MIDTERM NOTES

Question 1

What are the steps in the buyer decision process?

Answer 1

1_ Need recognition
2_Information search
3_Evaluation of alternatives
4_Purchase decision
5_Postpurchase behaviour

Question 2

Explain the Need recognition in the buyer’s decision process

Answer 2

the buyer recognizes a problem or need. can be triggered by internal stimuli(thirst/hunger) or external stimuli(advertisement chat with a friend) The marketer should research
consumers to find out what kinds of needs or problems arise, what brought them about, and
how they led the consumer to this particular product.

Question 3

Explain the Information search process

Answer 3

If the consumer’s drive is strong and a satisfying product is near at hand, he or she is likely to buy it then. If not, the consumer may store the need in memory or undertake an information search related to the need.

For example, once you’ve decided you need a new car, at the least, you will probably pay more attention to car ads, cars owned by friends, and car conversations.

Consumers can obtain information from any of several sources. These include personal sources (family, friends, neighbors, acquaintances), commercial sources (advertising,
salespeople, dealer and manufacturer web and mobile sites, packaging, displays), public sources (mass media, consumer rating organizations, social media, online searches and peer reviews), and experiential sources (examining and using the product).

Commercial sources normally inform
the buyer, but personal sources legitimize or evaluate products for the buyer.

Question 4

Explain the evaluation of alternatives process

Answer 4

We have seen how consumers use information to arrive at a set of final brand choices.

Next, marketers need to know about alternative evaluation, that is, how consumers process information to choose among alternative brands.

Marketers should study buyers to find out how they evaluate brand alternatives. If marketers know what evaluative processes go on, they can take steps to influence the buyer’s
decision.

[In the evaluation stage, the consumer ranks brands and forms purchase intentions.]

Question 5

Explain the purchase decision process

Answer 5

two factors can come between the purchase intention and the purchase decision.
The first factor is the attitudes of others. If someone important to you thinks that you should buy the lowest-priced car, then the chances of you buying a more expensive car are reduced.

The second factor is unexpected situational factors. The consumer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, unexpected events may change the purchase intention.

Question 6

Explain the Postpurchase behaviour process

Answer 6

After purchasing the product,
the consumer will either be satisfied or dissatisfied and will engage in postpurchase behavior of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase?
The answer lies in the relationship between the consumer’s expectations and the product’s perceived performance.
sellers should promise only what their brands can deliver so that buyers are satisfied.
Almost all major purchases, however, result in cognitive dissonance, or discomfort caused by postpurchase conflict. After the purchase, consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought. However, every purchase involves compromise.
So consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Thus, consumers feel at least some postpurchase dissonance for every purchase.

Customer satisfaction is a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value.
Satisfied customers buy a product again, talk favorably to others about the product, pay less attention to competing brands and advertising, and buy other products from the company.

Question 7

What is the buyer decision process for new products ?

Answer 7

Awareness. The consumer becomes aware of the new product but lacks information about it.

Interest. The consumer seeks information about the new product.

Evaluation. The consumer considers whether trying the new product makes sense.

Trial. The consumer tries the new product on a small scale to improve his or her estimate
of its value.

Adoption. The consumer decides to make full and regular use of the new product.

This model suggests that marketers should think about how to help consumers move through these stages.

For example, if a company finds that many consumers are considering
its products but are still tentative about buying one,
it might offer sales prices or special promotions that help get consumers over the decision hump.

Question 8

Major Influences on buying business behaviour?

Answer 8

Like consumer buying decisions
in Figure 5.2, business buying
decisions are affected by an
incredibly complex combination
of environmental, interpersonal,
and individual influences, but with
an extra layer of organizational
factors thrown into the mix.

Environmental:
-The economy
-Supply conditions
-Technology
-Politics/Regulation
-Competition
-Culuture and customs

Organizational:
-Objectives
-Strategies
-Structure
-Systems
-Procedures

Interpersonal:
-Influence
-Expertise
-Authority
-Dynamics

Individual:
Age/Education
Job position
Motives
Personality
Preferences
Buying style

BUYERS

Business buyers also are affected by technological, political,
and competitive developments in the environment. Finally, culture and customs can strongly
influence business buyer reactions to the marketer’s behavior and strategies, especially in the
international marketing environment