Consumer and Business Markets
MODULE 4
Consumer Market Consumer Market individuals and households who buy goods and services for personal consumption Consumer Buyer Behavior refers to the buying behavior of final consumers
Factors Affecting Consumer Behavior Cultural Factor - Culture - Forms a persons wants and behavior - Subculture - Groups with shared value systems - Social Class - Societys divisions who share values, interests and behaviors
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Factors Affecting Consumer Behavior Social Factor - Groups - Membership - Reference - Opinion Leaders - Family - Many influencers - Roles and Status
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Factors Affecting Consumer Behavior Personal Factor Age and life cycle Occupation Economic situation Lifestyle Personality and self-concept
Factors Affecting Consumer Behavior Psychological Factor - Motivation - Perception - Learning - Beliefs and attitudes
Types of Buying Decision Behavior
Complex - Highly involved, significant brand differences - Example computer Dissonance-reducing - Highly involved, little brand differences - Example carpeting Habitual - Low involvement, little brand differences - Example salt Variety-seeking - Low involvement, significant perceived brand differences - Example cookies
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Buyer Decision Process
Need Recognition -Needs can be triggered by: - Internal stimuli - Normal needs become strong enough to drive behavior - External stimuli - Advertisements - Friends of friends
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Buyer Decision Process
Information Search - Consumers exhibit heightened attention or actively search for information. - Sources of information: - Personal - Commercial - Public - Experiential - Word-of-mouth
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Buyer Decision Process
Evaluation of Alternatives - Evaluation procedure depends on the consumer and the buying situation. - Most buyers evaluate multiple attributes, each of which is weighted differently. - At the end of the evaluation stage, purchase intentions are formed
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Buyer Decision Process
Purchase Decision - Two factors intercede between purchase intentions and the actual decision: - Attitudes of others - Unexpected situational factors
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Buyer Decision Process
Post Purchase Behavior - Satisfaction is important: - Delighted consumers engage in positive word-ofmouth. - Unhappy customers tell on average 11 other people. - It costs more to attract a new customer than it does to retain an existing customer. - Cognitive dissonance is common
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Business Markets
Business Markets consist of all organizations that acquire goods and services used in the production of other parts or services that are sold, rented, or supplied to others. Business Buyer Behavior - The buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. 13
Major Influences on Business Buyers
Environmental -Economic trends -Supply conditions -Technological, political and competitive changes -Culture and customs Organizational -Objectives -Policies, Procedures -Organizational structure -Systems
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Major Influences on Business Buyers
Interpersonal -Influence of members in the buying center - Authority - Status - Empathy - Persuasiveness Individual -Personal characteristics of members in the buying center - Such as age and income, education, job position, personality, risk attitudes, buying styles
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Business Buyer Behavior Major Types of Buying Situations - Straight rebuy - Reordering without modification - Modified rebuy - Requires modification to prior purchase - New task - First-time purchase
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Business Buyer Behavior
Systems Selling - Buying a packaged solution to a problem from a single seller. - Often a key marketing strategy for businesses seeking to win and hold accounts. Buying Center - The decision-making unit of a buying organization - Includes all individuals and units that participate in the decision making
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Business Buyer Behavior
Members of the Buying Center - Users - Buyers - Influencers - Deciders - Gatekeepers
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Stages in the Business Buying Process Stage 1: Problem Recognition Stage 2: General Need Description Stage 3: Product Specification - Value analysis helps to reduce costs Stage 4: Supplier Search - Supplier development
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Stages in the Business Buying Process Stage 5: Proposal Solicitation Stage 6: Supplier Selection Stage 7: Order-Routine Specification - Blanket contracts are often used for maintenance, repair and operating items. Stage 8: Performance Review
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End of Module 4
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