Consumer Behavior and Market Dynamics

Consumer buyer behavior refers to the buying actions of individuals and households who purchase goods and services for their own use.

The consumer market encompasses all individuals and households that buy or acquire goods and services for personal consumption.

<p>Culture is a basic set of values, perceptions, wants, and behaviors learned by a member of society.</p> Signup and view all the answers

<p>Subcultures are groups within a culture that share common value systems based on similar life experiences.</p> Signup and view all the answers

<p>Social classes are relatively permanent divisions in society whose members share similar values, interests, and behaviors, often measured by a combination of occupation, income, education, wealth, and other variables. Major American social classes include the upper class, middle class, working class, and lower class.</p> Signup and view all the answers

<p>All of the above</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Role and status within a group can also define a person's position.</p> Signup and view all the answers

<p>Age and life-cycle stage influence buying behavior.</p> Signup and view all the answers

<p>Occupation affects the goods and services consumers buy.</p> Signup and view all the answers

<p>Economic situation, including personal income, savings, and interest rates, also influences purchase decisions.</p> Signup and view all the answers

<p>Lifestyle is a person's pattern of living as expressed in their psychographics.</p> Signup and view all the answers

<p>Personality refers to the unique psychological characteristics of a person or group. Brand personality traits include sincerity, excitement, competence, sophistication, and ruggedness.</p> Signup and view all the answers

<p>Motivation is a need that is pressing enough to make a person seek to satisfy it. Motivation research is qualitative and designed to understand consumers' subconscious motivations.</p> Signup and view all the answers

<p>Perception is how people select, organize, and interpret information. Perceptual processes include selective attention, selective distortion, and selective retention.</p> Signup and view all the answers

<p>Learning is a change in behavior due to experience and is affected by drives, stimuli, cues, responses, and reinforcement.</p> Signup and view all the answers

<p>Beliefs are descriptive thoughts a person has based on knowledge, opinion, or faith.</p> Signup and view all the answers

<p>An attitude is a person's consistent evaluation, feelings, and tendencies toward an object or idea.</p> Signup and view all the answers

<p>Variety-Seeking Buying Behavior</p> Signup and view all the answers

<p>Postpurchase Behavior</p> Signup and view all the answers

<p>The adoption process is the mental process an individual goes through from first learning about an innovation to final regular use.</p> Signup and view all the answers

<p>Awareness</p> Signup and view all the answers

<p>Innovators</p> Signup and view all the answers

<p>Compatibility</p> Signup and view all the answers

<p>Business markets involve organizations that purchase goods and services for use in producing other products or services, which are then sold, rented, or supplied to others.</p> Signup and view all the answers

<p>Business markets have fewer but larger buyers.</p> Signup and view all the answers

<p>Business purchases involve more decision participants, more professional purchasing effort, and more interaction between buyers and sellers than consumer purchases.</p> Signup and view all the answers

<p>Supplier Selection</p> Signup and view all the answers

<p>Value analysis is an approach to cost reduction in which components are studied to determine if they can be redesigned, standardized, or made with less costly methods of production.</p> Signup and view all the answers

<p>Supplier search involves identifying qualified suppliers who can meet the specific needs of the business.</p> Signup and view all the answers

<p>Proposal solicitation involves requesting proposals from potential suppliers, outlining the specific requirements of the business.</p> Signup and view all the answers

<p>Supplier selection involves defining desired supplier attributes, negotiating, and making a final decision.</p> Signup and view all the answers

<p>Order-routine specifications involve placing the final order, specifying all details, terms, and conditions.</p> Signup and view all the answers

<p>Performance review involves evaluating the supplier's performance to assess their ability to meet the requirements of the business.</p> Signup and view all the answers

<p>Organizational Factors</p> Signup and view all the answers

<p>Environmental factors include demand for the product, the economic outlook, cost of money, supply of materials, technology, culture, politics, and competition.</p> Signup and view all the answers

<p>Organizational factors include objectives, strategies, structure, systems, and procedures.</p> Signup and view all the answers

<p>Interpersonal factors include influence, expertise, authority, and dynamics.</p> Signup and view all the answers

<p>Individual factors include motives, perceptions, preferences, age, income, education, and attitude toward risk.</p> Signup and view all the answers

<p>Economic factors include price and service.</p> Signup and view all the answers

<p>Straight Rebuy</p> Signup and view all the answers

<p>A straight rebuy is a routine reordering without any modifications.</p> Signup and view all the answers

<p>A modified rebuy involves modifying product specifications, prices, terms, or suppliers.</p> Signup and view all the answers

