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

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