Mid - Ch 5
Type of e-procurement in which the company sets up its own site through which it can post its buying needs and invite bids, negotiate terms, and place orders
Company buying sites
The degree to which the innovation fits the values and experiences of potential consumers
Compatibility
Brand personality that is reliable, intelligent, and successful
Competence
Business buyers usually face more ________ buying decisions than do consumer buyers
Complex
The degree to which the innovation is difficult to understand or use
Complexity
The _____________ of new technologies and concerns about how well they will likely work, slow down the adoption rate
Conceptual complexity
The buying behavior of final consumers - individuals and households that buy goods and services for personal consumption
Consumer buyer behavior
All final consumers combine to make up the...
Consumer market
The consumer's post purchase behavior is determined by the relationship between the... (2)
Consumer's expectations Product's perceived performance
Minor stimuli that determine when, where, and how a person responds
Cues
4 general characteristics that influence consumer purchases
Cultural, social, personal, psychological
The most basic cause of a person's wants and behavior
Culture
As successive groups of consumers adopt an innovation, it eventually reaches its ____________ level
Cumulative saturation
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
The mental process through which an individual passes from first learning about an innovation to final adoption
Adoption process
How consumers process info to choose among alternative brands
Alternative evaluation
The most affluent US demographic segment of the subcultural market. Second fastest-growing
Asian Americans
Groups to which the individual wishes to belong
Aspirational groups
A person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. Put people into the frame of mind of liking or disliking things, moving toward or away from them
Attitudes
Generally, the consumer's purchase decision will be to buy the most preferred brand, but 2 factors can come between the purchase intention and the purchase decision...
Attitudes of others Unexpected situational factors
Stage of the adoption process in which the consumer becomes aware of the new product but lacks info about it
Awareness
5 stages in the process of adoption (in order)
Awareness Interest Evaluation Trial Adoption
Business demand is ________ demand, it ultimately derives from the demand for consumer goods
Derived demand
The degree to which the innovation may be tried on a limited basis
Divisibility
A strong internal stimulus that calls for action
Drive
The process by which people select, organize, and interpret info to form a meaningful picture of the world
Perception
A person's buying choices are further influenced by 4 major psychological factors:
Motivation Perception Learning Beliefs/attitudes
Research that probes the subconscious motivations underlying consumers' emotions and behaviors toward brands. Aka interpretive consumer research
Motivation research
A need that is sufficiently pressing to direct the person to seek satisfaction
Motive
5 stages of the buyer decision process (in order)
Need recognition --> Info search --> Evaluation of alternatives --> Purchase decision --> Post purchase behavior -->
A good, service, or idea that is perceived by some potential customers as new
New product
Buying situation in which the company is buying a product or service for the first time. The greater the cost or risk, the larger the number of decision participants and the greater the company's efforts to collect info.
New task
The buyer makes the most decisions in the __________ buying situation
New task
Online communities where people socialize or exchange info and opinions
Online social networks
People within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Aka influentials or leading adopters
Opinion leaders
Objectives, startegies, structure, systems, and procedures are all _________ influences on business buyer behavior
Organizational
The business buyer behavior model shows that the buying center and the buying decision process are influenced by internal _____________ factors as well as external environmental factors (3)
Organizational, interpersonal, and individual factors
One of the leading life-stage segmentation systems is ________, which classifies every American household into one of 66 distinct life-stage segments, which are organized into 11 major life-stage groups based on affluence, age, and family characteristics
PRIZM
Attitudes are difficult to change because they fit into a...
