Organizational vs Consumer Markets Quiz

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Questions and Answers

What describes the nature of the relationships in organizational markets?

Characterized by long-term relationships and interdependencies (correct)

Typically involves cash transactions only

Predominantly short-term with many sellers

Based on price fluctuations and minimal negotiations

How are purchases typically conducted in consumer markets?

Through complex financial arrangements and competitive bidding

Only through online platforms with discounts

At list price using cash or credit without negotiation (correct)

Directly from the producer with negotiated prices

Which statement is true about demand in organizational markets?

Demand tends to be more elastic compared to consumer markets

Demand is derived from the demand for other goods and services (correct)

Demand remains steady without fluctuations

Demand is independent of other goods and services

What is a key characteristic of buyers in organizational markets?

They usually constitute a limited number of large buyers Signup and view all the answers

Which type of promotion is emphasized in organizational markets?

Personal selling and direct relationships Signup and view all the answers

What is consumer behavior primarily concerned with?

The process individuals or groups use to select, purchase, and dispose of goods Signup and view all the answers

Which factor is NOT mentioned as influencing consumers’ decision-making processes?

Cultural factors Signup and view all the answers

Which level of decision-making involves the highest amount of consumer effort?

Extensive problem solving Signup and view all the answers

What primarily differentiates the characteristics of business-to-business markets from consumer markets?

The nature of the customers involved Signup and view all the answers

Which situation typically requires limited problem-solving?

Choosing a brand of toothpaste Signup and view all the answers

What role do internal factors play in consumer behavior?

They include psychological processes affecting choices Signup and view all the answers

What is a key component of the business buying decision process?

E-commerce engagement Signup and view all the answers

Which stage in the consumer decision-making process involves recognizing a gap between current circumstances and desired outcomes?

Problem Recognition Signup and view all the answers

What term describes the products that a consumer considers during their decision-making process?

Evoked Set Signup and view all the answers

Which factor is MOST important when evaluating alternatives in the decision-making process?

Determinant Attributes Signup and view all the answers

What can marketers do to trigger problem recognition in consumers?

Highlight benefits of new products Signup and view all the answers

During the information search stage, a consumer may look for information from which of the following?

Memory and the internet Signup and view all the answers

Which stage may involve both searching for information and evaluating alternatives simultaneously?

Information Search Signup and view all the answers

What is meant by 'evaluative criteria' in the consumer decision-making process?

Dimensions used to assess products Signup and view all the answers

Which of the following best describes the challenges consumers face when presented with too many choices?

Decision paralysis or overwhelm Signup and view all the answers

In the context of the evaluation of alternatives, what are determinant attributes?

Most crucial features for making a decision Signup and view all the answers

Which factor is considered a situational influence on consumer behavior?

Time poverty Signup and view all the answers

What distinguishes a subculture from a microculture?

Microcultures focus on a shared activity. Signup and view all the answers

How does culture influence consumer behavior?

By shaping shared values and practices. Signup and view all the answers

What is an example of a luxury product serving as a status symbol?

High-end designer handbags Signup and view all the answers

What role do opinion leaders play in consumer decision making?

They often influence the attitudes and behaviors of others. Signup and view all the answers

Which of the following is NOT a component of social influences on consumer decisions?

Occupational status Signup and view all the answers

Which factor is likely to represent a physical environment influence on consumer behavior?

Visual appeal of a retail store Signup and view all the answers

Which of the following best describes a hallmark of conscientious consumerism?

Making environmentally sustainable choices Signup and view all the answers

What is the main characteristic of a reference group?

They provide social pressure to conform. Signup and view all the answers

What does social class influence in consumer behavior?

The overall rank and social standing of consumers. Signup and view all the answers

What is a compensatory decision rule in consumer decision-making?

Assessing multiple attributes where strengths can offset weaknesses Signup and view all the answers

Which of the following best describes heuristics in consumer decision-making?

Mental shortcuts to simplify decision-making Signup and view all the answers

Which factor does NOT influence consumer perception?

Understanding of economic principles Signup and view all the answers

What can marketers do to reduce buyer's remorse after a purchase?

Ensure marketing communications set accurate expectations Signup and view all the answers

How does motivation influence consumer behavior?

It drives consumers to satisfy their needs Signup and view all the answers

In the context of perception, what does attention refer to?