<p>A new task is purchasing a product or service for the first time.</p> Signup and view all the answers

<p>Systems selling involves buying a complete solution from a single seller.</p> Signup and view all the answers

<p>Participants in the business buying process form a buying center.</p> Signup and view all the answers

<p>Gatekeepers</p> Signup and view all the answers

<p>Advantages include access to new suppliers, lower costs, faster order processing, enhanced information sharing, improved sales, and facilitated service and support.</p> Signup and view all the answers

<p>Institutional markets include schools, hospitals, nursing homes, and prisons, and are characterized by low budgets and captive patrons.</p> Signup and view all the answers

<p>Government markets tend to favor domestic suppliers, require bids, and usually award contracts to the lowest bidder, and are affected by environmental and non-economic factors.</p> Signup and view all the answers

<p>'Derived demand' means the demand for business goods and services is driven by the demand for consumer goods and services that they help produce.</p> Signup and view all the answers

<p>A 'straight rebuy' is a routine reorder without any modifications, while a 'modified rebuy' involves modifying product specifications, prices, terms, or suppliers.</p> Signup and view all the answers

<p>Government markets might consider factors such as minority firms, depressed firms, and small businesses when making purchasing decisions.</p> Signup and view all the answers

<p>Value analysis is an approach to cost reduction in which components are studied to determine if they can be redesigned, standardized, or made with less costly methods of production.</p> Signup and view all the answers

<p>Gatekeepers control the flow of information within the business buying center, ensuring that relevant information reaches the decision-makers.</p> Signup and view all the answers

<p>Market segmentation involves dividing a market into smaller segments with distinct needs, characteristics, or behaviors that may require separate marketing strategies.</p> Signup and view all the answers

<p>Geographic Segmentation</p> Signup and view all the answers

<p>Geographic segmentation divides the market into different geographical units, like nations, regions, cities, or neighborhoods.</p> Signup and view all the answers

<p>Behavioral segmentation divides the market based on consumer knowledge, attitudes, uses of a product, or responses to a product.</p> Signup and view all the answers

<p>Multiple segmentation is used to identify smaller, better-defined target groups.</p> Signup and view all the answers

<p>Business markets can be segmented using similar variables as consumer markets, as well as customer operating characteristics, purchasing approaches, situational factors, and personal characteristics.</p> Signup and view all the answers

<p>International markets can be segmented by geographic location, economic factors, political and legal factors, and cultural factors.</p> Signup and view all the answers

<p>Effective segmentation requires segments to be measurable, accessible, substantial, differentiable, and actionable.</p> Signup and view all the answers

<p>Market targeting involves selecting the most promising segments to serve, based on a company's resources and objectives.</p> Signup and view all the answers

<p>A target market is a group of buyers with common needs or characteristics that the company decides to serve.</p> Signup and view all the answers

<p>Segment Size and Growth</p> Signup and view all the answers

<p>Differentiated Marketing</p> Signup and view all the answers

<p>Undifferentiated marketing targets the whole market with one offer, focusing on common needs.</p> Signup and view all the answers

<p>Concentrated marketing targets a large share of a smaller market, which is useful when company resources are limited and there is knowledge of the market.</p> Signup and view all the answers

<p>Micromarketing involves tailoring products and marketing programs to specific individuals and locations.</p> Signup and view all the answers

<p>The choice of a targeting strategy depends on company resources, product variability, product life-cycle stage, market variability, and competitor's marketing strategies.</p> Signup and view all the answers

<p>Product positioning is how consumers define a product based on important attributes.</p> Signup and view all the answers

<p>Positioning maps show consumer perceptions of brands versus competing products, which helps businesses understand their position in the market.</p> Signup and view all the answers

<p>Choosing the Right Competitive Advantages</p> Signup and view all the answers

<p>Competitive advantage is gained by offering greater value through lower prices or more benefits that justify higher prices.</p> Signup and view all the answers

<p>Differentiation can occur along the lines of product, services, channels, people, and image.</p> Signup and view all the answers

<p>A competitive advantage should be important, distinctive, superior, communicable, preemptive, affordable, and profitable.</p> Signup and view all the answers

<p>Value proposition is the full mix of benefits upon which a brand is positioned.</p> Signup and view all the answers

<p>A positioning statement summarizes company or brand positioning, using this form: &quot;To (target segment and need) our (brand) is (concept) that (point of difference)&quot;.</p> Signup and view all the answers

<p>Implementing a chosen position takes time, and maintaining it requires consistent performance and communication.</p> Signup and view all the answers