BUAD 332 Exam 2 Chapters 5-8 Questions with Answers (All Answers Correct)

Chapter 5: Understanding Consumer and Business Buyer Behavior - Chapter 5 consumer buying behavior - The buying behavior of people who buy goods and services for personal use (these people make up the consumer market) How are consumers stimulated? - Marketing: Price, product, place, promotion Environment: economic, technological, social, cultural How do consumers respond? - With attitudes, preferences, relationships and behaving (buying stuff) Culture - Most basic cause of a persons wants and behavior. Learned from family, church, school, peers, colleagues Subculture - A group of people with shared value systems based on common life experiences and situations How can marketers be more successful when delivering value to customers? - By understanding the nuances of cultures and subcultures What are the social factors? - Groups ( membership ,reference (opinion leaders), aspirational) Family (most important consumer buying organizations) Roles & Status (role = expected activities, status = esteem give to role by society) What are the personal factors? - age and life-cycle stage, occupation, economic situation Why are all these factors important to marketers? - They want to understand how these characteristics affect the buyers responsesWho was the volunteer Mr. Moon used for the car example? - Terrin Need Recognition - The first stage of the buyer decision process, in which the consumer recognizes a problem or need Information Search - the second stage of the buyer decision process in which the consumer is motivated to search for more information Sources of information - Personal (most effective source, family friends neighbors, effect of social media) Commercial (advertising salespeople, receives the most info from these sources) Public (mass media, consumer-rating groups) Experiential (handling the product, examining the product, using the product) When people come in and play with the apple products in the stores which source of information are they utilizing? - Experiential Evaluation of Alternatives - choosing among brands, sizes, styles, and colors What must markers study? - They need to study buyers to find out how the evaluate bran alternatives purchase decision - the buyer's decision about which brand to purchase postpurchase behavior - After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied Performance expectations - dissapointmentPerformance = expectations - satisfaction Performance expectations - Delight How can marketers improve customer satisfaction? - 1. Manage expectations 2. Improve product performance cognitive dissonance - A buyer's doubts shortly after a purchase about whether the decision was the right one Who was Mr.Moon's volunteer for the coffee example? - Noah What do marketers want to influence? - The want to influence each of the buyer decisions process steps to the extent they can At which stage of the consumer buying decision process is cognitive dissonance relevant? - post purchase behavior adoption process - the mental process through which an individual passes from first hearing about an innovation to final adoption Adoption of innovation Example - Keith shows up to golf course with club booster V2. Mr.Moon bought one as well 2 weeks later Stages in the Adoption Process - Awareness: Consumer becomes aware of the new product, but lacks information about it. Interest: Consumer seeks information about new product. Evaluation: Consumer considers whether trying the new product makes sense. Trial: Consumer tries new product on a small scale to improve his or her estimate of its value. Adoption: Consumer decides to make full and regular use of the new product adoption rate - Some new products are adopted quickly. Others take a long time (E.g. landline took 50 years, mobile phone took 10 years, smartphone took 5 years) Influence of Product Characteristics on Rate of Adoption - relative advantage: degree to which the innovation appears superior to existing products compatibility: degree to which the innovation fits the values and experiences of potential customers complexity: the degree to which the innovation is difficult to understand or use divisibility: the degree to which the innovation may be tried on a limited basis communicability: the degree to which the results of using the innovation can be observed or described to others What do marketers want from innovation? - They want innovation to be adopted as quickly as possible business buyer behavior - refers to the buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. Marketers want to know how business buyers behave Market Structure and Demand - -Contains far fewer but larger buyers -Customers are more geographically concentrated -Business demand is derived from consumer demand Nature of the Buying Unit - -Business purchases involve more decision participants -Business buying involves a more professional purchasing effort