marketing ch 5

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personal sources

legitimize or evaluate products for the buyer

types of decisions and the decision process

business buyers usually face more complex buying decisions than do consumer buyers. the business buying process tends to be more formalized. the buyer and seller are often much more dependent on each other

nature of the buying unit

business purchases usually involve more decision participants and a more professional purchasing effort

supplier search

conducted to find the best vendors. the newer the buying task, and the more complex and costly the item, the greater the amount of time the buyer will spend searching for supplliers

purchase decision

generally, the consumer's purchase decision will be to buy the most preferred brand. two facts can come between the purchase intention and purchase decision. 1. attitudes of others 2. unexpected situational factors

general need description

generated to describe the characteristics and quantity needed of an item

subcultures

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

subliminal advertising

marketing messages received without consumers knowing it. studies find no link between subliminal messages and consumer behavior.

information search

may or may not occur. consumers can obtain information from any of several sources -personal sources: family, friends, neighbors, acquaintances -commercial sources: advertising, salespeople, web sites dealers, packaging, displays -public sources: mass media, consumer-rating organizations, Internet searches -experimental sources: handling, examining, using the product

diff between business and consumer markets

-market structure and demand -nature of the buying unit -types of decisions and the decision process involved

marketing stimuli

-the 4 P's -economic, technological, political, and cultural. -marketer wants to understand how the stimuli are changed into responses inside the consumer's black box, which has 2 parts 1. the buyer's characteristics influence how they perceive and react to stimuli 2. the buyer's decision process itself affects the buyer behavior

stages in adoption process

1. awareness: the consumer becomes aware of the new product but lacks info about it 2. interest: the consumer seeks information about the new product 3. evaluation: the consumer considers whether trying the new product makes sense 4. trial: the consumer tries the new product on a small scale to improve their estimate of its value 5. adoption: consumer decides to make full use of the new product

buyer decision process

1. need recognition 2. information search 3. evaluation of alternatives 4. purchase decision 5. post purchase behavior

5 characteristics are important in an innovation's rate of adoption

1. relative advantage- the degree to which the innovation appears superior to existing products 2. compatibility- the degree to which the innovation fits the values and experiences of potential customers 3. complexity- the degree to which the innovation is difficult to use or understand 4. divisibility- the degree to which the innovation may be tried on a limited basis 5. communicability- the degree which results of using the innovation can be observed to others

within the organization buying activity consists of 2 major parts

1. the buying center 2. the buying decision process

Hispanic market

46 million consumers

belief

a descriptive thought that a person has about something

new product

a good, service, or idea that is perceived by some potential customers as new

groups and social networks

a person's behavior is influenced by many small groups

roles and status

a role consists of the activities people are expected to perform. each role carries a status reflecting the general esteem given to it by society.

drive

a strong internal stimulus that calls for action. a drive becomes a motive when it is directed toward a particular stimulus object.

AIO dimensions

activities (work, hobbies, shopping, sports, social events) interests (food, fashion, family, recreation) and opinions (about themselves, social issues, business, products).

economic situation

affect product choice

occupation

affects the goods and services bought

cognitive dissonance

aka discomfort caused by post purchase conflict, occurs in most major purchases

motive

aka drive. a need that is sufficiently pressing to direct the person to seek satisfaction. Freud suggests that person's buying decision are affected by subconscious motive that even the buyer may not fully understand

buying center

all the individuals and units that play a role in the business purchase decision-making process. the buying center is not a fixed and formally identified unit within the buying organization.

value analysis

an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production

African American market

annual buying power of $845 million and is estimated to reach $1.2 trillion by 2013

mature consumers

are becoming a very attractive market. by 2015 the entire baby boom generation, the largest and wealthiest demographic cohort in the country, will have moved into the 50+ age bracket

business buying process

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

attitude

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

learning

describes changes in an individual's behavior arising from experience

selective distortion

describes the tendency of people to interpret information in a way that will support what they already believe

individual factors

each participant in the business buying process brings in personal motives, perceptions, and preferences. these are influenced by personal characteristics such as age, income, education, professional identification, personality, and attitudes toward risk

central question for marketers

how do consumers respond to various marketing efforts the company might use?

