Buyer Behaviour

The Individual, Risk and Involvement

Objectives of this session:

Some factors affecting buying behaviour B2B buying behaviour Risk and Buying Behaviour Involvement and Buying Behaviour Buyer behaviour and the DMU Buyer behaviour and communication tasks

Factors affecting all buying behaviour

Personal Factors
Demographics: Age, Gender, Income, Education Situational: Lifestyle choices Experience: previous buying experience

Social Factors
Culture, Sub-Culture, Reference Groups

Psychological Factors
Personality Type Attitudes & Beliefs

Opinions, Attitudes and Beliefs

BELIEFS & VALUES

Long term and deeply held almost impossible to change Sets of Attitudes derived from Beliefs May only be changed over the medium to long term Derived & Received Opinions may be changed by Experience, Learning and Persuasion

ATTITUDES

OPINIONS

Three B2B factors affecting the purchaser:

As an Individual
Psycho-Social factors

As a Role
Expectations and responsibilities of role in DMU

As a Relationship, between:
Buyer & Seller Organisations Individual and Corporate Image Individuals involved in DMP

B2B: DMP and Degree of Complexity

Routine: Straight Re-Buy (Low cost, frequently purchased items)
Strategy: Maintain quality / value to retain existing customers Introduce promotions to attract new buyers

Limited Problem Solving: Modified Re-Buy (Less frequent purchase. Higher search for information)
Strategy: Aid customer search for information Build confidence in brand

Extensive Problem Solving: Major or New Buy (Expensive or new product area. Extended search for information)
Strategy: Understand evaluation process of DMP Inform customers of key purchasing criteria Competitor comparisons

Other influences on B2B purchases

Stakeholder Factors
Stakeholder networks Long / short term relationship Unsupported or cooperative relationship Formalised or casual purchasing process Legal, Codes of Practice and other agreements Social and cultural values

Organisational Factors
Corporate values and objectives Resources and costs Established procedures

Individual Factors
Interpersonal effects Relative status of individuals Personal rewards and incentives

Individual Factors: Perceived Risk

Performance Risk
Will product deliver promised benefit?

Social Risk
Peer group attitudes. Consequences of incorrect decision Feel good factor Fit with corporate / selfimage Time taken on decision Vs other risks

Financial Risk
Affordability and costs of incorrect decision
Potential harm to people and equipment

Ego Risk

Physical Risk

Time Risk

Risk Contexts
1. Situation of the Purchase
Relative importance of purchase Relation to other activities Brand and other factors Attitude towards risk taking / risk aversion Other personality factors Prestige / Cost / Social role of product

2. Individual Context

3. Product Context

Individual Factors: Involvement Theory

1. Interest
How interested is the individual in the purchase? How does individual respond to risk? How likely is an incorrect decision?

2. Risk Importance 3. Risk Probability 4. Sign Value

Significance of prestige and other factors

Pleasure / fun associated with purchase

5. Hedonic Value

Involvement Theory: Three Perspectives

Cognitive
Perceived relevance to the individual

Predisposition to act
Individual able and resourced to act

Response-based: Purchase as response to stimulus:

Occurrence of perceived problem Occurrence of marketing message Other prompt

Involvement Theory: Degree of Involvement

High Level Involvement
High perceived relevance or risk Involved search for information Trial of alternatives only after attitudes and intentions already set

Low Level Involvement

Low cost / risk purchases Less involved information search Trial of alternatives before attitudes and intentions established

Zero Level Involvement

Reprise: Individuals concerns within the DMU

The Gatekeeper The Initiator The Decider The Buyer The User The Financier Other Influencers

The Gatekeeper
Concerns:
You better have a good reason for disturbing my boss. Let me prove what a good member of the team I am.

The Initiator
Concerns:
Ive got a problem Help me! Make my job easier!

The Decider
Concerns:
Why should I risk my job or reputation on you? If this thing works, how will I get the credit?

The Buyer
Concerns:
Dont give me more problems or any more work than I have already.

The User
Concerns:
I just want this to work first time, every time.

Id like to feel good about using this.

The Financier
Concerns:
How much? What R.O.I can I expect?

Influencers
Concerns:
If Im going to be your advocate, dont make a liar out of me.

What effects would you like your communications to have?

Knowledge (Think)
Who you are What you do Why you are better How you solve problems Where to buy (Place) Benefits / Features New products / services / offers New / improved specification

Attitudes (Feel)
Brand values / image What you stand for Brand Customer relationship Like / Prefer (DAGMAR)

Behaviour (Do)
Find out more Visit website / stand / store See sales representative Purchase Provide feedback

Summary
There are many individual factors which affect B2B as well as B2C buying behaviour Marketers should accept that their communications can have only limited effect Understanding customers concerns and attitudes to Risk and Involvement is important to creating successful marketing messages Clear objectives should be set for all communication tasks