Unit 2 Understanding the marketplace. Buyer behaviour

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Questions and Answers

What characterizes a straight rebuy situation?

The buyer seeks a complete solution from multiple sellers.

The buyer purchases for the first time.

The buyer reorders without changing anything. (correct)

The buyer modifies the order specifications.

Which factor is NOT part of the adoption process for innovation?

Relative advantage

Communication capacity

Brand loyalty (correct)

Compatibility

In business buying behavior, which aspect does NOT typically increase complexity compared to consumer purchases?

More professional purchasing effort

Limited supplier interactions (correct)

More buyer and seller interaction

More decision participants

Which term describes a buying situation where the buyer seeks to modify the product specifications or terms?

Modified rebuy (B) Signup and view all the answers

What role is primarily responsible for controlling the flow of information in the business buying process?

Gatekeepers (C) Signup and view all the answers

What does consumer buyer behaviour primarily refer to?

Buying goods and services for personal consumption (B) Signup and view all the answers

Which of the following is NOT a source of data regarding consumer behaviour?

Personal income statements (A) Signup and view all the answers

What is a reference group in the context of consumer behaviour?

A point of comparison shaping a person’s behaviour (A) Signup and view all the answers

Which of the following best describes an opinion leader?

Someone whose characteristics influence others’ purchasing decisions (B) Signup and view all the answers

Which factor does NOT influence consumer buying behaviour?

Fashion trends (D) Signup and view all the answers

What is the primary goal of Marketing Analytics in understanding consumer behaviour?

To generate meaningful patterns and gain insights (D) Signup and view all the answers

Which of the following represents ethical considerations in consumer data management?

Maintaining data security and privacy (C) Signup and view all the answers

Which of the following best defines motivation?

A need that is sufficiently pressing to drive a person to seek satisfaction. (A) Signup and view all the answers

What is selective attention?

The inclination to ignore most information encountered. (D) Signup and view all the answers

In the buyer decision process, what occurs during the need recognition phase?

The buyer recognizes a gap between actual and desired states. (C) Signup and view all the answers

Which source of information is NOT typically considered a commercial source?

Family and friends (C) Signup and view all the answers

How do consumers typically handle selective distortion?

By interpreting information to align with their beliefs. (A) Signup and view all the answers

What can contribute to selective retention?

Recalling preferred product attributes while forgetting negatives. (D) Signup and view all the answers

During the evaluation of alternatives, how do consumers typically view products?

As sets of attributes that provide desired benefits. (A) Signup and view all the answers

Which of the following statements about beliefs and attitudes is true?

They remain stable over time and are difficult to alter. (B) Signup and view all the answers

What role does perception play in consumer behavior?

It helps consumers to select and interpret information. (D) Signup and view all the answers

What is the purpose of the information search stage in the buyer decision process?

To gather sufficient information to satisfy a pressing need. (D) Signup and view all the answers

Study Notes

Consumer Buyer Behavior

Consumer buyer behavior is the process individuals and households undergo when purchasing goods and services for personal consumption.
Consumer markets encompass all individuals and households buying goods/services for personal use.
Data sources for consumer behavior include online interactions (digital traces), mobile devices (location data, app use), e-commerce, IoT devices, surveys, physical stores, cookies/tracking, and third-party sources.
Data is collected, analyzed, visualized, and used for action. CRM platforms integrate and analyze data for a 360-degree view.
Ethical considerations regarding consumer data include privacy, data security, data protection, and misuse of data.

Sources of Consumer Data

Online interactions (browsing, purchasing, social media) form a digital trace.
Mobile devices provide location data, app usage, and biometric information.
E-commerce reveals purchase history and preferences.
IoT devices track user habits and preferences.
Surveys and feedback gather customer opinions.
Physical stores use loyalty programs, cameras, and sensors for data collection.
Cookies and tracking monitor online behavior (time spent, page views, item additions).
Third-party sources offer demographic, income, and psychographic data.

Cultural Influences

Culture is a set of values, perceptions, and behaviors learned from family and institutions.
Subcultures are groups within a culture sharing values based on experiences.
Reference groups serve as comparison points for behavior.
Opinion leaders have influence based on skills, knowledge, personality or characteristics.
Word-of-mouth influence comes from recommendations of trusted individuals.

Buyer's Black Box

The 'buyer's black box' illustrates the decision-making process between marketing stimuli and buyer responses.
Buyers' characteristics include economic, technological, social, and cultural factors.
Buyer decision processes involve need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Buyer Responses

Buying attitudes and preferences are shaped by factors.
Purchase behavior includes what, when, where, and how much is bought.
Brand engagement and relationships are built through experiences.

Types of Buying Decision Behavior

Need recognition: buyer recognizes a difference between actual and desired state.
Information search: motivated buyer gathers information from personal, commercial, public, and personal sources.
Evaluation of alternatives: buyer assesses product attributes and brand beliefs.
Purchase decision: forming preference and making purchase decisions. Includes attitudes of others and unforeseen factors.
Post-purchase behavior: perceived value, satisfaction (or dissatisfaction) affects future actions.

Business Buyer Behavior

Business buyer behavior involves organizations purchasing goods and services to use in production.
Purchasing processes involve determining product/service needs, evaluating alternatives, and choosing among brands.
Business buying usually involves more participants and formal procedures than consumer buying.

Adoption Process

The adoption process describes the steps an individual goes through from learning about an innovation to adopting it. Stages include: consciousness, interest, evaluation, trial, and adoption.
Factors influencing adoption include relative advantage, compatibility, complexity, divisibility, and communication capacity.

Influencer Marketing

Established influencers spread brand information (usually positive).
Roles and status influence buying behavior.
Factors like occupation, age, and lifestyle affect buying decisions.
Economic factors (income, savings, interest rates) impact purchasing habits.

Selective Processes

Selective attention is screening out most incoming information.
Selective distortion is interpreting information to support existing beliefs.
Selective retention is remembering information that supports existing beliefs.

Straight, Modified, and New Task Buying

Straight rebuy: routine reorder without modification.
Modified rebuy: adjusting product specs, prices, or suppliers.
New task: first-time purchase of a product/service.
Systems selling: purchasing a complete solution from a single seller.

Institutional Markets

Institutional markets (schools, hospitals, prisons) buy goods and services for the cared-for individuals.
These markets are characterized by low budgets and captive patrons.

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Description

This quiz explores the intricacies of consumer buyer behavior, focusing on the processes involved in making personal consumption decisions. It also examines various sources of consumer data and important ethical considerations regarding data usage and privacy. Test your understanding of these essential concepts in consumer behavior.