CONSUMER & ORGANIZATIONAL BEHAVIOR ANALYSIS
When we start analyzing consumers and organizations for their buying patterns, we should have an understanding of some core concepts of marketing like, why people buy and how people buy.
WHY PEOPLE BUY?
People buy goods and services because of following influences:
1. PSYCHOLOGICAL INFLUENCES.
i. Needs and wants (the deep urges and desires of products);
ii. Lifestyles (the life patterns; patterns of spending and living);
iii. Attitude (the way we think and believe);
iv. Behavior (our actions);
v. Motivations (inspiration);
vi. Personality and self-concept (a set of distinct characteristics of a person and his / her opinion about himself / herself).
2. SOCIAL AND INTERPERSONAL INFLUENCES
i. CULTURE
Beliefs and values a society shares and transforms from generation to generation is culture. Sub-culture is the further bifurcation of the culture. In Pakistan, we have an eastern cum Islamic culture but all 4 provinces have their sub-cultures. People represent a sub-culture according to their language, caste, area, religion and some other factors.
ii. SOCIAL STATUS
Society has social classes; groups of people who share similar lifestyles, values, interests and behaviors. The social classes are divided into 3 main classes, lower, middle and upper classes and then their further segmenting is done on the basis of income, education, life style and behaviors.
iii. REFERENCE GROUPS
These are groups of friends and family circle, class mates, office colleagues, professional associates, club members, neighbors, etc.
iv. WORD-OF-MOUTH COMMUNICATION
It’s also called informal communication or chat. In this communication, the opinions of opinion leaders can’t. Opinion leaders are the specialists of a field or have vast knowledge of man fields or domains.
HOW PEOPLE BUY?
It’s a mental activity to choose something to buy and making a decision to buy. The thinking process contains the following ingredients or components.
LEARNING AND DECISION-MAKING
Any change in the contents of a person’s long-term memory is called learning. Learning is long-lasting. We learn our name and many basic to advance things and sustain them in our memory. Many students remember their course and forget it soon after exams or even after many years, this is not learning. Learning occurs through cognition and recalling, which lead to perception and conditioning, and finally decision-making takes place.
COGNITION / AWARENESS.
The process of acquiring knowledge or awareness through observations, experiments, senses, the 6th sense/ intuition is called cognition.
RECALLING or remembering things is the most significant process in learning.
PERCEPTION
It is the process of understanding something on the basis of cognition.
CONDITIONING
It is responding according to a particular situation. For instance, a driver not only driver a car but defenses herself from many potential accidents, it’s all done through perceived behaviors.
DECISION MAKING
The decision making process from marketing perspective involves many steps like, recognizing a need (to buy something); 2 collecting and analyzing information and sources of suppliers; 3 finding and selecting alternates, making the purchase; and 5 evaluating the outcome.
THE ORGANIZATIONAL BUYING BEHAVIOR
It’s different from consumer buying behavior. The organizational staff is not easily influenced by ordinary ads or sales force requests to buy some products. Normally the purchase/procurement/merchandising department does the purchasing. A list of sources of suppliers is always maintained. The production or it sub-department makes an indent or order, the supervisors or managers approve the demand, collect relevant info and sources of suppliers, analyze info and find alternates or substitutes, make the purchase and evaluate the outcome or level of satisfaction from the purchase.
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