Marketing Chapter 5

Cultural Factors

Culture - set of basic values, perceptions, wants and behaviors learned by an individual from family and other important situations. Subculture - Group of people with shred value systems based on common life experiences and situations Social Class - Society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. More permanent than Subculture. Residents of society do not usually move between social classes.

Business Buying Process

Determining which products and services to purchase: finding, evaluating, and choosing among alternative suppliers and brands

Major influences on Buying Behavior

Environmental - economy, supply conditions, technology, politics/regulation, competition, culture and customs Organizational - objectives, strategies, structure, systems, procedures Interpersonal - Influence, expertise, authority, dynamics Individual - Age/education, job position, motives, personality, preferences, buying style

Social Factors

Groups - Religion, Hobby, sports, etc. Word of Mouth Opinion Leaders - Celebrities, big companies Roles and Status - From student to professional Family Online Social Networks

Adopter Categories

Inovators - 2.5% Early Adopters - 13.5% Early Mainstream - 34% Late Mainstream - 34% Lagging Adopters - 16%

Straight Rebuy

Buyer routinely reorders something without any modification

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 People who make the buying decision People and units influencing the buying decision People who do the actual buying Individuals and units controlling the buying information

Systems Selling (Or Solutions Selling)

Buying a packaged solution to a problem from a single seller. Avoids the separate decisions involved in a complex buying situation when you do not have time to devote to fixing an issue or coming up with a solution.

Business Buying Decision Process

Buying process is longer and has more formalized procedures. Buyer and seller are more dependent on each other.

Factors Influencing Consumer Behavior

Cultural - Culture, subculture, Social Class Social - Groups and social networks, Family, roles and status Personal - Age and life cycle stage, occupation, economic situation, lifestyle, personality and self-concept Psychological - Motivation, Perception, Learning, Beliefs and attitudes. Buyer - affected by internal and external influences.

Post Purchase Behavior

Post purchase customer satisfaction is ket to building profitable relationships and building a loyal customer base.

Stages of Business Buying Behavior

Problem Recognition, General Need Description, Product Specification, Supplier Search, Proposal Solicitation, Supplier Selection, Order-Routine Specification, Performance Review

Business Buyer Behavior

Purchasing Goods and services that are used in the production of other products and services

Characteristics Influencing and Innovation's Rate of Adoption

Relative Advantage - Compared to options available previously, the perceived marginal value of the new product relative to the old Compatibility - Its compatibility to with a consumers acceptable behavior, norms, values, and so forth Complexity - The degree to which the innovation is difficult to understand or use Divisibility - The degree to which the innovation may be tried on a limited basis Observability - the degree to which the results of using the innovation can be observed or described by others

Types of Buying Situations

Straight Rebuy Modified Rebuy New Task Systems Selling (Or solutions selling)

Model of Buyer Behavior

We cannot easily understand why consumers buy specific products and services. We can easily measure the whats, wheres, and whens of buying behavior but it's harder to "see" inside the consumer's head and figure out the whys of buying behavior, we call this area the black box and it's what marketers are trying to understand.

Buyer Decision Process for New Products

1. Awareness - make sure customers know we exist 2. Interest - Customers seek information about us 3. Evaluation - Consumers decide if we're worth it or not 4. Trial - Try it out 5. Adoption - Decide to use in the future or not

Psychological Factors

Motivation - a need that is sufficiently pressing to direct the person to seek satisfaction Perception - Process by which people select, organize, and interpret into to form a meaningful picture of the world. Beliefs - A descriptive thought that a person hold about something Attitudes - A person's relatively consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or an idea Learning - Changing an individual's behavior arising from experiences

Buyer Decision Process

Need Recognition (Hungry) Information Seeking (What am I craving?) Evaluation of Alternatives (Make tacos or eat out?) Purchase Decision (Taco Bell or restaurant?) Post Purchase Behavior (Am I satisfied? What am I feeling?) Process customers go through when deciding to buy products or services.

Personal Factors

Occupation Age and Family Cycle Economic Status Lifestyle Personality and Self-Concept - Actual vs. Ideal Self

Supplier Development

Systematic development of networks or supplier-partners to ensure a dependable supply of products and materials

New Task

The buyer purchases a product or service for the first time.

Modified Rebuy

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