alternative evaluation

how the consumer processes information to arrive at brand choices. how consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. in some cases consumers use careful calculations and logical thinking. at other times the same consumers do little or no evaluating but instead buy on impulse and rely on intuition

organizational factors

important because each buying organization has its own objectives, policies, procedures, structure, and systems

environmental factors

include the current and expected economic environment, as well as shortages of key materials. -technological, political, and competitive developments can also affect business buyers. culture and customs can also influence buyer reactions to the marketers behavior strategies

order routine specification

includes the final order with the chosen supplier or suppliers

product specification

includes the technical product specifications

interpersonal factors

influence the business buying process. these can be very difficult to ascertain

commercial sources

inform the buyer

business markets

involve far more dollars and items than do consumer markets.

perception

is 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 the person responds

major influences on business buyers

most B-to-B marketers recognize that emotion plays an important role in business buying decisions. when suppliers' offers are very similar, buyers can allow personal factors to play a larger role in their decisions. however when competing products differ greatly, business buyers are more accountable for their choice and tend to pay more attention to economic factors

business to business marketers

must do their best to understand business markets and business buyer behavior

adoption

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

supplier selection

occurs after the buying center reviews the proposals

systems selling

often a key business marketing strategy because many business buyers prefer to buy a packaged solution to a problem from a single seller. in this situation a buyer must ask sellers to supply the components and assemble the package or system

online social networks

online spaces where people socialize or exchange information and opinions

lifestyle

pattern of living is expressed by psychographics

age and life-cycle stage

people change the goods and services they buy over their lifetimes. marketers often define their target market in terms of life-cycle stage and develop appropriate products and marketing plans for each stage.

individual differences in innovation

people differ greatly in their readiness to try new products. people can be classified into the adopter categories. 1. innovators-venturesome, try new ideas at some risk 2. early adopters- guided by respect, they are opinion leaders in communities and adopt new ideas early but carefully 3. the early majority are deliberate- although they rarely are leaders, they adopt new ideas before the average person 4. late majority- skeptical, adopt innovation only after other people have tried it 5. laggards-tradition bound, suspicious and adopt only when it has become a tradition

opinion leaders

people within a reference group who because of special skills, knowledge, personality, or other characters, exert social influence on others. these 10% of Americans are called the influential/leading adopters

motivation research

refers to qualitative research designed to probe consumers' hidden, subconscious motivations. Maslow sought to explain why people are driven by particular needs at particular times

personality

refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment.

social classes

society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. not determined by a single factor, but is measured as a combination of occupation, income, education, wealth, and other variables

supplier development

systematically developing networks of supplier partners to ensure an appropriate and dependable supply of products and materials that they will use in making their own products or resell to others

market structure and demand

the business marketer normally deals with far fewer but far larger buyers than the consumer market does. business demand is derived demand-it ultimately derives from the demand for consumer goods. many markets have inelastic demand: price does not affect demand business markets have fluctuating demand

need recognition

the buyer recognizes a problem or need. the need can be triggered by either an internal stimuli or external stimuli

straight rebuy

the buyer reorders something without any modifications

modified rebuy

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

consumer buyer behavior

the buying behavior of final consumers-individuals and households who buy goods for personal use. all of these consumers combine to make up the consumer market. US consumer market has over 300 million people. the world consumer market has over 6.8 billion people.

business buyer behavior

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

problem recognition

the buying process begins when someone in the company recognizes a problem or need that can be met by acquiring a specific product or service

new-task buy

the company is buying a product or service for the first time

post purchase behavior

the difference between the consumer's expectations and the perceived performance of the good purchased determines how satisfied the consumer is. if the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted

adoption process

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

Asian Americans

the most affluent US demographic segment

culture

the most basic cause of a person's wants and behavior. marketers are always trying to spot cultural shifts

family

the most important consumer buying organization in society. 70% of women hold jobs outside the home. about 65% of men grocery shop regularly. the nation's 36 million kids age 8-12 control an estimated $30 billion in disposable income

selective retention

the retaining of information that supports their attitudes and beliefs

brand personality

the specific mix of human traits that may be attributed to a particular brand. one researcher identified five brand traits. 1. sincerity (down to earth, honest, wholesome, cheerful) 2. excitement-daring, spirited, imaginative, up to date 3. competence- reliable, intelligent, successful 4. sophistication- upper class and charming 5. ruggedness- outdoorsy and tough the basic self concept premise is that people's possessions contribute to and reflect their identities "we are what we have"

proposal solicitation

the stage in which the buyer invites qualified suppliers to submit proposals

selective attention

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

performance review

this review may lead the buyer to continue, modify, or drop the arrangement with the seller

buzz marketing

used to spread the word about their brands


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