session 4: understanding consumer and business buyer behavior Flashcards

1
Q

what is a consumer market?

A

All the individuals and households that buy or acquire goods and services for personal consumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is consumer buyer behavior?

A

The buying behaviour of final consumers

these final consumers are those of the consumer market

those that buy or acquire goods and services for personal consumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

can marketers control the factors that affect consumer behavior?

A

nah boy

but these factors must be taken into account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are the factors that influence consumer behavior

A

cultural factors

social factors

personal factors

psychological factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what are the aspects of cultural factors

A

culture

subculture

social class

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is culture

A

Basic trigger of wants & behaviour

reflects basic values, perceptions, wants, and behaviours

It is learned from family, church, school, peers, colleagues

Deeply entrenched

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what happens when cultural shifts occur

A

they create opportunities for new products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is subculture ?

A

A group pf people with shared value systems based on common life experiences

Regional, nationalities, religion, race

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is cross cultural marketing

A

includes ethnic themes in a brand’s mainstream marketing

E.g. Latin music in McDonald’s ads

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is social class

A

Divisions in a society whose members share similar values, interests and behaviours

Combination of occupation, income, education, wealth, and other variables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are the aspects of social factors

A

reference groups

family

roles and status

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is it in the aspect reference groups that influence our buyer behavior

A

Membership groups

Word-of-mouth

Reference/aspirational groups

Opinion leaders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is it in the aspect of family that influence our buyer behavior

A

household “power brokers” that can influence buyer behavior

Gender stereotypes for certain types of purchases are changing

children that have strong influence on purchasing decisions in the family

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are membership groups

A

those you belong to

have direct influence in your buying decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is word of mouth

A

personal words of trusted friends can strongly influence our buying decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are aspirational groups

A

those you want to belong to and that can influence buyer behaviour

e.g. a professional sports team

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are opinion leaders

A

people recruited as brand ambassadors for a certain reference group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is it in the aspect of roles and status that influence our buyer behavior

A

roles

status

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are roles

A

activities people are expected to perform

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is status

A

Esteem given to role by society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

can one have multiple roles in the social factor?

A

yeee

ex: mum and executive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what are the aspects of perusal factors that influence our buyer behavior

A

age and life cycle stage

occupation

economic situation

lifestyle

personality and self concept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is personality and self concept

A

unique psychological characteristics that distinguish a person or group

Self-concept theory suggests possessions contribute to and reflect personal identities (we are what we consume)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

can brands be also seen as having personalities

A

yeeee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what are the aspects of psychological factors

A

moptivation

perception

learning

beliefs and attitudes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what is a motive

A

a need requiring satisfaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is perception

A

process by which people select, organize, and interpret information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what is selective attention

A

people screen out most information they are exposed to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is selective distortion

A

people interpret info in a way that will support what they already believe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is selective retention

A

people retain info that supports their attitudes and believes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what is learning

A

behavioural change based on experience

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what is a belief

A

A descriptive thought that a person holds about something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what is an attitude

A

A person’s consistently favourable or unfavourable evaluations, feelings, and tendencies toward an object or idea

34
Q

what are the components (in order), of Maslows Hierarchy of needs

A
  1. self actualization needs
  2. esteem needs
  3. social needs
  4. safety needs
  5. psychological needs

from the top is more important to less important

35
Q

what are self actualization needs

A

involve self development and realization

36
Q

what are esteem needs

A

involve the following:

self-esteem

recognition

status

37
Q

what are social needs

A

sense of belonging

love

38
Q

what are safety needs

A

security

protection

39
Q

what are psychological needs

A

hunger

this

40
Q

what are the five stages in the buyer decision process

A
  1. Need recognition
  2. Information search
  3. Evaluation of alternatives
  4. Purchase decision
  5. Post-purchase behaviour
41
Q

what is need recognition (1)

A

triggered internally (hunger) or externally (ads)

42
Q

what is information search (where does it come from) (2)

A

after finding out that you have a need, you wanna look up info from:

personal sources

commercial sources

public sources

experiential sources

43
Q

what are commercial sources

A

ads, websites, etc

44
Q

what are public sources

A

media, peer reviews

45
Q

what are experiential sources

A

trial using the product

46
Q

what does evaluation of alternatives (3) depend on

A

depends on the buying situation and the consumer

Can be simple or complex

compare price and attributes

47
Q

what is purchase decision (4) influenced by?

