buyer behavior
(adjective)
the process used to decide whether to purchase a product
Examples of buyer behavior in the following topics:
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Types of Buying Decisions
- Buying decisions are based on buyer behavior.
- Consumer behavior and business behavior can differ because their buying processes are different.
- Consumer products are often advertised on television in a way that tries to create an emotional tie with the buyer.
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Social Behavior of Consumers
- Extensive research is often used to understand what appeals to buyers: colors, thought triggers, images and sounds; all of these factors address psychological buying behaviors.
- Societal buying behavior incorporates identification and suggestion to prompt a specific buyer behavior.
- Situational buying behavior involves a specific scenario or event that pressures a buyer to purchase product.
- Perhaps it is the fact that peers have bought the same product, or a certain product has become a "status symbol. " Whatever the reason buyer behavior is often impacted.
- Recognizing the intersection between social behavior and web technologies is imperative for brands looking to advertise products and services that are relevant to buyers.
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Introduction to Demand and Supply in a Market System
- A market is defined as the interaction of all potential buyers and sellers of a good or class of goods that are close substitutes.
- The behavior of potential buyers is represented by a market demand function.
- Supply represents the behavioral pattern of the producers/sellers.
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Prices as Information
- he function of the market is to coordinate the preferences and behavior of the buyers and sellers.
- First, buyers and sellers must have information.
- It only measures the buyers' evaluation of marginal benefits.
- Notice the MB of the 73rd unit to the buyers is P.
- Once the P > MB buyers cease to purchase the good.
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Lifestyle
- In consumer marketing, lifestyle is considered a psychological variable known to influence the buyer decision process for consumers.
- The Black Box Model is related to the Black Box Theory of Behaviorism, where the focus is set not on the processes inside a consumer, but the relation between the stimuli and the response of the consumer.
- The buyer's "black box" contains the buyer characteristics (e.g., attitudes, motivation, perception, lifestyle, personality, and knowledge) and the decision process (e.g., problem recognition, information research, alternative evaluation, purchase decision, and post-purchase behavior) which determine the buyer's response (e.g., product choice, brand choice, dealer choice, purchase timing, and purchase amount).
- The Black Box Model considers the buyer's response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem.
- Increases in sedentary behaviors such as watching television are characteristic of a sedentary lifestyle.
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Demand Function
- A demand function that represents the behavior of buyers, can be constructed for an individual or a group of buyers in a market.
- In models of firm behavior, the demand for a firm's product can be constructed.
- The behavior of a buyer is influenced by many factors; the price of the good, the prices of related goods (compliments and substitutes), incomes of the buyer, the tastes and preferences of the buyer, the period of time and a variety of other possible variables.
- In Figure III.A.2 and Table III.A.2, a market demand function is constructed from the behavior of three people (the participants in a very small market.
- #B), where #B represents the number of buyers.
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Buying Situations
- For consumer brands, the buyer is an individual.
- Not only is the seller required to meet the buyer numerous times, but the buyer may ask for prototypes, samples, and mock-ups.
- Buyers go though three stages of the buying process, which include:
- Buyers move in and out of each stage.
- Firms need to be prepared to engage buyers throughout the cycle.
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Organizational Objectives
- One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients.
- Perceived alternatives can vary by buyer segment, by occasion, and other factors.
- Switching costs effect – The higher the product-specific investment a buyer must make to switch suppliers, the less price sensitive that buyer is when choosing between alternatives.
- Price-quality effect – Buyers are less sensitive to price the more that higher prices signal higher quality.
- Expenditure effect – Buyers are more price sensitive when the expense accounts for a large percentage of buyers' available income or budget.
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Status-Quo Pricing of Existing Products
- One strategy does not fit all, so adopting a pricing strategy is a learning curve—studying the needs and behaviors of customers and clients is essential.
- Perceived alternatives can vary by buyer segment, occasion, or other factors.
- Switching Costs Effect: The higher the product-specific investment a buyer must make to switch suppliers, the less price sensitive that buyer is when choosing between alternatives.
- Price-Quality Effect: Buyers are less sensitive to price the more higher prices signal higher quality.
- Expenditure Effect: Buyers are more price sensitive when the expense accounts for a large percentage of buyers' available income or budget.
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Purchase Behavior
- Notable differences exist in the purchase behavior of B2B versus consumer marketing due to the length and complexity of B2B transactions.
- Commitment times are also longer, as B2B buyer-seller relationships can extend over the lifetime of the product or service delivery period.
- Predicting customer purchase behavior also allows B2B companies to segment industrial markets.
- Additionally, measuring strategic data relevant to the buyer's target audience and overall marketing strategy is challenging due to the long and complicated progress of doing B2B transactions.
- Identify the unique characteristics of B2B purchase behavior and how it influences B2B marketing tactics