5,6,8

• Consumer buying behaviour


  the buying behaviour of final consumers - individuals and households that goods and services for personal consumption
• Consumer market


  all the individuals and households that buy or acquire goods and services for personal consumption
• Similarities


  structure of consumer behaviour and purchase decision making
• Differences


  characteristics affecting consumer behaviour (cultural, social, personal and

  psychological factors)
• Perception


  the process by which people select, organize and interpret information to form a meaningful picture of the world
• Beliefs and attitudes


  Belief = a descriptive thought that a person holds about something

  Attitude = a person's consistent evaluations, feeling, and tendencies towards an object or idea
• Types of Buying Decision Behaviour

  Complex buying behavior(expensive/risky ex:car)

  Dissonance buying behavior(ex:carpet)

  Habitual buying behavior

  Variety-seeking buying behavior

  
• The Buyer Decision Process

  1. Need recognition

  2. Information search

  3. Evaluation of alternatives

  4. Purchase decision

  5. Post-purchase behavior
• Stages in the Adoption Process

  1. Awareness

  2. Interest

  3. Evaluation

  4. Trial

  5. Adoption
• 5 adopter groups with different values

  innovators

  Early adopters

  Early mainstream

  Late mainstream lagging adopters

  Lagging adopters
• Influence of Product Characteristics on Rate of Adoption (5)

  Relative advantage

  Compatibility

  Complexity

  Divisibility

  Communicability
• Business buying behaviour


  The buying behaviour of organizations that buy goods and services for use in the production of their own other products and services that are sold, rented or supplied to others
• Business buying process


  the decision process by which business buyers determine which products and services they need to purchase and then find, evaluate, and choose among alternatives
• Derived demand


  Business demand ultimately comes from the demand for consumer goods
• Business Markets


  -market structure and demand

  -nature of the buying unit
• Business buyer behaviour


  1) Major types of buying situation : 3 types Straight , modified rebuy and New task

  2) Participants in the buying process : 5 roles : Users, Influencers, Deciders, Buyers, Gatekeepers

  3) Major influences on business buyers : 5 groups : Environmental, Organizational, Interpersonal, Individual, Buyers
• The business buyer decision process

  1. problem recognition

  2. general need description

  3. product specification

  4. supplier search

  5. proposal solicitation

  6. supplier selection

  7. order-routine specification

  8. performance review
• E-Procurement


  Purchasing through electronic connections between buyers and sellers (online) Several ways for company to do e-procurement
• Institutional Markets


  schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care
• Government markets


  = governmental units (federal, state and local) that purchase or rent good and services for carrying out main functions of government
• Product


  = anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want
• Service


  Product consisting of activities, benefits, or satisfaction and that is essentially intangible and does not result in ownership of anything
• What is a product

  Products, services and experiences

  Levels and product and services

  Product and service classification
• Consumer products


  = a product bought by final consumers for personal consumption Classified further on how consumers go about buying them
• 4 types of consumer products

  convenience

  shopping

  specialty

  unsought
• Industrial products


  purchased by individuals and organizations for further processing or for use in conducting a business
• 3 groups of industrial products

  materials and parts

  capital items

  supplies and services
• Product Line


  a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
• Product Line Length


  = number of items in the product line
• 2 ways to expand product line:

  1. Line filling = adding more items within present range of line

  2. Line stretching = lengthen product line beyond the current product range
• Product mix decisions


  width : Number of different lines

  length : Total amount of products/brands in a line

  depth : Number of versions of each product in a line

  consistency : between product line
• Services Marketing


  Nature of services : Intangibility, Inseparability, Perishability and variability

  Extra interactive consumption - collaborative revolution

  Marketing strategy for service firms

  Service profit chain
• Service marketing requires


  internal marketing, interactive marketing and external marketing
• Branding strategy ; building strong bands


  Brand equity and value

  Building strong brand

  Managing brands
• Brand equity


  = the differential effect that knowing the brand name has on customer response to the product or its marketing
• 2 measures of brand equity

  Financial perspective

  Customer perspective
• Manufacturer has 4 sponsorship options


  Manufacturer's/national brand

  Store/private brand

  Licensing

  Co-branding
• Brand Positioning


  attributes, benefits, beliefs and values
• Brand Development


  line extensions, brand extensions, multibrands, new brands

  
• Line extension


  extend existing line under existing brand name