Chapter 3 Flashcards
Explain the consumer decision making process
- Problem recognition
- Information search (internal and external search)
- Evaluation of alternatives
- Purchase decisions
- Post-purchase
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Evoked Set
the set of brands a consumer considers during the information search and evaluation process
*includes the inept set and the inert set
Consumer Buying Trends (7)
- Age complexity
- Gender complexity
- Active, busy lifestyles
- Diverse lifestyles
- Communication revolution
- Experience pursuits
- Health emphasis
Business-to-Business Buying Process
- Identification of needs
- Establish specifications
- Identify vendors
- Evaluate vendors (includes an initial screening and a vendor audit)
- Select vendors
- Purchase negotiations (e.g. price)
- Post-purchase evaluation
Buying Center
the group of individuals who make a purchase decision on behalf of a business
e.g. buyers, influencers, users, deciders, gatekeepers
Types of business-to-business sales
- Straight Rebuy
- Modified Rebuy
- New Task
Derived demand
demand based on, linked to, or generated by the production and sale of some other good or service
e.g. more consumer want Teslas, so Tesla’s demand for supplies, such as batteries and tires, increases
Dual Channel Marketing
marketing virtually the same goods or services to both consumers and businesses
*growing economies of scale make it possible to enter consumer markets
Why is the post-purchase phase critical in the business-to-business arena?
vendors that engage in the post-purchase phase by making follow up calls and offering additional services are more likely to enter to straight rebuy
What is the role of marketing messages with cognitive mapping?
marketing messages can be designed to strengthen, modify, or create linkages
*can create advertisements or partner with already established brands
*REPETITION is very important for pushing the brand into a consumer’s long term memory
Straight Rebuy
a repurchase from a supplier during which no alternatives are considered
Modified Rebuy
a situation in which the company’s buying center considers and evaluates new purchasing alternatives
New Task
a purchase in which the company buys a good or service for the first time or the product involved is one with which organizational members have no experience
*usually requires more members of the buying center to get involved
Age Complexity
products that are often marketed towards younger audiences are still being enjoyed by adults who don’t want to grow old
conversely, are children growing up earlier with all of the tech?
e.g. certain clothes, sports cars
Gender Complexity
traditional roles, lifestyles, and interests of men and women have become blurred – rise of gender neutral marketing
E.g. children’s toys, clothes
Diverse Lifestyles
-traditional life path of marrying and having kids is declining and more people (e.g. “second chancers- divorcees) are emphasizing entertainment and vacation
-rise of LQBTQ+ marketing
Communication Revolution
ease of communication makes it easier for consumers to share positive/negative thoughts about a product, brand, or company
also gives brands a way to engage with consumers
Experience Pursuits
more people wanting to spend their more on experiences instead of things
e.g. resort getaways, cruises, eating out, theme parks
Health Emphasis
growing interest in staying healthy and youthful
e.g. convenient meals that are healthier, such as Hello Fresh
What determines how much time a consumer spends on an external search?
- Ability to search
- Costs vs Benefits
- Motivation to search
Internal vs External Search
internal: running through the information they already have in their head
external: going to outside sources for information
*part of the information search stage
Motivation to search
-level of involvement: how relevant a task is to a consumer’s needs/wants (higher cost and importance = higher level of involvement)
-need for cognition: individuals who enjoy mental activities (higher need = more information search)
-level of shopping enthusiasm
Ability to search
-education level and how much knowledge they have about the product
-those with less knowledge aren’t as likely to search because they don’t know what to search for (i.e. have a lower ability to search)
Costs vs Benefits
-higher perceived benefits = desire to search
-higher subjective costs decreases likelihood of search
-cost includes money, emotional cost, and the opportunity cost of what an individual is giving up for the purchase
