Name: AL- AAMRI HADAYA ALI MUSALLAM

Student No.: 7530-34-7726

Chapter 5 Summary - Consumer Markets and Consumer Buyer Behavior

Consumer Behavior can be defined as different actions a buyer takes when he/she purchases a service and product, which
include the social processes that lead up to this behavior. The most important element of the marketplace is the
customers. Marketing aims to engage customers and affect how they think and act. To affect the whats, whens, and hows
of buyer behavior, marketers must first understand the whys.
LEVANO CASE:
If we go through Lenovo's Marketing Strategy, we come to understand how the company's global success comes from its
capacity to create strong ties with the consumers, since the company marketers spend an amount of time studying their
customers and their buying behavior to reach customer satisfaction, efficiency, and innovation. An example of how
Lenovo's marketing module is effective is they closely listen to their customers, through different platforms worldwide to
know their products feedbacks and what are the issues they are facing. By taking their feedback into account for product
development and improvement, they come to build an emotional relationship with their consumers and give them more
than just computer manufacturing. When we think about the business model to achieve a better understanding of the
consumer behavior Lenovo is a good example, as showing their different strategies in this matter:

1 Listen to their Customers

• Lenovo’s product design and engineering teams listen to their customers through their
social media channels, forums, blogs, and fan clubs around the world, to arrive at
comprehensive answers of What do they think? How do they feel about the products?.
2 Undestand and Categorize Online Behavior
•Lenovo analysis how customer acts on the online platform by spliting them to main user
segement, buyers and non-buyes in order to send a right message to the right user.
3 Exceeding Customers Expectations
•By udentitiing and anticipating their customers needs and making customer feel
important by asking them to share their experience and ideas to provide a even better
customer services.

 Consumer Behavior Model

Buying behavior is considered as an action on how final, individuals and households purchase the goods and services,
which when it all combined we can get into the consumer market. Understanding consumer research decisions requires
big efforts to come up with a focal point and research outcomes. To study the actual consumer behavior, the marketer
needs to know how consumers respond to the different marketing efforts that a company may use. As shown below the
market researchers want to understand how the different customer motivations are changed, which comes under the
customer's characteristics which include the differences in social, personal, and cultural factors. And secondly is the
buying decision process which includes information research, and recognition. One of the major task that a market need
to understand is what happens in consumer awareness between the introduction of external marketing stimuli and the
final purchase decision.
  Characteristics Affecting Consumer Behavior

The main goal of every entrepreneur is to meet the demands of the consumer to raise business sales and consumer
satisfaction. To achieve this goal, markets need to understand the what are the major factors which likely to influence the
customer behavior such as cultural, social, personal, and psychological characteristics as shown below:

While some influences are transient, others might have a long-term impact on a customer's decision to buy or
not buy. Let’s look at some of these factors:
1. Cultural: the cultural factor is one of the basic elements that can be a starting point for what consumer
wants and behave. Also, it can be a value that belongs to a specific society, the cultural factor is divided
into three main elements:
1.1 Culture: The culture factor has a strong impact on the customer purchasing behavior, which
includes customer preferences, needs, wants, values, and learning from their community.
1.2 Sub-Culture: Within a cultural group, we can find a different subculture, that can share similar
values and beliefs. For instance a group of people from different nationalities or religions.
1.3 Social Class: In any community, we can find a social class which are classified by the income,
occupation, education and family background. The social class factor is an important element to
identify the consumer behavior.
2. Social: The customer behavior also influences how people are affected each other, for example, some
consumers try to copy another customer to be socially accepted, and some of the social factors are:
2.1 Group and Social Network: Many groups can highly influence a person’s behavior, it that can be
direct or in-direct, generally where a person associate himself. Usually, a customer who is in the
same group will have a common buying behavior. For example, an aspirational group is one of
the elements of the group factor that one person belongs to, like a young singer who wishes one
day to emulate a famous singer.
2.2 Family: A person develops his/her test in products from watching their families from childhood,
which eventually they will continue to do after growing up.
2.3 Role and Statues: A person belongs to a different type of group, their role in the group is one of
the things which reflects on a person buying behavior. If a person is in a high position, his buying
behavior will be influenced by his role and status. For example, a person who is Designer
Executive in a Magazine Company will purchase according to his status on the other hand staff in
Human Resource depart ant will have a different purchasing pattern. .

3. Personal: The buyer’s element is an individual factor which is the customers strongly influence their
buying behaviors. There are set of various perceptions in which a person can be one of the things that
influence the behavior of the customers, including a person's occupation, age, gender, income and
personality, and self-concept.

