next test study

Consumer buyer behavior

How individuals, families, or households make decisions about acquiring, using, and disposing of goods and services.

Consumer market

All individuals and households that purchase goods and services for personal consumption.

Culture

The shared values, beliefs, customs, and behaviors learned by members of a society that shape consumer wants and buying behavior.

Subculture

A distinct group within a culture—such as ethnic groups, religions, or geographic regions—with shared values that influence consumption patterns.

Opinion leader

A person who, because of expertise or status, influences others’ attitudes or buying decisions.

Word‑of‑mouth influence

Personal recommendations or conversations between consumers that affect purchase decisions.

Influencer marketing

Using individuals with large or engaged online followings to promote products and shape consumer attitudes.

Online social networks

Digital communities (e.g., Instagram, TikTok, Reddit) where consumers interact and influence each other’s buying decisions.

Lifestyle

A person’s pattern of living—activities, interests, and opinions—that influences consumption choices.

Personality

A consumer’s psychological traits that lead to consistent patterns of behavior and brand preferences.

Motive (drive)

A need that is strong enough to direct a person toward taking action, such as making a purchase.

Perception

How consumers select, organize, and interpret information to form a meaningful picture of the world.

Learning

Changes in behavior resulting from experience, such as trying a product and forming preferences.

Belief

A descriptive thought a consumer holds about something (e.g., “Toyota cars are reliable”).

Attitude

A consumer’s consistent evaluation or feeling toward an object or idea that influences buying behavior.

Need recognition

The consumer identifies a problem or need (e.g., hunger, broken phone).

Information search

The consumer gathers information about ways to satisfy the need.

Alternative evaluation

The consumer compares available brands or products.

Consideration set

The small group of brands a consumer seriously evaluates.

Choice set

The final group of brands the consumer is deciding between right before purchase.

Purchase decision

The consumer chooses a product and completes the transaction.

Postpurchase behavior

The consumer evaluates the purchase after using the product.

Cognitive dissonance

Discomfort after a purchase caused by doubts or conflicting thoughts (“Did I choose the right one?”).

Complex buying behavior

High involvement + significant differences between brands (e.g., buying a car).

Dissonance‑reducing buying behavior

High involvement + few perceived brand differences (e.g., carpeting, insurance).

Habitual buying behavior

Low involvement + few differences; purchases made out of habit (e.g., salt, paper towels).

Variety‑seeking buying behavior

Low involvement + many differences; consumers switch brands for fun or change (e.g., snacks).

Customer journey

The full set of experiences a customer has with a brand—from awareness to purchase to loyalty.

New product

A good, service, or idea perceived as new by consumers, even if it has existed elsewhere.

Adoption process

The stages consumers go through when deciding to try and regularly use a new product: Awareness → Interest → Evaluation → Trial → Adoption

Business buyer behavior

The buying behavior of organizations that purchase goods and services for use in production, operations, resale, or daily business activities.

Business buying process

The decision-making process organizations follow when identifying needs, evaluating options, selecting suppliers, and managing purchase relationships.

Derived demand

Business demand that ultimately comes from (is “derived” from) consumer demand for final goods.

Supplier development

Efforts by a company to build and maintain a reliable network of suppliers by training, supporting, or partnering with them to improve performance.

Straight rebuy

A routine reorder where the buyer purchases the same product from the same supplier without modifications.

Modified rebuy

A purchase where the buyer wants to change product specifications, prices, terms, or suppliers.

New task

A first‑time purchase requiring extensive information gathering and evaluation.

Systems selling (solutions selling)

Buying a complete packaged solution from a single seller rather than separate components from multiple suppliers.

Buying center

All individuals and groups involved in the business buying decision, regardless of their formal job titles.

Users

People in the organization who will actually use the product or service.

Influencers

Individuals who provide technical information, product specifications, or recommendations that shape the buying decision.

Buyers

People responsible for supplier selection and negotiating purchase terms.

Deciders

Individuals with the authority to choose the final supplier and approve the purchase.

Gatekeepers

People who control information flow to others in the buying center (e.g., administrative assistants, technical personnel).

Problem recognition

The organization identifies a need that can be solved by acquiring a product or service.

General need description

The buyer describes the overall characteristics and quantity of the needed item.

Product specification

The buyer develops detailed technical specifications for the needed product.

Supplier search

The buyer identifies and evaluates potential suppliers.

Proposal solicitation

The buyer invites qualified suppliers to submit proposals or bids.

Supplier selection

The buyer evaluates proposals and chooses a supplier.

Order‑routine specification

The buyer writes the final order, including technical specs, quantities, delivery schedules, and terms.

Performance review

The buyer assesses the supplier’s performance and decides whether to continue, modify, or end the relationship.

Online procurement

Using digital platforms—such as e‑procurement portals, online marketplaces, or supplier websites—to purchase goods and services.

B‑to‑B digital and social media marketing

Using digital tools (websites, LinkedIn, email, content marketing, social platforms) to engage business customers, generate leads, and support sales relationships.

