MKT 701 CHapter 5
7. Usage, post purchase evaluation, and vendor feedback.
Just as consumers go through an evaluation period after they purchase and use goods and services, so do businesses. The buying unit might survey users of the product to gauge their level of satisfaction and ask for specific comments. The feedback is shared with the vendor as well as the buying center
Personal Factors That Vary by Individual
Mood Personality and Self concepts Gender age and stage of life Lifestyle
Family
Most market researchers consider a person's ________________ to be one of the most important influences on their buying behavior.
Types of business buyers
Producers Resellers Governments Institutions
Types of B2B situations
Straight rebuy situations New-buy selling situation A modifier rebuy
Perception - Repetition
To be sure their advertising messages get through to you, and you remember them, companies use
User
are the people and groups within the organization that actually use the product
Institutions
include nonprofit organizations such as the American Red Cross, churches, hospitals, charitable organizations, private colleges, civic clubs, and so on. many non-profits seek donations of goods and services that are used in operating their business or providing services to their target market a smart B2B marketer will look at all the markets we have mentioned to see if they represent potential opportunities.
Social Class
is a group of people who have the same social, economic, or educational status in society While income helps define __________________, the primary variable determining _____________________ is an occupation. To some degree, consumers in the same social class exhibit similar purchasing behavior.
Subculture
is a group of people within a culture who are different from the dominant culture but have something in common with one another such as common interests, vocations or jobs, religions, ethnic backgrounds, and geographic locations.
Sell side site
is a site in which a single seller/vendor sells products to many different buying organizations.
Learning - classical conditioning
occurs by associating a conditioned stimulus (CS) with an unconditioned stimulus (US) to get a particular response. The more frequently the CS is linked with the US, the faster learning occurs, and this is what advertisers and businesses try to do.
A modified rebuy
occurs when a company wants to buy the same type of product it has in the past but make some modifications to its specifications.
New buy selling situation
occurs when a firm purchases a product for the first time the most time consuming for both the vendor and the purchasing firm and selling cycle can be very drawn out. New-to-an-organization buying situations rarely occur but may take place in some situations.
Learning - operant or instrumental conditioning
which is what occurs when researchers can get a mouse to run through a maze for a piece of cheese. In other words, learning occurs through repetitive behavior that has positive or negative consequences.
Factors that Influence Consumer Behavior
- Situation Factors - Social Situation - Time - Reason for the Purchase
6. Establishing an order routine.
. It is at this stage that the actual order created. The order includes the agreed-upon price, quantities, expected time of delivery, return policies, warranties, and any other terms of negotiation
Need Recognition
. Someone recognizes a need within the organization that the purchase of a good or service can solve
Straight in the B2B buying process
1. Needs recognition 2. Need description and quantification 3. Vendor/supplier search. 4. Qualified potential suppliers requests for proposals (RFP). 5. Proposal evaluation and selection. 6. Establishing an order routine 7. Usage, post purchase evaluation, and vendor feedback.
Mood
A sour ____________ can spoil a consumer's desire to shop or make them extremely difficult to please.
Perception - Selective distortion
Another potential problem that advertisers (or your friends) may experience is __________________or misinterpretation of the intended message.
Perception - Selective retention
At other times, people forget information, even if it's quite relevant to them, which is called
Stage 4 - Purchase Decision
At the end of the evaluation stage, consumers form an intention to buy a specific product offering. Whether or not that purchase intention translates into real behavior depends on many factors, some of which stem from the consumer, the environment, and the actions of the firm itself.
Stage One - Need Recognition
At this stage of the consumer buying process, marketers must engage in research that allows them to identify and understand consumer wants. Why? "Wants" play a role in the market segmentation process and are critical to the development of the marketing mix, especially the product component While wants are important, to create valid demand forecasts, marketers must balance wants against the consumer's willingness and ability to pay
Cognitive dissonance (Buyer's Remorse).
Called _________________, or more commonly, ____________________, this phenomenon is more likely to occur when purchasing decisions are complex, when the price paid is high, when the decision is emotionally involving, and when the opportunity costs associated with the rejected alternatives are high
Delight
Consumers are delighted when the offering greatly exceeds expectations. This experience is likely to generate positive word-of-mouth and positive online reviews and often results in brand loyal consumers and long-term relationships. To develop customer delight, it is essential that marketers not make promises that the product cannot deliver; in fact, under-promising and over-delivering are the keys to consumer delight.
Satisfaction
Consumers are satisfied when the product delivers what was promised and thus meets their expectations. Satisfied customers can also develop into long-term relationships.
