Marketing Ch5

supplier selection

, the buyer will consider many supplier attributes and their relative importance.

Culture

- The most basic cause of a person's wants and behavior. The set of values and perceptions learned from family and important institutions.

"Total Market Strategy"

- integrating ethnic/cross-cultural themes in "mainstream" marketing to appeal consumer similarities rather than differences.

Consumer purchases

are influenced strongly by cultural, social, personal, and psychological characteristics, as shown in this figure. For the most part, marketers cannot control such factors, but they must take them into account.

Selective Retention

consumers are more likely to remember good points made about a brand they favor and forget those good points about made about competing brands.

supplier performance review

in which the buyer reviews the supplier performance

Consumer buyer behavior.

is influenced by four key sets of buyer characteristics: cultural, social, personal, and psychological. Understanding these factors can help marketers to identify interested buyers and to shape products and appeals to serve consumer needs better

consumer buying behavior

is influenced by four major sets of psychological factors—motivation, perception, learning, and beliefs and attitudes. Each of these factors provides a different perspective for understanding the workings of the buyer's black box

The business buying process

is 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.

Culture

is the most basic determinant of a person's wants and behavior. People in different cultural, subcultural, and social class groups have different product and brand preferences.

Business-to-business (B-to-B)

marketers must do their best to understand business markets and business buyer behavior. Then, like businesses that sell to final buyers, they must engage business customers and build profitable relationships with them by creating superior customer value.

Motivation

motive (drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. (Maslow's Heirarchy)

cognitive dissonance

or discomfort caused by postpurchase conflict.

Business buyer behavior

refers to 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.

Supplier development

refers to the systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others.

Social factors

such as small groups, social networks, and family influences, strongly affect product and brand choices, as do personal characteristics, such as age, life stage, occupation, economic circumstances, lifestyle, and personality.

Selective Attention

tendency for people to screen out ost of the info to which they are exposed—marketers must work hard to capture attention.

Selected Distortion

tendency to interpret info in a way that supports what a person already believers

general need description

that describes the characteristics and quantity of the needed items or solutions

evaluation of alternatives

that is, how consumers process information to choose among alternative brands.

proposal solicitation stage,

the buyer invites qualified suppliers to submit proposals.

Late mainstream adopters

adopt an innovation only after a majority of people have tried it

lagging adopters

adopt the innovation only when it has become something of a tradition itself.

Early mainstream

adopters adopt new ideas before the average person. Late mainstream adopters adopt an innovation only after a majority of people have tried it.

Early

adopters are opinion leaders in their communities and adopt new ideas early but carefully.

need recognition.

The need can be triggered by internal stimuli when one of the person's normal needs rises to a level high enough to become a drive. A need can also be triggered by external stimuli.

purchase decision.

Two factors can come between the purchase intention and the purchase decision: the attitudes of others and unexpected situational factors.

Social Class -

Relatively permanent divisions in society whose members share similar values, interests, etc. Determined by combo of occupation, income, education, wealth and other variables (NOT just income!)

External Stimuli:

An advertisement or discussion with a friend.

Two factors can intervene between purchase intention and purchase decision:

Attitudes of others Unexpected situational factors (e.g., price change, change in income, modifications to product, etc.)

Mental process through which a consumer passes from first hearing about an innovation to final adoption.

Awareness Interest Evaluation Trial (avatars, "test drive" and sampling) Adoption

E-procurement occurs through

Reverse auctions Online trading exchanges Company buying sites Extranet links with key suppliers

Derived demand:

Business demand that comes from the demand for consumer goods

is information search.

Consumers can obtain information from several sources like personal, commercial, public, and experiential sources.

postpurchase behavior

Determining if the consumer is satisfied or dissatisfied with the purchase lies in the relationship between the consumer's expectations and the product's perceived performance.

Internal Stimuli:

Hunger or thirst once it rises to a level high enough to become a drive

order-routine specification.

It includes the final order with the chosen supplier or suppliers.

Abraham Maslow Hierarchy

Maslow's answer is that human needs are arranged in a hierarchy, from the most pressing at the bottom to the least pressing at the top. They include physiological needs, safety needs, social needs, esteem needs, and self-actualization needs.

personal factors

Occupation Age and Life Stage Economic Situation Lifestyle - a person' pattern of living as expressed in his or her activities, interests and opinions. Personality and Self-concept Personality - the unique psychological characteristics that distinguish a person or group. (e.g, traits like confident, dominant, defensive, adaptable/flexible, aggressive, etc.) "Brand personality" - mix of human traits that may attributed or projected on to a specific brand. (e.g, rugged, sophiticated, sincerity, excitement, competent Self-concept - The idea that people's possessions contribute to and reflect identity.

technical product specifications,

Once the buying organization has defined the need, it develops the item's technical product specifications, often with the help of a value analysis engineering team.

Word-of-Mouth Influence

Opinion Leader - a person within a reference group who due to skills, knowledge, personality, etc. exerts social influence on others. "Buzz Marketing" - enlisting or creating opinion leaders to become "brand ambassadors to "spread the word". E.g.-Mercedes Benz "Take the Wheel"

problem recognition.

Problem recognition can result from internal or external stimuli

Subculture -

a group with shared values based on common life experiences. E.g., nationalities, religions, racial groups, geographical regions (See pp. 136-137 for US Subculture Characteristics)

The buying center

consists of all the individuals and units that play a role in the purchase decision-making process. 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 buying, and those who control buying information.

Perception

the process by which people select, organize and interpret info to for a meaningful view of the world. Selective attention selected distortion selective retention Subliminal Advertising Learning - changes in an individual's behavior arising from experience. Beliefs and Attitudes.

supplier search

to find the best vendors

Innovators

try new ideas at some risk.

Business buyers

usually face more complex buying decisions than do consumer buyers. Business purchases often involve large sums of money, complex technical and economic considerations, and interactions among people at many levels of the buyer's organization.