CH3

Question 1

What is consumer behavior and the buying decisions

Answer 1

It is the behavior of consumer in searching for, buying and evalutating products

1 Need recognition
2. Information search
3. Evaluating other alternatives
4. Purchase decision
5. Post purchase decision

Question 2

Factors affecting the information search

Answer 2

• Price of product
• Urgency of product
• Perceived importance of product
• Experience with product

Question 3

Sources of information when doing information search

Answer 3

Personal sources : family, friends
Commercial sources : sales person, advertisements
Public sources : mass media, consumer council, magazine

Question 4

2 factors affecting purchase decisions

Answer 4

1. situational factor
   - salary, price of product, availability
2. Interpersonal influence
   - from peers, family…

Question 5

2 possible outcomes of post purchase behavior

Answer 5

1. Satisfied
2. Dissatisfied

Question 6

Comparison of possible post purchase behavior of satisfied and dissatisfied consumers

Answer 6

Satisfied:
- buy products related to the brand
- become loyal customers
- recommend to others
- purchase same brand when buying again

Dissatisfied
- take legal actions
- lodge complaints
- criticize within social circle
- change to another brand

Question 7

Steps of how business buyers make buying decision

Answer 7

1. Recognize problem
2. General need description and product specification
3. Supplier research and invite potential suppliers to submit proposals
4. Supplier selection and prepare order routine specification
5. Performance review

Question 8

2 factors affecting consumer decisions

Answer 8

1. Socio-cultural factor
   - culture, social class, reference group ( direct and inndirect )
2. psychological factor
   - motivation - maslows hierachy of needs
   - personality and self-concept
   - perception
   - learning
   - belief and attitude

Question 9

What are the major types of business markets

Answer 9

• producer market
• reseller market
• Institutional market
• government market

Question 10

What is producer market

Answer 10

Producers buy products such as raw meterials to support the production of goods and services

Question 11

2 types of reseller market

Answer 11

• retailer and wholesaler

Question 12

Different aspects in comparing business buyers and consumer buyers

Answer 12

1. Number of buyers
2. Size of purchase
3. location of buyer
4. mature of demand
5. price sensitivity
6. no of people involved in decision making
7. complexity of purchase decision