Unit 5: Consumer Buyer Behaviour

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Questions and Answers

Which group of consumers should an innovating firm research and target in their marketing efforts?

Early adopters and innovators (correct)

Laggards

The late majority

Conservatives

What is the primary factor that affects the rate of adoption of a new product?

Competition

Marketing strategy

Price

Product characteristics (correct)

What is relative advantage in the context of innovation adoption?

The degree to which an innovation appears superior to existing products (correct)

The degree to which an innovation is complex

The degree to which an innovation is observable

The degree to which an innovation is compatible with existing products

What is the main subject of consumer buyer behaviour?

Buying behavior of final consumers Signup and view all the answers

What is the primary focus of marketers in studying consumer behaviour?

Why consumers respond to marketing efforts Signup and view all the answers

What is the main challenge in studying consumer buying behaviour?

Determining the reasons behind consumer purchases Signup and view all the answers

What do marketers use to understand consumer behaviour?

The model of consumer behaviour Signup and view all the answers

What is a characteristic of consumers around the world?

They vary tremendously in age, income, education level and tastes Signup and view all the answers

What factor influences how consumers evaluate purchase alternatives?

The individual consumer and the specific buying situation Signup and view all the answers

What is the ongoing process that individuals or groups go through to select, purchase, use and dispose of goods and services?

Consumer buying behaviour Signup and view all the answers

When making buying decisions, what do consumers sometimes rely on?

Impulse and intuition Signup and view all the answers

What would make it easy to predict a buyer's choice?

If the buyer is interested in only one attribute Signup and view all the answers

Why is it important for marketers to study buyers?

To understand how they evaluate brand alternatives Signup and view all the answers

What type of information would help marketers predict a buyer's choice?

The importance the buyer assigns to each attribute Signup and view all the answers

What do consumers typically consider when making a buying decision?

Several attributes, each with different importance Signup and view all the answers

What is a key difference between opinion leaders and commercial endorsers?

Opinion leaders have no ax to grind and can provide both positive and negative information Signup and view all the answers

What is the primary goal of buzz marketing?

To enlist opinion leaders as brand ambassadors Signup and view all the answers

What is the potential increase in effectiveness of word-of-mouth marketing efforts through brand ambassador programs?

50 percent Signup and view all the answers

What is the primary purpose of online social networks in marketing?

To build closer customer relationships Signup and view all the answers

What type of customers are often targeted by brand ambassador programs?

Influential but everyday customers Signup and view all the answers

What is the term for online communities where people socialize or exchange information and opinions?

Online social networks Signup and view all the answers

What has contributed to the rapid increase in HDTV adoption?

Availability of more high definition programs and channels Signup and view all the answers

Why were early HDTVs and HD cable and satellite systems slow to be adopted?

They were expensive Signup and view all the answers

What characteristic of HDTV facilitates its rapid adoption?

High communicability Signup and view all the answers

What type of buyer behavior is described in the business market?

Business buyer behavior Signup and view all the answers

What do business markets include?

Retailing and wholesaling firms, as well as other organizations that buy goods and services Signup and view all the answers

Why is it important for a new-product marketer to research various factors?

To develop an effective marketing program Signup and view all the answers

Study Notes

Marketers should target Innovators

Innovators are often the first to adopt a new product

Relative Advantage

Relative advantage is the degree to which a new product is perceived as being better than existing alternatives

The Rate of Adoption

The primary factor affecting the rate of adoption of a new product is relative advantage.

Consumer Buyer Behaviour

The main subject of consumer buyer behaviour is the process individuals and groups go through to select, purchase, use, and dispose of goods and services.

The Primary Focus of Marketers

Marketers study consumer behaviour to understand how consumers make purchase decisions.

Understanding Consumer Behaviour

Consumer behaviour is a complex and dynamic process, and researchers use various methods to understand how consumers make decisions.

Consumers Around the World

Consumers around the world share the same characteristics.

Evaluation of Purchase Alternatives

Consumers evaluate purchase alternatives based on various factors, including perceived value, price, and brand image.

The Consumer Decision Process

The consumer decision process is the ongoing process individuals and groups go through to select, purchase, use, and dispose of goods and services.

Reliance on Information

Instead of always using a rational decision-making process, consumers sometimes rely on heuristics and intuition to make buying decisions.

Predicting a Buyer's Choice

It's easier to predict a buyer's choice when you know things like their demographics, psychographics, and past behaviour.

The Importance of Studying Buyers

Marketers must study buyers to develop effective marketing strategies, understand consumer needs and wants, and predict market trends.

Information for Predicting Buyer Choice

Marketers can predict a buyer's choice by studying the buyer's demographics, psychographics, past purchasing behaviour, and exposure to marketing messages.

Considerations in a Buying Decision

Typical considerations in a buying decision include product features, price, availability, brand reputation, and customer reviews.

Opinion Leaders vs. Commercial Endorsers

Opinion leaders are trusted individuals who influence the opinions and behaviour of others through their knowledge, expertise, or social standing. Commercial endorsers, often celebrities or influencers, are paid to endorse products or services.

The Goal of Buzz Marketing

Buzz marketing aims to create a buzz or excitement about a product or service by generating positive word-of-mouth marketing among target consumers.

Effectiveness of Brand Ambassador Programs

Word-of-mouth marketing efforts through brand ambassador programs can significantly increase effectiveness by leveraging the authenticity and trust of brand ambassadors.

The primary purpose of online social networks in marketing is to engage with customers, build relationships, generate buzz, and promote brands and products.

Brand Ambassador Programs

Brand ambassador programs often target customers who are passionate about the brand and actively engage in online communities.

Online Communities

Online communities, often called online forums, boards, or groups, are online spaces where people socialize, exchange information, and share opinions.

HDTV Adoption

The rapid increase in HDTV adoption is driven by factors including increased availability of HD content, falling prices, and the superior viewing experience compared to traditional television.

Early HDTV Adoption

Early HDTVs and HD cable and satellite systems were slow to be adopted due to factors such as high prices, limited HD content, and the lack of a critical mass needed to justify the investment.

Characteristic Promoting Adoption

The characteristic of HDTV that facilitates its rapid adoption is its compelling value proposition, offering a superior viewing experience with improved picture quality and definition.

Business Market Buyer Behaviour

Business market buyer behaviour is characterized by a rational and deliberate decision-making process involving multiple stakeholders.

Business Market Definition

Business markets include organizations, government agencies, non-profit organizations, and individuals who purchase goods and services to produce other goods and services or for resale.

The Importance of Research

It is important for a new-product marketer to research various factors to understand consumer behaviour, market trends, competitive landscape, and regulatory environment before launching a new product. This research helps anticipate potential challenges and optimize the product's success.

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Description

Learn about the buying behavior of final consumers, including individuals and households who buy goods and services for personal consumption. Understand the process of selecting, purchasing, using, and disposing of goods and services to satisfy needs and desires.