4.

1 Introduction
All buying decisions, whether personal or on behalf of an organisation, are made by people, and, though it may often seem to be irrational, buying behaviour is , on the whole, purposeful and goal-directed. Understanding the buying behaviour of its customers is crucial to a firm's success. The firm that can anticipate how its potential customers will respond to its marketing strategies will have a competitive advantage. Generally, buyers are classified either as consumers or business buyers . Consumer behaviour has been defined by Summers et al. (2003, p. 24) as: . processes a consumer uses to make purchase decisions as well as to use and dispose of purchased goods and services; also includes factors that influence purchase decisions and the use of products.. Contrast this definition with that which Summers et al. (2003, p. 67) provide for business-tobusiness marketing: the marketing of goods and services to individuals and organisations for purposes other than personal consumption. So the basic distinction between the two is whether or not the purchase is for personal consumption. You will find that business-to-business marketing (B2B) is also referred to as industrial marketing and organisational marketing. Thus you will read about business buyers, industrial buyers and organisational buyers. They are all the same, and they differ from consumers in terms of their buying behaviour. While we are talking about terminology, we tend to refer to 'buying' when we talk about businesses, and to 'purchasing' or 'consumption' when we talk about consumers-although there is a frequent interchange between these. Although the primary buyers for port and terminal services are organisations, we begin our study with consumer buyers, because many of the sociological and psychological principles of consumer buying behaviour are applicable to business buying-professional buyers do not cease to be persons. It is also worth remembering that the consumer is the ultimate buyer of the goods that maritime or logistics organisations handle on behalf of other organisations, and consumers are, therefore, of interest to us.

4.2 Consumer buying behaviour

The study of how and why people purchase goods and services is termed consumer buying behaviour . The term covers the decision-making processes from those that precede the purchase of goods or services to the final experience of using the product or service. Models of consumer buying behaviour draw together the various influences on, and the process of, the buying decision. They attempt to understand the proverbial 'blackbox' of what happens within the consumer between his or her exposure to marketing stimuli and the actual decision to purchase. In the next reading, Kotler et al. (2004) briefly explain the 'black box' model; however Figure 4.1 shows the content and process involved much clearer.

Figure 4.1 Black box model of consumer buying behaviour Source: Keegan et al. (1992, p. 193) The essence of the model is that it suggests consumers will respond in particular ways to different stimuli after they have 'processed' those stimuli in their minds. In more detail, the model suggests that factors external to the consumer will act as a stimulus for behaviour, but that the consumer's personal characteristics and decision-making process will interact with the stimulus before a particular behavioural response is generated. It is called the 'black box' model because we still know so little about how the human mind works. We cannot see what goes on in the mind and we don't really know much about what goes on in there, so it's like a black box. As far as consumer behaviour goes, we know enough to be able to identify major internal influences and the major steps in the decision-making process which consumers use, but we don't really know how consumers transform all these data, together with the stimuli, to generate particular responses. Turn now to the following reading to begin looking at your text's introduction to buyer behaviour. In your text Kotler et al. (2004) Chapter 7, pp. 242-244, 'Consumer behaviour' and 'A model of consumer behaviour'.

Activity 4.1
Can you see any similarities between Figure 4.1. and Kotler et al.'s (2004) Figure 7.1 on page 244? Compare and contrast the two models taking note of anything that may be missing and then link them to Figure 6.2 on page 245 of Kotler et al. (2004).

4.2.1 Psychological influences

Kotler et al. (2004) elaborate on several psychological variables influencing consumer buying behaviour: perception motivation learning

beliefs and attitudes personality and self concept. If you look back to Figure 4.1 you will note that Keegan et al. (1992) refer to these as being included in the buyer's mind or internal factors.

Although your text covers the remaining psychological variables well, it is worth mentioning the importance of attitudes. An attitude is a learned, relatively enduring feeling of being favourable or unfavourable towards something, whether that might be, say a particular outlet, product or brand. As attitudes are learned, they are difficult to change and they lead people to act fairly consistently towards similar objects. As marketers, therefore, it is much more appropriate that we should try to match our products to people's attitudes rather than try to change those attitudes. This is particularly relevant for international marketing, so please keep it in mind when you study the following reading on an international aspect of consumer behaviour. Also discussed by your text is why marketers use psychographics, including examples of how psychographic data are classified via the Values and Life Style (VALS) 2 model. You may wish to try the VALS questionnaire yourself by accessing the Web site at http://www.sricbi.com/VALS/presurvey.shtml . In your text Kotler et al. (2004) Chapter 7, pp. 245-251, 'Characteristics influencing consumer behaviour', 'Psychological factors', pp. 253-254, 'Cultural factors', and pp. 258-262, 'Consumer lifestyle'.

