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Questions and Answers
Which component of attitude consists of an emotional response?
Which component of attitude consists of an emotional response?
In Maslow's hierarchy of needs, which level would be best emphasized in an advertising slogan for jeans that highlights self-expression?
In Maslow's hierarchy of needs, which level would be best emphasized in an advertising slogan for jeans that highlights self-expression?
What does psychographics primarily focus on when grouping individuals?
What does psychographics primarily focus on when grouping individuals?
Which learning theory is primarily associated with the idea that behavior is shaped by rewards and punishments?
Which learning theory is primarily associated with the idea that behavior is shaped by rewards and punishments?
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What aspect of personality is reflected by a person's perception of their own worth?
What aspect of personality is reflected by a person's perception of their own worth?
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What is a characteristic unique to organizational markets compared to consumer markets?
What is a characteristic unique to organizational markets compared to consumer markets?
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What is a key difference between organizational markets and consumer markets?
What is a key difference between organizational markets and consumer markets?
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Which of the following statements accurately describes demand in organizational markets?
Which of the following statements accurately describes demand in organizational markets?
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In which type of market are purchases mainly made for individual or household consumption?
In which type of market are purchases mainly made for individual or household consumption?
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How does the purchasing process differ in organizational markets compared to consumer markets?
How does the purchasing process differ in organizational markets compared to consumer markets?
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Which characteristic is associated with organizational market purchases?
Which characteristic is associated with organizational market purchases?
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Which feature is indicative of consumer markets as opposed to organizational markets?
Which feature is indicative of consumer markets as opposed to organizational markets?
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What is a defining characteristic of a subculture?
What is a defining characteristic of a subculture?
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How do consumers typically make purchasing decisions compared to organizational buyers?
How do consumers typically make purchasing decisions compared to organizational buyers?
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What type of promotional strategy is primarily used in organizational markets?
What type of promotional strategy is primarily used in organizational markets?
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Which factor does NOT typically influence social class?
Which factor does NOT typically influence social class?
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What criteria do organizational purchasers rely on when making decisions?
What criteria do organizational purchasers rely on when making decisions?
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What is sensory marketing primarily concerned with?
What is sensory marketing primarily concerned with?
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Opinion leaders primarily influence consumers through which mechanism?
Opinion leaders primarily influence consumers through which mechanism?
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What role do reference groups typically play in consumer behavior?
What role do reference groups typically play in consumer behavior?
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Study Notes
International Business Marketing MARKEC04
- This course's topic is Understanding Consumer and Business Markets
- The lecture is part of a 1st year, 1st semester class
- The lecture was given on 6th of 2024-2025
Consumer Decision-Making
- Consumer behavior is a process of selecting, purchasing, using, and disposing of products/services/ideas/experiences to satisfy needs and desires.
- Consumer decisions are influenced by internal, situational, and social factors.
Internal Influences on Consumer Decisions
- Perception: The process of selecting, organizing, and interpreting information from the outside world. Three components(i) exposure- extent to which sensory receptors are registering a stimulus.(ii) attention- extent to which a person devotes mental processing to a stimulus. (iii) interpretation- process of assigning meaning to a stimulus based on prior associations and assumptions.
- Motivation: An internal state that drives us to satisfy needs by activating goal-oriented behavior. Consumers buy products for functional and emotional reasons.
- Learning: A relatively permanent change in behavior caused by information or experience.
- Attitudes: Lasting evaluations of a person, object, or issue. Key components of attitude are: affect(feeling), cognition(knowing), and behavior(doing).
- Personality: The set of unique psychological characteristics that influence the way a person responds to situations in their environment (self-concept and self-esteem).
- Age and Family Life Cycle: Reflects a pattern of living. Psychographics group people according to psychological and behavioral similarities (often based on activities, interests, and opinions- AIOs).
External Influences on Consumer Decisions
-
Situational Influences:
- Physical environment
- Time;
-
Social Influences:
- Culture
- Subculture
- Social class
- Group memberships
- Opinion leaders
- Gender roles
Not All Consumer Decisions are the Same
- Amount of effort in a decision varies based on: level of involvement and perceived risk.
- Consumer approaches decision making differently based on effort. (habitual, extensive, or limited)
Steps in the Consumer Decision-Making Process
- Problem recognition
- Information search
- Evaluation of alternatives
- Product choice
- Postpurchase evaluation
Steps in the Business Buying Decision Process
- Recognize a problem
- Search for Information
- Evaluate alternatives
- Select product and supplier
- Evaluate post purchase
Business-to-Business Markets
- Business-to-business markets involve buying and selling between organizations or institutions.
- Include manufacturers, resellers (retailers, wholesalers), and government/not-for-profit institutions.
- Key Differences in Business vs Consumer Markets:
-Size of purchases: Purchases are typically large scale
- Number of customers: Fewer customers, concentrated geographically
- Buying process: More complex processes, typically involve more parties involved (buying center).
- Derived Demand: Demand for one product is derived from the demand for another.
- Inelastic demand: Demand that is not considerably affected by price changes.
- Fluctuating Demand: Small changes in customer demand can create large changes in business demand.
- Joint Demand: Two or more goods needed to create a product.
- Buyclass Framework: Straight rebuy, Modified rebuy, and New task buy. This framework is used to classify business buying situations.
- Buying Center: Cross-functional group within an organization working together to make a business buying decision.
- Roles of individuals within a buying center: Initiator, User, Gatekeeper, Influencer, Decider, Buyer.
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Description
This quiz explores the understanding of consumer behavior and decision-making processes within business markets. The focus is on internal influences such as perception and motivation that shape consumer choices. Geared towards first-year students in their introductory semester.
