MARK 3337 - Ch. 8 - Lecture 2

Introduction to Buyer Behavior

  • Presented by Professor Vandaveer Novak.

  • Focus on:

    • What motivates buyers.

    • How buyer decisions are influenced.

Types of Buyer Processes

  • Transactional Process Buyers:

    • Characteristics: Know what they want.

    • Sales Strategy: Eliminate unnecessary costs and delays.

    • Focus: Price and convenience.

  • Consultative Process Buyers:

    • Characteristics: Aware of needs but lack specific insight.

    • Sales Strategy: Diagnostic sales process with questions to identify needs.

    • Focus: Assessing features and benefits to meet customer needs.

  • Strategic Alliance Process Buyers:

    • Characteristics: Long-term contractual relationships.

    • Sales Strategy: Aligning values and vision.

    • Focus: Gaining competitive advantage in the marketplace.

    • Note: Each buyer type requires different approaches from salespeople.

Buyer Resolution Theory

  • Concept: Understanding customers through the five W's:

    • Why should I buy?

    • What should I buy?

    • Where should I buy?

    • What is a fair price?

    • When should I buy?

Buyer Behavior Model

  • Base Influences: Needs and Group Influences

    • Foundation of buyer behavior is understanding needs and influences.

  • Types of Core Buying Motives:

    • Emotional Motives

    • Rational Motives

    • Product Motives

    • Patronage Motives.

Hierarchy of Needs (Maslow's Theory)

  • Physiological Needs:

    • Description: Basic survival needs (food, water, shelter, sleep).

    • Importance: Must be met before higher-level needs can be addressed.

  • Security Needs:

    • Description: Freedom from danger (physical safety, financial security).

    • Examples: Insurance, safe neighborhoods.

  • Social Needs:

    • Description: Need for love and belonging, hardwired for social connection.

    • Implication: Loneliness can negatively affect health similarly to smoking and substance abuse.

  • Esteem Needs:

    • Description: Feeling worthy in the eyes of others, recognition, and self-respect.

    • Implication: Higher education sought for esteem and better job prospects.

  • Self-Actualization Needs:

    • Description: Fulfillment of personal potential, achieving dreams (e.g., dream house, business).

    • Note: This is the peak of Maslow's hierarchy and is contingent on the fulfillment of prior needs.

Group Influences on Buyer Behavior

  • Importance of understanding the influences affecting customer behavior.

  • Roles:

    • Description: The various roles individuals play (e.g., daughter, professor).

    • Impact: Different roles impact decision-making processes.

  • Reference Groups:

    • Description: Groups of people with shared values or interests.

    • Examples: University affiliations, clubs, etc.

  • Social Class:

    • Description: Defined by values and lifestyles, not solely financial means.

    • Influences: Gender, education, lifestyle choices.

  • Cultural and Subculture Influences:

    • Example of individualistic culture of America vs. collectivist cultures of other nations.

    • Implication: Immigrants often create community units based on shared backgrounds and values.

Example of Influences on Needs

  • Discussed a Seinfeld clip involving dynamics of social influence when purchasing a jacket.

    • Connection between feelings about the jacket and confidence in social situations explained.

Dominant Buying Motives (DBM)

  • Definition of Motives:

    • An aroused need or desire stimulating behavior to satisfy a need.

  • Types of DBMs:

    • Emotional Motives:

    • Driven by feelings; important when products are identical.

    • Rational Motives:

    • Focused on functionality and needs without emotional involvement.

    • Patronage Motives:

    • Loyalty to businesses due to positive experiences.

    • Product Motives:

    • Preference for a specific product regardless of the source.

Cross-Cultural Buying Processes

  • Observations on buying process differences in various countries:

    • Japan: Group decision-making processes.

    • China: Senior negotiator influences.

    • Germany: Structured, process-oriented approach.

    • Latin America: Importance of relationship-building before negotiation.

Conclusion

  • Importance of understanding buyer influences and needs to improve sales strategies.

  • Quote by John Miller:

    • "Knowing who your customers are is great, but knowing how they behave is even better."

  • Final reflection on buyer needs and influences, and the importance of meeting them in the marketplace.