readings icon presentation iconquiz iconresources icon

4.1 Introduction

All buying decisions, whether personal or on behalf of an organisation, are made by people, and, though it may often seem to be irrational, buying behaviour is , on the whole, purposeful and goal-directed. Understanding the buying behaviour of its customers is crucial to a firm's success. The firm that can anticipate how its potential customers will respond to its marketing strategies will have a competitive advantage.

Generally, buyers are classified either as consumers or business buyers . Consumer behaviour has been defined by Summers et al. (2003, p. 24) as:

. processes a consumer uses to make purchase decisions as well as to use and dispose of purchased goods and services; also includes factors that influence purchase decisions and the use of products..

Contrast this definition with that which Summers et al. (2003, p. 67) provide for business-to-business marketing:

the marketing of goods and services to individuals and organisations for purposes other than personal consumption.

So the basic distinction between the two is whether or not the purchase is for personal consumption.

You will find that business-to-business marketing (B2B) is also referred to as industrial marketing and organisational marketing. Thus you will read about business buyers, industrial buyers and organisational buyers. They are all the same, and they differ from consumers in terms of their buying behaviour. While we are talking about terminology, we tend to refer to 'buying' when we talk about businesses, and to 'purchasing' or 'consumption' when we talk about consumers-although there is a frequent interchange between these.

Although the primary buyers for port and terminal services are organisations, we begin our study with consumer buyers, because many of the sociological and psychological principles of consumer buying behaviour are applicable to business buying-professional buyers do not cease to be persons. It is also worth remembering that the consumer is the ultimate buyer of the goods that maritime or logistics organisations handle on behalf of other organisations, and consumers are, therefore, of interest to us.

previous page arrow Previous Page - Next Page next page arrow