Pattern
A buyer's decisions are also influenced by ___________ such as the buyer's occupation, age, economic situation, lifestyle, and personality
Personal characteristics
Most effective info sources. Legitimize or evaluate products for the buyer
Personal sources
4 sources of info for consumers
Personal sources Commercial sources Public sources Experiential sources
The unique psychological characteristics that distinguish a person or group. Usually described in terms of traits
Personality
An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or mad bey less costly methods of production
Product value analysis
Direct (face-to-face) or indirect points of comparison or reference in forming a person's attitudes or behavior
Reference groups
The degree to which the innovation appears superior to existing products
Relative advantage
5 characteristics influencing rate of adoption
Relative advantage Compatibility Complexity Divisibility Communicability
Type of e-procurement in which the company puts their purchasing requests online and invites suppliers to bid for the business
Reverse auctions
4 types of e-procurement
Reverse auctions, trading exchanges, company buying sites, and extranet links
The activities people are expected to perform according to the people around them
Roles
Brand personality that is outdoorsy and tough
Ruggedness
The tendency for people to screen out most of the info to which they are exposed
Selective attention
People can form different perceptions of the same stimulus because of 3 perceptual processes:
Selective attention Selective distortion Selective retention
The tendency of people to interpret info in a way that will support what they already believe
Selective distortion
The tendency of people to forget much of what they learn. They tend to retain info that supports their attitudes and beliefs
Selective retention
Maslow's hierarchy of needs, from top to bottom
Self-actualization needs Esteem needs Social needs Safety needs Physiological needs
People's possessions that contribute to and reflect their identities. "We are what we consume"
Self-concept (self-image)
Brand personality that is down-to-earth, honest, wholesome, and cheerful
Sincerity
5 brand personalities
Sincerity Excitement Competence Sophistication Ruggedness
Society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Measured as a combination of occupation, income, education, wealth, etc.
Social classes
A consumer's behavior is also influenced by __________, such as the consumer's small groups, social networks, family, social roles, and status
Social factors
Systems selling is aka...
Solutions selling
Brand personality that is glamorous, upper class, and charming
Sophistication
Each role carries a _________ reflecting the general esteem given to it by society
Status
A drive becomes a motive when it is directed toward a particular...
Stimulus object
Buying situation in which the buyer reorders something without any modifications. Usually handled on a routine basis by the purchasing department
Straight rebuy
The buyer makes the fewest decisions in the _________ buying situation
Straight rebuy
3 major types of buying situations
Straight rebuy Modified rebuy New task
Groups of people with shared value systems based on common life experience and situations. Include nationalities, religions, racial groups, and geographic regions (i.e. African American, Hispanic American, and Asian American)
Subcultures
Advertising to consumers without them even knowing it. Little evidence connecting it to consumer behavior
Subliminal advertising
Many customer companies are now practicing ___________, systematically developing networks of supplier-partners to ensure dependable supply of the products and materials that they use in making their own products or reselling to others
Supplier development
the process of selling interrelated goods or services together as a package rather than selling them separately or independently
Systems selling
3 AIO dimensions
Activities Interests Opinions
The decision by an individual to become a regular user of a product
Adoption
A descriptive though that a person holds about something. May be based on real knowledge, opinion, faith, or nothing at all
Belief
Through doing and learning, people acquire __________, which influence their buying behavior (2)
Beliefs and attitudes
In the case of maintenance, repair, and operating items, a ________ contract creates a long-term, relationship in which the supplier promises to resupply the buyer as needed at agreed prices for a set period of time
Blanket contract
Asian American consumers shop frequently and are the most _______ conscious of all the ethnic groups
Brand
The specific mix of human traits that may be attributed to a particular brand
Brand personality
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. Also includes the behavior of retailing and wholesaling firms that acquire goods to resell or rent to others at a profit.
Business buyer behavior
When business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands.
Business buyer process
_________ marketers must do their best to understand business markets and business buyer behavior. Then they must engage business customers and build profitable relationships with them by creating superior customer value.
Business-to-business (B-to-B)
Marketers want to understand how the stimuli are changed into response inside the _____________, which has two parts: First, the buyer's characteristics influence how he or she perceives and reacts to the stimuli Second, the buyer's decision process itself and how itself affects his or her behavior
Buyer's black box
Marketers are interested in social class because people with a given social class tend to exhibit similar...
