The Difference Between Consumer Buyer Behaviour and Organisational Buyer Behaviour

Topics: Decision making, Decision theory, Decision making software Pages: 6 (1877 words) Published: April 17, 2013
The difference between Consumer Buyer Behaviour and Organisational Buyer Behaviour In this essay we will be talking about the difference between consumer buyer behaviour and organisational buyer behaviour and how marketers can harvest this knowledge to create the right marketing strategies for each category of market. The main difference between consumer buyer behaviour and organisational buyer behaviour is that consumer buying consists of activates involved in buying and using of products for personal and household use, where organisational buyers purchase primarily for organisational purpose. Consumer behaviour is complex and a company has to fit their product more closely and satisfy their customer needs more fully than the competitors. Marketers will also need to know whether their controllable variables, e.g. marketing mix variables, will affect buying behaviour.

Culture is the broadest environmental factor witch influences buyer behaviour, consumption choices cannot be understood without considering the culture. It is the prisms with witch customers perceive the product. The culture of consumers determines the priorities he attaches to different products. The link between consumer behaviour and culture is a two-way street. In one direction the products that are produced to fit a consumer’s culture are better accepted, in the other direction products and innovation that are created in a specific culture on a given time show us a clear domination in the cultures ideals. (Michael Solomon, Culture, 2006) Social class refers to the grouping together of individuals or families who have certain common social or economic characteristics. Societies can be divided in haves and have-nots. Social Class is determined by income, family background and occupation. The social class is not only determining how much money is spent by the individual but also how it is spent. (Michael Solomon, Consumer Behaviour A European Perspective, 2006) Consumer buyer behaviour

Maslow`s hierarchy of needs is the first model we are looking at. It implies a hierarchy of biogenic and psychogenic needs where the order of development is fixed and a certain level must be attained before the next higher one. In Maslow`s hierarchy one must first satisfy basic needs before he can progress up the ladder. The application of this model is relatively simplistic as one product can satisfy more than one need. (Michael Solomon, Consumer Behaviour , 2006) The next model we are talking about is the Howard Sheth model. The model describes brand decision under incomplete or limited information. It distinguishes three levels of decision: 1) Extensive problem solving- the buyer has little or no knowledge about the product and has no criteria by which to choose the product. 2) Limited problem solving- In this stage the choice criteria are defined but the buyer is still undecided about the brads which best serve him. 3) Routinized responses behaviour- The criteria set in this stage is well defined and the consumer has the best brand which best serves him. He makes the buying process with little evaluation of alternatives. The Howard Sheth model borrows concepts from the learning model to explain brand choice. Four major components are involved in this process: impute variables, output variables, hypothetical constructs and exogenous variables. (Rao, 2011) There are three different impute variable, the first and second is provided by the marketer by significant stimuli like physical brand characteristics and symbolic stimuli like visual or verbal characteristics. The third variable is provided by family, reference group etc. (Rao, 2011) The perceptual and learning construct define the main part of the model. It deals with the psychological variables with interact with the consumer decision making. The output variables are the response to the impute variables and helps us understand how the consumer will engage with the perceptual construct. (Rao, 2011) The...
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