Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 4

UNDERSTANDING BUYER BEHAVIOR

SUMMARY

In this chapter, the

of buyer behavior were presented. The chapter is divided into two parts:

consumer behavior and organizational behavior. In the case of consumer behavior, the discussion began with six stages in the consumer decision-making process. These stages include need identification, information search and processing, evaluation of alternatives, product/service/outlet selection, purchase. and postpurchase behavior.

Following the material was a discussion of the factors that influence this decision-making process.

The situational influences consist of the complexity, market offerings, and demographics. External influences include the culture, social class, reference groups, and the family. Finally, the internal influ -

ences identified were

motivation, pcrsonality, lifestyles , and attitudes.

The final section of the chapter dealt with issues germane to how organizations make buying

decisions compared to how consumers make buying decisions.

began with a description

of the characteristics of organizational buying. The section concluded with a description or the stages followed in organizational buying. These stages were problem recognition, general need description, product specification, supplier's search, proposal solicitation, supplier selection, order-routine specification, and performance review.

MARKETER'S VOCABULARY

Market

A group of potential buyers with needs and wants and the purchasing power to sati sfy them.

Need

A basic deficiency given a particular situation.

Want

Placing certain personal criteria as to how a need should be fulfilled.

Information search

Involves the mental as well as physical activities that consumers mu st per-

form in order to make decisions and accomplish desired goals in the marketplace.

Attitude

An opinion we hold toward a person, idea, place,

thing.

Cognitive dissonance

Negative feeling s the consumer has after purchase.

High-involvement decisions

Decisions that are important to the buyer because they are closely

tied to self-image and have an inherent risk.

Low-involvement decisions

Decisions that are not very important to the buyer because ego is

not involved and risk is low.

Culture

A large group of people with a simi lar heritage.

Social class

People grouped together because of similar occupation, wealth, income, education,

power, and prestige.

Reference groups

Individual s who share common attitudes and behavior.

Family Iifecycle

Predictable stages experienced by families.

Learning

Changes in behavior resulting from previous experiences.

Socialization

The process by which persons acquire the knowledge, skills, and dispositions that

make them more or less able members of their society.

Motivation

An inner drive or pressure to take action to satisfy a need.

Personality

A term used to summarize all the traits of a person

makes himlher unique.

Lifestyle

A profile of an individual as reflected in their attitudes, interests . and opinions.

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CASE APPLICATION

9 9

DISCUSSION QU ESTIONS

1. Discuss

reasons why marketers continue to have a hard time understanding, predicting,

and explaining consumer behavior.

2. Based on your understanding of motives, develop some general guidelines or directives for practicing marketing.

3. How can marketers influence a person's motivation to take action? How can they facilitate learning?

4. Define an attitude. Discuss the components of an attitude. What are the implications for marketing?

S. Distinguish between high-involvement and low-involvement decision making .

6. Present a diagram of the consumer decision process . What is the role of marketing in each stage of this process')

What are the differences between the consumer decision-making process and organizational deci-

sion-making process?

8. Assume that you are training a salesperson to sell industrial products. Although this salesperson has a

track record, she has been selling consumer products. What would you emphasize

during training?

Explain how complexity of the product influences the buying decision process.

10. Why are opinion leaders so important to marketers') Discuss how marketers could use this type of individual in prompting a decision.

PROJECT

Locate an individual who has purchased a new automobile during the last year. Using the six-step decision-making process, ask this person to indicate how he or she accomplished each step.

CA SE A PPLICATION

CUSTOMER SATISFACTION STILL M ATTERS

To many American travelers, airline quality is an oxymoron. Ted J. Kredir, director of hobby sales for Dallas-based trading card company, Pinnacle Brands, Inc., complains of frequent flight cancellations, late arrivals, and lousy food. To the surprise of skeptical passengers, the gripes aren't falling on deaf ears. After years of focusing on paring expenses, such major airlines as American, Delta, and Continental are stepping up their quality efforts. Cost-cutting "diverted our attention from the nuts and bolts of out business ," concedes American Airlines

Executive Robert L. Crandall. "Our

customers have noticed."

A.merican, wh.ich once dubbed itself the "on-time machine;' placed a dismal ninth among 10

carriers in on-time rankings for the third quarter of 1996. So Crandall told managers at the next meeting that leading all industry-quality ratings is their top job for 1997. An American spokesperson won ' t provide specifics, but says: "We're talking about a lot of operational things like customer comfort onboard airplanes."

At Delta Air Lines, Inc., customer complaints have nearly doubled since 1994; CEO Ronald

W. Allen blames the pursuit of lower costs. "In some cases

did cut too deeply," he says. Trans

World Airlines, Inc., now in the cellar for on-time and customer complaint rankings by the Transportation

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