The level of mental focus devoted to a stimulus Signup and view all the answers

Which of these options is NOT a characteristic of perception?

It is solely based on visual stimuli Signup and view all the answers

What is buyer's remorse?

Regret after making a purchase decision Signup and view all the answers

What role does country of origin play in consumer decision-making?

It can affect perceived quality and brand reputation Signup and view all the answers

What is included in Maslow's Hierarchy of Needs as internal motivations for consumers?

Physiological needs Signup and view all the answers

Study Notes

International Business Marketing MARKEC04

Course: International Business Marketing MARKEC04
Cluster: A-cluster (1st year, 1st semester)
Lecture: 6
Academic Year: 2024-2025

Understanding Consumer and Business Markets

Topic: Consumer Behavior and Purchase Decision-Making Process
Key Points: Consumer behavior involves selecting, purchasing, using, and disposing of goods, services, ideas, or experiences to satisfy needs and desires. Decision-making is influenced by internal (perception, motivation, learning, attitudes, personality, age, lifestyle), situational (physical environment, time), and social (culture, subculture, social class, group memberships, opinion leaders, gender roles) factors.
Examples: Darius's decision to purchase a new car, influenced by feedback from friends, reviews, and his needs.

Learning Objectives

Objective 6.1: Define consumer behavior and explain the purchase decision-making process.
Objective 6.2: Describe how internal factors influence consumer decision-making processes.
Objective 6.3: Explain how situational factors and consumer relationships impact consumer behavior.
Objective 6.4: Understand business-to-business market characteristics and marketer classifications of business customers.
Objective 6.5: Identify business purchase situations and describe the business buying decision process, including e-commerce and social media.
Objective 6.6: Understand employer expectations for prospective employees, increasing interview success.

The Consumer Decision-Making Process

Steps: Problem recognition, information search, evaluation of alternatives, product choice, and post-purchase evaluation
Example: Darius (Case Study): Recognizes his car's problems, researches new models, assesses options, chooses a car, and evaluates its performance.
Factors Influencing Decisions: Internal (perception, motivation, learning, attitudes, personality, age, lifestyle), external (situational- physical environment, time, social- culture, subculture, social class, group memberships, opinion leaders, gender roles), and others.

Not All Decisions Are the Same

Effort in decision-making varies depending on the level of involvement and perceived risk.
Types of decision-making: Habitual decision making, Limited problem solving, Extensive problem solving.

The Consumer Decision-Making Continuum

Differences in decision-making vary along the continuum from habitual to extensive problem solving.
Factors like level of involvement, risk, and information search differentiate these types of decisions.
Marketing actions are adapted based on these varying needs.

Step 1: Problem Recognition

Problem recognition occurs when a consumer discerns a difference between their current state and a desired state.
Marketers can stimulate problem recognition by highlighting product benefits or showing flaws in existing products.
Examples: Needing a new SUV, new jeans, or returning to school.

Step 2: Information Search

Consumers seek information to make informed decisions about products or services.
Evoked set (consideration set): Set of alternatives consumers are aware of and consider.
Internet, personal experiences, and word-of-mouth are primary information sources.
Examples: Online research (www.google.com/www.bing.com/ www.pricegrabber.com/www.bizrate.com), reading reviews.

Step 3: Evaluation of Alternatives

Consumers compare the features and attributes of selected products or services.
Determinant attributes are critical product features for comparison.
Information search and evaluation often occur simultaneously, particularly with extensive problem-solving decisions.

Step 4: Product Choice

Heuristics: Mental shortcuts used in decision making.
Examples: Price equals quality, Brand loyalty, Country of origin.

Step 5: Postpurchase Evaluation

Crucial—satisfaction or dissatisfaction impacts future decisions.
Factors include whether expectations were met or exceeded.
Marketing communications need to manage expectations.

Internal Influences on Consumer Decisions: Perception

Process of selecting, organizing, and interpreting information about the world.
Exposure, attention, and interpretation influence what people see and how they respond.
Sensory stimuli (sights, sounds, smells, tastes, textures) play a key role.

Internal Influences on Consumer Decisions: Motivation

Internal state driving goal-oriented behavior.
Needs are essential for activating goal-oriented behavior.
Examples of how motivation shapes consumer behavior: Purchasing bathtubs for functional and aesthetic reasons.

