Ch 5 Marketing
business buying process
the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands
what are the levels of classes?
upper class (1-2), middle class (38%), working class (9%), lower class (7%
Business purchases and types of decisions:
-More complex buying decisions -Interactions among people at many levels of the buyer's organization -Longer and more formalized procedures -Buyer and seller more dependent on each other
The Model of Buying Behavior
Marketing stimuli, other stimuli-->buyer's characteristics, buyer's decision process--> buyer's decisions
buying center
all the individuals and units that play a role in the purchase decision-making process
What are the characteristics affecting consumer behavior?
Cultural (culture, subculture, religion), Social (groups and social networks, family, status), Personal (age, lifecycle, occupation, personality), Psychological * (motivation, beliefs and attitudes),
Steps in the perception process
-Selective exposure: An individual selects which inputs, usually relating to strongest needs, will reach awareness. -Selective distortion: Changing or twisting received information -Selective retention: Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not
A purse company's ads feature the members of a popular housewives reality show. Product sales increase significantly among fans. From fans' viewpoint, the housewives reality show is a: A. family group B. reference group C. membership group D. lagging adopter E. late-majority adopter
B
What are two examples of total market strategy?
Cheerios and IKEA because they feature
motive (drive)
a need that is sufficiently pressing to direct the person to seek satisfaction of the need
Stages in the Adoption Process
awareness, interest, evaluation, trial, adoption-(expected to use again)
What does the buyer's black box consist of in the model of buying behavior?
buyer's decision process and buyer's characteristics
Systems selling (or solutions selling)
buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation (six flags example)
Attitude Components
cognitive, affective, behavioral
refers to the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption:
consumer buying behavior
All the individuals and households that buy or acquire goods and services for personal consumption:
consumer market aquire, use, dispose
characteristics affecting consumer behavior
cultural factors, social factors, personal factors, psychological factors
influencer marketing
enlisting established influencers or creating new influencers to spread the word about a company's brand
What are the three components that make up the model of buying behavior?
environment —> buyer's black box —> buyer's response
Major Influences on Business Buyers
environmental (politics/regulation), organizational, interpersonal, individual
what is the most important membership reference group?
family
cross-cultural marketing
including ethnic themes and cross-cultural perspectives within a brand's mainstream marketing
information search stage
internal search: Buyers search their memories for information about products that might solve their problem external search: When an internal search is not sufficient, consumers seek additional information from outside sources
Perception (JND)
just noticeable difference
What are the psychological factors of the biz buying behavior?
motivation, perception, learning*, and beliefs and attitudes
Business-to-business (B-to-B) marketers
must understand business markets and business buyer behavior
what are the five steps of the buyer decision process?
need recognition, info search, evaluation of alternatives, purchase decision, post-purchase behavior
What are the personal factors to the biz buyer behavior?
occupation, age and life stage, economic situation, lifestyle *, and personality and self-concept
Marketers of brands understand that they must figure out how to reach ___________________ that can exert social influence on others.
opinion leaders
Marketers of brands subjected to strong group influence must figure out how to reach:
opinion leaders-people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.
what are the five elements of Maslow's hierarchy of needs? (in order)
physiological needs (hunger, thirst), safety needs (security, protection), social needs (sense of belonging), esteem needs (self-esteem, recognition, status), and self-actualization needs (self-development and realization).
E-procurement
purchasing through electronic connections between buyers and sellers - usually online
What are the five types of influences?
reference group, opinion leader, word-of-mouth, influencer marketing, online social networks
What is the key to success? *
relationship continuum <------------------------------------------> discrete transactions . relational exchange transactional mkting . relationship mktg -aquire . -aquire and RETAIN
Characteristics Influencing an Innovation's Rate of Adoption
relative advantage, compatibility, complexity, divisibility (trialibility), communicability (visibility)
A person belongs to many groups—family, clubs, organizations, online communities. The person's position in each group can be defined as:
roles and status
reference groups
serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitudes or behavior.
Types of Buying Situations
straight rebuy, modified rebuy, new task
Targeting Hispanic consumers: Toyota's award-winning "Más Que un Auto" campaign created a strong emotional connection between Hispanics and their Toyotas with free, official-looking, personalized nameplates for their much-loved cars—here, Pepe. This would be an example of what?
subculture
new task
the buyer purchases a product or service for the first time
straight rebuy
the buyer routinely reorders something without any modifications
modified rebuy
the buyer wants to modify product specifications, prices, terms, or suppliers
Model of Business Buying Behavior
the environment -> the buying organization -> buyer responses buying organization - buying decision process *
adoption process
the mental process through which an individual passes from first hearing about an innovation to final adoption
Perception *
the process by which people select, organize, and interpret information to form a meaningful picture of the world *august bullock with the secret sales pitch and flowers and sex example
Culture
the set of basic values, perceptions, wants, and behaviors LEARNED by a member of society from family and other important institutions
personality
the unique psychological characteristics that distinguish a person or group
is the model of buying behavior a stimulus-response model?
yes
attitudes
An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea
Determines if a buyer is satisfied or dissatisfied with a purchase: A. The relationship between the consumer's expectations and the product's perceived performance B. The amount of information gathered in the decision-making process C. How others feel about the purchase D. Whether or not the buyer experiences cognitive dissonance E. The number of alternatives considered in the purchase decision
A
What is the first step of the buyer decision process? A. Need recognition B. Information search C. Purchase decision D. Alternative evaluation E. Post-purchase behavior
A
Which of the following is a personal characteristic influencing a consumer's buying behavior? A. Occupation B. Motivation C. Status D. Social networks E. Family
A
Which of the following is often considered a key business marketing strategy for winning and holding accounts? A. systems selling B. new task C. modified rebuy D. straight rebuy E. buying decision
A
cognitive dissonance
A buyer's doubts shortly after a purchase about whether the decision was the right one
consideration set (evoked set)
A group of brands within a product category that a buyer views as alternatives for possible purchase
Subculture
A group of people with shared value systems based on common life experiences and situations
lifestyle
A person's pattern of living as expressed in his or her activities, interests, and opinions.
