Podcast
Questions and Answers
A company that purchases raw materials to manufacture its own products for sale operates within which type of buying scenario?
A company that purchases raw materials to manufacture its own products for sale operates within which type of buying scenario?
- Industrial goods (correct)
- Public procurement
- Service industry acquisitions
- Reseller market
Which of the following best describes the role of an 'Influencer' in the consumer buying process?
Which of the following best describes the role of an 'Influencer' in the consumer buying process?
- The individual who ultimately uses the product or service.
- The individual who persuades others about the decision. (correct)
- The entity that begins the process of considering a purchase.
- The person who conducts the transaction to purchase the product.
Which stage of the consumer decision-making process involves the consumer creating a 'short-list' of options that better meet their needs?
Which stage of the consumer decision-making process involves the consumer creating a 'short-list' of options that better meet their needs?
- Need Recognition
- Evaluation of Alternatives (correct)
- Information Search
- Post-Purchase Evaluation
Post-Purchase Evaluation always leads to customer satisfaction and repeat purchases.
Post-Purchase Evaluation always leads to customer satisfaction and repeat purchases.
If a consumer is primarily concerned with the longevity and reliability of a product, which type of choice criteria are they prioritizing?
If a consumer is primarily concerned with the longevity and reliability of a product, which type of choice criteria are they prioritizing?
Which of the following personal influences on consumer behavior refers to how individuals process sensory stimulation and is emphasized through multi-sensory brand experiences?
Which of the following personal influences on consumer behavior refers to how individuals process sensory stimulation and is emphasized through multi-sensory brand experiences?
The process by which we receive, interpret, and store information, linking external stimuli to decision making, is known as _______ _______.
The process by which we receive, interpret, and store information, linking external stimuli to decision making, is known as _______ _______.
Learning, in the context of consumer behavior, strictly refers to formal education and acquired knowledge.
Learning, in the context of consumer behavior, strictly refers to formal education and acquired knowledge.
According to Maslow's Hierarchy of Needs, which level focuses on security and safety?
According to Maslow's Hierarchy of Needs, which level focuses on security and safety?
What are 'Beliefs' in the context of personal influences on consumer behavior?
What are 'Beliefs' in the context of personal influences on consumer behavior?
Define 'Personality' in the context of consumer behavior, and explain its impact on consumer responses.
Define 'Personality' in the context of consumer behavior, and explain its impact on consumer responses.
In the context of social influences on consumer behavior, what does 'Culture' provide?
In the context of social influences on consumer behavior, what does 'Culture' provide?
What is a primary characteristic of 'Subcultures'?
What is a primary characteristic of 'Subcultures'?
Within the concept of reference groups, which type consists of groups that an individual does not want to belong to?
Within the concept of reference groups, which type consists of groups that an individual does not want to belong to?
Reference groups have no influence on an individual's attitudes or behavior.
Reference groups have no influence on an individual's attitudes or behavior.
Match each 'Big 5' personality trait with its corresponding characteristic:
Match each 'Big 5' personality trait with its corresponding characteristic:
Which aspect of digital influence refers specifically to word-of-mouth (WOM) carried out through online channels?
Which aspect of digital influence refers specifically to word-of-mouth (WOM) carried out through online channels?
A consumer carefully considers all available brands of smartphones, reads numerous online reviews, compares technical specifications, and seeks recommendations from tech-savvy friends before making a purchase. According to the stages of consumer decision-making, which step does this behavior fall under?
A consumer carefully considers all available brands of smartphones, reads numerous online reviews, compares technical specifications, and seeks recommendations from tech-savvy friends before making a purchase. According to the stages of consumer decision-making, which step does this behavior fall under?
An athlete endorses a particular brand of sports drink, and their fans subsequently purchase the drink to emulate the athlete. Which type of reference group influence is at play in this scenario?
An athlete endorses a particular brand of sports drink, and their fans subsequently purchase the drink to emulate the athlete. Which type of reference group influence is at play in this scenario?
A tech company releases a new operating system, and it becomes widely adopted within certain age groups who are early adopters. However, other segments of society initially resist due to concerns regarding privacy. Which personal and social influence is most prominently demonstrated in this scenario?
A tech company releases a new operating system, and it becomes widely adopted within certain age groups who are early adopters. However, other segments of society initially resist due to concerns regarding privacy. Which personal and social influence is most prominently demonstrated in this scenario?
