Key and difficult points

5.3.1 Consumer buying behavior

1) The definition of consumer buying behavior

The buying behavior of all the individuals and households that buy or acquire goods and services for personal consumption.

2) The influencing factors of consumer behavior

   There are four kinds of factors that will influence consumers’ buying behavior: cultural, social, personal, psychological

Figure 5.2 - Factors Influencing Consumer Behavior

3) The buying process of consumers

   Generally, consumers will experience the following 5 stages when they carry out the buying, which are need recognition, information search, evaluation of alternatives, purchase decision and postpurchase behavior.

Figure 5.5 - Buyer Decision Process

Step 1 Need Recognition: internal and external stimulates

Step 2 Information Search: personal sources, commercial sources, public sources, experiential sources

Step 3 Evaluation of Alternatives: price, quality, brand, function, style and design, services

Step 4 Purchase Decision: attitudes of others, unexpected situational factors

Step 5 Postpurchase Behavior: delighted, satisfied, disappointed

5.3.2 Business buying behavior

1) The definition of business buying behavior

The buying behavior of organizations purchased goods and services that are used in the production of other products and services that are sold, rented, or supplied to others.

2) Similarities and Differences of buying behavior between consumers and business buyers

   Similarities: both involve people who assume buying roles and make purchase decisions to satisfy needs.

   Differences: market structure and demand, nature of the buying unit, types of decisions and the decision process

3) The influencing factors of business buying behavior

   There are also four kinds of factors that will influence business buying behavior: environmental, organizational, interpersonal, individual factors

Figure 5.8 - Major Influences on Business Buying Behavior

4) The process of business buying

   Compared with consumers’ buying process, organizations will experience more and complex stages in their buying, which include problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review.

Figure 5.9 - Stages of Business Buying Behavior