CHAPTER III

CONCEPTUAL FRAMEWORK
3.1

INTROUDUCTION:
Who does the Purchasing of the trillions of dollars worth of goods and
services needed by business organizations? Purchasing agents (PA) are
certainly influential in direct straight re-purchase and modified re-purchase
situations, whereas other department personnel are more influential in newpurchase situations. Technical personnel usually have a major influence in
selecting product components (raw materials), and Pas dominate in selecting
suppliers.
Webster & Wind call the decision-making unit of a Purchasing organization
the Purchasing center. The Purchasing center is composed of all those
individuals and groups who participate in the purchasing decision-making
process, who share some common goals and the risks arising from the
decisions.
The Purchasing center includes all members of the organization who play any
of seven roles in the purchase decision process.
1. Initiators: Those who request that something be purchased.
2. Users: Those who will use theproduct/service
3. Influencers: People who influence the Purchasing decision. Technical
personnel are particularly important influencers.
4. Deciders: People who decide on product/service requirements ~ suppliers
5. Approvers: People who authorize the proposed actions of deciders or
buyers
6. Buyers: People who have formal authority to select the suppliers and
arrange terms.

7. Gatekeepers: People who have the power to prevent sellers or information

from reaching members of the Purchasing center.
Of all the seven roles played in the purch a sing game, the gatekeeper is the
most critical and many times, the most difficult with whom to deal. Examples
of these types include PAs, receptionists, secretaries and phone operators. The
number of persons involved in Purchasing decisions ranges from three (for
services and items used frequently) to five (for high-ticket items such as highvolume quantities of coatings/ paints to construction work and machinery).
To be a successful marketer to industry and to target their efforts properly,
business marketers must figure out:
1)
2)
3)
4)

3.2

Who are the major decision participants?

What decisions do they (each) influence?
What is their level of influence?
What evaluation criteria do they use?

MEANING OF PURCHASING BEHAVIOR:

3.2.1 Definition of Purchasing Behavior:

Purchasing Behavior is the decision processes and acts of people involved in
Purchasing and using products.

3.2.2 Need to Understand:

1. Why consumers make the purchases that they make?
2. What factors influence consumer purchases?
3. The changing factors in our society.
Consumer Purchasing Behavior refers to the Purchasing behavior of the
ultimate consumer. A firm needs to analyze Purchasing behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms
success.

1. The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze
the what, where, when and how consumers buy.
2. Marketers can better predict how consumers will respond to marketing
strategies.

3.2.3 Types of Purchase Decisions:

Consumers are faced with purchase decisions nearly every day. But not all
decisions are treated the same. Some decisions are more complex than others
and thus require more effort by the consumer. Other decisions are fairly
routine and require little effort. In general, consumers face four types of
purchase decisions:
1. Minor New Purchase: These purchases represent something new to a
consumer but in the customers mind is not a very important purchase in
terms of need, money or other reason (e.g., status within a group).
2. Minor Re-Purchase: These are the most routine of all purchases and often
the consumer returns to purchase the same product without giving much
thought to other product options (i.e., consumer is brand loyalty).
3. Major New Purchase: These purchases are the most difficult of all
purchases because the product being purchased is important to the
consumer but the consumer has little or no previous experience making
these decisions.
The consumers lack of confidence in making this type of decision often
(but not always) requires the consumer to engage in an extensive decisionmaking process..
4. Major Re-Purchase: These purchase decisions are also important to the
consumer but the consumer feels confident in making these decisions since
they have previous experience purchasing the product.

For marketers it is important to understand how consumers treat the purchase

decisions they face. If a company is targeting customers who feel a purchase
decision is difficult (i.e., Major New Purchase), their marketing strategy may
vary greatly from a company targeting customers who view the purchase
decision as routine. In fact, the same company may face both situations at the
same time; for some the product is new, while other customers see the
purchase as routine. The implication of Purchasing behavior for marketers is
that different Purchasing situations require different marketing efforts.

3.2.4 How Consumers Buy:

So now that we have discussed the factors influencing a consumers decision
to purchase, lets examine the process itself. This process is presented in a
sequence of 5 steps as shown below.

