L4: Customer Behavior Flashcards
Factors affecting customer behavior
- Cultural
- Social
- Personal
- Psychological
From customer need to demand
needs -> wants -> demand
Maslow’s pyramid of needs
- physiological [lowest]
- safety and security
- social needs
- esteem
- self-actualization [highest]
Buyer decision process
- Need recognition
- Information search
- Alternative evaluation
- Purchase decision
- Post purchase behavior
Roles in organizational buying
- initiator
- influencers
- decider
- buyer
- users
- gatekeepers
Factors affecting business buying behavior
- enviromental
- organizational
- interpersonal
- individual
Major types of buying situation
• straight rebuy
• modified rebuy
• new task
(purchase decision requiring research, like a new product)
Customer conversion
- Strangers
- > attract - Visitors
- > convert - Leads
- > close - Customers
- > delight - Promoters
Which B2B lead generation methods work best?
Most effective:
- Inside sales
- executive events
- conferences
Least effective:
- Social Media
- Print advertising
Institutional markets
- schools
- hospitals
- prison
Characteristics:
- Low budget
- Captive adience
Government markets
- favouring domestic suppliers
Characteristics:
- affected by environmental factors
- non-economic factors considered
E-procurement
Advantages:
- access to newsuppliers
- lower costs
Disadvantages
- security
- can erode relationships
Transaction vs. relational marketing
Transaction:
• One-off exchanges
• short term focus
Relational:
• ongoing exchange
• customer management q
Why relationship marketing?
- Value-in-use: value is co-created over long term
* typically cheaper to retain old customers rather than acquire new ones
Customer relationship marketing
- Client relationships, customer loyalty and brand value are built through marketing strategies and activities
- Focus on long-term relationships, value and profitability
- Focus on brand instead of individual products
