M2 - 10 C2B & B2B Flashcards
describe maslows hierarchy of needs.
Maslow wanted to understand what motivates people. He believed that individuals possess a set of motivation systems unrelated to rewards or unconscious desires.
1) bottom level = physical needs (hunger/thirst)
2) safety need (security, protection)
3) social need (sense of belonging, love)
4) Esteem needs (self-esteem, status)
5) cognitive needs (comprehension, understanding)
6) Aesthetic needs (beauty, order)
7) Self actualization need (self- development and realization)
In business buyer behavior, what are the major influences that shape behavior?
1) environmental factors
- 4p’s + PEST
2) organizational factors
3) interpersonal factors
4) individual factors
5) buyers response
- product of choice, supplier choice, order quantity….
The business buying process is the decision-making process by which business buyers establish the need for purchased products and services, and identify, evaluate and choose among alternative brands and suppliers.
what is the business buying process?
The business buying process is the decision-making process by which business buyers establish the need for purchased products and services, and identify, evaluate and choose among alternative brands and suppliers.
what are the external factors contributing to consumer decision making?
1) controllable factors - marketing variable: price, product, place, promotion
2) uncontrollable factors - environmental: PEST (Political, Economic, Social and Technological factors)
what are the 4 internal factors influencing Consumer Behaviour in decision-making?
Buyers Characteristics:
1) CULTURE - Subculture, Social Classes, cultural trends
- Cultural factors are coming from the different components related to culture or cultural environment from which the consumer belongs.
2) SOCIAL - Reference Groups, Family Roles & social role
3) PERSONAL - Age and lifestyle; Life cycle stage, Occupation, Economic sit/purchase power., and personality
- Decisions and buying behavior are obviously also influenced by the characteristics of each consumer.
4) PSYCHOLOGICAL - Motivation, Perception, Learning, Beliefs/ Attitudes
describe the internal factors in consumer decision making from a cultural level.
categories: subculture, Social Classes, cultural trends
- Cultural factors are coming from the different components related to culture or cultural environment from which the consumer belongs.
CULTURAL
- Occidental, European White/Caucasian/Mediterranea, Catholic…
- Highly Education + 3 EU Languages…
- Senior Management Occupation
- Mid-Upper Social Class
describe the internal factors in consumer decision making from a social level.
customer behavior: The internal SOCIAL factors to decision-making = family roles, status, & reference groups
- 1) reference group - The membership groups of an individual are social groups to which he belongs and which will influence him. The membership groups are usually related to its social origin, age, place of residence, work, hobbies, leisure, etc.. The influence level may vary depending on individuals and groups. But is generally observed common consumption trends among the members of a same group.
2) The family - is maybe the most influencing factor for an individual. It forms an environment of socialization in which an individual will evolve, shape his personality, acquire values. But also develop attitudes and opinions on various subjects such as politics, society, social relations or himself and his desires.But also on his consumer habits, his perception of brands and the products he buys.
3) social role - The position of an individual within his family, his work, his country club, his group of friends, etc. A social role is a set of attitudes and activities that an individual is supposed to have and do according to his profession and his position at work, his position in the family, his gender, etc.. – and expectations of the people around him. Social status meanwhile reflects the rank and the importance of this role in society or in social groups
SOCIAL
- Born in the 70’s: “X” Generation
- Traditional Family (6 siblings)
- TV Culture: Sesame St, Flistones, The Muppets
- Radio Top40 – 80’s & 90’s Pop Music
- Facebook, LinkedIn and Google+ heavy user
define consumer buying roles.
we can distinguish five roles people might play in a buying decision:
1 - Initiator: A person who first suggests the idea of buying the particular product or service.
2- Influencer: A person whose view or advice influences the decision.
3 - Decider: A person who decides on any component of a buying decision; whether to buy, what to buy, how to buy, or where to buy
4 - Buyer: The person who makes the actual purchase.
5 - User: A person who consumes or uses the product or service.