Which of the following is the most difficult for marketers to influence directly?
Which of the following is the most difficult for marketers to influence directly?
Which stage of the Consumer Decision-Making Process outlines that the consumer intends to make a purchase to satisfy a specific need?
Which stage of the Consumer Decision-Making Process outlines that the consumer intends to make a purchase to satisfy a specific need?
Which form of learning do marketers benefit most from if they use rewards to encourage people to buy their products?
Which form of learning do marketers benefit most from if they use rewards to encourage people to buy their products?
If an individual has high values and morals, this is a form of Choice Criteria that falls under Technical.
If an individual has high values and morals, this is a form of Choice Criteria that falls under Technical.
What would a business use the Reseller Market for?
What would a business use the Reseller Market for?
Which of the five roles in the buying decision-making process consumes the product or service?
Which of the five roles in the buying decision-making process consumes the product or service?
Fill in the blank in this quote: 'How customers behave can never be taken for _______ ... there are a variety of influences on the purchasing habits of customers... successful marketing requires a great sensitivity to these subtle drivers of behaviour and an ability to anticipate how they influence demand...'
Fill in the blank in this quote: 'How customers behave can never be taken for _______ ... there are a variety of influences on the purchasing habits of customers... successful marketing requires a great sensitivity to these subtle drivers of behaviour and an ability to anticipate how they influence demand...'
What could be described as 'New' by marketers?
What could be described as 'New' by marketers?
What is the second stage involved in the consumer decision-making process?
What is the second stage involved in the consumer decision-making process?
Flashcards
What are industrial goods buyers?
What are industrial goods buyers?
Companies that buy products to produce other goods and services.
What is the reseller market?
What is the reseller market?
Organizations that buy products and services to resell them.
What is Public Procurement?
What is Public Procurement?
Government agencies buy products to produce public services.
What is Customer Behavior?
What is Customer Behavior?
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What is the role of the Initiator?
What is the role of the Initiator?
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Who is the Influencer?
Who is the Influencer?
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Who is the Decider?
Who is the Decider?
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Who is the Buyer?
Who is the Buyer?
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Who is the User?
Who is the User?
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What is Need Recognition?
What is Need Recognition?
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What is Information Search?
What is Information Search?
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What is Evaluation of Alternatives?
What is Evaluation of Alternatives?
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What is Purchase?
What is Purchase?
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What is Post-Purchase Evaluation?
What is Post-Purchase Evaluation?
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What does Need Recognition highlight?
What does Need Recognition highlight?
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What does Information Search enable?
What does Information Search enable?
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What does Evaluation of Alternatives filter?
What does Evaluation of Alternatives filter?
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What is an Evoked set?
What is an Evoked set?
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What is cognitive dissonance?
What is cognitive dissonance?
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What is Choice Criteria?
What is Choice Criteria?
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What is Information Processing?
What is Information Processing?
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What is Perception?
What is Perception?
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What is Learning?
What is Learning?
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What is Conditioning?
What is Conditioning?
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What is Cognitive learning?
What is Cognitive learning?
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What is Motivation and Values?
What is Motivation and Values?
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What are Beliefs and Attitudes?
What are Beliefs and Attitudes?
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What is Personality?
What is Personality?
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What is Culture?
What is Culture?
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What is a Reference Group?
What is a Reference Group?
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Study Notes
Types of Buyers (Organizational Level)
- In B2B purchasing, there are three major types of buyers:
- Companies that buy products/services to produce other goods/services, for example buying parts for mobile phones, or raw materials to components to capital goods such as machinery
- The reseller market, comprised of organizations that buy products/services to resell, for example, online retailers, warehouse stores
- Public Procurement, when government agencies buy products/services to help them product products, for example, purchases of services for local authorities or defence hardware
Importance of Understanding Customer Behavior
- Understanding customers is vital to the marketing concept
- Marketers want to know what their customers like/dislike and how they make decisions
- Customer behavior changes over time due to new trends and influences
- Customer behavior studies the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
Dimensions of Customer Behavior
- The dimensions are:
- Who is important?
- How do they buy?
- Where do they buy?
- When do they buy?
- What are their choice criteria?