However, whether a consumer will actually carryout each step depends on the
type of purchase decision that is faced. For instance, for minor re-purchases
the consumer may be quite loyal to the same brand, thus the decision is a
routine one (i.e., buy the same product) and little effort is involved in making
a purchase decision. In cases of routine, brand loyal purchases consumers may
skip several steps in the purchasing process since they know exactly what they

want allowing the consumer to move quickly through the steps. But for more
complex decisions, such as Major New Purchases, the purchasing process can
extend for days, weeks, months or longer. So in presenting these steps
marketers should realize that, depending on the circumstances surrounding the
purchase, the importance of each step may vary.

3.2.5 Types of consumer Purchasing Behavior are Determined by:

1. Level of Involvement in purchase decision. Importance and intensity of
interest in a product in a particular situation.
2. Buyers level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores
others.
3. High Involvement Purchases: Honda Motorbike, high priced goods,
products visible to others, and the higher the risk the higher the
involvement. Types of risk:
a) Personal risk
b) Social risk
c) Economic risk

3.2.6 The four Type of Purchasing Behavior are:

1. Routine Response/Programmed Behavior: Purchasing low involvement
frequently purchased low cost items; need very little search and decision
effort; purchased almost automatically. Examples include soft drinks,
snack foods, milk etc.
2. Limited Decision Making: Purchasing product occasionally. When you
need to obtain information about unfamiliar brand in a familiar product
category, perhaps. Requires a moderate amount of time for information
gathering. Examples include Clothes--know product class but not the
brand.

3. Extensive Decision Making/Complex high involvement: Unfamiliar,

expensive and/or infrequently bought products. High degree of
economic /performance /psychological risk. Examples include cars,
homes, computers, education. Spend alot of time seeking information and
deciding.
Information from the companies MM; friends and relatives, store
personnel etc. Go through all six stages of the Purchasing process.
4. Impulse Purchasing no Conscious Planning:
The purchase of the same product does not always elicit the same
Purchasing Behavior. Product can shift from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for
someone that does not go out often at all), but limited decision making for
someone else.
The reason for the dinner, whether it is an anniversary celebration, or a
meal with a couple of friends will also determine the extent of the decision
making.

3.3

CONSUMER PURCHASE DECISION PROCESS:

Behind the visible act of making a purchase lies a decision process that must
be investigated. The purchase decision process is the stages a buyer passes
through in making choices about which products and services to buy. :
1. Problem Recognition
2. Information Search

3. Alternative Evaluation
4. Purchase Decision and
5. Post Purchase Behaviour

3.3.1 Problem Recognition: Perceiving a Need:

Perceiving a difference between a person's ideal and actual situations big
enough to trigger a decision. Can be as simple as noticing an empty milk
carton or it can be activated by marketing efforts.

In the first step the consumer has determined that for some reason he/she is not
satisfied (i.e., consumers perceived actual condition) and wants to improve
his/her situation (i.e., consumers perceived desired condition). For instance,
internal triggers, such as hunger or thirst, may tell the consumer that food or
drink is needed. External factors can also trigger consumers needs. Marketers
are particularly good at this through advertising, in-store displays and even the
intentional use of scent (e.g., perfume counters). At this stage the decisionmaking process may stall if the consumer is not motivated to continue (see
Motivation above). However, if the consumer does have the internal drive to
satisfy the need they will continue to the next step.

3.3.2 Information Search: Seeking Value:

The information search stage clarifies the options open to the consumer and
may involve

Scanning ones memory to recall

o
Internal
search

previous experiences with products or brands.

Often sufficient for frequently

purchased products.
o
When

past

experience

or

knowledge is insufficient
The risk of making a wrong

purchase decision is high

Two

steps

information is low.
The primary

information
search

The

of

External
search

cost

of

sources

gathering

of

external

information are:
1.
Personal sources, such as friends
and family.
2.

Public sources, including various

product-rating organizations such as
Consumer Reports.

3.

Marketer-dominated

sources,

such as advertising, company websites,

and salespeople

Assuming consumers are motivated to satisfy his or her need, they will next
undertake a search for information on possible solutions. The sources used to
acquire this information may be as simple as remembering information from
past experience (i.e., memory) or the consumer may expend considerable
effort to locate information from outside sources.