A

Attitudes of others towards your choice after you’ve picked it from the alternatives

Unexpected situational factors (e.g. loss of job)

48
Q

what does the consumer satisfaction post purchase (5) depend on?

A

depends on buyer’s expectations vs. perceived performance of product

49
Q

what do most major purchases result in after the purchase?

A

cognitive dissonance

Discomfort caused by post-purchase conflict

thinking about the benefits of the brands not purchased

thinking about the drawbacks of the brand that was purchased

50
Q

Individuals adopt new products at varying rates, what are the terms used to describe the different rates of consumption?

A

innovators: 2.5%

early adopters (opinion leaders): 13.5%

early mainstream: 34%

late mainstream: 34%

lagging adopters: 16%

51
Q

what are the characteristics Influencing rate of adoption

A

relative advantage

compatibility

complexity

divisibility

communicability

52
Q

what is compatibility

A

Aligned with values and experience of the market?

53
Q

what is divisibility

A

Can the innovation be used on a limited basis and then integrated into regular use?

54
Q

what is communicability

A

Benefits easily observed or described to others?

55
Q

what is business-to-business (B2B)

A

Buying behaviour of firms that buy products to produce other products or to resell to others for a profit

56
Q

which market is bigger, B2B market or consumer markets

A

B2B market

57
Q

what is the market structure of business markets

A

fewer but larger buyers

Business demand is derived from consumer demand

Business markets have more fluctuating demand.

58
Q

in the business market, what happens if theres a small increase in customer demand?

A

there will be a large increase in business demand

59
Q

what is the nature of the Buying Unit in Business Markets

A

More decision participants

Professional buying effort

60
Q

what are the types of decisions in the business markets

A

More complex & formal decisions

61
Q

what are the major types of buying situations?

A

straight rebuy

modified rebuy

new task

systems (solutions) selling

62
Q

what is a straight rebuy?

A

Routine reorder without any modifications

Very few decisions made

63
Q

what is a modified rebuy?

A

Order with modifications.

e.g. change in product specifications, prices, terms or suppliers

64
Q

what is a new task ?

A

First time order of a product

A lot of decisions made r

65
Q

what is a systems (solutions) selling?

A

Buying a packaged solution to a problem from a single seller

Order includes all products and services from one supplier

66
Q

what is becoming the more common major buying situation?

A

systems (solutions) selling

67
Q

what is a buying center?

A

includes all individuals and units that participate in the purchase decision-making process

Not a fixed or formally identified unit

Size and makeup varies for different products and different situations

68
Q

what are the major influences on business buyer behavior?

not the same as the characteristics

A

environmental influences

organizational influences

interpersonal influences

individual influence

the buyers themselves

69
Q

what major type of influence on buyer behavior are the following part of:

economic developments

technological change

political and regulatory developments

competitive developments

culture and customs

A

environmental influences

70
Q

what major type of influence on buyer behavior are the following part of:

objectives

policies

procedures

organizational structure

systems

A

organizational influences

71
Q

what major type of influence on buyer behavior are the following part of:

authority

status

empathy

persuasiveness

A

interpersonal influences

72
Q

what major type of influence on buyer behavior are the following part of:

age

income

education

job position

personality

risk attitudes

A

individual influences

73
Q

which type of situation will make a business buyer go through all the business buying process?

A

new task buying situation

74
Q

which type of situation will make a business buyer skip some stages of the business buying process?

A

those making a modified or straight rebuy

75
Q

what are the stages of the Business Buyer Process

A
  1. problem recognition
  2. general need description
  3. product specification
  4. supplier search
  5. proposal solicitation
  6. supplier selection
  7. order-routine specification
  8. performance review
76
Q

how an an online purchase (e-procurement) be implemented?

A

reverse auctions

extranet links with key suppliers

77
Q

what is a reverse auction

A

businesses put their purchasing requests online and invite suppliers to bid for the business

78
Q

how do extranet links with key suppliers function?

A

they are a link through which company buyers can purchase equipment, materials, and supplies directly

79
Q

what are the benefits of online purchasing?

A

cost and time savings

80
Q

what are the cons of online purchasing?

A

potential security concerns

Pits suppliers against each other and erodes old customer- supplier relationships