Ch 5 Marketing

business buying process

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

what are the levels of classes?

upper class (1-2), middle class (38%), working class (9%), lower class (7%

Business purchases and types of decisions:

-More complex buying decisions -Interactions among people at many levels of the buyer's organization -Longer and more formalized procedures -Buyer and seller more dependent on each other

The Model of Buying Behavior

Marketing stimuli, other stimuli-->buyer's characteristics, buyer's decision process--> buyer's decisions

buying center

all the individuals and units that play a role in the purchase decision-making process

What are the characteristics affecting consumer behavior?

Cultural (culture, subculture, religion), Social (groups and social networks, family, status), Personal (age, lifecycle, occupation, personality), Psychological * (motivation, beliefs and attitudes),

Steps in the perception process

-Selective exposure: An individual selects which inputs, usually relating to strongest needs, will reach awareness. -Selective distortion: Changing or twisting received information -Selective retention: Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

A purse​ company's ads feature the members of a popular housewives reality show. Product sales increase significantly among fans. From​ fans' viewpoint, the housewives reality show is a: A. family group B. reference group C. membership group D. lagging adopter E. late-majority adopter

B

What are two examples of total market strategy?

Cheerios and IKEA because they feature

motive (drive)

a need that is sufficiently pressing to direct the person to seek satisfaction of the need

Stages in the Adoption Process

awareness, interest, evaluation, trial, adoption-(expected to use again)

What does the buyer's black box consist of in the model of buying behavior?

buyer's decision process and buyer's characteristics

Systems selling (or solutions selling)

buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation (six flags example)

Attitude Components

cognitive, affective, behavioral

refers to the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption:

consumer buying behavior

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

consumer market aquire, use, dispose

characteristics affecting consumer behavior

cultural factors, social factors, personal factors, psychological factors

influencer marketing

enlisting established influencers or creating new influencers to spread the word about a company's brand

What are the three components that make up the model of buying behavior?

environment —> buyer's black box —> buyer's response

Major Influences on Business Buyers

environmental (politics/regulation), organizational, interpersonal, individual

what is the most important membership reference group?

family

cross-cultural marketing

including ethnic themes and cross-cultural perspectives within a brand's mainstream marketing

information search stage

internal search: Buyers search their memories for information about products that might solve their problem external search: When an internal search is not sufficient, consumers seek additional information from outside sources

Perception (JND)

just noticeable difference

What are the psychological factors of the biz buying behavior?

motivation, perception, learning*, and beliefs and attitudes

Business-to-business (B-to-B) marketers

must understand business markets and business buyer behavior

what are the five steps of the buyer decision process?

need recognition, info search, evaluation of alternatives, purchase decision, post-purchase behavior

What are the personal factors to the biz buyer behavior?

occupation, age and life stage, economic situation, lifestyle *, and personality and self-concept

Marketers of brands understand that they must figure out how to reach​ ___________________ that can exert social influence on others.

opinion leaders

Marketers of brands subjected to strong group influence must figure out how to reach:

opinion leaders-people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

what are the five elements of Maslow's hierarchy of needs? (in order)

physiological needs (hunger, thirst), safety needs (security, protection), social needs (sense of belonging), esteem needs (self-esteem, recognition, status), and self-actualization needs (self-development and realization).

E-procurement

purchasing through electronic connections between buyers and sellers - usually online

What are the five types of influences?

reference group, opinion leader, word-of-mouth, influencer marketing, online social networks

What is the key to success? *

relationship continuum <------------------------------------------> discrete transactions . relational exchange transactional mkting . relationship mktg -aquire . -aquire and RETAIN

Characteristics Influencing an Innovation's Rate of Adoption

relative advantage, compatibility, complexity, divisibility (trialibility), communicability (visibility)

A person belongs to many groups—family, clubs, organizations, online communities. The person's position in each group can be defined as:

roles and status

reference groups

serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitudes or behavior.

Types of Buying Situations

straight rebuy, modified rebuy, new task

Targeting Hispanic consumers: Toyota's award-winning "Más Que un Auto" campaign created a strong emotional connection between Hispanics and their Toyotas with free, official-looking, personalized nameplates for their much-loved cars—here, Pepe. This would be an example of what?

subculture

new task

the buyer purchases a product or service for the first time

straight rebuy

the buyer routinely reorders something without any modifications

modified rebuy

the buyer wants to modify product specifications, prices, terms, or suppliers

Model of Business Buying Behavior

the environment -> the buying organization -> buyer responses buying organization - buying decision process *

adoption process

the mental process through which an individual passes from first hearing about an innovation to final adoption

Perception *

the process by which people select, organize, and interpret information to form a meaningful picture of the world *august bullock with the secret sales pitch and flowers and sex example

Culture

the set of basic values, perceptions, wants, and behaviors LEARNED by a member of society from family and other important institutions

personality

the unique psychological characteristics that distinguish a person or group

is the model of buying behavior a stimulus-response model?

yes

attitudes

An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea

Determines if a buyer is satisfied or dissatisfied with a purchase: A. The relationship between the​ consumer's expectations and the​ product's perceived performance B. The amount of information gathered in the​ decision-making process C. How others feel about the purchase D. Whether or not the buyer experiences cognitive dissonance E. The number of alternatives considered in the purchase decision

A

What is the first step of the buyer decision​ process? A. Need recognition B. Information search C. Purchase decision D. Alternative evaluation E. Post-purchase behavior

A

Which of the following is a personal characteristic influencing a​ consumer's buying​ behavior? A. Occupation B. Motivation C. Status D. Social networks E. Family

A

Which of the following is often considered a key business marketing strategy for winning and holding​ accounts? A. systems selling B. new task C. modified rebuy D. straight rebuy E. buying decision

A

cognitive dissonance

A buyer's doubts shortly after a purchase about whether the decision was the right one

consideration set (evoked set)

A group of brands within a product category that a buyer views as alternatives for possible purchase

Subculture

A group of people with shared value systems based on common life experiences and situations

lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions.

