BMGT350 - Chapter 5
Mistaken assumption that B-to-B companies often make about digital and social media
That digital and social media are useful primarily to consumer products and services
What determines whether the buyer is satisfied or dissatisfied with a purchase?
The relationship between the: 1) consumer's expectations 2) product's perceived performance
Questions to understand and know the answers when dealing with buying centers
Who are the major buying center participants? What evaluation criteria does each decision participant use? In what decisions do they exercise influence and to what degree? What major influences impact the buying center decision?
Consumer Market
all the individuals and households that buy or acquire goods and services for personal consumption
Complexity
as the characteristic increases, the rate of adoption is slower Inverse relationship with an innovation's rate of adoption
online social networks
online social communities - blogs, online social media, brand communities, and other online forums - where people socialize or exchange information and opinions
A problem with business-to-business (B-to-B) e-procurement
suppliers being pitted against one another
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
Word-of-mouth influence
the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior
total market strategy
the practice of integrating ethnic themes and cross-cultural perspectives within their mainstream marketing
5 stages of the consumer adoption process, in the correct sequence
1) Awareness 2) Interest 3) Evaluation 4) Trial 5) Adoption
Buyer Decision Process
1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior
8 steps in the business buying 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
A new product marketer must do what when developing a new product and a marketing program?
A new product marketer must research characteristics influencing the rate of adoption
Age and Life Stage
Chronological, biological, and social definitions
Major factors influencing consumer buying behavior
Cultural Social Personal Psychological
The most basic determinant of a person's wants and behaviors are embedded in a consumers ______________.
Culture
What stage of the business buying decision process involves ranking the importance of reliability, durability, and price
General need description
Students purchasing items with the college logo most likely represent consumers involved in which type of buying behavior?
Habitual
Which stage of the consumer buyer behavior process is easier for the consumer when they are provided with new, relevant media?
Information search
The buying center
consists of many different people who play multiple roles in the buying process
Divisibility
degree to which the innovation may be tried on a limited basis
Communicability
degree to which the results of using the innovation can be observed or described to others
influencer marketing
enlisting established influencers or creating new influencers to spread the word about a company's brands
reference group
groups that serve as a direct or indirect point of comparison or reference in forming a person's attitudes or behavior
opinion leaders
individuals who exert direct or indirect social influence over others
What is the nature of demand in business markets?
Demand in business markets is derived demand
A statement regarding the business market
Many sets of business purchases are made for one set of consumer purchases
Advantages of the e-Procurement System
Reducing time between order and delivery Finding better supplier resources Allowing buyers to focus on more strategic issues Eliminating paperwork
Influence of product characteristics on rate of adoption
Relative Advantage Compatibility Complexity Divisibility Communicability
E-procurement
purchasing through electronic connections between buyers and sellers - usually online Technology advance have made B-to-B (business to business) online purchasing possible