In addition to a company's marketing mix and factors present in the external environment, a buyer is also influenced by personal characteristics and the process by which he or she makes decisions. A buyer's cultural characteristics, including values, perceptions, preferences, and behavior learned through family or other key institutions, is the most fundamental determinant of a person's wants and behavior.
The buyer's behavior is influenced by four major factors:
- cultural,
- social,
- personal,
- and psychological.
Business markets consist of individuals and organizations that buy goods for purposes of further production, resale, or redistribution. Businesses (including government and nonprofit organizations) are a market for raw and manufactured materials and parts, installations, accessory equipment, and supplies and services. The variables impacting the business buyer are similar to those of the consumer buyer in some ways but very different in others. In general, the business buyer is much more technical, price-oriented, educated for the job, and risk-averse than the consumer buyer. In addition, with the business-buying environment, there is more concern for the status and power of potential vendors, and persuasiveness and empathy play relatively lower roles. Consumer and business markets and buying behavior have to be understood before sound marketing plans can be developed.
