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MARKETING MANAGEMENT - NN > CHAPTER 4 > Flashcards

CHAPTER 4 Flashcards

1
Q

Is the sequence of steps that a consumer will need to undergo in order to arrive at the final purchasing decision.

A

CONSUMER BUYING PROCESS

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2
Q

According to Philip Kotler, typical buying process involves six stages:

A
  1. Problem Recognition
  2. Information Search
  3. Evaluation of Alternatives
  4. Purchase Decision
  5. Purchase
  6. Post-Purchase Evaluation
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3
Q

“A customer must first have a problem before a purchase can happen”

This step is also recognized as identification of unmet needs. This unmet needs become a basis or force of buying behavior.

A

Problem Recognition

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4
Q

On the marketer perspective, this creates an opportunity. Companies may gather information then develop marketing strategies to increase the interest of the customers.

A

Problem Recognition

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5
Q

“Following the problem recognition, an interested consumer will undertake”

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 informaion.

A

Information Search

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6
Q

The role of marketers is to make their brands part of the consumers’ awareness set and then choice set.

A

Information Search

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7
Q

SOURCES OF INFORMATION
(P - C - P - E)

A

Personal Sources
Commercial Source
Public Sources
Experimental Sources

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8
Q

Composed of family members, friends, colleagues, and relatives.

A

Personal Sources

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9
Q

Advertising, salesperson, dealers, trade show, display & exhibition are leading commercial sources.

A

Commercial Sources

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10
Q

Mass media such as radio, TV, newpapers, magazines, cinema & consumer-rating agencies are some primary public source.

A

Public Sources

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11
Q

Consist of handling, examining, testing or using the product.

A

Experimental Sources

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12
Q

“Consumer would select one brand among the alternatives that for them is the best to provide the utmost satisfaction”

A

Evaluation of Alternatives

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13
Q

After a consumer has gathered information about certain brands of a product, they are now ready to make evaluation.

A

Evaluation of Alternatives

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14
Q

It is the role of the marketer to emphasize those advanced features of their brands. Advertisement could help marketers make good comparison

A

Evaluation of Alternatives

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15
Q

CRITERIA IN EVALUATING ALTERNATIVES

A
  1. Benefits provided by the brand
  2. Qualities, features or attributes, and performance.
  3. Price change by different brands
  4. Past records of brands
  5. Attractiveness, image or reputation of brands
  6. Product-related services provided by the brands, for example after-sales services, warranty, & without charge installation.
  7. Accessibility of brands and dealer rating.
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16
Q

“The brand that offers maximum benefits or satisfaction in relation to price is chosen”

A

Purchase Decision

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17
Q

At this stage, the customer has searched several brands; they knew the price and payment options and no prefer one as a promising brand to buy.

A

Purchase Decision

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18
Q

It is essential for a marketer to provide more information about the need discovered in the first step.

A

Purchase Decision

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19
Q

FACTORS THAT CONTRIBUTE ON THE DECISION OF CONSUMER TO AVOID, MODIFY OR POSTPONE A PURCHASE DECISION.

A
  1. Attitudes of Others
  2. Unanticipated Situational Factors
  3. Consumer’s Perceived risk
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20
Q

Are negative about the consumer’s preferred brand.

The consumer may be affected with these negative attitudes and comply with them

A

Attitude of Others

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21
Q

Increase in price, unemployment, income of the household, big medical expenses, & unavailability of the most favored brands & other comparable unexpected situation.

A

Unanticipated Situational Factors

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22
Q

Some bases could be on price, quality doubt, entrance of a new better-quality product and the customer self-confidence.

A

Consumer’s Perceived Risk

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23
Q

“All the stages that lead toward purchasing have been completed”

A

Purchase

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24
Q

During the purchase phase, the consumer must settle on the following:

A
  1. From whom they should by
  2. When to buy
  3. Consumer might choose against making the purchase decision. They may also decide that they want to purchase at some point.
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25
Q

“After a purchase is completed, it is expected that the customer would evaluate whether consumer made a good decision or not”

A

Post-Purchase Evaluation

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26
Q

Basically, there is no assurance of total satisfaction. A gap between the expected level of satisfaction and the actual satisfaction is normal to happen.

A

Post-Purchase Evaluation

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27
Q

THINGS THAT A MARKETER SHOULD CHECK ABOUT THE POST-PURCHASE EXPERIENCE OF THE BUYERS.

