Chapter 5: Understanding Consumer and Business Buyer Behavior

5 Stages of the Adoption Process

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

8 Stages of the Business Buyer Decision Process

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

Reference Groups

a group that serves as a direct or indirect point of comparison or reference in forming a person's attitudes or behavior. Expose a person to new behaviors and lifestyles, influence the person's attitudes and self concept, and create pressures to conform that may affect the person's product or brand choices

Motive (Drive)

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

Cognitive Dissonance

discomfort caused by post purchase conflict

Subculture

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

Final Consumers

individuals and households that buy goods and services for personal consumption

New Task

a company buys a new product or service for the first time

Belief

a descriptive thought that a person holds about something

Aspirational Group

a group an individual wishes to belong

Lifestyle

a person's pattern of living as expressed in his or her psychographics

Attitude

a person's relatively consistent evaluations, feelings, and tendencies towards an object or idea

Drive

a strong internal stimulus that calls for action, becomes a motion when it is directed toward a particular stimulus object

Marketers need to understand and know the answers to several key questions when dealing with buying centers. Of the following, which is NOT one of those key questions? a. is price a factor or is the buying center price sensitive? b. what evaluation criteria does each decision participant use? c. what major influences impact the buying center decision? d. in what decisions do they exercise influence and to what degree? e. who are the major buying center participants?

a. is price a factor or is the buying center price sensitive?

Role

activities people are expected to perform according to the people around them, carry a status reflecting the general esteem given to it by society

Consumer Market

all final consumers combined

Which stage of the business buying process involves ranking the importance of reliability, durability, and price? a. proposal solicitation b. general need description c. product specification d. supplier search e. supplier selection

b. general need description

Business Buying Process

business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands

Derived Demand

business demands that ultimately came from consumer goods

Straight Rebuy

buyer reorders something without any modifications

Modified Rebuy

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

Systems Selling (Solutions Selling)

buying a packaged solution to a problem from a single seller

Which of the following correctly defines the consumer market? a. any business that sells goods and services to other businesses b. individuals who spend more than $1,000 a year on purchases c. individuals and households that buy goods and services for personal consumption d. retailers who sell goods and services to consumers e. manufacturers, retailers, and consumers

c. individuals and households that buy goods and services for personal consumption

Learning

changes in an individual's behavior arising from experience

Selective Retention

consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands

Influencer Marketing

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

Opinion Leaders

people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

Consumer Buyer Behavior

refers to the buying behavior of final consumers

Social Classes

society's relatively permanent and ordered divisions whose members share similar values, interests, and bahviors

Supplier Development

systematically developing networks of supplier partners to ensure a dependable supply of the products and materials that they use in making their own products or reselling to others

Business Buyer Behavior

the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

Adoption Process

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

Culture

the most basic cause of a person's wants and behaviors, a learned behavior

Total Marketing Strategy

the practice of integrating ethnic themes and cross cultural perspectives with their mainstream marketing

Perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

Cues

minor stimuli that determine when, where, and how a person responds

Online Social Networks

online social communities where people socialize or exchange information and opinions

5 Brand Personality Types

sincerity, excitement, competence, sophistication, and ruggedness

Adoption

the decision by an individual to become a regular user of a product

Word of Mouth Influence

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

Brand Personality

the specific mix of human traits that may be attributed to a particular brand

Selective Attention

the tendency for people to screen out most of the information to which they are exposed

Selective Distortion

the tendency of people to interpret information in a way that supports what they already believe

5 Stages of the Buyer Decision Process

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior

The 7 American Social Classes

1. Upper upper 2. Lower upper 3. Upper middle 4. Middle 5. Working 6. Upper lower 7. Lower lower

____________ determines whether the buyer is satisfied or dissatisfied with a purchase. a. the relationship between the price of the product and the product's perceived performance b. the relationship between the consumer's expectations and the product's perceived performance c. the relationship between the consumer's expectations and where the product was purchased d. the relationship between the consumer's expectations and how others evaluate the product e. the relationship between the price of the product and the level of customer service provided

b. the relationship between the consumer's expectations and the product's perceived performance

What are the five stages of the consumer adoption process, in the correct sequence? a. awareness, evaluation, interest, trial, and adoption b. awareness, trial, evaluation, interest, and adoption c. awareness, interest, trial, evaluation, and adoption d. awareness, trial, interest, evaluation, and adoption e. awareness, interest, evaluation, trial, and adoption

e. awareness, interest, evaluation, trial, and adoption

Which of the following statements regarding the business market is correct? a. the business market is not as large as the consumer market in terms of dollars spent and items purchased b. business buying decisions are less complex than consumer buying decisions c. demand in the business market is more elastic than demand in the consumer market d. the business market has more businesses than the consumer market e. many sets of business purchases are made for one set of consumer purchases

e. many sets of business purchases are made for one set of consumer purchases

Consumers go through a distinct process in making a purchase. Of the following, which is the final step in that process? a. evaluation of alternatives b. recognizing a need c. gathering information d. making a purchase e. post purchase behavior

e. post purchase behavior

What are the 8 steps in the business buying decision process, in the correct sequence? a. general need description, problem recognition, product specification, supplier search, proposal solicitation, supplier selection, order routine specification, and performance review b. problem recognition, general need description, product specification, supplier selection, supplier search, proposal solicitation, order routine specification, and performance review c. performance review, problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, and order routine specification d. problem recognition, general need description, product specification, supplier search, supplier selection, proposal solicitation, order routine specification, and performance review e. problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order routine specification, and performance review

e. problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order routine specification, and performance review

What is the mistaken assumption that B2B companies often make about digital and social media? a. that digital and social media yield little except for brand awareness b. that digital and social media are only effective with large expenditures c. that digital and social media choices are confined to Twitter and Facebook d. that digital and social media require teams of specialists e. that digital and social media are useful primarily to consumer products and service companies

e. that digital and social media are useful primarily to consumer products and service companies

AIO

Activity, interest, opinion

In the broadest sense, a new product marketer must research ________ when developing a new product and a marketing program a. attitudes of consumers toward packaging b. various domestic promotional challenges c. characteristics of international markets d. characteristics influencing the rate of adoption e. characteristics related to pricing acceptability

d. characteristics influencing the rate of adoption

Which of the following is NOT among the major factors influencing consumer buying behavior? a. personal b. social c. psychological d. commercial e. cultural

d. commercial

Technology advances have made B2B online purchasing possible. This is called ________ a. e shipping options b. automated requests for proposals c. web based submissions of proposals d. e procurement e. online bidding

d. e procurement

Buying Center

decision making unit of a buying organization

Social Class

determined by occupation, income, education, wealth, and other variables

Personality

unique psychological characteristics that distinguish a person or group