BUAD 332 UTK Exam 2 Moon Study online at https quizlet com af56k4 Factors that Affect Buying Behavior Culture Social Class Age Occupation Consumer Buying Behavior Culture Buying Decision Process Need Recognition Information Search Sources of Information Evaluation of Alternatives Post Purchase Behavior Cognitive Dissonance Adoption Process Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption Relative Advantage Compatability Complexity Divisibility Communicability Business Buyer Behavior refers to the buying behavior of people who buy goods and services for personal use these people make up the consumer market How do consumers respond to various marketing efforts The most basic cause of a person s wants and behavior Culture is learned from Family Church School Peers Col leagues etc Culture includes basic values perceptions wants and behaviors 1 Need recognition 2 Information search 3 Evaluation of alternatives 4 Purchase decision 5 Post purchase behavior When a buyer becomes aware of a difference between their actual condition and their desired state when a consumer searches for products that will help resolve the problem or satisfy the need personal family friends social media most effective commercial advertising most info comes from here public mass media consumer rating groups experiential handling examining using the product choosing among brands sizes styles and colors Performance Expectations Disappointment Performance Expectations Satisfaction Performance Expectations Delight a buyers doubts shortly after a purchase the mental process through which an individual passes from first hearing about an innovation to final adoption 1 Awareness 2 Interest 3 Evaluation 4 Trial 5 Adoption Consumer becomes aware of new product lacks information about it Consumer seeks information about new product Consumer considers whether trying the new product makes sense Consumer tries product on a small scale to improve their estimate of value Consumer decides to make full and regular use of the new product Relative Advantage Compatibility Complexity Divisibility Com municability Is the innovation superior to existing products Does the innovation fit the values and experience of target market Is the innovation difficult to understand or use Can the innovation be used on a limited basis Can results be easily observed and described to others refers to the buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold to others 1 9 Influence of Product Characteristics on Rate of Adoption BUAD 332 UTK Exam 2 Moon Study online at https quizlet com af56k4 Business Markets Majors Types of Buying Situations Buying Center Members Buying Center The Business Buying Process Geographic Segmentation Demographic Segmentation Gender Segmentation Income Segmentation Psychographic Segmentation Behavioral Segmentation Market Structure and Demand Contains far fewer but larger buyers Customers are more geographically concentrated Business demand is derived from consumer demand Nature of the Buying Unit Business purchases involve more decision participants Business buying involves a more professional purchasing effort Straight Rebuy The buyer routinely reorders something without considering alternative suppliers Modified Rebuy The buyer wants to modify product specifications prices terms or suppliers New Task The buyer purchases a product or service for the first time users influencers buyers deciders gatekeepers Decision Making unit of a buying organization 1 problem recognition 2 general need description 3 product specification 4 supplier search 5 proposal solicitation 6 supplier selection 7 order routine specification 8 performance review Segmented by world region or country region of country city or metro size density climate Age gender family size family life cycle income occupation education race religion generation nationality the most popular basis for segmenting customer markets easier to measure than most types of variables segmenting different products on the basis of gender neglected gender segments can often offer new opportunities targeting the affluent for luxury goods people with low annual income can be a lucrative market manufacturers have different levels of products for different mar kets Dividing a market into different groups based on social class lifestyle or personality characteristics Dividing buyers into groups based on consumer knowledge atti tudes uses or responses to a product User Status nonusers ex users first time regular Usage rate light medium heavy 2 9 Bottom Line Market Segmentation Marketers need to understand customers Dividing a market into smaller groups with distinct needs char acteristics or behaviors that might require separate marketing strategies or mixes Key Segmentation Variables Geographic Demographic Psychographic Behavioral BUAD 332 UTK Exam 2 Moon Study online at https quizlet com af56k4 Segmenting Business Markets Requirements for Effective Segmentation Targeting Evaluating Market Segments Segment Size and Growth Segment Structural Attractiveness Company Objectives and Resources Undifferentiated mass marketing Differentiated segmented marketing Concentrated niche Marketing Micromarketing Local Marketing Individual Marketing Factors to Consider when choosing a target strategy Socially Responsible Targeting Positioning Loyalty Status brands stores companies operating characteristics purchasing approaches situational factors personal characteristics 1 Measurable 2 Accessible 3 Substantial 4 Differentiable 5 Actionable Selecting the market segments that will become the chosen targets of opportunity Segments are evaluated based on segment size and growth segment structural attractiveness company objectives and resources 1 Segment size and growth 2 Segment structural attractiveness 3 Company objectives and resources Analyze current segment sales growth rates and expected prof itability consider competition existence of substitute products and the power of buyers and suppliers Examine company skills and resources needed to succeed in that segment Offer superior value and gain advantages over competitors Ignores segmentation opportunities Such products rarely succeed for long in the American Market place Targets several segments and designs separate offers for each Coca Cola Procter Gamble Toyota etc Targets one or a couple of small segments Niches have very specialized