Ch. 5 Understanding Consumer and Business Buyer Behavior Flashcards
Consumer buyer behavior
the buying behavior of final consumers such as individuals and households
Consumer market
All of the individuals or households that buy goods/services combined
Culture
basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
Buyers black box
Buyer’s characteristics and the Buyer’s decision process. This s where marketers would like to be able to get into the mind of their buyers but it is very hard to do so
subculture
A group of people with shared value systems based on common life experiences and situations. Important EX: Hispanic American, African American, and Asian American consumers.
Cross-cultural marketing
including all ethic themes and perspectives in a brand’s mainstream marketing, appealing to consumer similarities across subcultures rather than differences.
social class
More than just about money/income
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
Opinion leader
someone is a group who because of their status, knowledge or expertise have a strong power to influence others in the group.
Family
most important consumer buying organization in society,
What are two important characteristics of groups that determine buying behavior?
Role and status
Personal factors
age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept.
marketers often use life-cycle stage and develop appropriate products and marketing plans for each stage.
Lifestyle
A person’s pattern of living as expressed in his or her activities, interests, and opinions.
our major psychological factors:
motivation, perception, learning, and beliefs and attitudes.
Motive (drive)
a need that is so strong that it makes those feeling it have to satisfy that desire
subliminal advertising
being affected by marketing messages without even knowing it
Selective distortion
describes the tendency of people to interpret infor- mation in a way that will support what they already believe
learning
changes in behavior based on experiences
what two characteristics are the hardest to change
attitude and beliefs
buyer decision process consists of five stages:
need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior.
need recognition—
the buyer recognizes a problem or need. and is influenced by an internal or external stimuli
postpurchase behavior is based on these two:
expectations and product’s perceived performance
cognitive dissonance,
discomfort caused by postpurchase conflict.
new product
something that is PERCEIVED t be new by a certain customer
adoption process of a new good
5 steps:
The mental process through which an individual passes from first hearing about an innovation to final adoption.
Awareness, Interest, evaluation, trial, adoption
Early adopters
are guided by respect—they are opinion leaders in their communities and adopt new ideas early but carefully.
Early mainstream
adopters are deliberate—although they rarely are leaders, they adopt new ideas before the average person.
Late mainstream
adopters are skeptical—they adopt an innovation only after a majority of people have tried it.
lagging adopters are
tradition bound—they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.
relative advantage
the level at which a product appears to be superior to competition.
compatability
level at which the innovation fits the values and experiences of potential consumers
complexity
how hard or easy it is to use the poriduct
divisibility
how easy it is to try the product on a limited basis first
communicability
how easy it is to share and express the experience of the product with others
5 influences on the rate of adoption:
relative advantage, complexity, compatibility, divisibility, communicability
how do business markets differ from consumer markets?
they differ in market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved.
derived demand
demand coming from the demand for consumer goods
Market structure and Demand of B2B
less buyers but far larger ones
inelastic and more fluctuating demand
tends to change more—and more quickly—than does the demand for consumer goods and services
inelastic
a change in price does not effect the consumption
buying process characteristics of B2B buying
more professional purchasing efforts more players in the decision more complex decisions than consumers decisions are longer and more formalized B2B member are more reliant on eachother- they make get together to work to make both of their lives easier and cheaper
supplier developement
creating a network of suppliers in which can can reliably depend on in order to have the supplies you need on time and in the right quantity
straight rebuy
A business buying situation in which the buyer routinely reorders something without any modifications.
Modified rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
new task
A business buying situation in which the buyer purchases a product or service for the first time.
systems selling (or solutions selling)
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
Buying center
All the individuals and units that play a role in the purchase decision-making process.
Major influences on Business Buying Behavior
current and expected economic environment
supply of key materials
technological, political, and competitive developments in the environment.
culture and customs
Organizational factors-objectives, strategies, structure, systems, and procedures
interpersonal factors
Product value analysis
when a company carefully analyzes to see if they can somehow reproduce this product but in a cheaper or more efficient way to provide greater value
proposal solicitation
stage of the business buying process, the buyer invites qualified suppliers to submit proposals.
vendor-managed inventory
buyers hand over the ordering of products to their suppliers who monitors the stores levels of supplies
reverse auctions,
in which they put their purchasing requests online and invite suppliers to bid for the business.
online trading exchanges
through which companies work collectively to facilitate the trading process.
company buying sites
For example, GE operates a company trading site on which it posts its buying needs and invites bids, negotiate terms, and places orders
extranet links with key suppliers
. For instance, they can create direct procurement accounts with suppliers such as Dell or Staples, through which company buyers can purchase equipment, materials, and supplies directly. Staples operates a business-to-business procurement division called Staples Ad- vantage,
maslows levels of needs (pyramid)
self actualization esteem social safety physiological
