Marketing Ch.5 Consumer Buyer Decision Process

Consumer Decision Making process
– a five step process used by consumers when buying good and services.
5 step process
1. need recognition
2. info search
3. eval of alternatives
4. purch. decisions
5. post purch. behavior.
Evoked Set
– group of brands or products, resulting from an informational search, from which a buyer can choose.
Cognitive Dissonance
– inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.
Involvement
– the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.
High involvement purchases
extensive and informative promotion to target market. i.e. cars
Low involvement purchases
– in store promotion, eye catching package design, and good supplies. i.e. ceral
Adoption process
1. awareness
2. interest
3. evaluation
4. trial
5. adoption
Characteristics Influencing an innovations rate of adoption
1. relative advantage
2. compatibility
3. Complexity
4. Divisibility
5. Communicability
Consumer Product
are purchased by people for their personal use.
Business product
are purchased by businesses to help run the business and to make money.
Business Buyer Behavior
– purchased goods and services are used in the production of other products and services that are sold, rented, or supplied to others.
Business Buying Process
– determining which products and services an organization needs to purchase.
– multi year contacts
– approved suppliers
Business Markets
– a group of customers that include manufactures, wholesalers, retailers, and other organizations.
Market Structure – fewer customers
– 1000’s of business buyers vs. millions of consumers.
Market Structure – very large purchases
– $1,000,000’s of dollars bought at a time – multi million dollar purch. agreements.
Derived Demand
– business demand comes directly or indirectly from the demand for the consumer goods.
Nature of the buying unit
– more decision participants
– buying center
– supply chain – purchasing company to become more profitable – can help business customers grow their top line or save them money (cost reduction)
Buying Center
All the individuals and units play a role in the purchase decision making process.
Buying process
– longer and more formalized procedures.
– buyer and seller more dependent on each other
Supplier development
– to ensure a dependable supply of products and materials.
– systematic development of networks of supplier-partners.
E- procurement
– purchasing through electronic connection between buyers and sellers.
– reverse auctions
– online trading exchanges
– company buying sites
– links w/ley suppliers.
*** cuts transaction costs, resulting in efficient purchasing for both buyers and suppliers.