A company needs to identify these roles because they have implications for designing the product, determining messages, arid allocating the promotional budget. If the husband decides on the car make then the auto company will direct advertising to reach husbands. The auto company might design certain car features to please the wife. Knowing the main participants and their roles helps the marketer fine-tune the marketing program.
define business buyer buying roles. (‘business center’)
1) users - members of an orgnaization that ill use product/service. users might initiate the buying proposal and help define the product specifications.
2) influencers - often help define specifications and also provide information for every alternative. technical personal are particularly important influencers.
3) buyers - have formal authority to select the supplier and arrange terms of purchase. Buyers may help shape product specifications, but their major role is in selecting vendors and negotiating. in a more complex purchase, buyers might include high-level officers participating in the negotiations.
4) deciders - have formal or informal power to select and approve the final suppliers.In routine buying, the buyers are often the deciders, or at least the approvers.
5) gatekeepers - control the flow of information to others. For example, purchasing agaent often have authority to prevent salespersonss from seeing users or deciders. such as technical personal and secretaries.
describe the internal factors in consumer decision making from a personal level.
categories=Age, occupation, lifestyle, Lifecycle stage, Occupation, Economic sit/purchase power, and personality.
Decisions and buying behavior are obviously also influenced by the characteristics of each consumer.
~ age and lifestyle: A consumer does not buy the same products or services at 20 or 70 years. His lifestyle, values, environment, activities, hobbies and consumer habits evolve throughout his life. The lifestyle of an individual includes all of its activities, interests, values and opinions.
~ personality: Personality is the set of traits and specific characteristics of each individual. In order to attract more customers, many brands are trying to develop an image and a personality that conveys the traits and values - real or desired – of consumers they are targeting. For example, since its launch, Apple cultivates an image of innovation, creativity, boldness and singularity which is able to attract consumers who identify to these values
PERSONAL
- Almost 40, Not Married, “DINK”
- Senior Management, Unemployed
- Lives in Capital City
- Frequent Traveller, Sports, DIY/Home Improvement
describe the internal factors in consumer decision making from a psychological level.
psychological factors can be divided into 4 categories: motivation, perception, learning as well as beliefs and attitudes.
motivation ~ Motivation is what will drive consumers to develop a purchasing behavior. It is the expression of a need is which became pressing enough to lead the consumer to want to satisfy it.
perception ~ Perception is the process through which an individual selects, organizes and interprets the information he receives in order to do something that makes sense.
PSYCHOLOGICAL
- Achievement Oriented – Self Demanding
- Used to Multinational Environment
- Cares about new generations’ Morals and Values
- Entrepreneurial
- Optimistic, Open Minded, Diversity Tolerant
define complex buying behavior.
characterized by high levels of consumer “involvement” in a purchase decision; with significant amounts of perceived differences between brands in the product category
define variety seeking buying behavior.
situations where there is low consumer involvement, but the consumer perceives significant differences between the brand options in front of them. In variety seeking situations consumers tend to do a lot of brand switching (no brand loyalty)
define dissonance-reducing buying behavior
consumers with Dissonance-Reducing Buying Behavior have high amounts of involvement. However, buyers in this behavioral situation are perceiving very few differences among the brands they are selecting products from.in the end, they may be swayed by price or convenience of purchase in the end.
example: buying paint for your house
define habitual buying behavior
a consumer has low involvement in a purchase, and is perceiving very few significant differences between brands in a given product category. So many products fit into this scenario. Most of them are everyday use products and commodities, such as toilet paper, salt and black pepper.
outline the process of deciding and buying in consumer markets.
1 - need recognition 2 - information search 3 - evaluate alternatives (purchase intention --> asses the attitudes of others and unexpected situation factors) 4 - purchase decision 5 - Post Purchase Behavior
outline the stages of deciding and buying in business buying process
1 - problem recognition 2 - General need description 3 - product specification 4 - supplier Research RFI 5 - Proposal Solicitation RFP 6 - Supplier Selection 7 - Order-Routine specifications 8 - performance review
