Consumer Behavior and Market Dynamics

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What is consumer buyer behavior?

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

What is the consumer market?

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

What are the major factors influencing consumer buyer behavior?

Social Factors (correct)
Personal Factors (correct)
Cultural Factors (correct)
Psychological Factors (correct)

What is culture?

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

What are subcultures?

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

What are social classes?

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. Signup and view all the answers

Which groups are included in social networks?

All of the above (D) Signup and view all the answers

Family is the most important consumer-buying organization in society.

True (A) Signup and view all the answers

How can role and status within a group define a person's position?

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

How does age and life-cycle stage influence buying behavior?

Age and life-cycle stage influence buying behavior. Signup and view all the answers

How does occupation affect buying behavior?

Occupation affects the goods and services consumers buy. Signup and view all the answers

How does economic situation influence buying decisions?

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

What is lifestyle?

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

What is personality?

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

What is motivation?

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. Signup and view all the answers

What is perception?

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

What is learning?

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

What are beliefs?

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

What is an attitude?

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

What are the major types of buying decision behavior?

Variety-Seeking Buying Behavior (A), Complex Buying Behavior (B), Dissonance-Reducing Buying Behavior (C), Habitual Buying Behavior (D) Signup and view all the answers

What are the stages in the buyer decision process?

Postpurchase Behavior (A), Need Recognition (B), Information Search (C), Evaluation of Alternatives (D), Purchase Decision (E) Signup and view all the answers

What is the adoption process for new products?

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

What are the stages in the adoption process?

Awareness (A), Evaluation (B), Interest (C), Trial (D), Adoption (E) Signup and view all the answers

Consumers adopt new products at different rates. What are these categories?

Innovators (A), Early Adopters (B), Late Mainstream (C), Lagging Adopters (D), Early Mainstream (E) Signup and view all the answers

What product characteristics influence the rate of adoption?

Compatibility (A), Relative Advantage (B), Divisibility (C), Complexity (D), Communicability (E) Signup and view all the answers

What are business markets?

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. Signup and view all the answers

What are the differences between business markets and consumer markets?

Business markets have fewer but larger buyers. (A), Business markets have derived demand. (B), Business markets have inelastic demand. (C), Business markets have fluctuating demand. (D), All of the above (E) Signup and view all the answers

What are the key differences between business purchases and consumer purchases?

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

What are the steps involved in the business buying process?

Supplier Selection (A), Performance Review (B), Supplier Search (C), Order-Routine Specifications (D), Problem Recognition (E), Proposal Solicitation (F), Product Specification (G), General Need Description (H) Signup and view all the answers

What is value analysis?

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. Signup and view all the answers

What is supplier search?

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

What is proposal solicitation?

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

What is supplier selection?

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

What are order-routine specifications?

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

What is a performance review?

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

What are the major influences on business buying behavior?

Organizational Factors (A), Environmental Factors (B), Economic Factors (C), Interpersonal Factors (D), Individual Factors (E) Signup and view all the answers

What are environmental factors that influence business buying behavior?

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

What are organizational factors that influence business buying behavior?

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

What are interpersonal factors that influence business buying behavior?

Interpersonal factors include influence, expertise, authority, and dynamics. Signup and view all the answers

What are individual factors that influence business buying behavior?

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

What are economic factors that influence business buying behavior?

Economic factors include price and service. Signup and view all the answers

What are the types of buying situations?

Straight Rebuy (A), Modified Rebuy (B), New Task (C) Signup and view all the answers

What is a straight rebuy?

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

What is a modified rebuy?

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

What is a new task?

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

What is systems selling?

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

What is a buying center?

Participants in the business buying process form a buying center. Signup and view all the answers

Who are the participants in a buying center?

Gatekeepers (A), Users (B), Influencers (C), Purchasers (D), Deciders (E) Signup and view all the answers

What are the advantages of e-procurement and online purchasing?

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

What are institutional markets?

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

What are government markets?

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. Signup and view all the answers

What is 'derived demand' in the context of business markets?

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

What is the difference between a 'straight rebuy' and a 'modified rebuy'?

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

What are some of the non-economic factors that might influence government buying decisions?

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

What is 'value analysis' in the context of the business buying process?

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. Signup and view all the answers

What is the role of 'gatekeepers' in the business buying center?

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

What is market segmentation?

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

What are the bases for segmenting consumer markets?

Geographic Segmentation (A), Behavioral Segmentation (B), Psychographic Segmentation (C), Demographic Segmentation (D) Signup and view all the answers

What is geographic segmentation?

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

What is behavioral segmentation?

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

What is multiple segmentation?

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

How can business markets be segmented?

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

How can international markets be segmented?

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

What are the requirements for effective segmentation?

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

What is market targeting?

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

What is a target market?

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

What are the factors to consider when evaluating market segments?

Segment Size and Growth (A), Segment Structural Attractiveness (B), Company Objectives and Resources (C) Signup and view all the answers

What are the market-targeting strategies?

Differentiated Marketing (A), Concentrated Marketing (B), Undifferentiated Marketing (C), Micromarketing (D) Signup and view all the answers

What is undifferentiated marketing?

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

What is concentrated marketing?

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. Signup and view all the answers

What is micromarketing?

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

What factors influence the choice of a targeting strategy?

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

What is product positioning?

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

What is a positioning map?

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

What steps are involved in choosing a differentiation and positioning strategy?

Choosing the Right Competitive Advantages (A), Selecting an Overall Positioning Strategy (B), Communicating and Delivering the Chosen Position to the Market (C), Identifying Possible Competitive Advantages (D) Signup and view all the answers

What is competitive advantage?

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

How can differentiation occur?

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

What are the qualities of a competitive advantage?

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

What is a value proposition?

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

What is a positioning statement?

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

What is the importance of consistent performance and communication in maintaining a brand's position?

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

Consumer Buyer Behavior

The buying behavior of individuals and households who purchase goods and services for personal use.

Consumer Market

All individuals and households that buy or acquire goods and services for personal consumption.