session 4: understanding consumer and business buyer behavior Flashcards
what is a consumer market?
All the individuals and households that buy or acquire goods and services for personal consumption
what is consumer buyer behavior?
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
can marketers control the factors that affect consumer behavior?
nah boy
but these factors must be taken into account
what are the factors that influence consumer behavior
cultural factors
social factors
personal factors
psychological factors
what are the aspects of cultural factors
culture
subculture
social class
what is culture
Basic trigger of wants & behaviour
reflects basic values, perceptions, wants, and behaviours
It is learned from family, church, school, peers, colleagues
Deeply entrenched
what happens when cultural shifts occur
they create opportunities for new products
what is subculture ?
A group pf people with shared value systems based on common life experiences
Regional, nationalities, religion, race
what is cross cultural marketing
includes ethnic themes in a brand’s mainstream marketing
E.g. Latin music in McDonald’s ads
what is social class
Divisions in a society whose members share similar values, interests and behaviours
Combination of occupation, income, education, wealth, and other variables
what are the aspects of social factors
reference groups
family
roles and status
what is it in the aspect reference groups that influence our buyer behavior
Membership groups
Word-of-mouth
Reference/aspirational groups
Opinion leaders
what is it in the aspect of family that influence our buyer behavior
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
what are membership groups
those you belong to
have direct influence in your buying decisions
what is word of mouth
personal words of trusted friends can strongly influence our buying decisions
what are aspirational groups
those you want to belong to and that can influence buyer behaviour
e.g. a professional sports team
what are opinion leaders
people recruited as brand ambassadors for a certain reference group
what is it in the aspect of roles and status that influence our buyer behavior
roles
status
what are roles
activities people are expected to perform
what is status
Esteem given to role by society
can one have multiple roles in the social factor?
yeee
ex: mum and executive
what are the aspects of perusal factors that influence our buyer behavior
age and life cycle stage
occupation
economic situation
lifestyle
personality and self concept
what is personality and self concept
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)
can brands be also seen as having personalities
yeeee
what are the aspects of psychological factors
moptivation
perception
learning
beliefs and attitudes
what is a motive
a need requiring satisfaction
what is perception
process by which people select, organize, and interpret information
what is selective attention
people screen out most information they are exposed to
what is selective distortion
people interpret info in a way that will support what they already believe
what is selective retention
people retain info that supports their attitudes and believes
what is learning
behavioural change based on experience
what is a belief
A descriptive thought that a person holds about something
what is an attitude
A person’s consistently favourable or unfavourable evaluations, feelings, and tendencies toward an object or idea
what are the components (in order), of Maslows Hierarchy of needs
- self actualization needs
- esteem needs
- social needs
- safety needs
- psychological needs
from the top is more important to less important
what are self actualization needs
involve self development and realization
what are esteem needs
involve the following:
self-esteem
recognition
status
what are social needs
sense of belonging
love
what are safety needs
security
protection
what are psychological needs
hunger
this
what are the five stages in the buyer decision process
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase behaviour
what is need recognition (1)
triggered internally (hunger) or externally (ads)
what is information search (where does it come from) (2)
after finding out that you have a need, you wanna look up info from:
personal sources
commercial sources
public sources
experiential sources
what are commercial sources
ads, websites, etc
what are public sources
media, peer reviews
what are experiential sources
trial using the product
what does evaluation of alternatives (3) depend on
depends on the buying situation and the consumer
Can be simple or complex
compare price and attributes
what is purchase decision (4) influenced by?
Attitudes of others towards your choice after you’ve picked it from the alternatives
Unexpected situational factors (e.g. loss of job)
what does the consumer satisfaction post purchase (5) depend on?
depends on buyer’s expectations vs. perceived performance of product
what do most major purchases result in after the purchase?
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
Individuals adopt new products at varying rates, what are the terms used to describe the different rates of consumption?
innovators: 2.5%
early adopters (opinion leaders): 13.5%
early mainstream: 34%
late mainstream: 34%
lagging adopters: 16%
what are the characteristics Influencing rate of adoption
relative advantage
compatibility
complexity
divisibility
communicability
what is compatibility
Aligned with values and experience of the market?
what is divisibility
Can the innovation be used on a limited basis and then integrated into regular use?
what is communicability
Benefits easily observed or described to others?
what is business-to-business (B2B)
Buying behaviour of firms that buy products to produce other products or to resell to others for a profit
which market is bigger, B2B market or consumer markets
B2B market
what is the market structure of business markets
fewer but larger buyers
Business demand is derived from consumer demand
Business markets have more fluctuating demand.
in the business market, what happens if theres a small increase in customer demand?
there will be a large increase in business demand
what is the nature of the Buying Unit in Business Markets
More decision participants
Professional buying effort
what are the types of decisions in the business markets
More complex & formal decisions
what are the major types of buying situations?
straight rebuy
modified rebuy
new task
systems (solutions) selling
what is a straight rebuy?
Routine reorder without any modifications
Very few decisions made
what is a modified rebuy?
Order with modifications.
e.g. change in product specifications, prices, terms or suppliers
what is a new task ?
First time order of a product
A lot of decisions made r
what is a systems (solutions) selling?
Buying a packaged solution to a problem from a single seller
Order includes all products and services from one supplier
what is becoming the more common major buying situation?
systems (solutions) selling
what is a buying center?
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
what are the major influences on business buyer behavior?
not the same as the characteristics
environmental influences
organizational influences
interpersonal influences
individual influence
the buyers themselves
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
environmental influences
what major type of influence on buyer behavior are the following part of:
objectives
policies
procedures
organizational structure
systems
organizational influences
what major type of influence on buyer behavior are the following part of:
authority
status
empathy
persuasiveness
interpersonal influences
what major type of influence on buyer behavior are the following part of:
age
income
education
job position
personality
risk attitudes
individual influences
which type of situation will make a business buyer go through all the business buying process?
new task buying situation
which type of situation will make a business buyer skip some stages of the business buying process?
those making a modified or straight rebuy
what are the stages of the Business Buyer Process
- problem recognition
- general need description
- product specification
- supplier search
- proposal solicitation
- supplier selection
- order-routine specification
- performance review
how an an online purchase (e-procurement) be implemented?
reverse auctions
extranet links with key suppliers
what is a reverse auction
businesses put their purchasing requests online and invite suppliers to bid for the business
how do extranet links with key suppliers function?
they are a link through which company buyers can purchase equipment, materials, and supplies directly
what are the benefits of online purchasing?
cost and time savings
what are the cons of online purchasing?
potential security concerns
Pits suppliers against each other and erodes old customer- supplier relationships