Institutional market

Organizations such as schools, hospitals, prisons, and nonprofits that purchase goods and services to serve people in their care.

Government market

Government agencies that purchase goods and services to carry out public responsibilities, often using strict bidding and regulatory processes.

Market segmentation

Dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate marketing strategies.

Market targeting (targeting)

Evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Differentiation

Creating meaningful differences in a product offering to make it stand out from competitors.

Positioning

Designing a product and brand image to occupy a distinct, valued place in the minds of target consumers.

Geographic segmentation

Dividing the market by location—nations, regions, states, cities, neighborhoods, climate.

Demographic segmentation

Segmenting based on variables such as age, gender, income, education, family size, occupation.

Age and life‑cycle segmentation

Segmenting consumers based on age or stage of life (e.g., teens, young families, retirees).

Gender segmentation

Dividing markets based on gender differences in needs, preferences, or behaviors.

Income segmentation

Segmenting consumers by income levels to match products with purchasing power.

Psychographic segmentation

Dividing the market based on lifestyle, personality traits, values, or social class.

Behavioral segmentation

Segmenting based on consumer knowledge, attitudes, uses, or responses to a product.

Occasion segmentation

Grouping buyers based on when they buy or use a product (e.g., holidays, daily routines).

Benefit segmentation

Segmenting based on the specific benefits consumers seek from a product (e.g., convenience, performance, durability).

Target market

The segment(s) a company chooses to serve with tailored marketing programs.

Differentiated marketing (segmented marketing)

A strategy where a firm targets several segments and designs separate offers for each.

Concentrated marketing (niche marketing)

Focusing on a large share of one or a few narrowly defined segments.

Micromarketing

Tailoring products and marketing programs to suit the tastes of specific individuals or local customer groups.

Hyperlocal marketing

Targeting extremely small geographic areas—specific neighborhoods, blocks, or even individual stores.

Individual marketing

Customizing products and marketing to the needs of individual customers; also called one‑to‑one marketing.

Product positioning

How a product is defined by consumers on important attributes relative to competing products.

Competitive advantage

An advantage gained by offering greater customer value than competitors—through lower prices or superior benefits.

Value proposition

The full mix of benefits a brand promises to deliver to customers; why a customer should choose it.

Positioning statement

A concise statement summarizing the brand’s positioning strategy, typically structured as: “For [target segment], [brand] is the [frame of reference] that [point of difference] because [reason to believe].”

1. What are the stages in the consumer buyer decision process, and how does it play out in real life?

The consumer decision process includes need recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. This matters because each stage gives marketers a chance to influence choices. For example, when someone’s laptop dies (need recognition), they research models (information search), compare Dell vs. Apple (evaluation), buy the one that fits their needs (purchase), and later judge whether it performs well (postpurchase). Brands must support each stage with clear information and strong value.

2. What are the five adopter groups, and how would each approach Waymo One?

The five adopter groups are innovators, early adopters, early majority, late majority, and laggards, and they differ in how quickly they try new products. Innovators would use Waymo One immediately out of excitement, early adopters would try it after hearing positive buzz, and the early majority would wait for strong safety data. The late majority would only try it once most people already use it, while laggards might avoid it unless human‑driven rides disappear. These differences help marketers time communication and reduce adoption barriers.

1. What is a buying center, and how do the roles work in an organizational purchase?

A buying center is the group involved in an organization’s purchase decision, and each role shapes the final choice. In a university buying analytics software, users (faculty/students) want ease of use, influencers (IT staff) care about compatibility, buyers negotiate contracts, deciders (department chair) approve the purchase, and gatekeepers control information flow. Vendors must address each group’s concerns to win the sale.

2. What are the major characteristics of institutional markets, and how do they differ from consumer and business markets?

Institutional markets—like schools, hospitals, and prisons—buy goods to serve people, not to earn profits. They focus on cost efficiency, reliability, and meeting service needs, unlike consumer markets driven by personal preference or business markets driven by productivity. For example, a hospital buying food services prioritizes nutrition and cost over branding. Marketers must emphasize value, compliance, and long‑term reliability.

1. How do undifferentiated and differentiated marketing strategies differ?

Undifferentiated marketing uses one product and message for the entire market, like basic paper towels, while differentiated marketing targets multiple segments with different offerings, like Toyota selling economy cars, hybrids, and luxury models. Undifferentiated marketing maximizes efficiency, while differentiated marketing increases relevance and market share, shaping product design and promotion.

2. What are the five requirements for effective segmentation?

Effective segmentation requires segments to be measurable, accessible, substantial, differentiable, and actionable. These criteria ensure the segment is real, reachable, profitable, meaningfully different, and possible to serve. For example, Peloton targets high‑income fitness‑motivated professionals because the group is measurable, reachable through digital channels, large enough, distinct in needs, and well‑matched to Peloton’s premium offering.