Navigate to find the page(s) on the site that illustrates each component of either the classical or neo-classical marketing mix (see 4Cs NeoClassical Download 4Cs NeoClassical) Explain why or how the web page(s) illustrates the component.

Select any business-to-business (B2B) website.

Navigate to find the page(s) on the site that illustrates each component of either the classical or neo-classical marketing mix (see 4Cs NeoClassical Download 4Cs NeoClassical)

Explain why or how the web page(s) illustrates the component.

Cite the url of the page(s) so we can visit it.

Discussion Question responses are evaluated and scored on the following criteria:

Your written submissions must demonstrate your understanding of the topic.

Connections between course content, textbook content, and discussion should be exhibited.

Relate new information with material previously covered in the course as well as with personal experience.

Discuss at a critical level – don’t just recite facts from your reading, discussion, or lecture.

Critical discussion includes your opinion of items mentioned, but also includes the reasons you hold that opinion, and why it may be inconsistent or consistent with what you’ve learned. Justify your reasoning with facts. How does what you’re presenting affect present and future situations?

Requirements: 200 words

Consumer Buying Behavior & Business Markets & Buying BehaviorModule #5

Consumer Buying Behavior

Module 5 Learning ObjectivesTo recognize the stages of the consumer buying decision processTo explore how situational influences may affect the consumer buying decision processTo understand the psychological influences that may affect the consumer buying decision processTo understand consumers’ level of involvement with a product and describe the types of consumer problem-solving processesTo examine the social influences that may affect the consumer buying decision process

“The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs…and create VALUE ”Consumer Behavior

The AIDA–I Consumer Buying Decision Making Model•A ttention•I nterest•D esire•A ction•I nteraction–Persuasive Communication and Involvement via Interaction–Internet-INTERACTION–Dis-intermediated Communication

Buying BehaviorBuying BehaviorThe decision processes and actions of people involved in buying and using productsConsumer Buying BehaviorThe decision processes and purchasing activities of ultimate consumers, those people who purchase products for personal or household use and not for business purposesAssociationThe fundamental, direct, specific, intellectual and emotional connection between the consumer and the marketer that determines consideration to purchase.

Understanding Buying BehaviorConsumption is a key elementContinues after the purchase takes placeDetermines how much value is created from the purchaseUnderstanding buying behavior and consumption can help marketers better respond to customer needs and develop long-term relationships

Consumer Buying Decision Process1.Need Recognition2.Pre-purchase Information Search3.Evaluation of Alternatives (Association)4.Purchase5.Post-purchase Evaluation

Problem Recognition StageOccurs when a buyer becomes aware of a difference between a desired state and an actual conditionSpeed of consumer problem recognition can be rapid or slowSome consumers are unaware of their problems or needs

Information Search StageInternal SearchAfter recognizing the problem (internal search), consumers seek to satisfy their need by an …External SearchThey seek out product information

Information SearchInternal SearchBuyers search their memories for information about products that might solve their problemExternal SearchWhen an internal search is not sufficient, consumers seek additional information from outside sources•Personal contacts are often important at this stage

Evaluation of AlternativesConsideration SetA group of brands within a particular product category that the buyer views as alternatives for possible purchaseEvaluative CriteriaObjective and subjective product characteristics that are important to the buyerMarketers can influence customers by framingthe alternatives in a certain way

Purchase StageThe buyer:Chooses the product or brand to be bought•Product availability may influence the decisionChooses the sellerNegotiates the terms of the transactionMakes the actual purchase or terminates the process

Post-Purchase Evaluation•Post-Purchase Evaluation•After purchase, the buyer evaluates the product•Does its actual performance meet expected levels?•Is either satisfied or dissatisfied•Cognitive Dissonance•A buyer’s doubts shortly after a purchase about whether the decision was the right one•Often occurs after expensive, high-involvement purchases

Major Categories of Influence•Situational•Psychological•Social

Situational Influences on the Buying Decision Process•Situational Influences•Result from circumstances, time and location that affect the consumer buying decision process•Can influence the decision making process at any stage•Five categories of situational influences:1.Physical surroundings2.Social surroundings3.Time perspective4.Reason for purchase5.Buyer’s momentary mood and condition

