Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.
How Are Organizational & Consumer Markets Different?
The consumer market buys products for personal consumption. Individuals and families make up the consumer market. Organizational markets tend to buy with the intent to resell something to the consumers, for production of other goods or maintaining the workplace. Organizational markets include corporations, governments, manufacturers and wholesalers and non-profit organizations. Organizations buy in much larger quantities than individual consumers.
The consumer market is the origin of product demand. Products are usually less technical and complex, ready-to-use and require very little expertise. organizational product demand is based on the demand created by the consumer market. The organizational market responds by purchasing the raw materials to produce those products. Products often require technical expertise.
For consumers, their buying decisions are based on their personalities, lifestyle and motivations. Their decisions can be influenced by family friends, cultural expectations and the weather. Organizational markets employ buyers who follow company policies and procedures to make buying decisions that detail purchase criteria. A committee or several people often are involved in every buying decision.
Salespeople market directly to the organizational markets in face-to-face meetings. Marketing material is more technical and focuses on cost-effectiveness. Organizations prefer long-term relationships with their suppliers and salespeople as opposed to consumers who can often go with their emotions.
Multiple distribution channels...