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