How much effort the consumer directs toward searching depends on such
factors as: the importance of satisfying the need, familiarity with available
solutions, and the amount of time available to search. To appeal to consumers
who are at the search stage, marketers should make efforts to ensure
consumers can locate information related to their product. For example, for
marketers whose customers rely on the Internet for information gathering,
attaining high rankings in search engines has become a critical marketing
objective.

3.3.3 Alternative Evaluation: Assessing Value:

The information search clarifies the problem for the consumer by
1. Suggesting criteria to use for the purchase.
2. Yielding brand names that might meet the criteria.
3. Developing consumer value perception.
A consumer's evaluative criteria represent both
1. the objective attributes of a brand (such as locate speed on a portable CD
player)
2. the subjective factors (such as prestige).
These criteria establish a consumer's evoked set
1. the group of brands that a consumer would consider acceptable from
among all the
2. brands in the product class of which he or she is aware

3. Consumers search efforts may result in a set of options from which a

choice can be made. It should be noted that there may be two levels to this
stage.

4. At level one the consumer may create a set of possible solutions to their
needs (i.e., product types) while at level two the consumer may be
evaluating particular products (i.e., brands) within each solution. For
example, a consumer who needs to replace a television has multiple
solutions to choose from such as plasma, LCD and CRT televisions.
Within each solution type will be multiple brands from which to choose.
Marketers need to understand how consumers evaluate product options
and why some products are included while others are not. Most
importantly, marketers must determine which criteria consumers are using
in their selection of possible options and how each criterion is evaluated.
Returning to the television example, marketing tactics will be most
effective when the marketer can tailor their efforts by knowing what
benefits are most important to consumers when selecting options (e.g.,
picture quality, brand name, screen size, etc.) and then determine the order
of importance of each benefit.

3.3.4 Purchase Decision: Purchasing Value:

In many cases the solution chosen by the consumer is the same as the product
whose evaluation is the highest. However, this may change when it is actually
time to make the purchase. The "intended" purchase may be altered at the time

of purchase for many reasons such as: the product is out-of-stock, a competitor
offers an incentive at the point-of-purchase (e.g., store salesperson mentions a
competitors offer), the customer lacks the necessary funds (e.g., credit card
not working), or members of the consumers reference group take a negative
view of the purchase (e.g., friend is critical of purchase).
Marketers whose product is most desirable to the consumer must make sure
that the transaction goes smoothly.
For example, Internet retailers have worked hard to prevent consumers from
abandoning online purchase (i.e., online shopping carts) by streamlining the
checkout process. For marketers whose product is not the consumers selected
product, last chance marketing efforts may be worth exploring, such as
offering incentives to store personnel to "talk up" their product at the checkout
line.

Three

possibilities

which

depends

on

such

considerations
From
to buy

whom

Terms of sale
Past

experience

Purchasing from the seller

When to buyo

Return policy.
which can be influenced by

store atmosphere

time pressure

a sale

pleasantness

of

the

shopping experience.
Do not buy

3.3.5 Postpurchase Behavior: Value in Consumption or Use:

1. After Purchasing a product, the consumer compares it with expectations
and is either satisfied or dissatisfied.
2. Satisfaction or dissatisfaction affects
a) consumer value perceptions
b) consumer communications
c) repeat-purchase behavior.
3. Many firms work to produce positive postpurchase communications
among consumers and contribute to relationship building between sellers
and buyers.
4. Cognitive Dissonance. The feelings of postpurchase psychological tension
or anxiety a consumer often experiences
5. Firms often use ads or follow-up calls from salespeople in this
postpurchase stage to try to convince buyers that they made the right
decision.
6. Once the consumer has made the purchase they are faced with an
evaluation of the decision. If the product performs below the consumers
expectation then he/she will re-evaluate satisfaction with the decision,
which at its extreme may result in the consumer returning the product
while in less extreme situations the consumer will retain the purchased
item but may take a negative view of the product. Such evaluations are
more likely to occur in cases of expensive or highly important purchases.

To help ease the concerns consumers have with their purchase evaluation,
marketers need to be receptive and even encourage consumer contact.
Customer service centers and follow-up market research are useful tools in
helping to address purchasers concerns.

3.3.6 Involvement and Problem-Solving Variations:

Characteristics of Purchase Decisin Process
a)
b)
c)
d)
e)
1.

