Consumer vs Business Buyer Behaviour: Key Differences in Marketing

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Questions and Answers

What is the definition of the consumer market?

Individuals and households that buy goods and services for personal or business consumption (correct)

Households that buy goods and services for business use

Only individuals that buy goods and services for personal consumption

Only individuals that buy goods and services for business use

In the context of buyer behaviour, what is the business market?

Organizations that buy goods and services for business operations (correct)

Organizations that sell goods and services

Individuals that buy luxury goods

Individuals and households that buy goods and services for personal consumption

What is the key difference between consumer market and business market?

Consumer market exclusively involves online purchases; business market only buys in physical stores

Consumer market is only seasonal purchases; business market buys throughout the year

Consumer market includes individuals and households; business market includes organizations (correct)

Consumer market is limited to luxury goods; business market buys everyday products

Which of the following is a key focus area in understanding consumer buyer behaviour?

Factors influencing consumer decision-making Signup and view all the answers

What does the consumer market consist of?

Individuals and households acquiring goods and services for personal use Signup and view all the answers

In the business buying process, which stage involves someone in the company recognizing a problem or need that can be met by acquiring a good or a service?

Problem recognition Signup and view all the answers

Which factor heavily influences business buyers by factors such as the economic environment, supply of key materials, and competitive developments?

Environmental factors Signup and view all the answers

What defines the group of individuals who influence each other and impact the business buying process?

Interpersonal factors Signup and view all the answers

Which stage of the business buying process involves describing the general characteristics and quantity of a needed item?

General need description Signup and view all the answers

What aspect of the buying organization includes its objectives, strategies, structure, systems, and procedures?

Organizational factors Signup and view all the answers

Who are the individuals in an organization's buying center who control the flow of information to others?

Gatekeepers Signup and view all the answers

What is the primary goal of a consumer in the evaluation of alternatives stage of the buyer decision process?

To evaluate alternative brands in the choice set Signup and view all the answers

In the adoption process, what stage follows the interest stage?

Evaluation Signup and view all the answers

What is the term for the degree to which an innovation appears superior to existing products?

Relative advantage Signup and view all the answers

In the buyer decision process, what stage involves taking action after purchase?

Post-purchase behaviour Signup and view all the answers

What is the first stage of the adoption process?

Awareness Signup and view all the answers

In the information search stage, what type of sources may consumers use?

Personal, commercial, public, and experiential sources Signup and view all the answers

Which stage of the business buying process involves deciding on the technical product characteristics for a needed item?

Product specification Signup and view all the answers

What is the main purpose of the supplier search stage?

To find the best vendors Signup and view all the answers

What is e-procurement?

Purchasing through electronic connections between buyers and sellers Signup and view all the answers

What happens in the order-routine specification stage?

The buyer writes the final order with the chosen supplier Signup and view all the answers

What is the purpose of the performance review stage?

To assess the performance of the supplier Signup and view all the answers

What is one of the benefits of e-procurement?

It lowers purchasing costs Signup and view all the answers

What is buzz marketing?

Enlisting or creating opinion leaders to serve as brand ambassadors Signup and view all the answers

What is the most important consumer buying organization in society?

Family Signup and view all the answers

What is a role in the context of consumer behavior?

Expected activities Signup and view all the answers

What is an example of a personal factor affecting consumer behaviour?

Occupation Signup and view all the answers

What happens as a person's occupation affects the goods and services they buy?

Marketers identify the occupational groups with interest in their products and services Signup and view all the answers

What is the impact of a person's economic situation on their buying behavior?

Affects store and product choices Signup and view all the answers

Study Notes

Buzz Marketing and Consumer Behavior

Buzz marketing involves enlisting opinion leaders to serve as "brand ambassadors" who spread the word about a company's products.
Many companies create brand ambassador programs to turn influential customers into brand evangelists.

Characteristics Affecting Consumer Behavior

Social Factors: Family is the most important consumer buying organization in society, and it has been researched extensively.
Family strongly influences buying behavior, and changing roles in the family mean that marketers must now engage both men and women.
Children may also have a strong influence on family buying decisions.
Roles and status: A person's role and status in society affect their buying behavior.

Personal Factors

Age and Life-cycle Stage: People change the goods and services they buy over their lifetimes, and marketers define their target markets in terms of life-cycle stage.
Occupation: A person's occupation affects the goods and services they buy, and marketers identify occupational groups with an above-average interest in their products and services.
Economic Situation: A person's economic situation will affect their store and product choices.

Consumer Buyer Behavior

The buying behavior of final consumers, individuals, and households that buy goods and services for personal consumption.
The consumer market consists of all individuals and households that buy or acquire goods and services for personal consumption.

Business Buyer Behavior

Major Influences on Business Buyers:
- Environmental Factors: Business buyers are heavily influenced by factors in the current and expected economic environment, supply of key materials, technological, political, and competitive developments, culture, and customs.
- Organizational Factors: Each buying organization has its own objectives, strategies, structure, systems, and procedures.
- Interpersonal Factors: The buying center usually includes many participants who influence each other.

Stages of the Business Buying Process

Problem recognition: The first stage of the business buying process, in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.
General need description: The stage in which a buyer describes the general characteristics and quantity of a needed item.
Information search: The stage in which the buyer searches for more information.
Evaluation of Alternatives: The stage in which the buyer evaluates alternative brands in the choice set.
Purchase decision: The buyer's decision about which brand to purchase.
Post-purchase behavior: The stage in which consumers take further action after purchase based on their satisfaction or dissatisfaction.

Adoption and Diffusion Process for New Products

Stages in the Adoption Process:
- Awareness: The consumer becomes aware of the new product but lacks information about it.
- Interest: The consumer seeks information about the new product.
- Evaluation: The consumer considers whether trying the new product makes sense.
- Trial: The consumer tries the new product on a small scale.
- Adoption: The consumer decides to make full and regular use of the new product.

Influence of Product Characteristics on Rate of Adoption

Relative advantage: The degree to which the innovation appears superior to existing products.
Compatibility: The degree to which the innovation fits the values and experiences of potential consumers.

E-Procurement

E-procurement is purchasing through electronic connections between buyers and sellers, usually online.
It gives buyers access to new suppliers, lowers purchasing costs, and hastens order processing and delivery.
Business marketers can connect with customers online to share marketing information, sell products and services, provide customer support services, and maintain ongoing customer relationships.

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Description

This quiz covers the fundamentals of consumer and business buyer behaviour in marketing. Topics include the factors influencing consumer buyer behavior, stages in the buyer decision process, adoption process for new products, factors impacting business buyer behavior, and steps in the business buying decision process.

Understanding Consumer and Business Buyer Behaviour in Marketing