Needs ordered in a hierarchy, from basic physiological needs to higher-level self-actualization needs.
Products and services often targeted at specific needs and levels of belonging and esteem.

Learning

Learning: Relatively permanent change in behavior or thoughts caused by experience or information.
Theories: Behavioral, classical conditioning, operant conditioning, cognitive, observational learning

Attitudes

Lasting evaluations of a person, object, or issue.
Components: Affect (feeling), Cognition (knowledge), Behavior (intention or action).

Personality: Are You What You Buy?

Personality: Set of unique psychological characteristics that influence how individuals interact with the environment.
Influences: Self-concept, and self-esteem

Age and Family Life Cycle

Factors that impact consumer decisions related to various life stages including products targeted at young people, married couples, empty nesters.

Lifestyle

Pattern of living influenced by activities, interests, and opinions (AIOs)
Psychographics: Dividing consumers into groups based on these similarities.

Figure 6.4 Influences on Consumer Decision Making

Visual guide showcasing various influences on the consumer decision process (Internal, Situational, and Social).

Situational factors (physical environment, time, sensory marketing) shape purchase behaviors.
Social factors (culture, subcultures, social class, reference groups, opinion leaders, gender roles) influence consumer choices.

Consumers are part of many groups that impact purchase decisions.
Values, Trends, Culture, Subcultures, Microcultures, Conscientious consumerism, Social class, Reference groups, Opinion leaders, Sex roles.

Culture

Culture: Shared values, beliefs, customs, and tastes of a group.
Examples: Weddings and funerals, rituals, products tailored to cultural values.

Subcultures and Microcultures

Subcultures: Groups within a larger culture, with shared characteristics.
Microcultures: Groups based on shared activities, interests, and opinions like watching a TV show, participating in sports, or playing video games.

Social Class: Overall rank or standing in society, based on factors like family background, occupation, education, and income.
Luxury products signify status, while mass-market products appeal to a wider section of the population.

Group Membership

Group membership impacts consumer decisions.
Reference groups: Groups that influence a person's behavior.
Riskier alternatives—those taken on to fit in with a group.

Opinion Leaders

Opinion Leaders: Individuals influencing the attitudes and behaviors of others.
Characteristics: High interest in a product category, knowledgeable, and influential.

Gender Roles

Gender roles: Societal expectations about appropriate behaviors and opportunities for men and women.
Products marketed toward particular genders.

Part 2: Business-To-Business

Focuses on how businesses interact and conduct transactions, unlike individual consumers.

Buying and Selling When the Customer Is Another Organization

Business-to-Business (B2B) markets include manufacturers, resellers, and government/non-profit organizations.

The Business Marketplace

Diagram presents the various segments of the business market encompassing producers, resellers, and organizations.

Key Differences in Business Versus Consumer Markets

Chart highlighting distinct characteristics between business and consumer market including: Size of Purchases, Multiple buyers, Number of customers, and Geographic concentration.

Differences between Organizational and Consumer Markets

Comparison table illustrating distinguishing characteristics between organizational and consumer purchases (e.g., purpose, decision-making process, product specifications, purchase criteria).

Business-to-Business Demand

Derived Demand: Business demand linked to consumer demand for a product or service, influencing purchasing decisions.
Inelastic Demand: Not easily influenced by price changes.
Fluctuating Demand: Business demand varying as consumer demand fluctuates.
Joint Demand: Demand for two or more goods used together for a single product (e.g., computers and software).

Elements of the Buyclass Framework

Diagram of the framework depicting various types of business buying situations including; Straight, modified, New-task rebuy.

Professional Buyers and Buying Centers

Professional buyers and buying centers play crucial roles in organizational buying.
Buying center: Cross-functional teams making purchase decisions.

Roles in the Buyer Center

Individuals and their roles within the buying center, including the initiator, user, gatekeeper, influencer, decider, and buyer, along with their responsibilities.

Steps in the Business Buying Decision Process

Steps in the organizational buying process, from recognizing a need to evaluating post-purchase decisions.

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Description

Test your knowledge on the key differences between organizational and consumer markets. This quiz covers aspects such as purchasing processes, buyer characteristics, and decision-making in both market types. Ideal for business studies students or anyone interested in marketing principles.