Number of Brands Examined

Number of Sellers Considered
Number of Product Attributes Evaluated
Number of External information Sources Used
Time Spent Searching
Consumers may skip or minimize one or more steps in the purchase
decision process depending on
a)

the level of involvement

b)

the personal, social, and economic significance of the purchase

2. Three characteristics of high-involvement purchase

a) Is expensive,
b) Can have serious personal consequences, or could reflect on ones
social image.
Three general problem-solving variations exist in the consumer purchase
decision process:
o
Routine

o
Problem

Virtually a habit
involves

little

effort

seeking

external

information and evaluating alternatives.

Solving
o

Typically used for low-priced, frequently

purchased products.

Involves the use of moderate information-

o
Limited

Problem seeking efforts.

Solving

Often used when the buyer has little time or

effort to spend.
o
Each stage of the consumer purchase
decision process is used
Considerable time and effort on

o
Extended

external information search and in

Problem

Solving

identifying
evaluating alternatives.

Used

in

high-involvement

purchase

situations.
Low and high consumer involvement has

o
Involvement

and important implications for marketing strategy, which

Marketing Strategy

differs for products that are market leaders from their

challengers.

3.3.7 Situational Influences:

Five

The reason for engaging in the

The purchase task

situational
influences

Social

decision.
Including

surroundings
Physical

purchase decision is made.

Such as decor, music, and crowding in

surroundings

retail stores.
Such as time of day or the amount of

others

present

when

Temporal effects
time available.
Antecedent states Which include the consumers mood or

amount of cash on hand

3.4

PSYCHOLOGICAL

FACTORS

INFLUENCES

ON

PURCHASING DECISION:
Concepts such as motivation and personality; perception; learning; values,
beliefs and attitudes; and lifestyle are useful for interpreting Purchasing
processes and directing marketing efforts.

3.4.1 Motivation and Personality

1. Motivation
a) is the energizing force that causes behavior that satisfies a need.
b) Needs are hierarchical
c) Once basic physiological needs are met, people seek to satisfy learned
needs.

Physiological needs

o
o

basic to survival.
self-preservation

o
o

physical well-being.
love

friendship.

achievement

status

prestige

o
o

self-respect.
personal fulfillment.

Safety needs

From

lowest

to highest, the
hierarchy is:

Social needs

Self-actualization needs

2. Personality
a) A person's consistent behavior or responses to recurring situations.
b) Research suggests that key traits affect brand and product-type
preferences.
c) Cross-cultural analysis also suggests that residents of different
countries have a national character, or a distinct set of personality
characteristics common among people of a country or society.
d) Personality characteristics are often revealed in a persons self-concept,
which is the way people see themselves and the way they believe
others see them.
e) Perception
f) The process by which an individual uses information to create a
meaningful picture of the world by
1) Selecting,
2) Organizing
3) Interpreting
g) Perception is important because people selectively perceive what they
want and it affects how people see risks in a purchase.
1. Selective Perception
Filtering

exposure,
Selective

comprehension, and

perception

retention
in the human brains attempt to organize and

interpret information.
o
Consumers can pay attention to messages that are
consistent with their own attitudes and beliefs
Selective exposure
o

Consumers

can

ignore

messages

that

are

inconsistent.
Selective
comprehension

Involves interpreting (distorting?) information so

that it is consistent with a person's attitudes and beliefs.

Consumers do not remember all the information

o
Selective retention

they see, read, or hear.

o
Consumers see or hear messages without being
aware of them.
Subliminal

This is a hotly debated issue with more popular

perception

appeal than scientific support.

Research suggests that such messages have limited

effects on behavior

3.5

SOCIOCULTURAL

INFLUENCES

ON

CONSUMER

BEHAVIOR:
1. Sociocultural influences evolve from a formal and informal relationships
with other people.
2. Influences Include
a. Personal influence
b. Reference groups
c. The family
d. Social class
e. Culture
f. Subculture.

a. Personal Influence
Aspects of personal

individuals

who

exert

influence important Opinion leaders direct or indirect social influence over

to marketing

others
Word of mouth
o

People influencing each

other during face-to-face conversations.