Who Buys? Five Roles in the Buying Decision-Making Process
- Initiator: Begins the process
- Influencer: Persuades the decision
- Decider: Makes the ultimate choice
- Buyer: Conducts the transaction
- User: Consumes the product/service
Consumer Decision-Making Process
- The consumer decision-making process has five key stages:
- Need Recognition
- Information Search
- Evaluation of Alternatives
- Purchase
- Post-Purchase Evaluation
How They Buy - Need Recognition
- Need Recognition, also known as Problem Awareness, highlights that the consumer makes a purchase to satisfy a need
- Marketers need to be aware of customer needs, what inhibits those needs from being met, and how to arouse needs through advertising
How They Buy - Information Search
- Information Search enables consumers to build their awareness set (brands that meet needs)
- Internal Search retrieves relevant information from memory
- External Search seeks information from qualified others
How They Buy - Evaluation of Alternatives
- Evaluation of Alternatives filters the awareness set to a more manageable evoked set for consideration and purchase
- The evoked set is a short-list of options that better meet consumer needs
How They Buy - Level of Involvement
- A consumer’s level of involvement (high/low) is important for evaluation
- Level of involvement is influenced by:
- Self-image
- Perceived risk
- Social Factors
- Hedonistic Influences
How They Buy - Post-Purchase Evaluation
- A positive Post-Purchase Evaluation leads to customer satisfaction
- Marketers need to create positive customer experiences
- Uncertainty leads to cognitive dissonance, where the consumer is unsure if they have made the right choice
Choice Criteria
- Choice Criteria is the attributes that a consumer uses to evaluate products and services
- These include:
- Technical
- Economic
- Social
- Personal
Choice Criteria - Technical
- These are:
- Reliability
- Durability
- Performance
- Style/looks
- Comfort
- Delivery
- Convenience
- Taste
Choice Criteria - Economic
- These are:
- Price
- Value for Money
- Running Costs
- Residual Value
- Life Cycle Costs
Choice Criteria - Social
- These are:
- Status
- Social Belonging
- Convention
- Fashion
Choice Criteria - Personal
- These are:
- Self-Image
- Risk Reduction
- Morals
- Emotions
Influences on Consumer Behaviour - Personal Influences
- These include:
- Information processing
- Motivation and values
- Beliefs and attitudes
- Personality
- Lifestyle
- Lifecycle
Influences on Consumer Behaviour - Social Influences
- These include:
- Culture and subculture
- Social class
- Reference groups
Personal Influences - Information Processing
- Information Processing: the process by which people receive, interpret and store information, linking external stimuli to decision-making
- Perception: how we process sensory stimulation
- Brands now emphasizing multi-sensory experiences
- Selective Attention
- Selective Distortion
- Selective Retention
- Learning: changes in an individual's behaviour arising from experience
- Conditioning establishes a relationship between a stimulus and a response
- Cognitive learning develops knowledge and beliefs without direct reinforcement
- Classical Learning: uses associations
- Operant Learning: uses rewards
- Rote: learn off
- Vicarious: observe
Personal Influences - Motivation and Values
- Why people buy is complex, related to motives, personality, and choice criteria
- Basic motives derived from Maslow’s Hierarchy of Needs
Personal Influences - Attitudes and Beliefs
- Beliefs and Attitudes: relatively consistent thoughts and sentiments held towards products or brands
- Beliefs: descriptive thoughts based on knowledge, opinion, or faith
- Attitudes: favorable (positive) or unfavorable (negative) evaluations of products and services
Personal Influences - Personality
- Personality is the unique psychological characteristics that distinguish a person and gives rise to consistent responses to one’s environment
- The Big 5 personality traits are:
- Openness
- Conscientiousness
- Agreeableness
- Stability/Neuroticism
- Extraversion
Social Influences - Culture
- Culture provides the framework where individuals develop lifestyles
- Culture refers to the traditions, taboos, values, and basic attitudes of the whole society in which an individual lives
- Subcultures consist of people with shared values and similar life experiences or common situations
Social Influences - Reference Group
- Reference Group: a group of people who influence an individual’s attitude or behavior
- Membership Groups: groups you already belong to
- Aspirational Groups: groups where you would like to belong
- Avoidance Groups: groups you don’t want to belong to
Influencer Marketing
- Impact of digital technologies
- The digital consumer
- Growth of social media influencers
- E-wom
Digital Consumer
- Connects (with others)
- Consumes (others' content)
- Creates (own content)
- Controls (the image projected to others)
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