Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 4

UNDERSTANDING BUYER BEHAVIOR

group of consumers who are confident in their ability to read any-

thing, buy anything, and experience anything.

Several fundamental demographic changes will serve as the under-

pinning for this new consumer mind-set: the aging of the baby boom

generation, the increasing importance of children as consumers, a

growing chasm between society's haves and have-nots. and the

world's increasingly diverse population.

Given that demographic backdrop. what will be the most powerful

values shaping the consumer mind-set? The following possibilities

have been proposed:

• The Shrinking Day-Harried baby boomers will create a time

famine for themselves by working more hours and committing to

more family and community obligations.

• The Connectedness Craze-The urge to connect will pervade all

aspects of consumers' lives and increasingly consumers will

turn to the World Wide Web for a sense of community between

buyers and sellers, information suppliers and consumers, and

friends and family.

• The Body vs. Soul Conundrum-Consumers will continue their

obsession with fitness and spirituality, while at the same time

consuming record amounts of take-out food.

The Triumph of Individualism-Work, family, and purchase

processes will reflect the consumer's need to be treated as a

unique individual.

MARKETING CAPSULE

1. Organizational buyer behavior is different from consumer

2. The following stages are involved in the organizational buy-

behav ior:

ing decision:

a. Many individuals make the buying decision

a. Problem recognition

b. Behavior is motivated by both rational and emotional

b. General need description

factors

c. Product specification

c. Decisions include a range of complex technical deci-

d. Supplier's research

sions

e. Proposal solicitation

d. Lag time exists between contact and actual decision

f. Supplier selection

e. Organizations cannot by grouped into precise categories

g. Order-routine specification

h. Performance review

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THE WALL STREET JOURNAL.

IN PRACTICE

about various business activities,

Understanding buyer behavior is a

including purchasing. On the Mar-

complicated process, with many

ketplace home page, click on Busi-

factors influencing the process.

ness Focus on the left menu.

Why and what products are pur-

For information abo ut con-

chased baffles marketers as much

sumer buying behavior, go to the

as understanding why certain prod-

Interactive Journal's Front Section

ucts are not purchased. Ultimately,

and click on Marketplace. Click on

understanding buyer behavior

MarketinglMedia. Look for articles

influences the marketing mix used

in the Advertising section. These

for a product.

articles discuss examples of adver-

Marketers must be able to

tising efforts that various compa-

answer two critical questions when

nies employ to influence consumer

assessing consumer and organiza-

buying decisions. Information

tional buyer behavior: (1) How do

about retail sales can also be found

buyers make purchase decisions?

in MarketinglMedia.

and (2) What factors influence deci-

sions and in what way? Answering

DELIVERABLE

these questions correctly impacts

Using the Interactive Journal's

the success of any product.

Business Index feature under Jour-

Consumer and organizational

nal Atlas on the left menu, select a

buyer behavior differ significantly.

consumer products company fea-

While considerable research about

tured in today 's Interactive Journal.

consumer purchasing decisions has

Visit that company's website and

been conducted, minimal research

search the Interactive Journal for

has been done about organizational

information that will help you iden-

buyer behavior. Marketers must

tify the Situational and External

understand the different factors

Influences for customers purchas-

and influences affecting each group

ing the company's product(s).

and the impact of these on pur-

chase decisions.

DISCUSSION QUESTIONS

Cisco Systems, Inc., provides

1. H ow can marketers use the

networking solutions that connect

In ternet to influence consumer

computer devices and networks for

buyer behavior? Organizational

businesses. Check out Cisco's Web

buyer behavior?

site at www.cisco.com. Under Solu-

2. How has business-to-business

tions for Your Network, click on

(B2B) commerce affected pur-

Overview. A menu will appear to

chasing transactions?

the left with information for cus-

3. What new factors or influences

tomers such as Large Enterprises,

do you foresee impacting con-

Small and Medium Businesses, and

sumer buyer behavior? Organi-

Government entities. Click on one

zational buyer behavior?

of those links now to read about

4. Wh at ethical considerations (if

product offerings for these

any) do advertisers face when

customers.

they try to influence buyer

The Business Focus section of

behavior?

Marketplace provides information

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