Power of word of mouth

has been magnified by the Internet and

e-mail

b. Reference Groups:
Reference groups are people to whom an individual looks as a basis for
self-appraisal or as a source of personal standards. Reference groups have
an important influence on the purchase of luxury products but not of
necessities.
one to which a person

Membership o
group
Aspiration

actually belongs
o
one with which a person

Three groups have clear

group
marketing implications

wishes to be identified.
o
one from which a person

Dissociative
wants to maintain a distance because
group
of differences in values or behaviors

c. Family Influence:
Family influences on consumer behavior result from three sources:
1.

consumer socialization

2.

passage through the family life cycle

3.

decision making within the family.

Consumer

Consumer socialization is the process by which people acquire the

Socialization skills, knowledge, and attitudes necessary to function as consumers

Family Life
o
The distinct phases
o
young singles
Cycle

that a family progresses through

o
from formation to retirement
o

Each phase bringing

o

Young

marrieds

without children
Young

marrieds

with children
with it identifiable purchasing
o
behaviors.
o
Two

older unmarried

decision-Five roles of individual family

members in the purchase process

making styles exist:

exist

spouse-

The older married

dominant (either wife or husband

is responsible)
joint

Family

decision making (most decisions

Decision

are made by both husband and

Making

wife).

information
gatherer

influencer

decision maker

are

purchaser

assuming these roles for the

user

Increasingly,

o
preteens

and

teenagers

family, given the prevalence of

working parents and single-parent
households.

d. Social Class:
1. The relatively permanent, homogeneous divisions in a society into which
people sharing similar values, interests, and behavior are grouped.
2. Determinants of social class include
a) occupation,
b) source of income (not level of income)
c) education.
3. Social class is a basis for identifying and reaching particularly good
prospects for products and services.

a. Upper classes are targeted by companies for items such as financial

investments, expensive cars, and evening wear.
b. Middle classes represent a target market for home improvement centers
and automobile parts stores.
c. Lower classes are targeted for products such as sports and scandal
magazines.
e. Culture and Subculture:
Culture refers to the set of values, ideas and attitudes that are accepted by a
homogeneous group of people and transmitted to the next generation.
Subcultures - groups within the larger, or national, culture with unique
values, ideas, and attitudes.
Three largest racial/ethnic subcultures in the U.S
1.

Hispanics,

2.

African-Americans

3.

Asians .

Each of these groups exhibits sophisticated social and cultural behaviors that
affect their Purchasing patterns.
1. African-American Purchasing Patterns:
a. African-Americans have the largest spending power of the three
subcultures
b. While price conscious, they are motivated by product quality and
choice.
c. Respond to products and advertising that appeal to their AfricanAmerican pride and heritage as well as address their ethnic features
and needs.
2. Hispanic Purchasing Patterns:
a. Hispanics represent the largest subculture
b. About 50% are immigrants
c. The majority are under the age of 25.
d. Marketing to Hispanics has proven to be a challenge because
e. The diversity of this subculture
f. The language barrier.

g. Sensitivity to the unique needs of Hispanics by firms has paid huge

dividends.
3. Asian Purchasing Patterns
a. The Asian is the fastest growing subculture.
b. About 70% of Asians are immigrants
c. Most are under the age of 30.
d. Asians represent a diverse subculture, including Chinese, Japanese,
Filipinos, Koreans, Asian-Indians, people from Southeast Asia, and
Pacific Islanders.
e. Two groups of Asian-Americans have been identified:
1. Assimilated Asians are
2. Conversant in English
3. Highly educated
4. Exhibit Purchasing patterns very much like "typical" American
consumers.
5. Nonassimilated Asians
6. Recent immigrants who cling to their native languages and
customs.

3.6

Categories that Effect the Consumer Purchasing Decision

Process:
A consumer, making a purchase decision will be affected by the following
three factors:
1. Personal
2. Psychological
3. Social
The marketer must be aware of these factors in order to develop an appropriate
MM for its target market.

3.6.1

Personal:
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making.
Young people purchase things for different reasons than older people.

3.6.2

Psychological Factors:
Psychological factors include:
1. Motives:
A motive is an internal energizing force that orients a person's activities
toward satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can
identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
a.
b.
c.
d.
e.