Stage 3 - Evaluation of Alternatives
Consumers evaluate the brands comprising the evoked set against their needs and desires (wants). HOW they go about this process is often a mystery, and understanding how consumers come to their decisions is typically the most difficult aspect of consumer behavior to comprehend and influence. Quantifying or measuring how consumers make decisions is extraordinarily difficult. These criteria are related to benefits, and to characteristics of the offering referred to as attributes. Products bought for prestige purposes are expected to have higher price tags.
Societal Factors
Culture Subculture Social Class Reference groups and opinion leaders Family
Consumers will experience one of four outcomes following the purchase of a firm's offering: Name the Four
Delight Satisfaction Dissatisfaction Cognitive Dissonance (buyers remores)
5. Proposal evaluation and selection.
During this stage, review of the RFPs takes place, and the vendor or vendors are selected. Selecting Single versus Multiple Suppliers. Sometimes organizations select a single supplier to provide the good or service
4. Qualified potential suppliers requests for proposals (RFP).
Each vendor that qualifies receives a request for proposal (RFP), which is an invitation to submit more information about how the firm can satisfy the business's needs.
Stage 5 - Post Purchase Evaluation
Marketing activities and attention to customers don't stop once the purchase is complete. Monitoring consumer's reactions and product performance and communicating with customers is essential to retaining them and building long-term relationships.
Situational factor
Marketing professionals take physical factors such as a STORE'S DESIGN AND LAYOUT into account when they are designing their facilities STORE'S LOCATIONS also influence behavior. While McDonald's has long been acknowledged as the King of retail site selection, Starbucks has done a good job selecting store locations. PHYSICAL FACTORS that firms can control, such as the layout of a store, music played at stores, the lighting, temperature, and even the smells you experience are called ATMOSPHERICS. Take WEATHER, for example. Rainy weather can be a boon to some companies, like umbrella makers such as Totes, but a problem for others CROWDING is another situational factor. Have you ever left a store and not purchased anything because it was just too crowded?
Psychological Factors
Motivation Perception Learning Attitude
e-commerce
Not all B2B vendors and sellers meet face-to-face with one another today, though; _____________, or commerce conducted electronically, such as over the Internet, has made locating local vendors less important in many industries.
Consumer Behavior and Pricing in E-commerce Markets
One of the consequences of e-commerce is that B2B customers can easily shop around from the convenience of their cubicles or offices, bid on products, and read blogs about products from industry experts
Who Makes the Purchasing Decisions in Business Markets?
Other Players Initiators Influencers Gate keepers Deciders
Personality and self concepts
Personality describes a person's disposition, helps show why people are different, and encompasses a person's unique traits. Marketers have had better luck linking people's self-concepts to their buying behavior. Your self-concept is how you see yourself—be it positive or negative. Your ideal self is how you would like to see yourself—whether it's prettier, more popular, more eco-conscious, or more "goth," and others' self-concept, or how you think others see you, also influences your purchase behavior. Marketing researchers believe people buy products to enhance how they feel about themselves—to get themselves closer to their ideal selves.
Other Players
Purchasing agents don't make all the buying decisions in their companies, though. As we explained, other people in the organization often have a say, as well they should
Perception - self exposure
Selecting information we see or hear (e.g., television shows or magazines) is called
types of B2B websites
Sell-side site buhy side site B2B auctions Buy side auctions Reverse auctions
What are the five stages of the consumer buying process
Stage 1: Need RecognitionInformation Stage 2: SearchAlternative Stage 3: EvaluationPurchase Stage 4: DecisionPost Stage 5: Purchase Evaluation
Social Situation
The ____________________ you're in can significantly affect your purchase behavior. Perhaps you have seen Girl Scouts selling cookies outside grocery stores and other retail establishments and purchased nothing from them, but what if your neighbor's daughter is selling the cookies? Are you going to turn her down or be a friendly neighbor and buy a box (or two)?
Reason for the Purchase
The reason you are shopping also affects the amount of time you will spend shopping. What if you need something for an important dinner or a project and only have an hour to get everything? Are you shopping for a gift or a special occasion? Are you buying something to complete a task/project and need it quickly? Are you making an emergency purchase?
Time
The________ of day, ________ of year, and how much time consumers feel like they have to shop affect what they buy. Researchers have even discovered whether someone is a "morning person" or "evening person" affects shopping patterns.
Soceital Factors
They have broad influences on your beliefs and the way you do things
Lifestyle
To better understand and connect with consumers, companies interview or ask people to complete questionnaires about their lifestyles or their activities, interests, and opinions (often referred to as AIO statements)
Perception - Shock advertisement
Using surprising stimuli or shock advertising is also a technique that works.
straight rebuy situation
Vendors (sellers) like________________________________ because the buying organization doesn't consider any alternative products or search for new suppliers. ___________________________ are appropriate when there are no changes to the product or service specifications, and the firm is simply reordering an existing item for inventory or for use within their business
Dissatisfaction
When the product's performance falls below buyer's expectations, ________________ occurs. Marketers must monitor online reviews and reach out to _________________ customers who have legitimate complaints. It is also necessary to acknowledge those who have unworthy complaints, to show that you are listening.
