Why study consumer behavior? Understanding how consumers behave helps marketers select the most profitable target markets and guides the implementation, evaluation, and control of the marketing mix for these groups. For example, consumers are becoming increasingly concerned about the environment. Automobile manufacturers that realize this concern may offer more gas-efficient vehicles or drop the prices on less efficient models to compensate for their poor gas mileage.

How does a consumer make a buying decision? The consumer buying process involves five steps:

1. Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase or no purchase decision

5. Postpurchase evaluation

Not all consumers go through each step in the process, and the steps do not need to be completed in the same order. The process can be interrupted at any time with a “no purchase” decision.

Consider your decision to purchase the educational services of your college or university. You first recognized your need for higher education. You likely obtained information about colleges from many sources, including your friends, family, counselors, and perhaps even the annual college rankings of U.S. News & World Report. You may have also visited a few college campuses to gather firsthand information. You then evaluated your choices based on a variety of factors, including a college’s tuition (price), geographic location, or perhaps where your friends were going to college. Your final choice may have been based on rational analysis or the result of an emotional decision (based on some gut feelings). After making a purchase, we also evaluate our decisions in terms of how well our expectations are being met. You’ll likely continue to evaluate your college choice long after you graduate.

What influences consumer decision making? The consumer decision-making process is part of a broader environmental context that influences each step. Marketers should be aware of these factors when developing an appropriate marketing mix for the target market. These environmental forces are shown in Figure 12.13.11

Figure 12.13

Major Influences Impacting a Consumer’s Buying Decision

How does culture affect a person’s buying behavior? Culture is the set of learned attitudes, beliefs, and ways of life that are unique to a society and handed down from generation to generation. Subcultures are specific groups within a culture that share similar attitudes and life experiences. Some examples of subcultures include churches, community organizations, and online communities like Facebook and Pinterest. Together, a buyer’s culture, subculture, social class, family, and peers comprise the sociocultural influences that affect buying decisions. Cultural values change over time. For example, the obesity epidemic has led many people today to value healthier lifestyles, which in turn has changed their buying patterns.

Social class refers to a combination of factors, such as education, income, wealth, and occupation, common to a group of people. Social class can have an impact on purchasing decisions, as some possessions are considered status symbols, like the MacBook Pro that Will’s girlfriend owns. Apple computers are often viewed as just being “cooler” than other types of computers.

What unique personal influences shape buying behaviors? Personal influences on a buyer’s consumption choices are often shaped by his or her age, gender, economic situation, lifestyle, and personality. Knowing that there is a difference between how men shop and how women shop can help influence a sales strategy. Women often like to browse, linger, and socialize, whereas men often prefer to get in and get out of a store. The owner of a Canadian women’s clothing boutique recognized these patterns. To cater to her female customers, she hosts “trunk shows,” during which her customers get together with their friends to have a glass of wine while reviewing a designer’s new line. Similarly, she caters to her male customers’ more efficient buying preferences by keeping a database of their spouse’s or partner’s personal information and preferences. Before special occasions, she’ll contact her male customers and let them know she has the perfect gift for their spouse or partner.12

How do attitudes affect buying decisions? One goal of marketing is to shape the perception of a product in the minds of consumers. Attitudes toward a product put customers in a frame of mind that either predisposes them to favorably view a product or not. Psychological influences include differences in a buyer’s motivation, perception, attitudes, and learning. Equally important is an effort to create positive product experiences. Good experiences with brands result in repeat business; bad experiences stunt future sales. It is more expensive to find new customers than to keep existing customers, so investing in methods is important to ensure that existing customers’ needs are met so that they remain loyal to the brand.

Can temporary conditions affect how buyers behave? Situational influences include the physical surroundings, the social surroundings, and the type of product purchased, and all of these can affect how a buyer behaves. Some factors, such as where products are placed or how a store is organized, can be easily controlled. However, other factors, such as adverse weather conditions or a consumer’s negative mood, are not as easily managed, such as the hurried purchase Will Giusto needs to make because he had left his shopping to the last minute. He may not feel able to make a calm and informed decision because of the immediate pressure of the moment.

How does the marketing mix influence purchases? Marketing mix influences include putting forth a product that buyers want at an affordable price, promoting the attributes of that product, and placing the good or the service in a timely and convenient location for consumers to buy.

Understanding consumer buying behavior and how it is influenced is critical to effective marketing. Some of these influences, like personal influences, are beyond the control of marketers, whereas other influences, like psychological influences, can be affected by businesses. All of these influences should be kept in mind when selecting a target market; implementing, evaluating, and controlling the marketing mix; and building customer relationships.

What are the differences between B2C markets and B2B markets? The difference between B2C and B2B markets hinges on who’s doing the buying. In a B2B market, a business is buying for further processing, for resale, or to facilitate general business activity. The B2B market is larger than consumer markets because virtually all consumer products are purchased by distributors or wholesalers (B2B) before reaching the final consumer at a retail outlet. In fact, a separate B2B market exists at each stage of the supply chain. Think of all the transactions involved in manufacturing and delivering a car. Most of the components are manufactured by separate firms, each of which needs to purchase from other companies the raw materials needed to make the part.

What are the characteristics of a B2B market? The first step in selling to a business market is the same as the consumer market: identify the customer and determine why the customer needs the product. However, the rest of the process is distinct for each market because of the inherent differences among the markets. B2B markets are generally more relationship driven than product driven. The quality of the product remains important, but the emphasis is on the relationship. Some other characteristics of B2B markets are as follows:

1. A few buyers that purchase in large quantities. B2B markets typically involve a few buyers that purchase very large quantities. For example, only a few airline companies buy most of Boeing’s jets.

2. Highly trained buyers. Most business-purchasing agents are highly skilled at their jobs. They often weigh the benefits and the costs in a more systematic fashion and are less influenced by emotional factors than are buyers in consumer markets. This requires sellers to pitch their products at a much more sophisticated level.

3. Group purchasing decision. Teams of individuals within purchasing departments usually collaborate when making purchasing decisions. This means marketers must be patient and mindful of the concerns of all decision makers to seal a deal.

4. Strong customer relationship. Because there are only a few sophisticated buyers that purchase large quantities, marketers find it necessary to establish much closer relationships with customers compared to the relationships with buyers in consumer markets. As a result, B2B marketing is focused more on personal selling compared to the mass advertising campaigns that typify consumer markets.

5. Geographically concentrated buyers. Most buyers in B2B markets are concentrated in a few of the most industrialized states, where large businesses are located. This reduces the costs of reaching buyers.

6. Direct purchasing. Buyers in B2B markets often purchase directly from sellers, as opposed to consumer markets, where products typically go through many wholesalers before a product arrives at the end user.

These key differences between B2C and B2B markets are summarized in Table 12.3. The differences can be organized by market structure, the nature of the buying unit, and the purchasing process.

Table 12.3

Differences between B2B and B2C Markets

How does a business make a buying decision, and what influences that decision? Similar to consumers, businesses begin by recognizing a need and then seek out information to aid them in the purchase decision, evaluate alternatives, decide to either purchase or not purchase, and do a postpurchase evaluation. However, business purchases are generally more rational, reasoned, objective decisions based on various influences, such as the state of the economy, technological factors, the degree of regulatory concerns, and organizational objectives, policies, and procedures.

Is the marketing process different for B2B markets? The marketing process remains the same for all markets: identify a need, conduct research to come up with a marketing plan, select a target market, implement and control the marketing mix, and nurture customer relationships.