Physiological
Safety
Love and Belonging
Esteem
Self Actualization

Need to determine what level of the hierarchy the consumers are at to

determine what motivates their purchases.
2. Perception:
What do you see?? Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. IE we chose what info
we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing,
smell and touch. Selective Exposure-select inputs to be exposed to our
awareness. More likely if it is linked to an event, satisfies current needs,

intensity of input changes (sharp price drop). Selective DistortionChanging/twisting current received information, inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one product
against another), have to be very careful that consumers do not distort the
facts and perceive that the advertisement was for the competitor. A current
example...MCI and AT&T...do you ever get confused?
Selective Retention-Remember inputs that support beliefs, forgets those
that don't. Average supermarket shopper is exposed to 17,000 products in a
shopping visit lasting 30 minutes-60% of purchases are unplanned.
Exposed to 1,500 advertisement per day. Can't be expected to be aware of
all these inputs, and certainly will not retain many. Interpreting
information is based on what is already familiar, on knowledge that is
stored in the memory.
3. Ability and Knowledge:
Need to understand individuals capacity to learn. Learning, changes in a
person's behavior caused by information and experience. Therefore to
change consumers' behavior about your product, need to give them new
information re: product...free sample etc.
South Africa...open bottle of wine and pour it!! Also educate american
consumers about changes in SA. Need to sell a whole new country.
When making Purchasing decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than
those who have knowledge of a product.

Non-alcoholic Beer example: consumers chose the most expensive sixpack, because they assume that the greater price indicates greater quality.
Learning is the process through which a relatively permanent change in
behavior results from the consequences of past behavior.
4. Attitudes:
Knowledge and positive and negative feelings about an object or activitymaybe tangible or intangible, living or non- living.....Drive perceptions
Individual learns attitudes through experience and interaction with other
people.
Consumer attitudes toward a firm and its products greatly influence the
success or failure of the firm's marketing strategy.
5. Personality:
All the internal traits and behaviors that make a person unique, uniqueness
arrives from a person's heredity and personal experience. Examples
include:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.

Workaholism
Compulsiveness
Self confidence
Friendliness
Adaptability
Ambitiousness
Dogmatism
Authoritarianism
Introversion
Extroversion
Aggressiveness
Competitiveness.

Traits effect the way people behave. Marketers try to match the store
image to the perceived image of their customers.

There is a weak association between personality and Purchasing Behavior,

this may be due to unreliable measures. Nike ads. Consumers buy products
that are consistent with their self concept.
6. Lifestyles:
Recent US trends in lifestyles are a shift towards personal independence
and individualism and a preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.
EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered
fashionable in US until 1920's. Now an assault by the American Academy
of Dermatology.

3.6.3

Social Factors:
Consumer wants, learning, motives etc. are influenced by opinion leaders,
person's family, reference groups, social class and culture.
1. Opinion Leaders:
Spokespeople etc. Marketers try to attract opinion leaders...they actually
use (pay) spokespeople to market their products. Michael Jordon (Nike,
McDonalds, Gatorade etc.)
2. Roles and Family Influences:
Role...things you should do based on the expectations of you from your
position within a group. People have many roles.
Husband, father, employer/ee. Individuals role are continuing to change
therefore marketers must continue to update information.

Family is the most basic group a person belongs to. Marketers must
understand:
a. that many family decisions are made by the family unit
b. consumer behavior starts in the family unit
c. family roles and preferences are the model for children's future family
(can reject/alter/etc)
d. family Purchasing decisions are a mixture of family interactions and
individual decision making
e. family acts an interpreter of social and cultural values for the
individual.
f. The Family life cycle: families go through stages, each stage creates
different consumer demands:
3. Social Class:
An open group of individuals who have similar social rank. US is not a
classless society. US criteria; occupation, education, income, wealth, race,
ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class
Americans prefer luxury cars Mercedes.
a. Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic
names.
b. Lower-upper class, 1.2%, newer social elite, from current professionals
and corporate elite
c. Upper-middle class, 12.5%, college graduates, managers and
professionals
d. Middle Americans-middle class, 32%, average pay white collar
workers and blue collar friends
e. Working class, 38%, average pay blue collar workers
f. Lower Americans-lower class, 9%, working, not on welfare
g. Lower-lower class, 7%, on welfare

Social class determines to some extent, the types, quality, quantity of products
that a person buys or uses.
Lower class people tend to stay close to home when shopping, do not engage
in much prepurchase information gathering.
Stores project definite class images.
Family, reference groups and social classes are all social influences on
consumer behavior. All operate within a larger culture.
4. Culture and Sub-culture:
Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture
determines what people wear, eat, reside and travel. Cultural values in the US
are good health, education, individualism and freedom. In american culture
time scarcity is a growing problem. IE change in meals. Big impact on
international marketing.

