MKTG 3433 1st Edition Exam #2 Study Guide Chapters: 6-10Chapter 6: Consumer Behavior- Consumer Behavior: the process through which buyers make purchase decisions- Consumer behavior is understood as a function of the interactions of personal influences (I) and personal factors (P)o CB=f(I,P)- Determinants of Consumer Behavioro Interpersonal Determinants  Culture: values, beliefs, preferences, and tastes- This is the broadest determinant- Core values in US cultureo Work ethic, wealth, education, freedom, youth, health,efficiencyo Consumers are adopting new values such as communicating with anyone at anytime, anywhere in the world- International perspective o Successful strategies in one country may not work in other countries Subculture: groups with their own distinct modes of behavior Social Influences- Asch Phenomenon: theory of psychologist S.E. Asch that individuals conform to majority rule, even if that majority rule goes against their beliefs Family Influences- Children and teenagers represent a huge market and they influence what their parents buyo Personal Determinants Needs and motives- Needs: imbalance between a consumer’s actual and desiredstates- Motive: inner state that directs a person toward the goal of satisfying a need- Maslow’s Hierarchy of Needso Developed to understand personal growth but marketers have adapted it to understand consumerso Needs at the bottom must be attained before the next higher, level is activated Perception- Results from the interaction of two types of factors:o Stimulus factorso Individual factors- Perception is constructive; people construct interpretations on the flyo Marketers know that perception is NOT passive- Perceptual screenso The mental filtering processes through which all inputs must passo Techniques that marketers use to elicit a positive response from consumers: Doubling the size of an ad Using certain colors or graphics Developing unique packaging Attitudes: person’s enduring favorable or unfavorable evaluations, emotions, or action tendencies toward some object or idea- Characteristicso Favorability – like/dislike Directiono Accessibility – how easily retrieved from memoryo Confidence – strengtho Persistence – enduranceo Resistance – how easily they change All strength- Componentso Cognitive: info and knowledgeo Affective: feelings and emotionso Behavioral: tendencies to act in certain ways- Changing Attitudeso Marketers can do one of two things: Attempt to produce consumer attitudes that willlead to the purchase of an existing product Evaluate existing consumer attitudes and create or modify products to appeal to these attitudeso Self Perception 4 TypesChapter 7: Business-To-Business Marketing (B2B)- B2B Marketing: organizational sales and purchases of goods and service to support production of other products, to facilitate daily company operations, or forresale- Componentso Commercial Market: individuals and firms that acquire products to support,directly or indirectly, production of other goods and serviceso Trade Industries: retailers or wholesalers that purchase products for resaleto otherso Governmento Public and private institutions- Segmenting B2B Marketso Segmentation helps marketers develop the most appropriate strategyo Segmenting by demographic characteristics Grouping by size, based on sales revenues or number of employeeso Customer Based Segmentation: dividing a B2B market into homogeneous groups based on buyers’ product specifications North American Industry Classification System (NAICS): classification used by NAFTA countries to categorize the business marketplace into detailed market segmentso End-Use Application Segmentation: the division of B2B market based on how industrial purchasers will use the producto Segmentation by purchase categories Customer Relationship Management (CRM): combo of strategies and tools that drives relationship programs, reorienting the entire organization to a concentrated focused on satisfying customers- Characteristics of the B2B Marketo Geographic Market Concentration The US business market is more concentrated than the consumer market Certain industries locate in particular areas to be close to customers Due to internet, business markets may become less geographically concentratedo Purchase Decision Process Suppliers who serve B2B markets must work with multiple buyers The purchasing process is more formal and professional than the consumer market Purchasers require a longer time frame- B2B involves more complex decisions Stages in B2B Buying Process- Step 1: Anticipate a problem/need/opportunityo EX: Need to provide employees with a good cup of coffee to enhance productivity- Step 2: Determine the characteristicso Offering a coffee system that brews one cup of coffee at a time according to each employee’s preference- Step 3: Describe characteristicso Firms need a simple system for brewing a good cup of coffee; quantity requirements are easily correlated to the number of coffee drinkers- Step 4: Search for sourceso Choice of supplier may be relatively straightforward orvery complex- Step 5: Acquire proposalso May involve competitive bidding, especially if the buyer is the gov- Step 6: Evaluate proposals and select supplierso Buyers choose the proposals best suited to their need. Final choice involves a trade off- Step 7: Select a routineo Buyer and vendor work out the best way to process future purchases- Step 8: Obtain feedback and evaluate performanceo Buyers measure vendors’ performanceo Classifying Business buying situations Straight Rebuy: a recurring purchase decision in which a customer repurchases a good or service that has performed satisfactorily in the past Modified Rebuy: situation in which a purchaser is willing to reevaluate available options for repurchasing a good or service New-Task Rebuy: first time or unique purchase situation that requires considerable effort by decisions makers Reciprocity: buying from suppliers who are also customerso Influences on Purchase Decisions Organizational factors- Marketers must understand their customers’ organizational structures, policies, and purchasing systems- Many companies use multiple sourcing to avoid depending too heavily on a sole supplier Interpersonal influences- Marketers must know the influencers and understand their priorities- Sales personnel must have a good technical understanding of their