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Chapter 06
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Chapter 06
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A. Personal Characteristics
i. Life Cycle Stage (Age)
ii. Occupation
iii. Lifestyle
B. Gender Roles
C. Psychological Attributes
i. Motivation
ii. Attitude
iii. Perception
a. Selective Awareness
b. Selective Distortion
c. Selective Retention
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iv. Learning
v. Personality
II. EXTERNAL FACTORS SHAPE CONSUMER
CHOICES
A. Cultural Factors
i. Culture
ii. Subculture
B. Situational Factors
i. Physical Surroundings
ii. Personal Circumstances
iii. Time
C. Social Factors
i. Family
ii. Social Class
iii. Opinion Leaders
iv. References Groups
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III. THE LEVEL OF INVOLVEMENT INFLUENCES THE
PROCESS
A. Decision Making with High Involvement
B. Decision Making with Limited Involvement
IV. THE CONSUMER DECISION MAKING PROCESS
A. Problem Recognition
B. Search for Information
i. Information Sources
ii. Defining the Set of Alternatives
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C. Evaluation of Alternatives
i. Emotional Choice
ii. Attitude-Based Choice
iii. Attribute-Based Choice
D. Product Choice Decisions
E. Post Purchase Assessment
i. Dissonance
ii. Use/Nonuse
iii. Disposal
iv. Satisfaction/Dissatisfaction
V. ORGANIZATIONAL BUYING: MARKETING TO A
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BUSINESS
VI. DIFFERENCES BETWEEN BUSINESS AND
CONSUMER MARKETS
A. Relationship with Customers
B. Number and Size of customers
C. Geographic Concentration
D. Complexity of Buying Process
E. Complexity of the Supply Chain
F. Demand for Products and Services is Different in a
Business Market
i. Derived Demand
ii. Fluctuating Demand
iii. Inelastic Demand
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VII. BUYING SITUATIONS
A. Straight Rebuy
B. Modified Rebuy
C. New Purchase
VIII. BUYING CENTERS
A. Members of the Buying Center
i. User
ii. Initiators
iii. Influencers
iv. Gatekeepers
v. Deciders
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B. Pursuing the Buying Center
IX. THE PLAYERS IN BUSINESS TO BUSINESS
MARKETS
A. The North American Industrial Classification System
(NAICS)
B. Manufacturers
C. Resellers
D. Government
E. Institutions
X. THE BUSINESS MARKET PURCHASE DECISION
PROCESS
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A. Problem Recognition
B. Define the Need and Product Specifications
C. Search for Suppliers
D. Seek Sales proposals in Response to RFP
E. Make the Purchase Decision
i. Product Selection
i. Financial Criteria
ii. Value Criteria
iii. Service Criteria
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iv. Supplier Choice
v. Personal and Organizational Factors
F. Post purchase evaluation of Product and Supplier
XI. THE ROLE OF TECHNOLOGY IN BUSINESS
MARKETS
A. E-Procurement
XII. SUMMARY
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KEY TERMS
demographics The characteristics of human populations and population segments, especially
when used to identify consumer markets.
family life cycle The changes in life stage that transform an individual’s buying habits.
lifestyle An individual’s perspective on life that manifests itself in that person’s activities,
interests, and opinions (AIO).
gender roles Behaviors regarded as proper for men and women in a particular society.
motivation The stimulating power that induces and then directs an individual’s behavior.
attitude Learned predisposition to respond to an object or class of objects in a consistently
favorable or unfavorable way.
multiattribute model A model that measures an individual’s attitudes toward an object by
evaluating it on several important attributes.
perception A system to select, organize, and interpret information to create a useful, informative
picture of the world.
selective awareness A psychological tool an individual uses to help focus on what is relevant
and eliminate what is not relevant.
selective distortion The process in which an individual can misunderstand information or make
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personality An individual’s set of unique personal qualities that produce distinctive responses
across similar situations.
household life cycle (HLC) A structured set of chronological activities a particular household
follows over time.
social class A ranking of individuals into harmonized groups based on demographic
characteristics such as age, education, income, and occupation.
aspirational purchases Products bought outside the individual’s social standing.
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involvement A significant outcome of an individual’s motivation that mediates the product
choice decision. It is activated by three elements: background and psychological profile,
extensive information search When a consumer makes a purchase decision based on a thorough
process of investigation and research
limited information search When a consumer makes a purchase decision based on incomplete
information and/or lack of personal knowledge
internal information search All information stored in memory and accessed by the individual
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attribute-based choice A product choice based on the premise that product choices are made by
comparing brands across a defined set of attributes.
integration among its members.
product demand Demand within business markets affected by three critical dimensions: derived
demand, fluctuating demand, and inelastic demand
derived demand Demand that originates from the demand for consumer products in business-to-
consumer markets.
