Wharton MKTG 101 Chapter 5 Terms

Consumer buyer behavior
– buying behavior of final consumers–individuals and households that buy goods and services for personal consumption
Consumer market
-all the individuals and households that buy or acquire goods and services for personal consumption
culture
the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions
Subculture
group of ppl with shared value systems based on common life experiences and situations
Cross-cultural marketing
including ethnic themes and cross-cultural persepctives within a brand’s mainstream marketing, appealing to consumer similarities across subcultures rather than differences
social class
relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
– show distinct product and brand preferences in areas such as clothing, home furnishings, travel and leisure activity, financial services, and automobiles
group
two or more people who interact to accomplish individual or mutual goals
membership groups: groups that have direc influence and to which a person belongs
reference groups: serve as direct or indirect points of comparison or reference in forming a person’s attitudes or behavior
aspirational group: group to which one wishes to belong
word-of-mouth influence
the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behvaior
opinion leader
a person within a reference group who, bc of special skills, knowledge, personality, or other characteristics, exerts social influence on others.
-buzz marketing involves enlisting opinion leaders to be brand ambassadors
Personal factors that influence buyers’ decisions
age and life-cycle stage
occupation
economic situation
lifestyle
personality and self-concept
Psychological factors that influence buyers’ decisions
motivation

perception
— selective distortion
–selective retention
–subliminal advertising

learning
–drive becomes a motive when it is directed toward a particular stimulus object
–cues are minor stimuli that determine when, where and how the person responds
— ppls response might be reinforced

beliefs and attitudes
– descriptive thought
– consistently favorable or unfavorable evaluations or feelings toward sth

the buyer decision process
1. need recognition
–can be triggered by internal or external stimuli
2. information search
–most effective sources are personal sources
3. evaluation of alternatives
–marketers should study how buyers evaluate brand alternatives
4. purchase decision
–attitudes of others and unexpected factors might lie between purchase intention and purchase decision
5. postpurchase behavior
–customer satisfaction lies on relationship between expectations and product’s perceived performance
cognitive dissonance
buyer discomfort caused by postpurchase conflict
– happens during every purchase
new product
product that is PERCEIVED as new
adoption process
mental process through which an individual passes from first hearing about an innovation to final adoption
stages:
1. awareness
2. interest: seeks information abt product
3: evaluation: considering whether trying the new product makes sense
4. trial: tries the new product on small scale
5. adoption: decides to make full and regular use of the product
5 adopter groups
1. innovators: venturesome, trying new ideas at some risk
2. early adopters: guided by respect, opinion leaders in communities and adopt new ideas early but carefully
3. early mainstream: deliberate-adopt new ideas before avg person
4. late mainstream: skeptical, adopt an innovation only after majority of ppl have tried it
5. lagging adopters: suspicious of changes and adopt innovation only when it has become a tradition itself
5 characteristics that influence innovation’s rate of adoption
relative advantage: degree to which innovation appears superior to existing products
compatibility: degree to which innovation fits values and experiences of potential consumers
complexity: degree to which innovation is difficult to understand or use
divisibility: degree to which innovation may be tried on limited basis — higher divisibility = faster adoption rate
communicability: degree to which results of using innovation can be observed or described to others
Business buyer behavior
buying behavior of organizations that buy goods+services for use in the production of other products and services
business buying process
the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands
Derived demand
business demand that ultimately comes from (derives from) the demand for consumer goods
market structure and demand for business buyers
– far fewer buyers but far larger
– inelastic and more fluctuating demand
– more decision participants, more professional purchasing effort
– more complex buying decisions
– buying process usually longer and more formalized
supplier development
systematic development of networks of supplier partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling to others
straight rebuy
a business buying situation in which the buyer routinely reorders something w/o any modifications
modified rebuy
a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
new task
a business buying situation in which the buyer purchases a product or service for the first time
systems selling (or solutions selling)
buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
buying center
all the individuals and units that play a role in the purchase decision-making process
business buying process
problem recognition
general need description
product specification
supplier search
proposal solicitation
supplier selection
order-routine specification
performance review
product value analysis
carefully analyzing a product’s or a service’s components to determine if they can be redesigned and made more effectively and efficiently to provide greater value
E-procurement
purchasing through electronic connections between buyers and sellers — usually online
major factors that influence consumer buyer behavior
cultural factors, social factors, personal characteristics, psychological factors
adoption and diffusion process
adoption:
awareness, interest, evaluation, trial, and adoption
diffusion: consumers respond at different rates to new products
innovators, early adopters, early mainstream, late mainstream, lagging adopters
define business market
comprises of all organizations that need to buy stuff for production of other stuff that they sell to consumers
list and define steps of business buying decision process
problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review