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Marketing Chapter 5: Understanding Consumer and Business Buyer Behavior

consumer buyer behavior
the buying behavior of final consumers- individuals and households that buy goods and services for personal consumption, the process we use to select, purchase, etc. of goods, services, etc. to satisfy needs/desires
consumer market
all the individuals and households that buy or acquire goods and services for personal consumption, american consumer market – $15 trillion worth of goods and services per year
black box
buyers characteristics and buyers decision process, we can’t actually tell what truly influences their purchases,
The environment that influence the buyer’s black box
marketing stimuli: 4 Ps
other: economic technological, social and cultural
culture
set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important social institutions
subculture
group of people with shared value systems based on common life experiences and situations, ex: hispanic, african american, etc
cross cultural marketing
including ethnic themes and cross cultural perspectives within a brand’s mainstream marketing, appealing to consumer similarities across subcultures rather than differences
social class
relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors, not determined only by income, combo of occupation, income, education, etc
social factors
small groups, social networks, family, social roles and status
group
two or more people who interact to accomplish individual or mutual goals: membership groups, reference groups, aspiration groups
word of mouth influence
impact of personal words and recommendations of trusted friends, associates, and other consumers on buying behavior
opinion leader
person within a reference group who because of special skills, knowledge, personality or other characteristics, exerts social influence on others, called influentials or leading adopters
buzz marketing
involves enlisting or even creating opinion leaders to serve as “brand ambassadors” who spread the word about a company’s products
online social networks
online social communities-blogs, social networking web sites and other online communities- where people socialize or exchange info and opinions
family
one of the most important consumer buying organizations in society
factors that influence consumer behavior
cultural: culture, subculture, social class
social: groups/social networks, family, roles/status
personal: age and life cycle stage, occupation, economic situation, lifestyle, personality
psychological: motivation, perception, learning, beliefs
role
consists of activities people are expected to perform according to the people around them. each role carries a status reflecting the general esteem given to it by society
personal factors
age/life cycle stage, occupation, economic situation, lifestyle, personality , self-concept
lifestyle
person’s pattern of living as expressed in his or her activities, interests, opinions
personality
unique psychological characteristics that distinguish a person or group
brand personality
specific mix of human traits that can be attributed to a particular brand: sincerity, competence, sophistication, ruggedness
psychological factors
motivation, perception, learning, beliefs and attitudes
motivation
need that is sufficiently pressing to direct the person to seek satisfaction of the need
2 psychologists with theories on motivation:
Sigmund Freud and Abraham Maslow
motivation research
qualitative research designed to probe consumers’ hidden, subconscious motivations
interpretive consumer research
touchy-feely approaches that dig deeper into consumer psyches and develop better marketing strategies
maslows’s theory
pyramid set up, most pressing needs at the bottom to least pressing at the top: physiological needs(hunger), safety needs, social needs, esteem needs, self actualization needs, you have to satisfy basic bottom needs first
perception
process by which people select, organize and interpret info to form a meaningful picture of the world
selective distortion
describes the tendency of people to interpret info in a way that will support what they already believe
selective retention
consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands
selective attention
the tendency for people to screen out most info to which they are exposed
learning
changes in an individual’s behavior arising from experience
belief
descriptive thought that a person holds about something
attitude
person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea, difficult to change
buyer decision process
1. need recognition
2. info search
3. evaluation of alternatives
4. purchase decision
5. postpurchase behavior
need recognition
buyer recognizes a problem or need, can be triggered by internal stimuli or external stimuli
info search
can obtain info from personal sources, commercial sources, public sources, experiential sources
evaluation of alternatives
set of final brand choices, look at various attributes and compare
cognitive dissonance
buyer discomfort cause by post purchase conflict
new product
good, service, idea that is perceived by some potential customers as new
adoption process
mental process through which an individual passes from first hearing about an innovation to final adoption
5 stages of the adoption process
1. awareness
2. interest
3. evaluation
4. trial
5. adoption
5 adopter groups
innovators, early adopters, early mainstream adopters, late mainstream, lagging adopters
5 characteristics that influence an innovation’s rate of adoption
-relative advantage- degree to which the innovation appears superior to existing products
-compatibility- degree to which the innovation fits the values and experiences of consumers
-complexity
-divisibility- the degree to which the innovation may be tried on a limited basis
-communicability- degree to which results of using innovation can be observed or described to others
business buyer behavior
buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented to supplied to others
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
main differences between business and consumer markets
market structure and demand, nature of the buying unit and types of decisions and decision process involved
derived demand
business demand, derives from demand of consumer goods
characteristics of business market
-far fewer but far larger buyers
-derived demand
-inelastic and more fluctuating demand
-longer more formalized
-more complex
supplier development
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
the buying center
all people involved in the buying decision, not a fixed or formally identified unit, the size and makeup changes for different products and buying situations
3 types of business buying situations
1. straight rebuy
2. modified rebut
3. new task
straight rebuy
a business buying situation in which the buyer routinely reorders something without any modifications
modified rebuy
a business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers
new task
a business buying situation in which the buyer purchases a product or service for the first time
systems selling(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
major influences on business buyers
environmental: economy, supply conditions, tech, politics, competition, culture and customs
organizational: objectives, strategies, structure, systems, procedures
interpersonal: influence, expertise, authority, dynamics
individual: age/ed. job position, motives, personality, preferences, buying style
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
product value analysis
carefully analyzing a product’s or service’s components to determine if they can be redesigned and made more effectively and efficiently to provide greater value, part of product specifications step
e-procurement
purchasing through electronic connections between buyers and sellers-usually online
habitual buying
little or no conscious effort, ex: buying toothpaste
limited problem solving
consumers do some work to make a decision, ex: a laptop
dissonance reducing behavior
consumers are highly involved with an expensive, infrequent or risky purchase but see little difference between brands
variety seeking buying behavior
situations characterized by low consumer involvement but with significant perceived brand differences , ex: clothing purchases
complex buying behavior
highly involved in purchase, perceived significant differences among brands, ex: a new car
emerging lifestyle trends
social movements within society also influence consumer choices:
-consumerism
protect consumers from harm
-environmentalism
roles in the buying center
initiator- recognize need
user- individuals who will ultimately use the product
gatekeeper- controls flow of info
influencer- affects decision by giving advice
decider- make the final purchase
buyer- executes the purchase decision
extranet
allows authorized suppliers, customers, other outsiders to access the firm’s intranet
private exchanges
link an invited group of suppliers and partners over the Web

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