Friday, 4 October 2013

Consumer Buying Behaviour and ORGANISATIONAL BUYING BEHAVIOuR


Consumer BEHAVIOuR:
It is a segment or part of human behaviour. Human behaviour refers to the total process whereby the individual interacts with the environment. Every thought, feeling, or action that we have as individuals is part of human behaviour. Consumer behaviour is the study of how individuals, groups and organizations select, buy and dispose of goods, services, ideas or experiences to satisfy their needs and wants. "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on.

Howard Sheth Model of consumer behaviour

Howard Sheth model of consumer behaviour acts as a sophisticated comprehensive theory of consumer behaviour that helps the seller study its consumer’s behaviour.



Input variables: Input variables are depicted in the left portion of the model as stimuli in the environment. Significance stimuli are actual elements of brands that the buyer confronts while symbolic form, such as in advertisements. Social stimuli are generated by the social environment including family and groups.
Output variables: The five output variables in the right hand portion of the model are buyers’ observable responses to stimulus inputs. They are arranged in order from attention to actual purchase and are defined as follows:
Attention – the magnitude of the buyer’s information intake.
Comprehension – the buyer’s store of information about a brand.
Attitude – the buyer’s evaluation of a particular brand’s potential to satisfy his or her motives.
Intention – the buyers forecast of which brand he or she will buy.
Purchase behaviour – the actual purchase act, which reflects the buyer’s predisposition to buy as modified by any inhibitors


It distinguishes three levels of decision making:
1) Extensive problem solving – early stages of decision making in which the buyer has little information about brands and has not yet developed, well defined and structured criteria by which to choose among products (choice criteria).

2) Limited problem solving – in this more advanced stage choice criteria are well defined but the buyer is still undecided about which set of brands will best serve him. Thus, the consumer still experiences uncertainty about which brand is best.
3) Routinized responses behaviour – buyers have well defined choice criteria and also have strong predispositions towards the brand. Little confusion exists in the consumer’s mind and he is ready to purchase a particular brand with little evaluation of alternatives, the consumer and society.



Bingo & Consumer buying behaviour:

Attitude: The purchase decision of Bingo is made with their attitude. The brand’s TG clearly being youth who are trendy and cool, the buyers of bingo are expected to buy it on the go. They buy bingo because they think other brands are not as ‘cool’ as bingo.
Need: There is no specific need/ requirement to buy bingo as such. It is mostly an impulsive buying behaviour.


ORGANISATIONAL BUYING BEHAVIOR:
Organisational buying is the process of decision making by which an organisation establish the need for purchased products and services and identify, evaluate and choose among alternate brands and suppliers. A business market consists of all the goods and services used in the production of products in other companies (primarily including agriculture, forestry, fisheries; mining, transportation, communication, banking, finance, insurance, distribution and services)

The major requirements or the business market that Bingo buys in will be
Agriculture: They get all their raw materials like potato, and spices for production
Technology: To produce chips from the raw materials technology like machinaries, computers etc is needed
Packaging: The produced chips is packaged into packs of Rs.5 , 10 and 15.
Logistics services: They are service providers that help in inventory and supply chain management of the company
Distribution channels: They are the dealers, wholesalers and retailers who take the products to the consumers
Advertising and promotions: They are service providers that help in the branding, image management, reputation management, advertising, promotions, and brand identity of the brand.

Difference between consumer buying behaviour and organisational buying behaviour in respect to different characteristic is given below;


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