Psychological Influences on the Buying Decision ProcessPrimary psychological influences on consumer behavior are:•Perception•Motives•Learning•Attitudes•Personality and self-concept•LifestylesOperate on buyers internally, but are acted on by outside forces

Perception•Perception•Selecting, organizing and interpreting information to produce meaning•Information Inputs•Sensations received through sight, taste, hearing, smell and touch

The Perception Process•Selective Exposure•An individual selects which inputs will reach awareness•We cannot be conscious of all inputs at one time•Selective Distortion•Changing or twisting received information•Occurs when a person receives information inconsistent with personal feelings or beliefs•Selective Retention•Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

Motives•Motive•An internal energizing force that directs a person’s behavior toward satisfying needs or achieving goals•Patronage Motives•Influence where a person purchases products on a regular basis

Learning•Learning•Changes in an individual’s thought processes and behavior caused by information and experience•Sources of Learning•Behavioral Consequences•Information Processing•Experience

Attitudes•Attitudes •An individual’s enduring evaluation of feelings about and behavioral tendencies toward an object or idea•Can be positive or negative•Is measured by an attitude scale: a series of adjectives, phrases, or sentences about an object•Three major components of attitude:•Cognitive: Knowledge and information•Affective: Feelings and emotions•Behavioral: Actions regarding the object or idea

Personality•Personality•A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior•There is a weak association between personality and buying behavior•Marketers take aim at personality types in their campaigns

Self-Concept & LifestylesSelf-ConceptOne’s view of one’s selfClosely linked to personality typeLifestyleAn individual’s pattern of living expressed through activities, interests and opinionsStrongly influences the buying decision processMany marketers segment markets by lifestyle

VALS Program•A survey developed by SRI Consulting Business Intelligence •Divides people into eight types:1.Innovators2.Thinkers3.Achievers4.Experiencers5.Believers6.Strivers7.Makers8.Survivors

Level of InvolvementAn individual’s degree of interest in a product and the importance of the product for that personEnduring Involvement•Ongoing and long-term involvement with a product or product categorySituational Involvement•Temporary or dynamic involvement resulting from a particular set of circumstances

Levels of Involvement with ProductsHigh-Involvement ProductsProducts that are visible to others and/or are expensive•Healthcare, a homeLow-Involvement ProductsProducts that tend to be less expensive and have less associated social risk•Grocery items, a T-shirt

Problem Solving StrategiesRoutinized Response: Used when buying frequently purchased, low-cost items that require very little search-and-decision effortLimited Problem Solving: Utilized when buying products occasionally or when one needs to obtain information about an unfamiliar brand in a familiar product categoryExtended Problem Solving: Occurs when purchasing unfamiliar, expensive, or infrequently bought productsImpulse Buying: Involves no conscious planning; a powerful urge to buy something immediately

Social Influences on the Buying Decision ProcessThe forces other people exert on one’s buying behaviorRoles: Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding personsFamily Influences: Have a direct impact on the buying decision process•Consumer Socialization: The process through which a person acquires the knowledge and skills to function as a consumer

Social InfluencesReference Group -a group with which a person strongly identifies; adopts the values, attitudes and behavior of group membersTypes of Reference Groups•Membership: A group to which an individual belongs •Aspirational: A group to which an individual wants to belong•Dissociative: A group to which an individual does not want to belong

Social InfluencesOpinion LeaderA member of an informal group who provides information about a specific topic about which other group members seek informationLikely to be most influential in high product involvement situationsSocial ClassAn open group of individuals with similar social rank•Interact most often with those of the same class•People can move in and out of different groupsClass affects shopping patterns and types of stores frequented

CultureThe accumulation of values, knowledge, beliefs, customs, objects and concepts that a society uses to cope with its environment and passes on to future generationsSubcultures: Groups of individuals whose characteristic values and behavior patterns are similar and different from those of the surrounding culture

Consumer Misbehavior•Behavior that violates generally accepted norms of a particular society•Shoplifting•Organized retail crime•Consumer fraud•Pirating •Abusive consumers

Important Terms For DQs, Quizzes, & ExamsConsumer Buying Behavior•Buying behavior•Motive•Consumer buying behavior•Maslow’s hierarchy of needs•Level of involvement•Patronage motives•Routinized response behavior•Learning•Limited problem solving•Attitude•Extended problem solving•Attitude scale•Impulse buying•Personality•Consumer buying decision process•Self-concept•Internal search•Lifestyle•External search•Social influences•Consideration set•AIDA-I•Evaluative criteria•Role•Cognitive dissonance•Consumer socialization•Situational influences•Reference group•Psychological influences•Opinion leader•Perception•Blogs•Information inputs•Social class•Selective exposure•Culture•Selective distortion•Subculture•Selective retention•Consumer misbehavior

