marketing ch 5
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
