MKT 305 1st Edition Exam 2 Chapters 4 5 and 6 Chapter Four Five stage Purchasing Decision Process Problem Recognition Information Search Alternative Evaluation Purchase Decision Post purchase Behavior There are internal and external components to each stage Sociocultural Influences Culture Sub culture Referent groups Family Personal Situational Influences Purchase task Social surroundings Physical surroundings Temporal effects Antecedent effects Selective Perception Selective exposure You notice messages that you agree with Selective comprehension Interpreting messages based on your attitudes beliefs and prejudices Selective retention You remember what is important to you Perceived Risk Different people have different risk thresholds that can sometimes be predicted Low stress threshold High risk aversion High stress threshold Low risk aversion Behavioral Learning Exposure experience drive cue response reinforcement Cognitive Learning Thinking reasoning personal or vicarious stimulus brand idea Brand Loyalty A favorable attitude toward and consistent purchase of a single brand over time Attitude What we feel or think of something Belief What we conceptually intellectually buy What we are convinced sure of Three approaches marketers use to change consumers attitudes toward products and brands Changing beliefs about the extent to which a brand has certain attributes Changing the perceived importance of attributes Adding new attributes to the product Chapter 5 Business Marketing The marketing of products and services to companies governments or not for profit organizations for use in the creation of goods and services that they can produce and market to others Organizational Buyers Those manufacturers wholesalers retailers and government agencies that buy products and services for their own use or for resale Industrial Markets Reprocess a product or service they buy before selling it again to the next buyer Reseller Markets Wholesalers and retailers that buy physical products and resell them again without any reprocessing Government Markets The federal state and local agencies that buy products and services for the constituents they serve Dimensions of Organizational Buying Market characteristics derived demand few customers Product or service characteristics products and services are technical and semi finished Buying power characteristics expert buyers follow procedures buying criteria and negotiate Marketing mix characteristics direct selling advertising is technical price is negotiated quantity discounts Characteristics of Organizational Buying Demand characteristics Size of order Number of potential buyers Organizational buying objectives Organizational buying criteria Buyer seller relationships and partners Stages in the organizational buying process Problem recognition Need of a new product Information search define specification and identify suppliers Alternative evaluation evaluate potential suppliers based on certain criteria Purchase decision make a decision based on criteria Post purchase behavior evaluate product support service Buyer Center Several people that share common goals risks and knowledge important to a purchase decision Chapter 6 Protectionism The practice of shielding one or more industries within a country s economy from foreign competition usually through the use of tariffs or quotas Tariff Tax on goods or services entering a country Quota Restriction placed on the amount of a product allowed to enter or leave a country World Trade Organization Sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions NAFTA North American Free Trade Agreement Stimulated trade flows among member nations as well as cross border retailing manufacturing and investment European Union Consists of 27 member countries that have eliminated most barriers to the free flow of goods services capital and labor across their borders International Firms Market based home strategy Multi national Firms Market based on particular country Trans national Firms Market based on global strategy Global Brand Brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs Economic Considerations Economic infrastructure Consumer income and purchasing power Currency exchange rates Political regulatory Climate Political stability Trade regulations definitions from McGraw Hill Irwin New York 5th edition