Understanding the Terrain: Markets and Purchasing Behaviour
Learning Outcomes
This chapter explores the fundamental concepts of markets, consumer decision-making processes, and the various factors that influence purchasing behaviour in both consumer and organizational contexts.
We begin by examining the nature of markets and the key differences between consumer and organizational markets. We then look into consumer market behaviour (B2C: business-to-consumer), exploring models of consumer decision-making and the factors that shape consumer choices. Finally, we investigate organizational market behaviour, highlighting the unique characteristics of business-to-business (B2B) purchasing.
After reading this chapter, you should be able to:
- Differentiate between consumer and organizational markets and their key characteristics.
- Explain the consumer decision-making process and its various stages.
- Analyze the different types of consumer buying behaviours and their implications for marketing strategies.
- Evaluate the impact of situational, personal, psychological, and social factors on consumer purchasing decisions.
- Describe the organizational buying process and the roles of various participants.
- Compare and contrast B2B and B2C purchasing behaviours.
- Apply concepts of consumer and organizational buying behaviour to tourism, hospitality, and service industry contexts.
Opening Thoughts
The Tale of Two Coffee Orders
On a busy Monday morning in Vancouver, two very different coffee purchases are taking place simultaneously:
Sarah, a marketing executive, walks into her favorite local café. Without checking the menu, she orders her usual oat milk latté. The barista greets her by name and starts preparing her drink before she reaches the counter. Sarah’s purchase is influenced by her daily routine, brand loyalty, and personal preferences for sustainable products.
Meanwhile, just two blocks away, The Grand Hotel’s Food and Beverage Director, James Chen, is finalizing a major coffee supply contract. He is evaluating proposals from three different suppliers, considering factors like bean quality, price stability, delivery reliability, and sustainability certifications. The decision will affect thousands of hotel guests and impact the hotel’s operating costs significantly. The contract requires approval from the procurement team, finance department, and executive committee.
These contrasting scenarios illustrate the fundamental differences between consumer (B2C) and organizational (B2B) purchasing behaviour. While Sarah’s decision is relatively simple and emotionally driven, James’s purchase involves multiple stakeholders, complex evaluation criteria, and a formal decision-making process.
As we explore markets and purchasing behaviour in this chapter, we will uncover how factors like motivation, perception, cultural influences, and organizational dynamics shape these distinctly different types of buying decisions.
Chapter Topics
Media Attributions
- Figure 1: “Close-up of Coffee Cup on Table” by Chevanon Photography (2017), via Pexels, is used under the Pexels License.
