Buyer Behavior Flashcards
Define consumer market and buyer behavior.
Buyer behavior: final consumer buying behavior (individuals and households) that buy for personal consumption
Consumer market: all individuals and households that buy/acquire for personal consumption
Model of buyer behavior: Environment, buyer’s black box, buyer responses
Environment:
- marketing stimuli: 4Ps
- economic, technological, social, cultural
Buyer’s black box:
- characteristics
- decision process
Buyer response:
- buying attitudes and preferences
- purchase behavior: what buyer buys, when, where, how much
- brand and company relationship behavior
4 factors influence consumer purchases (cultural, social, psychological, personal)
Cultural
- culture: basic values, perceptions, wants, behaviors learned from family and other institutions (ie. focus on health)
- subculture: shared value system based on common life experiences (ie. Hispanic)
- social class: relatively permanent and ordered divisions in a society whose members share values, interests, and behaviors (ie, upper, middle, working, knower classes vs. wealth, education, occupation, income)
Social
- reference groups: interact to accomplish individual or mutual goals (subject to influence of opinion leaders and online social networks > buzz marketing via brand ambassadors)
- family: most important consumer buying organization in society, kids strongly influence those decisions
- roles and status: products are chosen to be appropriate fits to role/status
Personal
- age and life cycle stage
- occupation
- economic situation
- lifestyle: Activities (work, hobbies), Interests (food, family), Opinions (business, themselves)
- personality and self-concept: psychological uniqueness (brand personalities: excitement, competence, sophistication, etc.)
Psychological
- motivation: sufficiently needed to seek to satisfy that need (Maslow: self-actual inaction, esteem, social, safety, physiological)
- perception: process by which people select, organize, interpret information (selective distortion and attention, subliminal advertising)
- learning: changes in behavior from experience
- beliefs and attitudes: descriptive thought and consistently favorable evaluation/feeling/tendency
5 stages of consumer buyer decision process: need recognition, information search, evaluation of alternatives, purchase decision, post-purchase behavior.
Need recognition: internal (hunger, sex) and external (advertisement, friendly suggestion) stimuli
Information search: personal (family), commercial (packaging), public (mass media), experiential (handling and using).
-commercial informs, but personal legitimizes
Evaluation of alternatives: buyer decision process
Purchase decision: affected by attitudes of others, and unexpected situational factors
Post purchase behavior: gap between consumer expectations and perceived performance
Cognitive dissonance: buyer discomfort over conflict
5 stages of new product adoption:
Awareness: consumer is aware but lacks info
Interest: seeks info about the new product
Evaluation: trying the new product makes sense
Trial: tries new product on a small scale to improve his/her estimate of its value
Adoption: consumer makes full and regular use of the new product
5 adopter groups
Innovators, early adopters (opinion leaders), early majority (deliberate), late majority (skeptical), laggards (traditional)
5 characteristics influence innovation adoption
Relative advantage, compatibility, complexity, divisibility, communicability
Define business market and buyer behavior.
Business purchases
Business buyer behavior: includes retailing and wholesaling and organizations that buy/sell/rent to others
Demand: derives from consumer good demand
Most is inelastic
Lots are fluctuating demand: business goods and services change faster than consumer goods (small change in consumer demand equals huge change in business demand)
Purchases: more professional, more complex, more dependent on each other
Business buyer behavior model and buying situations
Model:
Environment
Buying organization
-buying center (everyone involved), buying decision process
Buyer responses
-delivery terms and times, service terms, payment, order quantities, supplier choice, product or service choice
Situations:
Straight rebuy: buyer routinely reorders without modifications
Modified rebuy: buyer wants to modify prices terms, or suppliers
New task: first time purchase
Complete solution for business buyers: systems or solutions selling
Packaged solution to a problem from a single seller to avoid separate decisions in complex buying situation
4 factors influence business buyers (environmental, organizational, interpersonal, individual)
Environmental: economic developments, supply conditions, technological change, political and regulatory developments, competitive developments, culture and customs
Organizational: objectives, policies, procedures, organizational structure, systems
Interpersonal: authority, status, empathy, persuasiveness
Individual: age, income, education, job, personality, risk attitude
8 stages of the business buying process: problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review
Product specification
-Value analysis: analyze product’s components to determine if they can be redesigned and made more effectively and efficiently to provide greater value
Solicitation
-invite qualified suppliers to submit proposals
Continuum of consumer decision views
Rational approaches, standard economic theory
-assess relative net worth and max utility
Bounded rationality, behavioral economics and behavioral decision research
-simplify
Motivational approaches, psychological and anthropological
-unconscious and uncontrolled desires (sex sells)
