MKTG 3651: Exam #2

ch. 6-9

buying behavior

decision processes of people involved in buying and using products

consumer buying behavior

buying behavior of ultimate consumers

ultimate consumers

those who purchase products for personal or household use and not for business purposes

consumer buying decision process

problem recognition, information search, evaluation of alternatives, purchase, post-purchase evaluation

influences on purchase process

situational influences, psychological influences, social influences

routinized response behavior

buying frequently purchased, low cost items that require little search-and-decision effort

limited decision making

purchasing products occasionally or from unfamiliar brands in a familiar product category

extended decision making

high-involvement, unfamiliar, expensive, or infrequently purchased items (like insurance, computers, cars, etc.) 

factors for level of involvement

perceived risk of purchase, previous experience with product, high interest

situational influences

circumstances, time, and location that affect the consumer buying decision process

psychological influences

determine people’s general behavior and thus influence their behavior as consumers

factors of psychological influences

perception, motivation, learning, attitudes, personality and self-concept, and lifestyles

perception

process of selecting, organizing, and interpreting information inputs to product meaning

selection—psychological influences

selective exposure, selective distortion, selective retention

selective exposure

individuals select (mostly unconciously) which inputs will reach awareness

selective distortion

changing or twisting received information (usually when people receive informtion inconsistent with their beliefs/values)

selective retention

a person remembers information inputs that support personal feelings and beliefs

interpretation

assigning meaning to what has been organized

learning

changes in a person’s thought processes and behavior caused by information and experience

social influences

forces that other people exert on buying behavior

reference group

a group either large or small with which a person identifies so strongly that they adopt the values, attitudes, and behaviors of group members

consumer fraud

purposeful actions to take advantage of and/or damage others through transactions (fraudulently obtained credit cards, debit cards, checks, or bank accounts; fake insurance claims, etc.)

producer markets

individuals and business organizations that purchase products for the purpose of making a profit by using them to produce other products or using them in their operations

North American Industry Classification System (NAICS)

system used by US, Canada, and Mexico to generate comparable statistics among its economies; based on production activities, divides economy into sections

dimensions of marketing to business consumers

transactions, attributes of business customers, primary concerns of business customers, methods of business buying, types of business purchases

attributes of business consumers—dimensions of marketing to business consumers

informed about products, wants detailed information, suppliers need to communicate how they provide value, reciprocity

primary concerns of business customers

price, product quality, service, supplier relationships, product specifications, ethics/social responsibility, quality service, costs of maintaining and developing relationships with suppliers

methods of business buying

description, inspection, sampling, negotiation

types of business purchases

new-task purchase, straight rebuy purchase, modified rebuy purchase

new-task purchase

an organization makes an initial purchase of an item to be used to perform a new job or solve a new problem

straight rebuy purchase

buyers purchase the same products routinely under approximately the same terms of sale

modified rebuy purchase

new-task purchase that is altered after two or three orders, or for which requirements associated with a straight rebuy purchase are modified 

demand for business products

derived demand, inelastic demand, joint demand

derived demand

demand for business products derives from demand for consumer products

inelastic demand

when buyer is not sensitive to price or when there are no ready substituts

joint demand

when two or more items are used in combination to produce a product (ex. needing a printer —> need toner)

business/organizational buying behavior

purchase behavior of producers, government units, institutions, and resellers 

buying center

group of people within an organization who make business purchase decisions

stages of the business buying decision process

recognize problem, development of product specifications, searching for and evaluating potential products and suppliers

influences on the business buying decision

environmental, organizational, interpersonal, and individual

USMCA

replacement for NAFTA in 2020, includes updates related to IP, digital trade, financial services, currency, labor policies, and environmental standards

NAFTA

made in 1994, merged Canada, Mexico, and US into one market; no tariffs on all goods produced and traded within those countries 

Southern Common Market

est. 1991, unites South American countries for free circulation of goods, services, and production factors

Asia-Pacific Economic Cooperation

Est. 1989 to promote open trade and economic/technical cooperation among member nations

Regional Comprehensive Economic Paternship

between 15 nations in the Asia-Pacific region; Built on the existing trading bloc, Association of Southeast Asian Nations

World Trade Organization

provide a forum for tariff negotiations and a place where international trade problems could be discussed and resolved

licensing

alternative to direct investment in international markets

contract manufacturing

when a company hires a foreign firm to product a designated volume of the firm’s product (or component of a product) to specification and the final product carries the domestic firm’s name

contract manufacturing—types

outsourcing, offshoring, offshore outsourcing

outsourcing

contracting noncore operations or jobs from internal production within a business or an external entity that specializes in that operation

offshoring

moving a business process that was done domestically at a local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company

offshore sourcing

practice of contracting with an organization to perform some/all business functions in a country other than the country in which the product will be sold

joint ownership

partnership between a domestic firm and a foreign form or government

General Data Protectoin Regulation

European law requiring companies to obtain consent from users before collecting and using their personal data

Children’s Online Privacy Protection Act

US law requiring websites and online services to obtain parental consent before collecting personal information from children under 13 (1998) 

Federal Video Privacy Protection Act

companies cannot share information about videos that users watched on their sites with other parties without permission

California Consumer Privacy Act

consumers have the right to know what personal data companies are collecting about them and the right to request the data be deleted