Buying behavior
All the people involved in the buying decision
Buying center
The decision-making unit of a buying organization. All the individuals and units that play a role in the business purchase decision-making process. Includes the actual users of the product or service, those who make the buying decision those who influence the buying decision, those who do the actual buying and those who control the buying info
Buying center
Within the buying organization, buying activity consists of 2 major parts:
Buying center Buying decision process
The buying center is not a fixed and formally identified unit within the buying organization. It is a set of __________ assumed by different people for different purchases
Buying roles
Involves enlisting or even creating opinion leaders to serve as "brand ambassadors who spread the word about a company's products
Buzz marketing
Almost all major purchases result in ____________, discomfort caused by post purchase conflict
Cognitive dissonance
Consumers receive the most info about a product from ________ sources, those controlled by the marketer. Inform the buyer
Commercial
The degree to which the results of using the innovation can be observed or describe to others
Communicability
Online and electronic purchasing
E-procurement
Adopter category guided by respect. They are opinion leaders in their communities and adopt new ideas early, but carefully
Early adopters
Adopters that are deliberate. Although they are rarely leaders, they adopt new ideas before the average person
Early mainstream
Business buyers are heavily influenced by factors in the current and expected __________ environment, such as the level of primary demand, the economic outlook, and the cost of money
Economic
3 steps in the model of buyer behavior
Environment --> Buyer's black box --> Buyer response
The economy, supply conditions, technology, politics and regulation, competition, and culture and customs are all _________ influences on business buyer behavior
Environmental
Stage of the adoption process in which the consumer considers whether trying the new product makes sense
Evaluation
Brand personality that is daring, spirited, imaginative, and up-to-date
Excitement
Source of info that involves examining and using the product
Experiential sources
Type of e-procurement in which companies can create ________ with key suppliers
Extranet links
The most important consumer buying organization in society
Family
The stages through which families might pass as they mature over time
Family life cycle
Bad word of mouth often travels __________ than good word of mouth (2)
Farther and faster
The business marketer normally deals with far ______ but far larger buyers than the consumer marketer does
Fewer
Psychologists have developed theories of human motivation, the two most popular being developed by... (2)
Freud and Maslow
Subculture representing a large and fastest-growing market
Hispanic Americans
Age, education, job position, motives, personality, preferences, and buying style are all _________ influences on business buyer behavior
Individual
Many business markets have ______ and more fluctuating demand than do consumer markets
Inelastic
The first 2.5% of buyers to adopt a new idea. Venturesome adopters, they try new ideas at some risk
Innovators
Adopter categories (5)
Innovators Early adopters Early mainstream Late mainstream Lagging adopters
A need becomes a motive when it is aroused to a sufficient level of...
Intensity
Stage of the adoption process in which the consumer seeks info about the new product
Interest
Need recognition can be triggered by ________ stimuli (2)
Internal stimuli or external stimuli
Influence, expertise, authority, and dynamics are all _________ influences on business buyer behavior
Interpersonal
The last 16% of buyers to adopt an idea. Tradition bound adopters. They are suspicious of changes and adopt the innovation only when it has become something of a tradition itself
Lagging adopters
Adopters that are skeptical. They adopt an innovation only after a majority of people have tried it
Late mainstream
Changes in an individual's behavior arising from experience. Occurs through the interplay of drives, stimuli, cues, responses, and reinfrocement
Learning
The practical significance of ________ theory for marketers is that they can build up demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement
Learning theory
___________ changes usually result from demographics and life-changing events
Life-stage
A person's pattern of living as expressed in his or her psychographics. Involves measuring consumers' major AIO dimensions. Profiles a person's whole pattern of acting and interacting in the world
Lifestyle
The business buying process also tends to be ______ and more formalized than the consumer buying process
Longer
3 main differences between business markets and consumer markets
Market structure and demands; the nature of the buying unit; types of decisions and decision process
A company must design its ___________ to make prospects aware of an knowledgeable about its brand. It should carefully identify consumers' sources of info and importance of each source
Marketing mix
Groups to which a person belongs and that have direct influence
Membership groups
Buying situation in which the buyer wants to modify produce specifications, prices, terms, or suppliers
Modified rebuy
Compared with consumer purchase, a business purchase usually involves ______ decision participants and professional purchasing effort
More
The practice of integrating ethnic themes and cross-cultural perspectives within mainstream marketing (i.e. commercials that feature interracial families)
Total market strategy
Type of e-procurement in which companies work collectively to facilitate a trading process
Trading exchanges
Stage of the adoption process in which the consumer tries the new product on a small scale to improve his or her estimate of its value
Trial
7 American social classes
Upper upper class Lower upper class Upper middle class Middle class Working class Upper lower class Lower lower class
Many large buyers now practice ______________, in which they turn over ordering and inventory responsibilities to their suppliers. Under such systems, buyers share sales and inventory info directly with key suppliers who then monitor inventories and replenish stock automatically as needed
Vendor-managed inventory
The personal words and recommendations of trusted friends, family, and associates about a particular brand
Word-of-mouth influence
In the business buying process, the buyer and seller are often much _____ dependent on each other
more