The business buying process can be a complex and complicated process with eight basic stages. Which of the following is the first stage in this process? A. Supplier search B. Problem recognition C. Supplier selection D. General need description E. Proposal solicitation
B
Which of the following is NOT a social factor influencing consumer buying behavior? A. Online social networks B. Cognitive dissonance C. Opinion leaders D. Word of mouth E. Reference groups
B
Which of the following is likely to slow the adoption of a new technology? A. Relative advantage B. Conceptual complexity C. Divisibility D. Compatibility E. Communicability
B
Which of the following needs in Maslow's hierarchy is generally satisfied first? A. Self-actualization needs B. Physiological needs C. Social needs D. Esteem needs E. Safety needs
B
consists of many different people who play multiple roles in the buying process: A. The buying nucleus B. The buying center C. Buying agents D. Buying actors E. The purchasing team
B
what does the buyer's response consist of in the model of buying behavior?
Buying attitudes and preferences Purchase behavior: what the buyer buys, when, where, and how much Brand engagements and relationships
derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________. A. identifying and targeting late adopters B. pushing one-way commercials at customers C. generating person-to-person brand conversations D. developing print and radio advertisements E. withdrawing from online social networks
C
Which of the following are tradition-bound, suspicious of changes, and adopt the innovation only when it has become something of a tradition itself? A. Early adopters B. Late mainstream C. Lagging adopters D. Early mainstream E. Innovators
C
is one problem with business-to-business e-procurement: A. Reduced purchasing efficiency B. Increased time between order and delivery C. Suppliers being pitted against one another D. Increased transaction costs E. Increased paperwork requirements
C
Which of the following refers to the degree to which an innovation fits the values and experiences of potential consumers? A. Communicability B. Divisibility C. Complexity D. Compatibility E. Relative advantage
D
Consumers obtain information from numerous sources. Which of the following involves dealer and manufacturer websites, packaging, and displays? A. Public sources B. Personal sources C. Media sources D. The internet E. Commercial sources
E
Which of the five characteristics identified has an inverse relationship with an innovation's rate of adoption, meaning as this characteristic increases, the rate of adoption is slower? A. Relative advantage B. Divisibility C. Compatibility D. Communicability E. Complexity
E
Which of the following lists the five steps of the buyer decision process in the correct order? A. Need recognition, purchase decision, information search, evaluation of alternatives, and post-purchase behavior B. Need recognition, evaluation of alternatives, information search, purchase decision, and post-purchase behavior C. Need recognition, information search, purchase decision, evaluation of alternatives, and post-purchase behavior D. Purchase decision, need recognition, information search, evaluation of alternatives, and post-purchase behavior E. Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior
E
Which of the following statements regarding the business market is correct? A. Business buying decisions are less complex than consumer buying decisions. B. The business market has more buyers than the consumer market. C. The business market is not as large as the consumer market in terms of dollars spent and items purchased. D. In the business market buying process, buyers and sellers are less dependent on each other than in the consumer market. E. Many sets of business purchases are made for one set of consumer purchases.
E
refers to the practice of integrating ethnic themes and cross-cultural practices within a company's mainstream marketing: A. Viral marketing B. Guerilla marketing C. Cause marketing D. Buzz marketing E. Total market strategy
E
membership groups
Groups with direct influence and to which a person belongs
total market strategy
Integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences.
need recognition stage
Occurs when a buyer becomes aware of a difference between a desired state and an actual condition *pool table example
online social networks
Online social communities - blogs, social networking Web sites, and other online communities - where people socialize or exchange information and opinions
business buyer decision process
Problem recognition, general need description, product specifications, proposal solicitation*, supplier selection, order-routine specification, and performance review
business buyer behavior
Purchasing goods and services are used in the production of other products and services
social class
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
purchase decision
The buyer intends to purchase the most preferred brand based on previous state (evaluation) Two things can get in the way of intention and purchase decision:•Situational factors•Attitudes of others
Word-of-mouth influence
The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior.
According to the model of buyer behavior, what is in a buyer's "black box"?
The buyer's characteristics and decision process
Participants in the Business Buying Process•Buying center:
All the individuals and units that play a role in the purchase decision-making process-Actual users of the product or service
is a characteristic important in influencing an innovation's rate of adoption and described by the degree to which the innovation may be tried on a limited basis: A. Motivation B. Divisibility C. Communicability D. Relative advantage E. Complexity
B
learning
Changes in an individual's thought processes and behavior caused by information and experience. *stimulus generalization (arm and hammer ex)
What is the first step of word-of-mouth influencing?
Consumers start chatting about a brand they use or feel strongly about one way or the other.
What does the environment consist of in the model of buying behavior?
Marketing stimuli: Product Price Place Promotion Other: Economic Technological Social Cultural
Which of the following is NOT one of the typical advantages of e-procurement systems? A. Eliminating paperwork B. Allowing buyers to focus on more strategic issues C. Improving customer-supplier relationships D. Finding better supplier resources E. Reducing time between order and delivery
C