Activity 4.2
The three selective processes outlined in Kotler et al. (2004, pp. 249-250) are very relevant to your study habits as a student (a consumer of this course). So: 1. Think of, and write down, an example of selective exposure which relates to your study activities. 2. Do the same for selective distortion (also known as selective perception) and selective retention. 3. Then answer the following question: how can I apply this information to improve my study habits? Consider this Consider the categories of the VALS 2 model and the report from the VALS Web site based on your replies to the questionnaire. Do you fit into one of the eight categories? Why? What are your particular characteristics that match those of the category into which you think you fit?

4.2.2 Cultural and social influences

Your text suggest that there are a number of social and cultural influences: culture and sub-culture social class household types

reference groups roles and status.

Marketers understand family purchasing behaviour in terms of the family life-cycle as well as the role of individual family members. Table 4.1 presents the traditional family life-cycle in terms of the opportunities each stage provides for marketing. However, demographic changes are altering the traditional family life-cycle. Table 4.1 The traditional family life-cycle Stage in cycle Bachelor, male or female Characteristics Opportunities for marketing

Independent; young; early Clothing; automobile; stereo; stage of career; low travel; restaurants; entertainment; earnings, low appeal to status discretionary income Two incomes; relative independence; presentand future-oriented Youngest child under 6; one to one-and-a-half incomes; limited independence; futureoriented Apartment furnishings; travel; clothing; durables; appeal to enjoyment and togetherness Goods and services geared to child; home; family-use items; practicality of items; durability; safety; pharmaceuticals; appeal to economy; child care

Newly married

Full nest I

Full nest II

Youngest child over 6, Savings; home; education; family but dependent; one-and-a- vacations; child-oriented half to two incomes; at products; some interest in least one spouse luxuries; appeal to comfort and established in career; long-range enjoyment future-oriented Youngest child living at home, but independent; highest income level; thoughts of future retirement Education; expensive durables for children; replacement and improvement of parents' durables; appeal to comfort and luxury

Full nest III

Empty nest I

No children at home; Vacation home; travel; clothing; independent; good entertainment; luxuries; appeal to income; thoughts of self self-gratification and retirement Retirement; less income Travel; recreation; living in new and expenses; presenthome; pharmaceuticals and oriented health items; little interest in luxuries; appeal to comfort at a low price

Empty nest II

Sole survivor I

Only one spouse alive; actively employed; present -oriented; good income

Immersion in job and friends leading to interest in travel, clothing, health and recreation areas; appeal to productive citizen Travel; recreation; pharmaceuticals; security; appeal to economy and social activity

Sole survivor II Only one spouse alive; retired; some feeling of futility; less income Source: Evans and Berman (1992, p. 146)

Now it is time to review what your text has to say about the social and personal influences which act as stimuli in consumer behaviour whilst the reading illustrates how advertisers are using their knowledge of women and the family to promote products. It is also a good opportunity to read through an article by Dessler (1990), which although written over a decade ago, provides some excellent examples of what we have been discussing in a maritime context.

In your text Kotler et al. (2004) Chapter 7, pp. 251-252, 'Personal factors' and pp. 245-258, 'Social factors'. Reading 4.1 Shea, F. 2004, 'Family first for new mums', B&T , 2 July, pp. 19-20. Reading 4.2 Dessler, L. 1990, 'Keeping one step ahead', Seatrade Cruise Shipping Report 1990 , Seatrade Organisation, Colchester, England, pp. 81, 83, and 85.

Activity 4.3
Write a couple of sentences on how consumer buying behaviour has impacted on the growth of the cruise industry.

4.2.3 The decision-making process

Thus far we have discussed the influences that affect what products a consumer decides to purchase. However, the consumer is yet to make an actual decision! Let us look now at what is involved in actually making those decisions. Kotler et al. (2004) outline four major types of decision-making behaviour that a consumer uses. They are:

complex buying behaviour dissonance-reducing buying behaviour habitual buying behaviour variety seeking buying behaviour.

Your next reading defines the above decision-making behaviours and introduces you to the five-step decision-making process consumers go through when accepting or rejecting a new product. The reading is also useful because it discusses the decision process for purchasing new products.

In your text Kotler et al. (2004) Chapter 7, pp. 263-272, 'Types of buying decision behaviour', 'The buyer decision process', 'The buyer decision process for new products', and 'Consumer behaviour across international borders'.

Even though in your role you may be dealing largely with organisations, you will still need to be familiar with consumer buying behaviour. For example, the demand for consumer goods that pass through ports is driven by the social and psychological factors we discussed earlier.

Consider this Think for a moment of some consumer products that your maritime or logistics service frequently handles and consider what factors influence its purchase.

(Kioumarsi et al., 2009)1.

Black box model

ENVIRONMENTAL FACTORS Marketing Stimuli Environmental Stimuli Economic Technological Political Cultural Demographic Natural BUYER'S BLACK BOX Buyer Characteristics Attitudes Motivation Perceptions Personality Lifestyle Knowledge Decision Process BUYER'S RESPONSE

Product Price Place Promotion

Problem recognition Product choice Information search Brand choice Alternative Dealer choice evaluation Purchase timing Purchase decision Purchase amount Post-purchase behaviour

http://www.absoluteastronomy.com/topics/Consumer_behaviour