Mkt 3010 Lecture 6 Outline of Last Lecture Ch. 6Step 1: Need recognition: Stimuli, needsStep 2: Info search: Internal, External, Factors affecting info searchStep 3: Evaluation of Alternatives: Attribute sets, evaluative criteriaStep 4: Purchase decision and consumption: choice and valueStep 5: Post-purchase behavior: customer satisfaction, buyer’s remorse, customer loyalty, and negative word of mouthFactors influencing the customer decision process: psychological factorsOutline of Current Lecture Ch 6Factors influencing the consumer decision process: Psychological, Social, and SituationalCh 7B2B markets: manufacturers, resellers, institutions, and governmentCharacteristics of Organizational Buying: Demand characteristics, size or order, number of buyers, Organizational-buying objectivesB2B selling Process: Step 1-6Factors of influencing the buying process: the buying center, organization culture, buying situationCurrent LectureThese 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.Jan. 29, 2015Ch. 6 cont.Factors Influencing the Consumer Decision Process- Psychological factorso Motiveso Attitudeso Perceptiono Learning: changing behavior through experience and reasoning Cognitive: automatic responses, mental problem solving Behavioral: active responseso Lifestyle: activities, interest, opinions—way we spend money and time to support these- Social Factorso Family: the kinds of things a family needso Reference groups: fitting in with peer groups, wanting to look like others around you—can help us “feel good”o Culture: learn it from family and society around you- Situational factors***can override psychological and social factorso Purchase situation: may only buy for special occasion or as a gift—wouldn’t usually buy on your owno Shopping situation: convinced into buying a product by a factor in the storeo Temporal Situation: state of mind that can impact body decisions—feeling really good and more willing to try thingsChapter 7: Business-to-Business MarketingB2B Markets- Manufacturers or producers (industrial markets): buying raw materials, and make own goods- Resellers: purchase goods from manufacturers and resell to retailers (also wholesale,0- Institutions: buying services, food, supplies etc.- Government: largest purchaser of goods and servicesCharacteristics of Organizational Buying- Demand characteristicso Consumer demand (what consumers want) vs. derived demand (based on expectation offuture consumer demand)- Size of the order/purchase: larger purchases- Number of potential buyers: fewer buyers- Organizational buying objectives: always looking at ways to improve process or reduce costs or support an initiative etc.B2B Selling Process- Stage 1: Need Recognition- Stage 2: Product specifications: what kind of product you want- Stage3: RFP Process: request for proposals- Stage 4: Proposal Analysis, Vendor Negotiation, and Selection (select on price and ability to meet specifications)- Stage 5: Order Specification—need to have an actual contract- Stage 6: Vendor Analysis—so others know what is going on incase the person in charge is no longer thereFactors Influencing the Buying Process- The Buying Centero Initiator-person who realizes the needo Influencer- has a lot of institutional knowledge on the needo Decider (decision maker)- makes the decision to buy or not buy the needo Buyer- handles paperwork of actual purchaseo User- consumes product of service boughto Gatekeeper- control information that gets to the decision maker- Organization Cultureo General types of culture Autocratic- one person makes decision Democratic- Multiple people vote and majority rules Consultative- one decision but listens to input Consensus- everyone agrees- Buying Situationo New Buy: purchase something for first time, very transparento Modified Rebuy: Bought the product before but need to change specificationso Straight Rebuys: Don’t change specificationsKey terms:Psychological factorsSocial factorsSituational FactorsB2B marketsOrganizational buyingB2B selling ProcessRFPBuying CenterInitiatorInfluencerDeciderBuyerUserGatekeeperOrganization CultureAutocraticDemocraticConsultativeConsensusBuying SituationNew BuyModified RebuyStraight