Business Markets & Buying BehaviorB2B

B2B Marketing Learning ObjectivesTo be able to distinguish among the various types of business marketsTo identify the major characteristics of business customers and transactionsTo understand several attributes of demand for business productsTo become familiar with the major components of a buying centerTo understand the stages of the business buying decision process and the factors that affect this processTo describe industrial classification systems and explain how they can be used to identify and analyze business markets

Business MarketsIndividuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operationsAlso called business-to-businessor B2B marketsSimilar to marketing to consumer markets, but with some essential differences

Business Markets (B2B)•Producer Markets•Reseller Markets•Institutional Markets•Government Markets (B2G)

Producer Markets•Individuals or business organizations that purchase products in order to make a profit by using them in producing other products or in their operations

Reseller MarketsResellers -Intermediaries (wholesalers) who buy finished goods and resell them to final consumers for a profit.•e.g. Dell Partner ProgramFactors Resellers Consider•Level of demand•Space required relative to potential profit•Ease of placing orders•Availability of technical assistance•Training programs from producers•Does it compete or complement?

Government Markets-B2GFederal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies•Spend hundreds of billions annually on a wide range of goods and services•Government contracts are awarded to a wide variety of large and small firms in many industries

Institutional MarketsOrganizations with charitable, educational, community, or other non-business goalsMembers can include churches, hospitals, charitable organizations and private collegesMarketers may use special techniques to target them

Reciprocity•Reciprocity -an arrangement in which two organizations agree to buy from each other•Reciprocal agreements that threaten competition are illegal

Attributes of Business CustomersWell informed about the products they purchaseDemand detailed information and technical specificationsHelp the firm achieve organizational objectivesEngage in rational buying behaviorOften form partnerships with suppliers

Business Customers Primary Concerns•Price•Product Quality•Service•Supplier Relationships

Methods of Business BuyingDescription: When products are highly standardized, a buyer can order by describing quantity, grade and other attributesInspection:Used with some products that have unique characteristics and vary in regard to conditionSampling:Entails taking a specimen of the product and evaluating it for suitability before purchaseNegotiation:Some purchases are based on negotiated contracts wherein buyers describe what they need and sellers submit bids

Demand for Business ProductsDerived DemandDemand for business products that is the result of demand for consumer productsElastic DemandDemand that is significantly altered by a price increase or decreaseInelastic DemandDemand that is not significantly altered by a price increase or decreaseJoint DemandWhen two or more items are used in combination to product a productDemand for the product drives demand for both itemsFluctuating DemandThe demand for any given business product can change in response to consumer demand changes

Business Buying DecisionsBusiness (Organizational) Buying BehaviorThe purchase behavior of producers, government units, institutions and resellersThe Buying CenterThe group of people within the organization who make business purchase decisions•Roles include users, influencers, buyers, deciders, and gatekeepers

Evaluating Products & Suppliers•Value Analysis•Vendor Analysis•Sole Sourcing•Multiple Sourcing

Evaluating Products & SuppliersValue AnalysisAn evaluation of each component of a potential purchaseVendor AnalysisA formal, systematic evaluation of current and potential vendorsMultiple SourcingAn organization’s decision to use several suppliersSole SourcingAn organization’s decision to use only one supplier

Influences on the Business Buying Decision ProcessEnvironmentalInclude competitive and economic factors, political forces, legal and regulatory forces, technological changes and sociocultural issuesOrganizationalInclude company objectives, purchasing policies and resources and size and composition of buying centerInterpersonalThe relationships between people in the business; trust and collaboration are importantIndividualPersonal characteristics (age, education level, personality and tenure and position) of participants in the buying center

Using Industrial Classification SystemsTwo Uses:1.Identifying Potential Business Customers•North American Industrial Classification System (NAICS)is used by the U.S., Canada and Mexico to help generate comparable statistics•Input-Output Data identify what types of industries purchase the products of a particular industry2.Estimate Purchase Potential

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