The business buying process can be a complex and complicated process with eight basic stages. Which of the following is the first stage in this​ process? A. Supplier search B. Problem recognition C. Supplier selection D. General need description E. Proposal solicitation

B

Which of the following is NOT a social factor influencing consumer buying​ behavior? A. Online social networks B. Cognitive dissonance C. Opinion leaders D. Word of mouth E. Reference groups

B

Which of the following is likely to slow the adoption of a new​ technology? A. Relative advantage B. Conceptual complexity C. Divisibility D. Compatibility E. Communicability

B

Which of the following needs in​ Maslow's hierarchy is generally satisfied​ first? A. Self-actualization needs B. Physiological needs C. Social needs D. Esteem needs E. Safety needs

B

consists of many different people who play multiple roles in the buying process: A. The buying nucleus B. The buying center C. Buying agents D. Buying actors E. The purchasing team

B

what does the buyer's response consist of in the model of buying behavior?

Buying attitudes and preferences Purchase behavior: what the buyer buys, when, where, and how much Brand engagements and relationships

derived demand

Business demand that ultimately comes from (derives from) the demand for consumer goods.

When marketers want to promote their products and services through​ word-of-mouth marketing​ programs, they typically begin by​ ________. A. identifying and targeting late adopters B. pushing​ one-way commercials at customers C. generating​ person-to-person brand conversations D. developing print and radio advertisements E. withdrawing from online social networks

C

Which of the following are​ tradition-bound, suspicious of​ changes, and adopt the innovation only when it has become something of a tradition​ itself? A. Early adopters B. Late mainstream C. Lagging adopters D. Early mainstream E. Innovators

C

is one problem with​ business-to-business e-procurement: A. Reduced purchasing efficiency B. Increased time between order and delivery C. Suppliers being pitted against one another D. Increased transaction costs E. Increased paperwork requirements

C

Which of the following refers to the degree to which an innovation fits the values and experiences of potential​ consumers? A. Communicability B. Divisibility C. Complexity D. Compatibility E. Relative advantage

D

Consumers obtain information from numerous sources. Which of the following involves dealer and manufacturer​ websites, packaging, and​ displays? A. Public sources B. Personal sources C. Media sources D. The internet E. Commercial sources

E

Which of the five characteristics identified has an inverse relationship with an​ innovation's rate of​ adoption, meaning as this characteristic​ increases, the rate of adoption is​ slower? A. Relative advantage B. Divisibility C. Compatibility D. Communicability E. Complexity

E

Which of the following lists the five steps of the buyer decision process in the correct​ order? A. Need​ recognition, purchase​ decision, information​ search, evaluation of​ alternatives, and​ post-purchase behavior B. Need​ recognition, evaluation of​ alternatives, information​ search, purchase​ decision, and​ post-purchase behavior C. Need​ recognition, information​ search, purchase​ decision, evaluation of​ alternatives, and​ post-purchase behavior D. Purchase​ decision, need​ recognition, information​ search, evaluation of​ alternatives, and​ post-purchase behavior E. Need​ recognition, information​ search, evaluation of​ alternatives, purchase​ decision, and​ post-purchase behavior

E

Which of the following statements regarding the business market is​ correct? A. Business buying decisions are less complex than consumer buying decisions. B. The business market has more buyers than the consumer market. C. The business market is not as large as the consumer market in terms of dollars spent and items purchased. D. In the business market buying​ process, buyers and sellers are less dependent on each other than in the consumer market. E. Many sets of business purchases are made for one set of consumer purchases.

E

refers to the practice of integrating ethnic themes and​ cross-cultural practices within a​ company's mainstream marketing: A. Viral marketing B. Guerilla marketing C. Cause marketing D. Buzz marketing E. Total market strategy

E

membership groups

Groups with direct influence and to which a person belongs

total market strategy

Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences.

need recognition stage

Occurs when a buyer becomes aware of a difference between a desired state and an actual condition *pool table example

online social networks

Online social communities - blogs, social networking Web sites, and other online communities - where people socialize or exchange information and opinions

business buyer decision process

Problem recognition, general need description, product specifications, proposal solicitation*, supplier selection, order-routine specification, and performance review

business buyer behavior

Purchasing goods and services are used in the production of other products and services

social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

purchase decision

The buyer intends to purchase the most preferred brand based on previous state (evaluation) Two things can get in the way of intention and purchase decision:•Situational factors•Attitudes of others

Word-of-mouth influence

The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.

According to the model of buyer​ behavior, what is in a​ buyer's "black​ box"?

The​ buyer's characteristics and decision process

Participants in the Business Buying Process•Buying center:

All the individuals and units that play a role in the purchase decision-making process-Actual users of the product or service

is a characteristic important in influencing an​ innovation's rate of adoption and described by the degree to which the innovation may be tried on a limited basis: A. Motivation B. Divisibility C. Communicability D. Relative advantage E. Complexity

B

learning

Changes in an individual's thought processes and behavior caused by information and experience. *stimulus generalization (arm and hammer ex)

What is the first step of word-of-mouth influencing?

Consumers start chatting about a brand they use or feel strongly about one way or the other.

What does the environment consist of in the model of buying behavior?

Marketing stimuli: Product Price Place Promotion Other: Economic Technological Social Cultural

Which of the following is NOT one of the typical advantages of​ e-procurement systems? A. Eliminating paperwork B. Allowing buyers to focus on more strategic issues C. Improving​ customer-supplier relationships D. Finding better supplier resources E. Reducing time between order and delivery

C