Podcast
Questions and Answers
Which component is NOT typically associated with the business buying decision-making process?
Which component is NOT typically associated with the business buying decision-making process?
In the business buying process, what primarily drives the demand?
In the business buying process, what primarily drives the demand?
What is an example of internal search in the business buying process?
What is an example of internal search in the business buying process?
Which factor plays a role in aligning business decisions with the desired outcomes?
Which factor plays a role in aligning business decisions with the desired outcomes?
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What is a key difference between B2B marketing communications and consumer marketing communications?
What is a key difference between B2B marketing communications and consumer marketing communications?
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Which of the following is NOT a unique dynamic to the business buying process?
Which of the following is NOT a unique dynamic to the business buying process?
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Which scenario best illustrates derived demand in a business buying context?
Which scenario best illustrates derived demand in a business buying context?
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In evaluating consumer satisfaction after a business decision, what aspect is considered most complex?
In evaluating consumer satisfaction after a business decision, what aspect is considered most complex?
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What situational factor might influence a consumer's decision between buying a gift or a personal item?
What situational factor might influence a consumer's decision between buying a gift or a personal item?
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Which internal factor could dictate how a consumer interprets a brand's advertisement?
Which internal factor could dictate how a consumer interprets a brand's advertisement?
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What is an example of an antecedent state that can influence consumer decision making?
What is an example of an antecedent state that can influence consumer decision making?
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How would you categorize the act of choosing to buy a new iPhone instead of an older model?
How would you categorize the act of choosing to buy a new iPhone instead of an older model?
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What type of influence does group presence represent in the decision-making process?
What type of influence does group presence represent in the decision-making process?
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Which internal factor is defined as a learned predisposition to respond positively or negatively?
Which internal factor is defined as a learned predisposition to respond positively or negatively?
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What is likely to impact decision making in a retail space where ambiance is considered?
What is likely to impact decision making in a retail space where ambiance is considered?
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Which of the following represents an internal factor that drives consumer actions?
Which of the following represents an internal factor that drives consumer actions?
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What is the primary distinction between consumers and buyers/shopers?
What is the primary distinction between consumers and buyers/shopers?
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In the decision-making process, which step directly follows the identification of a need?
In the decision-making process, which step directly follows the identification of a need?
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Which type of decision involves a high level of personal, social, and economic significance?
Which type of decision involves a high level of personal, social, and economic significance?
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What is a characteristic of habitual decision making?
What is a characteristic of habitual decision making?
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How can marketers utilize heuristics in the decision-making process?
How can marketers utilize heuristics in the decision-making process?
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After making a purchase, what is the primary purpose of evaluating the decision?
After making a purchase, what is the primary purpose of evaluating the decision?
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What is an evoked set in the context of evaluating options?
What is an evoked set in the context of evaluating options?
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Which factor may not influence the decision-making process directly?
Which factor may not influence the decision-making process directly?
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What is a characteristic feature of limited problem solving?
What is a characteristic feature of limited problem solving?
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What occurs during the post decision analysis phase?
What occurs during the post decision analysis phase?
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Study Notes
Consumer Decision-Making Process
- Consumers are individuals who use products, while buyers/shoppers are directly involved in the purchase.
- The decision-making process involves:
- Identifying the need: A sense of dissatisfaction or a feeling of something missing.
- Searching for options: Consumers gather information about potential choices.
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Evaluating options: Consumers analyze the gathered information and compare options.
- This process can be categorized into three sets:
- Decision set: The actual options being considered.
- Evoked set: Options consumers are aware of but may not actively consider.
- Universal set: The entire range of options available, even those the consumer is unaware of.
- This process can be categorized into three sets:
- Making the decision: The chosen option is selected based on evaluation and preferences.
- Post-decision analysis: Consumers evaluate the effectiveness of their choice in meeting the need.
Types of Decisions
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Extended problem solving:
- Driven by motives central to self-concept.
- Consumers perceive a high level of risk in the decision.
- Example: Choosing a college.
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Extensive/ High level involvement: Purchases that are significant personally, socially, and economically.
- Expensive, image-focused, and infrequently bought (e.g., car purchase).
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Limited problem solving:
- Consumers are less motivated to search for information and evaluate options rigorously.
- Simple decision rules are used (e.g., selecting a hoodie).
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Habitual decision making:
- Choices made with minimal conscious effort (e.g., selecting toothpaste).
- Consumers are frequently unaware of these decisions.
- Marketers aim to "unfreeze" established habits and replace them with new ones (e.g., Crest expanding into oral care).
- It's important to note that frequent brand buying does not always indicate loyalty; it could be a habit.
Key Players in the Business Decision-Making Process
- User/consumer: The individual who utilizes the product.
- Initiator: Identifies the need for a product or service.
- Buyer: The individual authorized to make the purchase.
- Influencer: Provides advice and recommendations to the decision-maker.
- Gatekeeper/procurement: Controls access to information and potential vendors.
- Decider/approver: Makes the final decision on which option to choose.
- Other divisions/locations: Individuals from other departments or locations involved in the decision.
- Additional interested parties: Stakeholders such as shareholders, activist groups, and industry bodies.
Business Buying Decisions Versus Consumer Buying
- Derived demand: Business buying is often influenced by the needs of their end consumers (the businesses' customers).
- Internal search: Business buyers tap into existing company knowledge, vendor lists, and contacts within different departments or locations.
- External search: Business buyers utilize information from existing suppliers, consultants, and industry sources, similar to consumers but with specific criteria.
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Decision making: The business buying process incorporates unique dynamics:
- Responsibility: Who is responsible for the decision?
- Authority: Who has the authority to make the purchase?
- Accountability: Who is accountable for the outcome?
- Alignment/verification: Ensuring the decision aligns with organizational goals.
- Post-decision analysis: Evaluations are more complex and critical in business buying, as they involve significant investments.
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Marketing communications differences: Strategies employed in business-to-business (B2B) marketing differ from those used for consumer marketing.
- Trade shows, trade journals, sales calls, cold calls/emails, and industry events are pivotal in B2B marketing.
Situational Factors Influencing Decision Making
- Purchase task: The reason for the purchase (e.g., gift or for personal use).
- Social surroundings: The presence of others who may influence the decision.
- Physical surroundings: The environment in which the decision is made, such as the store layout or atmosphere.
- Temporal effects: The time of day, the amount of time available, or the occasion.
- Antecedent states: The consumer's mood or physical state (e.g., feeling hungry).
Internal and External Factors Influencing Decision Making
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Internal factors:*
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Personality: Enduring traits and characteristics that define an individual.
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Motivation: Forces that drive an individual to action.
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Values: Personal beliefs about what is important or holds worth.
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Beliefs: Thoughts or convictions about something being true.
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Lifestyle: The individual's approach to living their life, including their activities, interests, and opinions.
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Perception: How individuals interpret sensory inputs and experiences.
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Attitude: A learned predisposition toward an object or concept, encompassing three components:
- Cognitive: Thoughts and beliefs.
- Affective: Feelings and emotions.
- Behavioral: Intentions and actions.
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External factors:*
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Personal influence: Word of mouth, viral marketing (like on TikTok).
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Rational perspective: While many purchases are influenced by emotions and social factors, rational factors (e.g., price, features) also play a role. This perspective explains why individuals might choose a new iPhone despite its high cost.
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