What’s Happening?

Mid-term Exam Marketing groups for term project

Consumer and Business Buyer Behaviour

Chapter 6

Discussion Questions

Think about a specific major purchase you’ve made recently. What buying process did you follow (How did you decide)? What major factors influenced your decision?

Pick a company. Does the company you chose understand its customers and their buying behaviour? Explain.

Decision Making: Situations

LessInvolvement

MoreInvolvement

RoutineResponseBehavior

LimitedProblemSolving

ExtensiveDecisionMaking

Consumer decision-making processes - Exhibit 6-2

Traditional factors affecting consumer purchasing behaviours Demographics (age, gender, income, etc.) Heredity and home environment Family life cycle Life changing events Social environment Situational environment

Information Search – Step 2

Two ways of gathering information:

1. Internally2. Externally – requires time and effort

Consumers look to reduce risks and uncertainty associated with their purchases

Consumer risks include: performance, financial, physical, social and time.

Evaluation of Alternatives – Step 3 Choice criteria

1. Evoked set2. Inept set3. Inert set

Product/service features

Need/want factors

The Purchase/Buy Decision – Step 4

Decision to purchase a particular product may be based on several factors:

Brands Price Need Quality Situation Attitudes of others Enticements And many others,…..

Postpurchase Evaluation – Step 5

Evaluation of product/service performance.

Cognitive dissonance.

Impacts future purchases.

Impacts word-of-mouth communications.

Discussion/Group Questions

Page 166, question 3

Page 167, question 14 (group work)

Individual factors that shape the decision-making process Motivation Perception Learning Attitudes Personality and Self-Concept

What’s Happening?

http://www.webdesignerdepot.com/2009/11/40-seriously-funny-print-ads/

Term Project Proposal due next class!

http://www.youtube.com/user/BridgestoneSuperBowl?v=EBUcG7xZB-g&feature=pyv&ad=5564215583&kw=2009%20superbowl%20ad#p/c/3EB426E628B08939/4/beF0LTvbdfw

  http://www.youtube.com/watch?v=R55e-uHQna0

Business Markets and Organizational Buying

Chapter 7

Common Types of Organizational Consumers – Exhibit 7-1

Factors affecting Organizational purchasing behaviours Product and service quality Customer related services – examples? Price and terms of purchase Delivery and inventory management systems Collaboration

Characteristics of theThree Types of Buying Decisions

Straight Rebuy

Modified Rebuy

New Task

Newness of Problem or NeedInformation Requirements

Information SearchConsideration of New Alternatives

Multiple Buying InfluenceFinancial Risks

LowMinimalMinimal

NoneVery Small

Low

MediumModerateLimitedLimited

ModerateModerate

HighMaximumExtensiveExtensive

LargeHigh

Steps in Organizational Decision Making (Exhibit 7-4)

1. Identification of a Need2. Deciding on Objectives and Specifications3. Identification of Suppliers and Evaluation of

Alternatives4. Selection of Suppliers and Negotiations5. Establishing a Valued Customer

Relationship How if at all do these steps differ from the

consumer decision-making process?

Roles of the Buying Center Users Gatekeepers Influencers Deciders Buyers

Organizational Buying Center