Unit 2 Understanding the marketplace. Buyer behaviour

Consumer Buyer Behavior

• Consumer buyer behavior is the process individuals and households undergo when purchasing goods and services for personal consumption.
• Consumer markets encompass all individuals and households buying goods/services for personal use.
• Data sources for consumer behavior include online interactions (digital traces), mobile devices (location data, app use), e-commerce, IoT devices, surveys, physical stores, cookies/tracking, and third-party sources.
• Data is collected, analyzed, visualized, and used for action. CRM platforms integrate and analyze data for a 360-degree view.
• Ethical considerations regarding consumer data include privacy, data security, data protection, and misuse of data.

Sources of Consumer Data

• Online interactions (browsing, purchasing, social media) form a digital trace.
• Mobile devices provide location data, app usage, and biometric information.
• E-commerce reveals purchase history and preferences.
• IoT devices track user habits and preferences.
• Surveys and feedback gather customer opinions.
• Physical stores use loyalty programs, cameras, and sensors for data collection.
• Cookies and tracking monitor online behavior (time spent, page views, item additions).
• Third-party sources offer demographic, income, and psychographic data.

Cultural Influences

• Culture is a set of values, perceptions, and behaviors learned from family and institutions.
• Subcultures are groups within a culture sharing values based on experiences.
• Reference groups serve as comparison points for behavior.
• Opinion leaders have influence based on skills, knowledge, personality or characteristics.
• Word-of-mouth influence comes from recommendations of trusted individuals.

Buyer's Black Box

• The 'buyer's black box' illustrates the decision-making process between marketing stimuli and buyer responses.
• Buyers' characteristics include economic, technological, social, and cultural factors.
• Buyer decision processes involve need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Buyer Responses

• Buying attitudes and preferences are shaped by factors.
• Purchase behavior includes what, when, where, and how much is bought.
• Brand engagement and relationships are built through experiences.

Types of Buying Decision Behavior

• Need recognition: buyer recognizes a difference between actual and desired state.
• Information search: motivated buyer gathers information from personal, commercial, public, and personal sources.
• Evaluation of alternatives: buyer assesses product attributes and brand beliefs.
• Purchase decision: forming preference and making purchase decisions. Includes attitudes of others and unforeseen factors.
• Post-purchase behavior: perceived value, satisfaction (or dissatisfaction) affects future actions.

Business Buyer Behavior

• Business buyer behavior involves organizations purchasing goods and services to use in production.
• Purchasing processes involve determining product/service needs, evaluating alternatives, and choosing among brands.
• Business buying usually involves more participants and formal procedures than consumer buying.

Adoption Process

• The adoption process describes the steps an individual goes through from learning about an innovation to adopting it. Stages include: consciousness, interest, evaluation, trial, and adoption.
• Factors influencing adoption include relative advantage, compatibility, complexity, divisibility, and communication capacity.

Influencer Marketing

• Established influencers spread brand information (usually positive).
• Roles and status influence buying behavior.
• Factors like occupation, age, and lifestyle affect buying decisions.
• Economic factors (income, savings, interest rates) impact purchasing habits.

Selective Processes

• Selective attention is screening out most incoming information.
• Selective distortion is interpreting information to support existing beliefs.
• Selective retention is remembering information that supports existing beliefs.

Straight, Modified, and New Task Buying

• Straight rebuy: routine reorder without modification.
• Modified rebuy: adjusting product specs, prices, or suppliers.
• New task: first-time purchase of a product/service.
• Systems selling: purchasing a complete solution from a single seller.

Institutional Markets

• Institutional markets (schools, hospitals, prisons) buy goods and services for the cared-for individuals.
• These markets are characterized by low budgets and captive patrons.