Ch 3: Understanding Buyers Flashcards
What are the different ‘types of buyers’
> Consumer market: A market in which consumers purchase goods and services for their use or consumption.
> Business market: Composed of firms, institutions, and governments who acquire goods and services:
- to use as inputs in manufacturing process (raw materials, parts) .
- for use in their day-to-day operations (office supplies, insurance) .
- for resale to their own customers.
Explain the different types of buyer needs
- Situational needs: the specific needs that are dependent on conditions related to the specific environment, time and place
- Functional needs: represent the need for a specific core task or function to be performed - the functional purpose of a specific product or service
- Social needs: the need for acceptance from an association with others - a desire to belong
- Psychological needs: the desire for feelings of assurance and risk reducing, as well as positive emotions such as, success, joy, excitement and stimulation
- Knowledge needs: the desire for personal development, information and knowledge to increase thought and understanding as to how and why things happen
What are buying teams
Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people from different departments throughout the organization
Explain the buying team members roles and responsibilities
Initiator - Identifies the need for a purchase
Influencer - Makes recommendations and expresses preferences
User - Will actually use the product or service being purchased
Decider - Has the ultimate responsibility of determining which product or service will be purchased
Purchaser - Negotiates final terms of the purchase and executes the actual purchase
Gatekeeper - In the position to control the flow of information to and between vendors and other buying team
What are the three types of purchasing decisions
- straight rebuy: a purchase decision resulting from an ongoing purchasing relationship with a supplier
- modified rebuy: a purchasing decision that occurs when a buyer has experience in purchasing a product in the past but is interested in acquiring additional information regarding alternative products and/or suppliers
- new task: a purchase decision that occurs when a buyer is purchasing a product or service for the first time
These decisions range from ‘habitual and routine decision-making «to» extensive consideration and decision-making’
What are the decision areas
- newness of problem or need
- information requirements
- information search
- consideration of new alternatives
- multiple buying influences
- financial risk
What’s the difference between assertiveness and responsiveness
Assertiveness*: The degree to which a person holds opinions about issues and attempts to dominate or control situations by directing the thoughts and actions of others.
Responsiveness*: The level of feelings and sociability an individual openly displays
What are the principal characteristics of assertiveness and responsiveness
- Low assertiveness
Slow paced, cooperative, avoids taking risks, easygoing, team player - High assertiveness
Fast paced, competitive, takes risks, directive, confrontational - Low responsivesness
Task-orientated, guarded and cool, rational, and formal - High responsivesness
Relationship orientated, open and warm, emotional, unorganized
What are the four communication styles
Amiables: high on responsiveness, low on assertiveness. Relationship oriented and slow paced
Expressives: high on both responsiveness and assertiveness. Relationship oriented and fast-paced
Drivers: low on responsiveness, high on assertiveness. Task-oriented and fast paced
Analyticals: low on both responsiveness and assertiveness. Task-oriented and slow paced
“Must haves” and “wants” of the four communication styles
Amiables: be liked > attention
Expressives: never be hurt emotionally > attention
Drivers: winning > results
Analyticals: being right > analytical activities
