Module D Flashcards
(16 cards)
Cultural characteristics affecting consumer buying behaviour
Culture:
- Represents the values and ideologies that a community embraces
Sub Culture:
- A group of people with common characteristics that differentiate from the culture surrounding them
- eg, different sports and music genres
Social Class:
- Social position an individual owns in a society
- based on education, occupation and net worth
- members of the same social class have similar status, income and buying characteristics
Social characteristics affecting consumer buying behaviour
Reference Groups
- Groups that a person relates themselves to
- Eg, family, friends (primary) / church (secondary) i.e interacted with less than primary groups
Social Networks
- Eg, opinion leaders could have more influence than family and friends
Family
- Heavily influence an individual’s buying behaviour
Social Role and Status
- Individuals can influence a society based on their level of status
- Eg, a mayor’s family is taught to show decency and utmost respect, influencing society itself
Personal characteristics affecting consumer buying behaviour
Occupation
- The nature of an individuals job directly influences the products and brands they pick for themselves
Age and human lifecycle
- As a person ages, their taste for products alter to satisfy their current state of living.
Economic Condition
- An individual’s buying tendency is directly proportional to their income.
Lifestyle
- The way an individual lives in a society
-Eg, style, attitude, social relations
Personality and self concept
- Every personality represents certain buying behaviour
- Eg. Music lovers buy CDs and concert tickets, gamers buy video games
Psychological characteristics affecting consumer buying behaviour
Motivation
- A need which arouses consumers desires to satisfy it
Perception
- The process by which people select, organise and interpret information to form a meaningful picture
+ Selective Attention - When individuals pay attention only to the information that benefits them
+ Selective Distortion - Interpreting information in line with your experiences. Eg, dog lovers love movies about dogs more than cat lovers
+ Selective Retention - Consumers only remember the information that they find useful
Learning
- The change in one’s behaviour arising from experiencing the product
- Occurs through drives, stimuli, cues, responses and reinforcements
Beliefs and Attitudes
- A belief is an acceptance of something based on faith
- An attitude is a way of thinking about something
Consumer Buying Process
Step 1
Need Recognition
- When a buyer recognises a problem triggered by:
+ Internal stimuli, eg, thirst/hunger
+ External stimuli, eg, Advertisements
Consumer Buying Process
Step 2
Information Search
- When the consumer is interested enough to conduct research
- information can be searched from:
+ Personal (primary) sources, eg, family/friends
+ Commercial sources, eg, advertisements
+ Public sources, eg, media
+ Experimental sources, eg, product samples
Consumer Buying Process
Step 3
Evaluation of Alternatives
- When the consumer processes information to choose the brands
Consumer Buying Process
Step 4
Purchase Decision
- The act by the consumer to buy the most preferred product and brand
Consumer Buying Process
Step 5
Post-Purchase Decision
- What the consumer feels about the purchase
- Cognitive dissonance happens after making a purchase. Can be reduced by:
+ Offers
+ Good customer service
+ Asking for feedback
Adoption process
The process through which an individual passes from the first hearing about an innovation to the final adoption
Innovators
- The first to risk trying new products
Early adopters
- Opinion leaders that adopt products early
Early majority
- Adopt products before the average person
Late majority
- Adopt the products after the average person
Laggards
- Traditionalists that try a product when it’s no longer new
Business buying process
The buying behaviour of organisations that buy goods and services for use in the production of other products and services
Major buying situations
Straight rebuy - A routine purchase decision without modification, eg. Stationary
Modified rebuy - A purchase decision in which the buyer modifies price, suppliers and specifications
New task - A purchase decision that requires thorough research, eg. A new product
1 supplier - A purchase decision in which everything is bought from 1 supplier to avoid complexity
Participants in the business decision making process
Users - Those that will use the product or service
Influencers - Define specifications and evaluate alternatives
Buyers - Select the supplier and arrange terms of purchase
Deciders - Have the power to select or approve the final suppliers
Gatekeepers - Control the flow of information to others
Major influences on business buyers
Environmental - Macro and micro (suppliers / competitors)
Organisational - Objectives and policies
Interpersonal - Authority and Status
Individual - Age, Income, Education, Personality, Attitudes
The Business Buying Process
- Problem recognition:
When someone in the company recognises a problem or need (can be triggered by internal stimuli eg the need for new product or production equipment…. Or external stimuli eg an idea from advertisements)
2.Need description:
The buyer describes the general characteristics and quantity of a needed item
- Product specification:
The stage where the organisation decides on and specifies the best technical product characteristics for an item - Supplier search:
The stage in which the buyer tries to find the best vendors - Proposal solicitation:
The stage in which the buyer invites suppliers to submit proposals - Supplier selection:
The process where the buyer reviews proposals and selects the supplier/s - Order routine specification:
Where the buyer writes the final order with the chosen delivery, policies and warranties - Performance review:
Involves the buyer assessing the performance of the supplier and deciding to continue, modify or drop the arrangement
E-procurement
The purchasing of goods and services through digital technologies
Advantages:
Eliminates manual business processes
Promotes information sharing
Enhances decision-making