Gender, age, and stage of life
While demographic variables such as income, education, and marital status are important, we will look at___________________and how they influence purchase decisions.
Interpersonal factors
among the people making the buying decision often have an impact on the products chosen, good or bad
Attitude
are "mental positions" or emotional feelings, favorable or unfavorable evaluations, and action tendencies people have about products, services, companies, ideas, issues, or institutions. _______________tend to be enduring, and because they are based on people's values and beliefs, they are hard to change
B2B auction
are Web-based auctions that occur between businesses. The auctions can be either sell-side or buy-side.
Producers
are companies that purchase goods and services that they transform into other products.
Resellers
are companies that sell finished goods and services produced by other firms without materially changing them
Reference groups and opinion leaders
are groups (social groups, work groups, family, or close friends) a consumer identifies with and may want to join. They influence consumers' attitudes and behavior. are people with expertise in certain areas. Consumers respect these people and often ask their opinions before they buy goods and services.
Gate Keepers
are people such as buying assistants, personal assistants, administrative assistants and other individuals who have some say about which sellers get a foot in the door. They generally have a lot of information about what's going on behind the scenes and a certain amount of informal power
Influencer
are people who may or may not use the product but have experience or expertise that can help improve the buying decision
Initiator
are the people within the organization who first see the need for the product, but they don't stop there; whether they can make the final decision on what to buy or not, they get the ball rolling
The Consumer Buying Process
consumer buying process presupposes a rational, logical, and sequential set of activities. The process begins when buyers recognize a need and wish to fulfill the need. For many common items, such as food, beverages, and over the counter medicine, consumers need recognition occurs as a result of internal feelings of hunger, thirst or illness.
Stage 2 - Information Search
consumers speak with family, friends, and other important personal sources of information, including opinion leaders who have expertise in particular product categories. Personal sources offer word-of-mouth recommendations based on their experience or other information that they have learned Most consumers use the information search to weed out less desirable solutions so that the decision-making process can be simplified, and narrow choices to a few brands referred to as the evoked set.
Perception
is how you interpret the world around you and make sense of it in your brain. You do so via stimuli that affect your different senses—sight, hearing, touch, smell, and taste.
Motivation
is the inward drive we have to get what we need.
Perception - Subliminal advertisement
is the opposite of shock advertising and involves exposing consumers to marketing stimuli such as photos, ads, and messages that cannot be perceived by the conscious mind by stealthily embedding them in movies, ads, and other media.
Decider
is the person who makes the final purchasing decision. In B2B buying, the purchase decision may be the domain of a single decider or a few deciders who reach consensus.
Perception - Selective attention
is the process of filtering out information based on how relevant it is to you. has been described as a "suit of armor" that helps you filter out information you don't need.
Personal factors
play a part in the buying process. B2B buyers are overwhelmed with choices, features, benefits, information, data, and metrics. They often have to interview dozens of potential vendors and ask them hundreds of questions
Learning
refers to the process by which consumers change their behavior after they gain information or experience. It's the reason you don't buy a bad product twice
Culture
refers to the shared beliefs, customs, behaviors, and attitudes that characterize a society.___________ is a handed down way of life and is often considered the broadest influence on a consumer's behavior.
Buy side site
site is one in which a business buys products from multiple sellers that go there to do business with the firm. Some government agencies have buy-side sites.
Governments
the biggest purchaser of goods and services in the world? It is the U.S. government. many government entities specify that their agencies must award a certain amount of business to small businesses, minority- and women-owned businesses, and businesses owned by disabled veterans. Other businesses, though, realize that learning the ins and outs of government purchases can become a sustainable competitive advantage.
Buyer side auction
the buyer initiates the auction to find the cheapest supplier of a product. Sellers then bid against one another, offering the lowest prices they can for their products, to get the buyer's business.
2. Need description and quantification
the buying center creates a set of criteria and parameters to guide the evaluation process. In other words, they describe what they believe is needed, the features it should have, how much of it is needed, where, and so on.
Business-to-Business Markets and Buying Behavior
the more high-dollar and complex the item, the longer it takes to complete the sale. , most business buyers demand that the products they buy meet strict standards.
3. Vendor/supplier search
the people involved in the buying process seek out information about the products they are looking for and the vendors that can supply them