverse marketing
Leasing
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Chapter Summary
There are key differences between consumer and organizational
buying.There are 5 roles in the buying decision making group: initiator,
influencer, decider, buyer, user.
The level of involvement is a purchase situation will affect the
number of stages a consumer goes through before making a
purchase decision.
In consumer purchasing choice criteria can be categorised as:
technical, social, economic and personal.
The main influence on consumer buying behaviour are: the buying
situation, personal and social influences.
The main influence on organizational buying behaviour are: the
buy class, the product type, and the importance of the purchase.
There have been key innovations in purchasing practice.