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  1. What is consumer behavior?
    It describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services.
  2. The consumer decision making process
    • Need Recognition: result of an imbalance between actual and desired states
    • Information search: searching for information about the alternatives available to satisfy the need or want
    • -Internal search: info stored in memory
    • _external search: information from the outside which is influenced by the 4 P's
    • Once all info is collected the buyer constructs an evoked set (the consumers preferred alternatives)
    • Evaluation of Purchases and Alternatives: using the info gathered, the consumer evaluates and compares alternatives (comfort, price, style, durability)
    • Post Purchase Behavior: based on consumers expectations from the purchase
    • -cognitive dissonance: inner tension after recognizing an inconsistency between behavior and consumers' values or opinions
  3. Types of Consumer Decision Making and Consumer Involvement
    • Involvement is the most significant determinant in classifying buying decisions. It is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.
    • Routine Response Behavior: frequently purchased, low cost goods and services that require little search and decision time
    • Limited Decision Making: previous product experience but unfamiliar with current brands
    • Extensive Decision Making: buting an unfamiliar, expensive product
  4. Factors that determine consumer involvement
    • Interest
    • Perceived Risk: as the perceived risk increases so does involvement
    • Financial Risk: exposure to loss of wealth or purchasing power
    • Social Risk: when buying products that can affect peoples social opinion of you
    • Psychological Risk: making the wrong decision may cause concern or anxiety
    • Physical Risk
  5. Forces Influencing Consumer Behavior
    • Social / Cultural Influences
    • -Culture: values, languages, customs, rituals, and laws that shape the behavior of people
    • Social Classes: a group who are considered nearly equal in status or community esteem
    • -occupation, income, and education
    • Reference groups: groups that influence the buying behavior of people
    • Aspirational reference groups: groups that you would like to join
    • Non-aspirational / dissasociative reference groups: groups that you don't want to be a part of
    • Opinion Leader: those who influence the opinions of others
    • -usually the 1st to try new things
    • -more knowledge / more informed
    • -more interest
    • -more sociable or active
    • Subculture: a group who share elements of the overall culture as well as unique elements of their own group
    • Family: the most important social institution for many consumers
    • Roles: Initiators suggest or plant the seed for the purchase process; Decision maker is the one who has authority to make a decision; gatekeeper controls the flow of information into the family; syncratic role is decision made by both authorattive figures in the unit
  6. Psychological Influences
    • Needs and Motives: the driving forces that cause a person to take action to satisfy specific needs
    • Maslow's Hierarchy of Needs: physiological (food, water, shelter), safety/security (freedom from pain and discomfort), social needs (love and a sense of belonging), self esteem (self respect and a sense of accomplishments), self actualization (finding self fulfillment and self expression)
  7. Perception
    • Perception is selecting, organizing, and interpreting stimulus into a meaningful picture
    • Selective Exposure is noticing certain stimuli and ignoring others
    • Selective Retention is remebering only info that supports personal feelings or beliefs
    • Selective Distortion is changing / distorting information that conflicts with your feelings or beliefs
  8. Attitudes
    • Attitudes are a learned tendency to respond consistently toward a given object
    • Learning is the process that creates changes in behavior through experience and practice
    • Experiential Learning is when an experience changes your behavior
    • Conceptual Learning is not acquired through direct experience
  9. Component parts of learning
    • Drive, Cue, Response, Reinforcement all develop a habit.
    • Stimulus generalization: when 1 response is extended to a 2nd stimulus similar to the 1st (jello gelatin, jello fruit pop, clorox, clorox cleaners)
    • Stimulus discrimination: learning to differentiate among similar products
  10. Self
    • Personality: how people typically react to situations consistently
    • Self concept: how consumers perceive themselves (attitudes, perceptions, beliefs, and self evaluations)
    • Real self: who we think we are
    • Ideal self: who we want to be
    • Looking glass self: how we think others see us
  11. Business Marketing
    It is the marketing of goods and services to individuals and organizations for purposes other than personal consumption

    • Types of Consumers:
    • Producers, Resellers (wholesellers and retailers), governments, and institutions
  12. Characteristics of the Org Market vs. Consumer Market
    • Derived demand ( org's buy products to be used in producing their customers' products) it is based on expectations of future demand
    • Inelastic demand ( a change in price will not significantly change demand for the product)
    • Joint demand ( when 2 or more items are used together in a final product) Sales are directly linked
    • Fluctuating Demand
  13. Business vs consumer markets
    • Larger purhase volume (bigger quantities)
    • Fewer customers
    • Location ( more geographically concentrated)
    • Leasing (reduce capital outflow, tax advantages)
    • Reciprocity (businesses buy from their customers)
  14. Buying Center
    • Is all people in an organization who become involved in the purchase decision.
    • -Initiator, influencer, decision maker, purchaser (the one who actually negotiates the purchase), users (members of the organization who will actually use the product), gatekeeper
  15. Buying Situation
    • New Buy: buying for the 1st time
    • Modified Rebuy: a change in the original good or service
    • Straight Rebuy: routine purchase (no new info required)
  16. Types of Business Products
    • Installations / Major Equipment (large or expensive machines)
    • Accesory Equipment (less expensive and shorter lived than installations such as tools and fax machines)
    • Raw materials
    • Component parts (ready for assembly or need very little processing)
    • Processed materials (used to make other products)
    • Supplies (consumable items that don't become part of the finished product)
    • Business services (expense items like janitorial or advertising)
  17. Market
    • Market: people and or organizations that are willing and able to buy
    • Market Segmentation: Breaking up the market in terms of people / organizations that share similar characteristics. it helps marketers define needs and wants more precisely and helps to allocate resources
  18. Basis for segmenting consumer markets
    • Geographic segmentation (region, market size, density, or climate)
    • Demographic (age, gender, income, ethnicity)
    • Psychographic (personality, motives, lifestyle)
    • Benefit (according to the benefits they seek from the product)
    • Usage rate ( amount of product bought and consumed)
    • Comany characteristics: such as geographic location, type, size, and product use
    • Buying processes (how they buy)
  19. Strategies for selecting target markets
    • Undifferentiated targeting strategy: when you use a single marketing mix (1 product, 1 market)
    • Differentiated targeting strategy: applying the 4 P's to different segments
    • Concentrated targeting: focusing on one segment of the market
  20. Positioning
    • Positioning: a markeiting mix to influence potential customers' perception of a brand, product line, or organization
    • Perceptual Mapping: examining where a product / org is located relative to competition
  21. Decision Support System (DSS)
    • Is a computerized info system that enables managers to obtain and manipulate information as they are making decisions
    • Marketing Research: collecting, classifying, and storing info to be used to solve a problem and/or take an advantage of an opportunity
  22. Steps in a marketing Research Investigation
    • Identify and formulate the problem / opportunity
    • Gather primary data
    • Specify the sampling procedures
    • Collect the data
    • Analyze the data
    • Prepare and present the report
    • Follow up
  23. Research Design
    • Research Design: says which questions must be answered, how and when teh data will be gathered and analyzed
    • Primary Date: primary info used for solving the particular problem
Card Set
Business Marketing
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