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buying center A number of individuals with a stake in a purchase decision who manage the
purchase decision process and ultimately make the decision.
States, Canada, and Mexico that classifies companies on the basis of their primary output to
define and segment business markets.
original equipment manufacturer (OEM) Manufacturing firms that sell products that are used
as integral manufacturing components by their customer companies.
end-user purchases A category of products purchased by manufacturers that represents the
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product choice The first decision made in the purchase decision process that is usually based on
a single criterion
supplier choice Selecting between multiple suppliers offering similar product configurations by
examining their qualifications.
APPLICATION QUESTIONS
1. As we have discussed, understanding the consumers in a target market is critical to creating
an effective value proposition. Assume you are the Vice President of Marketing for Regal
Cinemas. What do you think is the demographic profile (including the age, income, and life
cycle stage) of your largest target market? As part of a mini-market research project, visit a
movie theatre on a weekend and track the people entering. How old are they? Are they
families or people meeting friends?
2. You are the marketing manager for the Bowflex Revolution Home Gym. You believe the
product appeals to both men and women. As you develop the marketing strategy, what
differences might you consider in the product based on whether a man or woman is buying?
What about the marketing communications (message, choice of media)?
Men and women may differ in the type of “work-out” they prefer and therefore the “work-
out” programs available may differ. Men and women may differ in the style of the actual
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3. You are the marketing manager for Lenovo laptop computers. Identify and briefly discuss
the differences between the consumer market for laptops and the business market. Then give
an example of each difference using college students as the consumer market and defense
related companies as the business market.
B2B Market
Consumer Market
Relationship
with Customers
Invest more in maintaining
personal relationships
Impersonal; exists through
electronic communication
Number and Size
of Customers
Few but larger customers
More customers but buy in smaller,
less frequent quantities
Geographic
Concentration
Suppliers located strategically near
the buyers
Could be anywhere in the world
Complexity of
Buying Process
Complex process that can take a
long time and involve more people
Fewer people directly involved and
the purchase decision is often
based on personal and
psychological benefits
Demand for
Products
Derived from consumer demand
and more inelastic (less price
sensitive)
Consumer perceptions about their
own needs mitigated by
environmental factors and
marketing stimuli
4. You work for Siemens Power Generations systems and are responsible for the sale of large,
expensive ($2 million to $5 million) turbine generators to power utility companies. You
have been contacted by the Ever-Sure Utility Corporation in Any Town, USA. Identify the
buying center you are likely to find inside the company and how you would market the
generators to the buying center group.
You are likely to find every traditional role in the buying center, including:
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MANAGEMENT DECISION CASE
Taking the Nike Experience Direct to Consumers
As described in the case, Nike is facing competitors (e.g. Under Armor) who are changing their
Questions for Consideration
1. This chapter highlights how marketing efforts are different for B2B and B2C firms. As Nike,
and other manufacturers, continue to expand into B2C channels, what are some differences in
B2C and B2B behavior that might affect Nike’s approach to these channels?
There are many considerations and actions in marketing that are different in B2C and B2B
markets. Nike, moving more toward B2C, will face a few of these:
Purchases in B2C are usually in small quantities and for individual consumption with the
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Chapter 06
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McGraw-Hill Education.
6-20
shopping for a category of product (athletic shoes) in one place and advice that is, or at least
appears to be, unbiased toward a given brand.
Imagine having to visit four shops to compare the top brands of shoes you were interested in.
Even car dealers (who are brand specific) have found it better for them to locate near each
other to make it easier for consumers to move between brands. A retail store with shoes from
multiple vendors, arguable could be an advantage to Nike if customer came in looking for
Adidas and found the new Jordan Retro’s more appealing.
SUGGESTED VIDEO
Dole: Buying from Vendors around the Globe (7:05 minutes)
Description: Dole manages their large scale operations by contracting vendors from around the
world. Discusses some essential steps of business-to-business marketing.
1. Dole creates partnerships with its vendors, are there any drawbacks with this philosophy?
2. What are some of the criteria that Dole should consider when selecting vendors?
Here are a few criteria for selecting vendors:
1
http://interbrand.com/best-brands/best-global-brands/2016/ranking/
