Marketing CH 5

types of buying situations

- Straight rebuy -Modified rebuy -New task

Factors that influence consumer behavior

-Cultural -Social -Personal -Psychological

Stages of adopting a new product

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

Steps of buyer decision proess

1.) Need recognition 2.) Information search 3.) Evaluation of alternatives 4.) The purchase decision 5.) Postpurchase behavior

Major influences on business buyer behavior

1.) Organizational factors ex: how many people are involve din buying decision? Who? 2.) Interpersonal factors: participants may influence the buying decision because they control rewards, punishments, are well liked, have expertise etc. 3.) Individual factors are affected by person characteristics such as income, education, personality, etc.

A new task buying process

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

New Task

A company buying a product or service for the first time faces this situation. This is the marketers greatest opportunity and challenge. The marketer not only tires to reach a many key buying influences as possible but also provides help and information. Buyer makes the most decisions in this process.

Social Factors

A consumers behavior is influenced by this such as small groups, social networks, family, social roles and status

Derived demand

Business demand is this __. It ultimately services from the demand for consumer goods. B2B marketers sometimes promote their products directly to final consumers to increase business demand.

How are business markets different than consumer markets

Business markt involve more dollars and items than customer markets. Many sets of business purchases were made for only one set of consumer purchases. They are different in market structure and demand, the nature of the buying unit and the types of decisions and the decision process involved. Business market deals with far fewer buy far larger buyers than consumer market does. business markets have inelastic and more fluctuating demand. The demand for many business goods and services tends to change more quickly than does the demand for consumer goods and services. A small % increase in consumer demand can cause larger increase in business demand Business buyers face more complex buying decisions than customers

Personal factors

Buyers decisions that are influenced by ____ characteristics such as the buyers occupation, age, life-cycle stage, economic situation, lifestyle, personality and self-concept.

Consumer buyer behavior

Buying behavior of final consumers--individuals and households that buy goods and services for personal consumption

Family (social factors)

Shifting roles of family members such as mom and dad signal a new marketing reality. Marketers in industries that have traditionally sold their products to only women or only men from groceries and personal care products to cars and consumer electronics are now targeting the opposite sex. Children also have a strong influence on family buying decisions. 80% of household purchases are kids influences.

Social class (cultural factors)

Societys relatively permanent and ordered divisions whose members share similar values, interests and behaviors. Measured as a combination based on occupation, income, education, wealth and other variables. Marketers are interested in ___ because people within a given ___ tend to exhibit similar buying behavior.

Straight rebuy (buying situations)

The buyer reorders something without any modifications. It is usually handled on a routine basis by the purchasing department. Buyer makes the fewest decisions here.

Modified rebuy

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

Awareness (1st step adoption)

The consumer becomes aware of the new product but lacks information

Evaluation (3rd step adoption)

The consumer considers whether trying the new product makes sense

Adoption (5th step of adoption)

The consumer decides to make full and regular use of the new product

Interest (2nd step adoption)

The consumer seeks information about the new product

Trial (4th step adoption)

The consumer tries the new product on a small scale to improve their estimate of its value

Buying center

The decision making unit of a buying organization is called this. This group 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 buy and those who control buying information

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

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

Demand in business markets is derived demand

What is the nature of demand in business markets?

Roles and status

Which of the following is a social factor that influences consumer buying behavior?

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

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

motivation

_________ is NOT a characteristic important in influencing an innovation's rate of adoption.

A total market strategy

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

Relative advantage

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

Role and status (social factors)

A person belongs to many groups--family, clubs, organization, online communities. The persons position in each group can be defined in terms of both _____. A role consists of the actives people are expected to perform according to those around them. Each role carries a status reflecting the general esteem given to by society. People big the type of clothing that effects their ___ and ___.

Psychological factors

A persons buying choices are influenced by 4 major factors: motivation, perception, learning, beliefs and attitudes

Reference group

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) _____.

information search

As more information is obtained, the consumers awareness and knowledge of the available brands and features increase

How are some business markets similar to consumer markets?

Both involve people who assume buying roles and make purchase decisions to satisfy needs.

Cultural factors

Consists of culture, subculture and social class

Personal sources

Consumers can obtain information from any of several sources. Which source is the most effective in that they legitimize the product?

