Ch. 5 Understanding Consumer and Business Buyer Behavior

Question 1

Consumer buyer behavior

Answer 1

the buying behavior of final consumers such as individuals and households

Question 2

Consumer market

Answer 2

All of the individuals or households that buy goods/services combined

Question 3

Culture

Answer 3

basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Question 4

Buyers black box

Answer 4

Buyer’s characteristics and the Buyer’s decision process. This s where marketers would like to be able to get into the mind of their buyers but it is very hard to do so

Question 5

subculture

Answer 5

A group of people with shared value systems based on common life experiences and situations. Important EX: Hispanic American, African American, and Asian American consumers.

Question 6

Cross-cultural marketing

Answer 6

including all ethic themes and perspectives in a brand’s mainstream marketing, appealing to consumer similarities across subcultures rather than differences.

Question 7

social class

Answer 7

More than just about money/income

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.

Question 8

Opinion leader

Answer 8

someone is a group who because of their status, knowledge or expertise have a strong power to influence others in the group.

Question 9

Family

Answer 9

most important consumer buying organization in society,

Question 10

What are two important characteristics of groups that determine buying behavior?

Answer 10

Role and status

Question 11

Personal factors

Answer 11

age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept.
marketers often use life-cycle stage and develop appropriate products and marketing plans for each stage.

Question 12

Lifestyle

Answer 12

A person’s pattern of living as expressed in his or her activities, interests, and opinions.

Question 13

our major psychological factors:

Answer 13

motivation, perception, learning, and beliefs and attitudes.

Question 14

Motive (drive)

Answer 14

a need that is so strong that it makes those feeling it have to satisfy that desire

Question 15

subliminal advertising

Answer 15

being affected by marketing messages without even knowing it

Question 16

Selective distortion

Answer 16

describes the tendency of people to interpret infor- mation in a way that will support what they already believe

Question 17

learning

Answer 17

changes in behavior based on experiences

Question 18

what two characteristics are the hardest to change

Answer 18

attitude and beliefs

Question 19

buyer decision process consists of five stages:

Answer 19

need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior.

Question 20

need recognition—

Answer 20

the buyer recognizes a problem or need. and is influenced by an internal or external stimuli

Question 21

postpurchase behavior is based on these two:

Answer 21

expectations and product’s perceived performance

Question 22

cognitive dissonance,

Answer 22

discomfort caused by postpurchase conflict.

Question 23

new product

Answer 23

something that is PERCEIVED t be new by a certain customer

Question 24

adoption process of a new good

5 steps:

Answer 24

The mental process through which an individual passes from first hearing about an innovation to final adoption.
Awareness, Interest, evaluation, trial, adoption

Question 25

Early adopters

Answer 25

are guided by respect—they are opinion leaders in their communities and adopt new ideas early but carefully.

Question 26

Early mainstream

Answer 26

adopters are deliberate—although they rarely are leaders, they adopt new ideas before the average person.

Question 27

Late mainstream

Answer 27

adopters are skeptical—they adopt an innovation only after a majority of people have tried it.

Question 28

lagging adopters are

Answer 28

tradition bound—they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself.

Question 29

relative advantage

Answer 29

the level at which a product appears to be superior to competition.

Question 30

compatability

Answer 30

level at which the innovation fits the values and experiences of potential consumers

Question 31

complexity

Answer 31

how hard or easy it is to use the poriduct

Question 32

divisibility

Answer 32

how easy it is to try the product on a limited basis first

Question 33

communicability

Answer 33

how easy it is to share and express the experience of the product with others

Question 34

5 influences on the rate of adoption:

Answer 34

relative advantage, complexity, compatibility, divisibility, communicability

Question 35

how do business markets differ from consumer markets?

Answer 35

they differ in market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved.

Question 36

derived demand

Answer 36

demand coming from the demand for consumer goods

Question 37

Market structure and Demand of B2B

Answer 37

less buyers but far larger ones inelastic and more fluctuating demand tends to change more—and more quickly—than does the demand for consumer goods and services

Question 38

inelastic

Answer 38

a change in price does not effect the consumption

Question 39

buying process characteristics of B2B buying

Answer 39

``` more professional purchasing efforts more players in the decision more complex decisions than consumers decisions are longer and more formalized B2B member are more reliant on eachother- they make get together to work to make both of their lives easier and cheaper ```

Question 40

supplier developement

Answer 40

creating a network of suppliers in which can can reliably depend on in order to have the supplies you need on time and in the right quantity

Question 41

straight rebuy

Answer 41

A business buying situation in which the buyer routinely reorders something without any modifications.

Question 42

Modified rebuy

Answer 42

A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.

Question 43

new task

Answer 43

A business buying situation in which the buyer purchases a product or service for the first time.

Question 44

systems selling (or solutions selling)

Answer 44

Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

Question 45

Buying center

Answer 45

All the individuals and units that play a role in the purchase decision-making process.

Question 46

Major influences on Business Buying Behavior

Answer 46

current and expected economic environment supply of key materials technological, political, and competitive developments in the environment. culture and customs Organizational factors-objectives, strategies, structure, systems, and procedures interpersonal factors

Question 47

Product value analysis

Answer 47

when a company carefully analyzes to see if they can somehow reproduce this product but in a cheaper or more efficient way to provide greater value

Question 48

proposal solicitation

Answer 48

stage of the business buying process, the buyer invites qualified suppliers to submit proposals.

Question 49

vendor-managed inventory

Answer 49

buyers hand over the ordering of products to their suppliers who monitors the stores levels of supplies

Question 50

reverse auctions,

Answer 50

in which they put their purchasing requests online and invite suppliers to bid for the business.

Question 51

online trading exchanges

Answer 51

through which companies work collectively to facilitate the trading process.

Question 52

company buying sites

Answer 52

For example, GE operates a company trading site on which it posts its buying needs and invites bids, negotiate terms, and places orders

Question 53

extranet links with key suppliers

Answer 53

. For instance, they can create direct procurement accounts with suppliers such as Dell or Staples, through which company buyers can purchase equipment, materials, and supplies directly. Staples operates a business-to-business procurement division called Staples Ad- vantage,

Question 54

maslows levels of needs (pyramid)

Answer 54

``` self actualization esteem social safety physiological ```