Why do businesses study buyer behavior? It is done in order to understand general principles of buyer behavior to satisfy buyers. Businesses need to find out which buyers can be satisfied through target market selection, and how to satisfy them. Through buyer behavior, marketers need to understand consumer behavior before making adjustments and developing marketing strategies. A successful business knows their markets, knows how to reach their markets, and knows when the consumers wants change and adjust their marketing efforts accordingly.
Consumer markets, also known as B2C markets are individuals and households that purchase products for personal use. Business-to-consumer customers are looking for one item to fill a space or need. On a larger scale, you have organizational markets, also known a B2B markets where products are brought for further processing or for use within their organization. Business-to-business buyers are looking for a selection to fill a space or their customers' needs.
In the following paper, we will discuss the importance of B2B and B2C buying behaviors when implementing good marketing strategy. We will also discuss some consequences that may occur if businesses decide not to implement buyer behavior in their research.
Buyer behavior concepts
Buyer behavior can be defined as bought goods or services by the individual or organization for use in the production of other products and services that are sold, rented, or supplied to others. It also includes buying of goods by retailers and wholesalers for the purpose of reselling or renting them (Kotler and Armstrong). Lexis F. Higgins states that there are seven steps associated with buyer behavior:
1. Understand the market wants/needs of interest
2. Based on relative size and needs of the market, select certain segments of the market that are of the most interest to you and your organization
3. Thoroughly describe these segments based on their ...