Subculture (cultural factors)

Each culture contains smaller ___ or groups of people with share value systems based on common life experiences and situations. This includes nationalities, religions, geographic regions. These ___ make up important market segments and marketers often design products tailored to their needs. Ex: American, Asian American consumers, Hispanic American, etc. Many companies create special products to appeal to African American consumers like carmakers Ford and Hyundai

Role of buying center in B2B

Emotion plays an important role in business buying decisions. Business buyers are heavily influenced by the factors in the current and expected economic environment, also affected by supply, technological and political and competitive developments. Also, culture and customs can strongly influence business buyer reactions to the marketers behavior and strategies.

need recognition

First step of buying process. The buyer recognizes a problem or need. At this stage the marketer should research consumers to find out what kinds of needs or problems arise, what brought them about and how they led the consumer to this particular product

evaluation of alternatives

How consumers process information among alternative brands. Most buyers consider several attributes, with different importance. By knowing the importance that you assigned to each attribute, the marketer could predict and affect your choice more reliably. If marketers know what evaluative processes go on, they can take steps to influence the buyers decision.

Straight rebuy

In a _________, the business-to-business buyer reorders something without modifications

order routine specification

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

post purchase behavior

Marketers job does not end when a product is bought. After purchasing the product, the consumer will either be satisfied or dissatisfied. The consumers satisfaction is determined through the relationship between consumers expectation sand the products perceived performance. It is key to satisfy customer to build profitable relationship to keep growing consumers and customer lifetime value.

Types of psychological factors

Motivation: A persons buying decisions are affected by subconscious motives. Also according to Maslow, a person tries to satisfy the most important needs first and will influence the buying behavior. Perception: A motivated person is ready to act. How the person acts is influenced by perception of a situation. Perception is the process by which people select, organize and interpret information for form a meaningful picture of the world. Selective attention is a part of a person perception. Sometimes people screen out most of the information to which they are exposed which means marketers have to work harder to attract the consumers attention. Learning: Describes changes in an individuals behavior arising from experience. The significance of learning 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. Beliefs & attitudes: Beliefs are descriptive thoughts that a person holds about something. Marketers are interested in the beliefs that people formulate about specific products and services because beliefs make up product and brand images that affect buying behavior. Attitudes: People have attitudes toward religion, politics, food, clothes etc. This describes a persons relatively consistent feelings toward an idea or object. A company should usually try to fit its products into existing attitudes patterns rather than attempt to change attitudes.

Examples of personal factors

Occupation: Blue collar workers tend to buy more rugged clothes, whereas executives buy more business suits Age & life stage:People change the goods and services they buy over lifetimes from food, clothes, furniture etc. different needs for marriage, having kids, going to college, retiring etc. Marketers define target markets in terms of their age and life stage and develop products and market plans toward that Economic situation: A persons economic situation will affect a persons store and product choices. Marketers with trends in spending, personal income, savings etc. Lifestyle: A persons pattern of living as expressed in his or her psychographics. The lifestyle concept can help marketers understand changing consumer values and how they affect buyer behavior. Consumers don't just buy products, they buy the values and lifestyles those products represents Personality and Self concept: Distinct personalities influence buying behavior. Brands also have personalities and consumers are likely to choose brands that personalities that match their own.

can erode long-standing customer-supplier relationships

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

Small groups (social factors)

People are often influenced by reference groups to which they do not belong. For example, as a young basketball player hopes to someday emulate Lebron. Marketers try to identify the reference group of the target markets. These groups epxpose a person to new behaviors, lifestyles influence the persons attitudes, self concept and create pressures to conform that may affect the person's product and brand choices. **the importance of ___ influence varies across products and brands. It tends to be strongest when the product is visible to others whose the buyer respects.

purchase decision

during this stage, the consumer ranks brand and forms purchase intentions.

Goal of studying overall buyer decision process

marketers may be able to find ways to help consumers move through it. Ex: if consumers are not buying a new product because they do not see a need for it, marketing might launch advertising messages to trigger need. If customers aren't buying because of an unfavorable attitude, marketers find ways to change the product or consumer perception

Culture (cultural factors)

most basic cause of a person's wants and behavior. Growing up a child learns basics of value, perceptions, wants. Every group or society is made up of ___. Marketers are trying to spot cultural shifts to discover new products that might be wanted.