BMGT 350 Chapter 5: Understanding consumer and buyer behavior

Factors that come between the purchase intention and the purchase decision

1. Attitudes of others 2. Unexpected situational factors

Stages in the adoption process

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

Major Influences on Business Buying Behavior

1. Environmental 2. Organizational 3. Interpersonal 4. Individual

Buyer decision process

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

Three perceptual processes

1. Selective attention 2. Selective distortion 3. Selective retention

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

​_________ refers to the practice of including ethnic themes and​ cross-cultural practices within a​ company's mainstream.

A total market strategy

AIO Dimensions

Activities - work, hobbies, sports Interests - food, fashion, family Opinions - social issues, business, products

​______________ is the first stage in the new product adoption process.

Awareness

What are the five stages of the consumer adoption process in the correct​ sequence?

Awareness, interest, evaluation, trial, and adoption

What are the four general characteristics that influence consumer​ purchases?

Cultural​ characteristics, social​ characteristics, personal​ characteristics, and psychological characteristics

Which of the following correctly defines the consumer​ market?

Individuals and households that buy goods and services for personal consumption

Which of the following statements regarding the business market is​ correct?

Many sets of business purchases are made for one set of consumer purchases.

Model of Buying Behavior

Marketing and other stimuli enter the consumer's "black box: and produce certain responses

pyschological factors

Motivation, perception, learning, and beliefs and attitudes

What is the first step of the buyer decision​ process?

Need recognition

What are the eight steps in the business buying decision process in the correct​ sequence?

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

Marketing stimuli

Product, Price, Place, Promotion

​_________ refers to the degree to which innovation appears superior to existing products.

Relative advantage

What are the five characteristics that are especially important in influencing an​ innovation's rate of​ adoption?

Relative​ advantage, complexity,​ compatibility, divisibility, and communicability

What determines whether the buyer is satisfied or dissatisfied with a​ purchase?

The relationship between the​ consumer's expectations and the​ product's perceived performance

adoption

decides to make full and regular use of the new product

Adoption

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

Attitude

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

General need description

describes the characteristics and quantity of the needed item

Cognitive dissonance

discomfort caused by postpurchase conflict

Adoption process

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

Family

most important consumer buying organization in society

Personal Factors

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

systems selling

often a key business marketing strategy for winning and holding accounts

E-pronouncement

online and electronic purchasing

Items such as technical​ specifications, quantity, delivery​ time, return policies and warranties are included in the​ ____________.

order routine specification

Opinion leaders

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

Information search

personal sources (family, friends), commercial resources (advertising, salespeople), public sources (mass media, social media) experiential sources (examining and using the product)

Which of the following needs in​ Maslow's hierarchy is generally satisfied​ first?

physiological needs

Maslow's Hierarchy of Needs

physiological, safety, social, esteem, self-actualization

Perception

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

The buyer decision process starts with​ __________.

recognizing a need

A purse​ company's ads feature the members of a popular housewives reality show. Product sales increase significantly among the fans. From the​ fans' viewpoint, the housewives reality show is​ a(n) _____.

reference group

Reference groups

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

Five brand personality traits

sincerity, excitement, competence, sophistication, ruggedness

Social classes

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

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

proposal solicitation

the buyer invites qualified suppliers to submit proposals

Need recognition

the buyer recognizes a problem or need

Consumer buyer behavior

the buying behavior of final customers - individuals and households that buy goods and services for personal consumption

All the people involved in the buying decision in an organization are collectively known as​ _______.

the buying center

Relative advantage

the degree to which the innovation appears superior to existing products

Compatibility

the degree to which the innovation fits the values and experiences of potential consumers

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

Communicability

the degree to which the results of using the innovation can be observed or described to others

A model of business buyer behavior

the environment -> the buying organization -> buyer responses

Culture

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

Total market strategy

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

What determines if a buyer is satisfied or dissatisfied with a​ purchase?

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

Word-of-mouth influence

can have a powerful impact on consumer buying behavior

Which of the five characteristics identified in the text has an inverse relationship with an​ innovation's rate of​ adoption? As this characteristic​ increases, the rate of adoption is slower.

complexity

Awareness

consumer becomes aware of the new product but lacks information about it

Evaluation

consumer considers whether trying the new product makes sense

Interest

consumer seeks information about the new product

Trial

consumer tries the new product

Selective retention

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

Factors influencing consumer behavior

cultural, social, personal, psychological, buyer

Cultural Factors

culture, subculture, social class

Which of the following statements regarding the business market is​ correct?

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

New task

a company buying a product or service for the first time

Aspirational group

a group to which a person wishes to belong

In which type of buying situation will a buyer usually go through all the stages of the business buying​ process?

a new task buying situation

Which type of business buying situation offers marketers the greatest opportunity but also the greatest​ challenge?

a new task situation

Lifestyle

a person's pattern of living as expressed in his or her psychographics; involves measuring a consumer's major AIO dimensions

One problem with​ business-to-business e-procurement is that it​ _______.

can erode long-standing customer-supplier relationships

Consumer market

all of the final consumers

Buying center

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

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

Straight rebuy

buyer reorders something without any modifications

Modified rebuy

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

Business buyer behavior

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

When marketers want to promote their products and services through​ word-of-mouth marketing​ programs, they typically begin by​ ________.

generating​ person-to-person brand conversations

Social factors

groups and social networks, family, roles and status

Subcultures

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

Membership groups

groups that have a direct influence to which a person belongs

Order-routine specification

includes the final order with the chosen supplier and lists items such as technical specifications, quantity needed, expected delivery time, return policies, and warranties

​Age, personality, buying​ style, and job position are​ ________ factors that can influence the business buying decision process.

individual

Groups

influence a person's behavior

Adopter Categories

innovators, early adopters, early majority, late majority, laggards

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 will support what they already believe

Derived demand

ultimately derives from the demand for consumer goods

In which step of the buying decision process is the final order with the chosen supplier​ developed?

​Order-routine specification