Chapter 6 Flashcards
Consumer Behaviour
Individuals and households buying goods and services for personal consumption
Factors or Characteristics affecting consumer behaviour
Cultural Social Personal Psychological Buyer
Cultural Sub-factors
Culture
Subculture
Social Class
Social Sub-factors
Reference Groups
Family
Role or Status
Personal Sub-factors
Age Life-cycle Occupation Economic Situation Personality
Psychological Sub-Factors
Motivation
Perception
Learning
Benefits and Attitudes
Culture
Basic trigger of wants and goods. It is deeply entrenched, but usually when it changes, it creates opportunities.
Subculture
Groups of people within a certain culture with shared value system and behaviours
Regional, demographic, ethnographic.
Social Class
Division based on socio-economic status
Reference Groups
Groups that form a comparison or reference in forming a behaviour.
Aspirational Groups
Group an individual wishes to belong to.
Membership Groups
Group with direct influence and to which a person belongs.
Word of mouth influence and marketing businesses represents 80% face to face. After face-to-face, search engines are the number one source to get information . True or false?
True
Life Cycle Stage
Needs for different product changes over the years.
Self-Concept Theory
Possessions contribute to and reflect self-identity.
Motive
Desire to achieve something
Learning
Behavioural change based on experience
Selective Attention (Falls into the sub-categori of motive in Psychological factors)
Way to get someone’s attention
Selective Distortion ‘’
Information that support your belief. You are stubborned and close to believe something else.
Maslow’s Hierarchy of Needs
It is a motivational theory in psychology that consists of a hierarchal pyramid of the needs .
What is the order, bottom to top, of the Maslow’s hierarchy of needs?
- Psychological Needs
- Safety Needs
- Social Needs
- Esteem Needs
- Self-Actualization Needs
Psychological Needs
Our most basic need is for physical survival, such as satisfying thirst and hunger, and this will be the first thing that motivates our behaviour.
Safety Needs
Law, protection, security.
Social Needs
Love and belongingness needs
Esteem Needs
Self esteem, recognition, Status
Self-Actualization Needs
Self development and realization
The Maslow’s hierarchy of needs follow the life-cycle. True or false?
True
Stages of Buyer Decision Process (5)
- Need recognition
- Information Gathering
- Evaluation of Alternatives
- Purchase Decision
- Post-Purchase Behaviour
The information gathering proceeds through a many sources. What are they? (4)
- Experiential
- Public Source
- Commercial
- Personal Source
What are the two factors that influence the purchase decision?
Attitude of others and unexpected situational factors
Post-Purchase Behaviour usually results in _______
Cognitive Dissonance
Stages Adoption Process (5)
- Awareness
- Interest
- Evaluation (Considering Stage)
- Trial (Sampling Stage)
- Adoption or Rejection
Individual adopt new products at varying rates. What are they? (5)
Innovators, early adopters, early majority, late majority, laggards.
Characteristics that influences the rate of adoption (5)
- Relative Advantage (Superior to existing products)
- Compatibility (Aligned with value of market?)
- Complexity
- Divisibility (Integrated into regular use eg. T-shirt vs. brunch)
- Communicability (Benefit are evident)
B2B
Buying behaviours of firms that buy products to produce other products or resell
Business Market
Is there more buyers or less buyers? Do they have a large share?
There is less buyer but they occupy a larger share.
Demand is ____ from consumers.
Derived
Types of Buying Situations
- Straight Rebuy (Order without any modification)
- Modified Rebuy
3, New Task (First time ordering the product_ - System (Solution Ceiling)
Business Buyer Behaviour Model
The environment then, the buying organization, and the buyers responses.
Environment category of the Business Buyer Behaviour Model Sub-category, are:
Marketing Stimuli: the 4 p’s
Other Stimuli: Economic, Political, Cultural, Competitive, Technological.
Buying Center
All Individuals that participate in the buying decisions.
Influences on Business Buyer Behaviour (5)
Environmental Organizational Interpersonal Individual Buyers
E-Procurement
Online purchasing
How E-Procurement can be implemented?
Reverse Auctions
Trading Exchanges
Company buying sites
Extranet link with key suppliers
Derived Demand
Business demand that ultimately comes from the demand for consumer goods.
Perception
The process by which people select and organize information to form a meaningful picture of the world.
Product Value Analysis
Analyzing a product carefully to determine whether it needs to be redesigned and made for efficient and effective to provide a superior value.
Modified Rebuy
A business buying situation in which the buyer wants to modify product specification.
Cognitive Dissonance
Buyer Discomfort caused by post purchase conflict.
Business Buying Process
The decision process by which buyers determine which products and services their organization needs to purchase, and then choose among alternatives
Consumer Market
All the individuals or households that buy or acquire goods for personal consumption.
Supplier Development
Development of networks suppliers-partners to ensure a dependable supply of products
Opinion Leader
A person within a reference group who exerts social influence on others.
Cross-Cultural Marketing
Cross-Cultural and perspectives within a brand’s mainstream marketing. It appeals to consumer similarities across subcultures
System Selling
Packaged solution to a problem to a single seller. Hence avoiding all the decision involved in a complex buying situation
A consumer behaviour is influenced by four major psychological factors. What are they?
Motivation
Perception
Learning
Belief and Attitudes
A consumer behaviour influence by five personal characteristics. What are they?
Age and Life Cycle Occupation Economic Situation Lifestyle Personal and Self-Concept
A consumer behaviour is also influence by 4 social factors. What are they?
Group
Family
Social Network
Role and Status
At what stage of the Buyer Decision Process should the marketer research to identify what kind of needs or problems arise
Need Recognition
Personal Sources
Family, friends, acquaintance, neighbourhood
Commercial Sources
Salespeople, advertising, displays.
Early Adopters
2nd. They are usually opinion leaders in their communities and adopt new ideas carefully.
Early Mainstream
They are usually among the firsts to adopt a product before the average person.
Late Mainstream
A majority of people have tried it before.
Lagging adopters
Tradition bound and suspicious
Influences of Rate adoption (5)
Relative Advantage Compatibility Complexity Divisibility Communicability
Relative Advantage
The degree to which innovations appear compared to existing products
Compatibility
Correspond to the value of the market
Complexity
The degree to which the innovation is difficult to understand or use.
Divisibility
Degree to which it has been tried on a limited basis.
Communicability
Degree to which the innovation has been explained to others.
Influences on Business Buyer
Environmental Organizational Interpersonal Individual Buyers
Stages of the Business Buying Process (8)
- Problem Recognition
- General Need Recognition
- Product Specification
- Supplier Search
- Proposal Solicitation
- Supplier Selection
- Order- Routine Specification
- Performance Review
Bidder’s list
a list of firms believed to be qualified to supply a given item
