Business Markets and Buyer Behavior

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Questions and Answers

What is the first step in the marketing research process?

Analyze and report findings

Conduct Research

Develop the Research Plan

Identify the Problem (correct)

In which buying situation does the buyer reorder products without any modifications?

Independent Reorder

Modified Rebuy

New task

Straight Rebuy (correct)

Which role in the buying center controls the information flow to others?

Confirmed Purchasers

Gatekeepers (correct)

Deciders

Influencers

Which of the following is NOT a type of influence on business buyer behavior?

Familial Signup and view all the answers

What does the 'Supplier choice' refer to in the buyer responses of the business buyer behavior model?

Choosing which supplier to purchase from Signup and view all the answers

Which element is NOT part of the marketing stimuli that affect buyer responses?

Customer Feedback Signup and view all the answers

Which type of buying situation is characterized by a buyer purchasing a product for the first time?

New task Signup and view all the answers

Which factor is classified under the Organizational influences on business buyers?

Structure Signup and view all the answers

What is the primary focus of business buying behavior?

Buying goods for resale or production Signup and view all the answers

What is the first step in the business buying process?

Problem recognition Signup and view all the answers

Which component is NOT part of a marketing information system?

Market segmentation Signup and view all the answers

How does the demand volume differ between business markets and consumer markets?

Business markets have a higher demand volume Signup and view all the answers

Which of the following describes the notion of reciprocity in the business market?

Offering and receiving favors between businesses Signup and view all the answers

What typically characterizes the distribution process in business markets?

Direct distribution channels Signup and view all the answers

Which of the following is an example of marketing intelligence?

Studying competitors' public information Signup and view all the answers

What is the main purpose of marketing research within a marketing information system?

To solve specific marketing problems Signup and view all the answers

Study Notes

Business Markets and Buyer Behavior

Business buying behavior is the buying behavior of organizations that purchase goods and services for production, distribution, or resale.
The business buying process is how businesses decide which products they need and select suppliers.
Business markets differ from consumer markets in factors such as demand, number of customers, location, distribution, buying influence, and promotion.

Differences Between Consumer and Business Markets

Demand: Business demand is derived from consumer demand; business demand is more inelastic and fluctuates.
Number of Customers: Business markets have fewer, larger customers compared to consumer markets.
Location: Business buyers are often concentrated geographically.
Distribution: Business distribution channels are often more direct.
Buying Influence: Decisions are made by a buying center (multiple individuals) in business markets.
Promotion: Business marketing often emphasizes personal selling and relationships.

Business Buyer Behavior

Problem Recognition: Initial stage where a need is recognized or a problem is identified.
General Need Description: The need is described in more detail, clarifying specifications.
Product Specification: Technical and performance specifications are outlined.
Supplier Search: Potential suppliers are identified and researched.
Proposal Solicitation: Suppliers are asked to submit proposals.
Supplier Selection: Suppliers are evaluated and compared.
Order-Routine Specification: Final order details are finalized, including delivery and payment terms.
Performance Review: Post-purchase evaluation of the product and supplier.

Types of Buying Situations

Straight Rebuy: Routine reordering of existing products.
Modified Rebuy: Existing product with slight modifications to specifications, pricing, or suppliers.
New Task: First-time purchase of a product.

Managing Market Information

Marketing Information System (MIS): Four main components: Internal Records, Marketing Intelligence, Marketing Research, Marketing Decision Support System.
Internal Records: Provide reliable, inside company information.
Marketing Intelligence: Gathering & analyzing publicly available information about competitors, consumers, and market developments.
Marketing Research: The systematic collection and analysis of data relevant to a specific marketing situation.
Marketing Decision Support System (DSS): Tools and techniques used to help marketing managers analyze data and make better decisions.

Marketing Research Process

Problem Definition: Identify the problem or question.
Research Plan Development: Outline the research method, data sources, and collection techniques.
Data Collection: Gathering primary and secondary data.
Data Analysis: Reviewing and interpreting collected data.
Report Preparation: Presenting findings and recommendations.
Action: Implementing decisions based on research findings.

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Description

Explore the nuances of business buying behavior and how it contrasts with consumer markets. This quiz delves into factors such as demand, customer numbers, distribution channels, and the buying influence in business settings. Perfect for students of business and marketing.