Chapter 4 Flashcards
Is the sequence of steps that a consumer will need to undergo in order to arrive at the final purchasing decision.
CONSUMER BUYING PROCESS.
CONSUMER BUYINGPROCESS
According to Philip Kotler, typical buying process involves six stages:
1.Problem Recognition
2.Information Search
3.Evaluation of Alternatives
4.Purchase Decision
5.Purchase
6.Post-Purchase Evaluation
A customer must first have a _________ before a purchase can happen.
PROBLEM RECOGNITION
This step is also recognized as identification of unmet needs. This
unmet need becomes a basis or force of buying behavior.
PROBLEM RECOGNITION
On the marketer perspective, this creates an opportunity.
Companies may gather information then develop marketing strategies to increase the interest of the customers.
PROBLEM RECOGNITION
At this point, consumer will read newspaper and magazine, watch
television, make a trip to a showroom or dealer, get in touch with salesperson and undertake all the feasible sources of _____________.
INFORMATION SEARCH
The role of marketers is to make their brands part of the consumers’
awareness set and then choice set.
INFORMATION SEARCH
SOURCES OF IN FORMATION
- PERSONAL SOURCES
- COMMERCIAL SOURCES
- PUBLIC SOURCES
- EXPERIMENTAL SOURCES
composed of family members, friends,
colleagues, and relatives
PERSONAL SOURCES
advertising, salesperson, dealers, trade show, display, & exhibition are leading _____________ sources.
COMMERCIAL SOURCES
- mass media such as radio, TV, newspapers, magazines, cinema, & consumer-rating agencies are some primary _____________ sources.
PUBLIC SOURCES
- consist of handling, examining, testing, or using the product
EXPERIMENTAL SOURCES
After a consumer has gathered information about certain brands of
a product, they are now ready to make _____________.
EVALUATION OF ALTERNATIVES
It is the role of the marketer to emphasize those advanced features of their brands.
Advertisement could help marketers make good comparison of the different goods.
EVALUATION OF ALTERNATIVES
The brand that offers maximum benefits or satisfaction in relation to price is chosen.
PURCHASE DECISION
At this stage, the customer has searched several brands; they knew
the price and payment options and now prefer one as a promising
brand to buy.
PURCHASE DECISION
It is essential for a marketer to provide more information about the
need discovered in the first step.
PURCHASE DECISION
FACTORS THAT CONTRIBUTE ON THE DECISION OF CONSUMER
TO AVOID, MODIFY OR POSTPONE A PURCHASE DECISION
- ATTITUDES OF OTHERS
- UNANTICIPATED SITUATIONAL FACTORS
- CONSUMER’S PERCEIVED RISK
sometimes other persons’ attitudes are negative about the consumer’s preferred brand. The consumer may be affected with these negative attitudes and comply with them.
ATTITUDES OF OTHERS
- increase in price, unemployment, income of the household, big medical expenses, & unavailability of the most favored brands & other comparable unexpected situation.
UNANTICIPATED SITUATIONAL FACTORS
- some bases of ____________ could
be on price, quality doubt, entrance of a new better-quality product and the
customer self-confidence.
CONSUMER’S PERCEIVED RISK
The _______________ consists of all the organizations that obtain goods and services used in the production of other products that are sold, rented or supplied to others.
Thus, _____________ does not
buy for personal use.
THE BUSINESS MARKET
TYPES OF BUSINESS MARKET
- INDUSTRIAL MARKET
- RESALE MARKETS
- GOVERNMENT MARKET
- INSTITUTIONAL MARKET
- consists mainly of companies making business in durable goods such as machinery, materials, chemicals, vehicles, office furniture and supplies.
The buyers are often manufacturers and the resellers are known as suppliers.
INDUSTRIAL MARKET
____________________ purchased products and retrade them to their customers for the intention of making profit.
RESALE MARKETS
- ______________ organizations are a key buyer of goods and services.
_____________ agencies normally need supplies to propose bids and usually they grant the contract to the lowest bidder.
GOVERNMENT MARKET
Includes schools, hospitals, nursing
homes, and other institutions that l must be supplied with goods and
services to people in their care.
INSTITUTIONAL MARKET
- the prior routine order is made by the business buyer without any adjustments.
Simply rebuys same product from the same supplier.
STRAGHT REBUY
- in this situation, business market wants to change its order in some specification of product, its price or terms and so on.
MODIFIED REBUY
- when a business buys an exact product for the first time, this case is called _____________ buying.
.
NEW TASK
is quite different from the consumer buying process because ______ is involved in different sets of characteristics and
demands.
Business buying process (BBP)
The BBP is split into eight stages:
1.Problem Recognition
2.Description of General Need
3.Specification of the Product
4.Search of Supplier
5.Proposal Solicitation
6.Selection of Supplier
7.Order-Routine Specification
8.Performance Review
The need or problem is recognized through either internal or external cues.
PROBLEM RECOGNITION
The first stage is when a certain problem is identified by someone in
the organization.
PROBLEM RECOGNITION
Salesperson has to stress the problem by cautious analysis of cost
inefficiencies and other signs perceived to be more urgent and in
need of solution.
PROBLEM RECOGNITION
This stage begins when an obvious need has been recognized by the organization.
DESCRIPTION OF GENERAL NEED
In this step, description about the general need has been set which explains the general characteristics and the quantity of the needed product.
DESCRIPTION OF GENERAL NEED
Marketer must persuade the decision making unit. Through persuading the buying company to detail features that only their product possesses, the sale must be closed at this stage.
DESCRIPTION OF GENERAL NEED
In this stage, the organization that is involved in the business buying process organizes a comprehensive list of the technical specifications of the preferred product through value analysis carried out by the engineering team.
SPECIFICATION OF THEPRODUCT
The buying organization looks for the suppliers to buy with the best one.
SEARCH OF SUPPLIER
A list of competitive competitive businesses is readied by the buying
organization with the use of supplier directories and aid of internet.
SEARCH OF SUPPLIER
The internet is more and more becoming a platform for such searching these days as the majority of the organizations are
entering into virtual world.
SEARCH OF SUPPLIER
In this stage, the suppliers are asked to submit their proposals. Some suppliers send only their salesperson
or simple catalogs.
PROPOSAL SOLICITATION
It is important that a supplier is known to the buyer, and it can do so by maintaining relationships with the buyer even when later is not buying.
PROPOSAL SOLICITATION
At this stage, the final supplier is chosen from the list of possible suppliers who have submitted their proposals to the
buying organizations.
Attributes that serve as basis for selection of potential supplier:
1.Quality of Product
2.Delivery Time
3.Ethical Corporate Behavior
4.Reasonable Price
5.Honest Communication
6.Past Performance & Reputation
7.Repair and Maintenance Services
SELECTION OF SUPPLIER
It contains the the order having a final list of the specifications, the selected supplier, delivery time, quantity required, price, repair and maintenance services.
ORDER-ROUTINE SUPPLIER
Details of payment and delivery are important. This is conducted by the purchasing department.
ORDER-ROUTINE SUPPLIER
This is the last stage of the business buying process
PERFORMANCE REVIEW
The performance of the supplier is reviewed by the buying
organization.
PERFORMANCE REVIEW
The performance review helps in future decision of the business buying process in the form of straight rebuy, modified rebuy or new task buying.
PERFORMANCE REVIEW
Resale markets also known as _________ do not change the products they procure.
Wholesalers
The purchase is done for the first time with no purchasing experience.
New Task