3.7

Factors that Influence Purchasing Decisions:

When purchasing anything other than a fast moving consumer item, the
process should never be a case of simply picking up an item and paying for it,
as it is likely that you will have problems with a purchase at some time.
When deciding whether to purchase a product or not there are many factors to
consider, such as;
1. Alternatives:
Before purchasing a product, it is always worth asking yourself are there
any alternatives that will satisfy my needs more than this product?
Different consumers have different needs, the list of which is not only
unique but also endless, and as an example some consumers will be
looking for the cheapest alternative whilst others may be seeking a locally
produced alternative whilst others may seek an alternative from another
country, or an alternative made out of stronger and more durable materials
etc. etc. All consumers should identify their particular needs and then
consider whether there are any alternatives available.
2. Quality:
Different consumers will have different levels of acceptability with regards
to the quality of a product, and some consumers will be more than content
with what others may consider to be an inferior product. Before purchasing
a product you need to satisfy yourself that the product is at a quality you
consider acceptable.
3. Price:

The price for a particular type of product can vary from manufacturer to
manufacturer and supplier to supplier. Even the same item from the same
manufacturer can cost more from one supplier than another, therefore
before making the purchase it is always worth shopping around in order to
ensure you dont spend too much.
4. After Sales Service:
The level of after sales service is usually only applicable when making
larger purchases, such as white goods. After all, if Purchasing a chocolate
bar there would be no after sales service besides which, there doesnt need
to be. If Purchasing a car though, you would want to know that there are
specialists that can fix it if it broke down, in addition you would expect
there to be some kind of warranty in place. Before making large purchases
consumers should always consider the level, and quality, of the after sales
service.
5. Availability of Spare Parts:
As with the after sales service this would usually only be considered when
making larger purchases. Lets face it, everything will break down and
need repairing at some point, therefore it is important
As you can see from the chart below, the majority of respondents in a
recently survey cited price as a major factor influencing their purchasing
decisions in 2008. With economic uncertainty and the effects of the weak
U.S. dollar on monetary markets, savvy managers have to consider price at
the top of the list of considerations.

Second in importance was the reputation of the company. This was somewhat
surprising to this surveying organization. However, I would add that to me
company reputation falls into the service arena and it makes perfect sense to
me.
If Im going to buy based on price then I also want to know that the company
has a reputation for service and that its going to be around if I need them not
just today but into the future. These two influencers equal 78.4 percent.
I dont know about you, but for me the reputation of a company is just as
important as the price. I may even pay a few pennies (or dollars) more for a
company that I am familiar with, rather than be governed by the dollar sign.
I recently bought a blender from a small, local appliance store. The owner,
Rick, took care of me. He opened the box, put together the parts, plugged it in,
and demonstrated how to use it. I know if I have a problem with this blender,
there is a face, a person, Rick, who I can return it to and get satisfaction. I had
the option of going to a Costco or Sams Club and maybe get a better price but
the nearest location is one hour away. Do I want to spend the time (and gas)
and maybe not get what I want? Very simply, no.
Now it so happens that I went with a friend to Costco subsequent to
purchasing my blender. The blenders at Costco were $15 more than the one I
purchased. Interesting. You pay to belong to a Costco type establishment and
pay for the privilege of overpaying? Some items that are less expensive at
Costco, of course. Almonds, for example. But would I make a special trip
there for nuts? No I wouldnt.
A decade ago, trade shows were a critically important factor in any companys
sales efforts. It was a chance to meet prospects face-to-face and to demonstrate

your products capabilities. Now Web sites replace trade shows but neither
hold much sway over buyers.
The good news is that there is still purchasing activity in the market, but the
factors that influence those purchases are changing with the times