A
  1. POST-PURCHASE SATISFACTION
  2. POST-PURCHASE ACTION
  3. POST-PURCHASE USE & DISPOSAL
28
Q

Actual satisfaction may not be identical to the expected one.

A

Post-Purchase Satisfaction

29
Q

The best advertisement is a completely satisfied customer.

A

Post-Purchase Action

30
Q

Post-Purchase Use & Disposal

A

Consumers use or dispose product.

31
Q

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.

A

Business Market

32
Q

BUSINESS MARKET DOES NOT BUY FOR PERSONAL USE.

A

BUSINESS MARKET DOES NOT BUY FOR PERSONAL USE.

33
Q

TYPES OF BUSINESS MARKET

A
  1. Industrial Markets
  2. Resale Markets
  3. Government Market
  4. Institutional Market
34
Q

Consists mainly of companies making business in durable goods such as machinery, materials, chemicals, vehicles, office furniture and supplies.

A

Industrial Markets

35
Q

The buyers are often manufacturers and the resellers are known as suppliers.

A

Industrial Markets

36
Q

Purchased products and retrade them to their customers for the intention of making profit.

A

Resale Markets

37
Q

Resale markets also known as (_______) do not change the products they procure.

A

Wholesalers.

38
Q

Government organizations are a key buyer of goods and service. Government agencies normally need supplies to propose bids and usually they grant the contract to the lowest bidder.

A

Government Market

39
Q

Includes schools, hospitals, nursing homes, and other institutions that must be supplied with goods and service to people in their care.

A

Institutional Market.

40
Q

BUYING SITUATIONS IN THE BUSINESS MARKET

A
  1. Straight Rebuy
  2. Modified Rebuy
  3. New Task
41
Q

The prior routine order is made by the business buyer without any adjustments.

A

Straight Rebuy

42
Q

Simply rebuys same product from the same supplier.

A

Straight Rebuy

43
Q

In this situation, business market wants to change its order in some specification of product, its price or terms and so on.

A

Modified Rebuy

44
Q

When a business buys an exact product for the first time.

A

New Task

45
Q

The purchase is done for the first time with no purchasing experience.

A

New Task

46
Q

Is quite different from the consumer buying process because this is involved in different sets of characteristics and demands.

A

Business Buying Process

47
Q

EIGHT STAGES OF BUYING BUSINESS PROCESS (BBP)

A
  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
48
Q

“The need or problem is recognized through either or external cues”

A

Problem Recognition

49
Q

The first stage is when a certain problem is identified by someone in the organization

A

Problem Recognition

50
Q

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.

A

Problem Recognition

51
Q

“This stage begins when an obvious need has been recognized by the organization”

A

Description of General Need

52
Q

In this step, description about this has been set which explains the general characteristics and the quantity of the needed product.

A

Description of General Need

53
Q

Market 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.

A

Description of General Need

54
Q

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

A

Specification of the product

55
Q

“The buying organization looks for the suppliers to buy with the best one”

A

Search of Supplier

56
Q

A list of competitive businesses is readied by the buying organization with the use of supplier directories and aid of internet.

A

Search of Supplier.

57
Q

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.

A

Search of Supplier.

58
Q

In this stage, the suppliers are asked to submit their proposals. Some suppliers send only their salesperson or simple catalogs.

A

Proposal Solicitation.

59
Q

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.

A

Proposal Solicitation

60
Q

At this stage, the final supplier is chosen from the list of possible suppliers who have submitted their proposals to the buying organizations.

A

Selection of Supplier

61
Q

ATTRIBUTES THAT SERVE AS BASIS FOR SELECTION OF POTENTIAL SUPPLIER

A
  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
62
Q

It contains that the order having a final list of the specifications, the selected supplier, delivery time, quantity required, price, repair and maintenance services.

A

Order-Routine Supplier

63
Q

Details of payment and delivery are important. This is conducted by the purchasing department.

A

Order-Routing Supplier

64
Q

This is the last stage of the business buying process.

A

Performance Review

65
Q

The performance of the supplier is reviewed by the buying organization.

A

Performance Review

66
Q

This helps in future decision of the business buying process in the form of straight rebuy, modified rebuy or new task buying.

A

Performance Review

MARKETING MANAGEMENT - NN (4 decks)

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