Marketing Chapter 5: Understanding Consumer and Business Buyer Behavior – Flashcards
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consumer buyer behavior
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the buying behavior of final consumers- individuals and households that buy goods and services for personal consumption, the process we use to select, purchase, etc. of goods, services, etc. to satisfy needs/desires
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consumer market
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all the individuals and households that buy or acquire goods and services for personal consumption, american consumer market - $15 trillion worth of goods and services per year
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black box
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buyers characteristics and buyers decision process, we can't actually tell what truly influences their purchases,
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The environment that influence the buyer's black box
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marketing stimuli: 4 Ps other: economic technological, social and cultural
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culture
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set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important social institutions
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subculture
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group of people with shared value systems based on common life experiences and situations, ex: hispanic, african american, etc
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cross cultural marketing
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including ethnic themes and cross cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultures rather than differences
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social class
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relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors, not determined only by income, combo of occupation, income, education, etc
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social factors
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small groups, social networks, family, social roles and status
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group
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two or more people who interact to accomplish individual or mutual goals: membership groups, reference groups, aspiration groups
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word of mouth influence
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impact of personal words and recommendations of trusted friends, associates, and other consumers on buying behavior
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opinion leader
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person within a reference group who because of special skills, knowledge, personality or other characteristics, exerts social influence on others, called influentials or leading adopters
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buzz marketing
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involves enlisting or even creating opinion leaders to serve as "brand ambassadors" who spread the word about a company's products
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online social networks
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online social communities-blogs, social networking web sites and other online communities- where people socialize or exchange info and opinions
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family
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one of the most important consumer buying organizations in society
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factors that influence consumer behavior
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cultural: culture, subculture, social class social: groups/social networks, family, roles/status personal: age and life cycle stage, occupation, economic situation, lifestyle, personality psychological: motivation, perception, learning, beliefs
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role
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consists of activities people are expected to perform according to the people around them. each role carries a status reflecting the general esteem given to it by society
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personal factors
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age/life cycle stage, occupation, economic situation, lifestyle, personality , self-concept
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lifestyle
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person's pattern of living as expressed in his or her activities, interests, opinions
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personality
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unique psychological characteristics that distinguish a person or group
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brand personality
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specific mix of human traits that can be attributed to a particular brand: sincerity, competence, sophistication, ruggedness
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psychological factors
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motivation, perception, learning, beliefs and attitudes
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motivation
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need that is sufficiently pressing to direct the person to seek satisfaction of the need
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2 psychologists with theories on motivation:
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Sigmund Freud and Abraham Maslow
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motivation research
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qualitative research designed to probe consumers' hidden, subconscious motivations
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interpretive consumer research
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touchy-feely approaches that dig deeper into consumer psyches and develop better marketing strategies
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maslows's theory
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pyramid set up, most pressing needs at the bottom to least pressing at the top: physiological needs(hunger), safety needs, social needs, esteem needs, self actualization needs, you have to satisfy basic bottom needs first
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perception
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process by which people select, organize and interpret info to form a meaningful picture of the world
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selective distortion
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describes the tendency of people to interpret info in a way that will support what they already believe
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selective retention
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consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands
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selective attention
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the tendency for people to screen out most info to which they are exposed
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learning
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changes in an individual's behavior arising from experience
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belief
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descriptive thought that a person holds about something
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attitude
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person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea, difficult to change
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buyer decision process
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1. need recognition 2. info search 3. evaluation of alternatives 4. purchase decision 5. postpurchase behavior
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need recognition
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buyer recognizes a problem or need, can be triggered by internal stimuli or external stimuli
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info search
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can obtain info from personal sources, commercial sources, public sources, experiential sources
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evaluation of alternatives
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set of final brand choices, look at various attributes and compare
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cognitive dissonance
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buyer discomfort cause by post purchase conflict
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new product
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good, service, idea that is perceived by some potential customers as new
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adoption process
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mental process through which an individual passes from first hearing about an innovation to final adoption
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5 stages of the adoption process
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1. awareness 2. interest 3. evaluation 4. trial 5. adoption
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5 adopter groups
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innovators, early adopters, early mainstream adopters, late mainstream, lagging adopters
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5 characteristics that influence an innovation's rate of adoption
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-relative advantage- degree to which the innovation appears superior to existing products -compatibility- degree to which the innovation fits the values and experiences of consumers -complexity -divisibility- the degree to which the innovation may be tried on a limited basis -communicability- degree to which results of using innovation can be observed or described to others
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business buyer behavior
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buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented to supplied to others
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business buying process
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the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate and choose among alternative suppliers and brands
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main differences between business and consumer markets
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market structure and demand, nature of the buying unit and types of decisions and decision process involved
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derived demand
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business demand, derives from demand of consumer goods
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characteristics of business market
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-far fewer but far larger buyers -derived demand -inelastic and more fluctuating demand -longer more formalized -more complex
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supplier development
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systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others
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the buying center
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all people involved in the buying decision, not a fixed or formally identified unit, the size and makeup changes for different products and buying situations
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3 types of business buying situations
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1. straight rebuy 2. modified rebut 3. new task
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straight rebuy
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a business buying situation in which the buyer routinely reorders something without any modifications
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modified rebuy
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a business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers
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new task
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a business buying situation in which the buyer purchases a product or service for the first time
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systems selling(solutions selling)
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buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
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major influences on business buyers
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environmental: economy, supply conditions, tech, politics, competition, culture and customs organizational: objectives, strategies, structure, systems, procedures interpersonal: influence, expertise, authority, dynamics individual: age/ed. job position, motives, personality, preferences, buying style
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the business buying process
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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
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product value analysis
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carefully analyzing a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value, part of product specifications step
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e-procurement
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purchasing through electronic connections between buyers and sellers-usually online
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habitual buying
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little or no conscious effort, ex: buying toothpaste
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limited problem solving
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consumers do some work to make a decision, ex: a laptop
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dissonance reducing behavior
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consumers are highly involved with an expensive, infrequent or risky purchase but see little difference between brands
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variety seeking buying behavior
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situations characterized by low consumer involvement but with significant perceived brand differences , ex: clothing purchases
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complex buying behavior
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highly involved in purchase, perceived significant differences among brands, ex: a new car
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emerging lifestyle trends
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social movements within society also influence consumer choices: -consumerism protect consumers from harm -environmentalism
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roles in the buying center
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initiator- recognize need user- individuals who will ultimately use the product gatekeeper- controls flow of info influencer- affects decision by giving advice decider- make the final purchase buyer- executes the purchase decision
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extranet
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allows authorized suppliers, customers, other outsiders to access the firm's intranet
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private exchanges
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link an invited group of suppliers and partners over the Web
