MKT 327 Introduction to Marketing 1st Edition Lecture 11 Organizational customers Outline of Last Lecture A. Example ‘on code’II. Buyer behavior model reviewIII. Social influences on behaviorIV. Psychological influencesV. Attitudes: 3 stages Outline of Current Lecture B. GuestVI. Psychological influences on consumer decisionsVII. Attitudes: 3 stages of predisposition to act VIII.Buyer behavior model reviewIX. Consumer buyer decision processX. Choice framework for how consumers make decisionXI. Steps between evaluation of alternatives and a purchase decisionXII. Buying processXIII. Organizational buying centerXIV.Organizational buying decision situationsCurrent Lecture1) Guest for sports marketinga) Alex Schargb) [email protected]) Psychological influences on consumer decisionsa) Learning and perceptioni) Formation of beliefs/ii) Importanceb) Attitudesi) Predisposition to actc) Information processingi) Structure and process of evaluation3) Attitudes 3 stages of predisposition to actThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.a) Cognitivei) Does a product have a particular attribute the consumer wants?b) Behaviorali) Is the consumer likely to buy the product?c) Affectivei) Does that consumer like a particular attribute?(1) Clicker question(a) Maslow’s hierarchy impacts which psychological influence?(i) Motivation- force driving fulfillment of want4) Buyer Behavior Model reviewa) Who buys(1) Types of customer(a) Demographic profile(b) Psychographic profile(2) Types of buyer(a) Heavy vs. light(b) Frequent vs. infrequent(c) Loyal vs. deal proneii) What is bought(1) Features/attributes(2) Benefits/contributionsiii) Why they buy & how(1) Influences- psychological factors(a) Motivation(b) Perception(c) Attitudes(d) Learning(e) Information processing(2) Decision models- processing(a) Consumer involvement(i) Low, high(b) Consumer decision making(i) Passive, active(3) Societal factors-influences(a) Culture (b) Subculture(c) Social class(d) Preference groups(e) Family5) Consumer buyer decision processa) Problem recognitioni) Information search(1) Evaluation of alternatives (choice framework)(a) Purchase decision(i) Post-purchase behavior 6) Choice framework for how consumers make decisionsa) Physical product characteristicsb) Psychological product characteristicsi) Leads to choice attributes(1) That lead to formation of attitudes and perceptions c) I=importance of an attributed) R (a,j)= ratings of a product A on attribute e) Attitude=Σ I(sub j)x R(sub a,j)7) Steps between evaluation of alternatives and a purchase decisiona) Evaluation of alternatives i) Leads to purchase intention(1) Leads to: (a) Attitude of others(b) Unanticipated situational factors(i) Leads to level of involvement- purchase decision1. Could be passive or active 8) Organizational customers a) Buyer behaviorsi) Consumer- The action and decision processes of individuals, non commercial organizations, or household in discovering, evaluating, acquiring, consuming, and disposing of products of servicesii) Business- the action and decision processes of for profit, non-profit, institution, or government entity in discovering, evaluating, acquiring, consuming and disposing of products or services. b) Buyer behavior: Organization vs. consumeri) Business(1) Few customers(2) Long-term relations(3) Large purchases(4) Geographical concentration(5) Role of rational factorsii) Consumer(1) Many customers(2) Switchers (3) Relatively small(4) Widely dispersed(5) Role of emotional factors(6) Singular demand9) Buying processa) Problem recognitionb) General needc) Product specificationsd) Supplier searche) Supplier selectionf) Order routine specificsg) Purchase and useh) Review performance10) Organizational buying centera) Gatekeepers” control flow of outside information by screening commercial contactswith other buying center membersb) Information seekers: locate data about products, competitors, and suppliers c) Advocates: provide group leadership to support (or not support) specific solutions and suppliersd) Link pins: establish contracts among buying center functional arease) Decision makers: authority to make or approve purchasesf) Users: actually use the product, often initiate purchasing changes and provide feedback 11) Organizational buying decision situations (How & When issues)a) Make or buy decisioni) Make(1) In house supplyii) Buy (1) Outsourcing decision(a) Straight rebuy(b) Modify rebuy(c) New supplier(i) New task(ii) Modify rebuy and new task 1. = Existing supplier2. Or competitive