4. Psychological Factors: People's psychological elements plays a major in the determination of

consumer behavior, which can also be difficult to study and measure but is one of the power factor to
know the consumer buying decisions, some of the important psychological factors are:
  Buying Decision Behavior and the Buyer

There different elements in regards to the consumer buying behavior base on their level of involvement in
their decision to purchase the product or service and how risky it is. For example, the higher the product is in
price the higher the risk increases, and the buyers have high involvement in purchasing decisions. Based on
these determinations, there are four different types of buyers behavior as below:

1. Complex Buying Behavior: This type can be also called an extensive since the customers are highly
elaborated in the buying process. An example of this type is when the items or services purchased is
expensive such as brand items, car, house, etc.
2. Dissonance-Reducing Buying Behavior: It includes when customers are involved with a pricey or
risky purchase, which also can be called complex buying behavior. It required a lot of involvement in
the purchasing process since it can be difficult to select a brand that in the future they may regret
their choice. For instance, the buyers can shop around, however, they but relatively quickly.
3. Habitual Buying Behavior: In this type, the buying behavior is categorized under a low involvement
in the buying decision. Usually, most customers find no deference in the brands of similar goods or
services. For example, id buying habitual products which are considered everyday products.
4. Variety-Seeking Buying Behavior: In this case, the consumer changes their purchases from various
products and services brands for curiosity showing a low level of involvement.

 The Buyer Decision Process: The customer decision-making process includes five main steps, these
steps by which the buyers evaluate making a purchase decision. The decision process needs
recognition, information search, evaluation of alternatives, the purchase decision, and post-purchase
behavior. The purchasing process from the first stage starts along before the purchase took place,
and we come to understand that focusing on the entire cycle is important rather than the purchase
decision. Generally speaking in the cycle of the buyer purchase process, some customers skip or
reserve some stages, which mostly hang on the buyer's nature, product, and the circumstance.

Chapter 6 Summary - Business Markets and Business Buyer Behavior

 Business Markets: The Business market is a procedure of selling the goods and services to other firms,
where these goods and services can be utilized as raw materials or spare parts or other products, or some
other business buy the product and resell them. Comparing it to the consumer buying behavior the business
is larger and expanding where people focused to invest their money or resources in the business market. An
example of the business market is Tesla, which they are planning to invest around 5 Billion US Dollars in
their new electric cars and battery in Europe. After that different service providers will be engaged to
supply the product parts and then Tesla will be able to manufacture and sell the last finished product to the
consumer. The major difference between the business market and the consumer market is the business
market include a set of various business which acquire a product and service which eventually used in the
production, whereas the consumer market consists of a business that sells products and service to the end
consumer.
 Business Buyer Behavior: Business buying behavior is the intention and behavior is reflected by companies and
employees when it comes to purchasing the corporation. It’s also a concept of knowing the business need and wants to
make relevant purchases that assist a corporation make
revenue. Different major factors influence the business
buyer behavior, including environmental factors which
consist of the marketing and other stimuli, the buying
organization, and buyer responses. To come up with a
good marketing model, understanding what acquire within
the organization to turn stimuli into a purchase response
 The Business Buyer Decision Process: The best way to view the business baying as a decision process, which
are steps, make each process different across companies and products. The business buying decision
process is summarized as below:

1. Problem Recognition: It starts when the organizational purchases identify the requirement that can be met by
acquiring a good or service.
2. General Need Description: This stage of identity is the determination of the product specification, such as quality
of the product, quantity, and others.
3. Supplier Search: In this phase of the business buying process, the buyer
work on identifying what are the best services and products providers in
the market.
4. Information Search and Supplier Evaluation: The buying personals
require to evaluate the various products and services for a participle use
and then the supplier can be selected.
5. Negotiation of Purchase Orders: In this stage, the buyer may negotiate
the agreement with the supplier or a service provider. This type of
agreement either can be a single purchase or a repurchase of the same
product in a different period.
6. Evaluation of Supplier Performance: It also can be called a performance
review of the supplier, which includes how the supplier complies with
buying agreement. For example, the buyer may contact the end-user and
request a feedback on the product or service and rate their satisfaction.

 Engaging Business Buyers with Digital and Social Marketing:

One of the key elements of the marketing strategies is to have a well-defined framework that engages the business
buyers with digital marketing. In the last years, information technology made a huge impact on the business-to-business
marketing process and modules. Two major technological advancements are important in improving the effectiveness
of the B2B digital marking efforts. First is the E-procurement and Online Purchasing, the online shopping has grown
rapidly recently, as we can see most the companies today obtaining an online purchasing is a standard procedure.
Examples of how companies implement e-procurement such as reverse action, where they put their purchasing request
or a tender and invite the supplier to bid. Also, the trading exchange is one of the e-procurement strategies through
which businesses work together to facilitate the trading process. Secondly is the B2B digital and social media marketing,
almost all marketers recently with the rapid shift toward online buying, use the various digital platforms such as
websites, mobile apps, blogs, and more to engage the business buyers and maintain a good relationship anywhere and
anytime.

 Institutional and Government Markets:

The institutional and Governance Markets represent a non-for-profit market with the main goal of general welfare of
people. These market platforms are categorized under a low budget, below we can see the comparison of the institutional
and government markets:

Institutional Markets Government Markets

- Institutional Markets are encompassed to provide care to - The Government Market is where the main buyers are
people and contribute to the society, Institutions can be state, federal and local governmental organizations. This
different from one another in their dependence on the market usually offers numerous business opportunities
objectives and sponsors. Example of the institutional for both large and small businesses, they are also
market: consider as big buyers of the product and services in
 Schools most countries. Example of Government markets:
 Hospitals.  National Defense.
 Nursing homes.  Homeland security.
 Prisons,  Police Protection.
 and other  Urban Planning