BA 7050 Chapter 5

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BA 7050Chapter 5 6 Consumer Organizational
Behavior

• May 20, 2002

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Update

• Mission Statement handout
• Environmental Strat Rouge handout/trip
• Study Guide Emailed Exam - May 29
• Field Trip to JWT - June 3, 6 pm.
• Guest Speaker - June 5, 6 pm - Fishbowl
• Room Situation - 2 Asst. Deans, 6 memos, no
  progress, ridiculous situation
• Mall Trip - Somerset preferred to date
• Carpooling from Campus
• Greektown - Red WingsEvent Mkt

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Question How does Consumer and Business
Behavior Differ???

• Examples

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Types of Consumer Decisions

• High Involvement - Complex or Simple?
• Problem Identification Triggered
• Desired State vs Actual (Hungry vs Satiated)

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Understanding Behavior

• Whirlpool - hired cultural anthropologists to go
  in and study behavior to better design
  washers/dryers for male kid use - color coded
  controls for ease of use
• Cultural anthropology can spot trends developing
  or subtle change in behavior
• Social Factors - diversity mkt,
  multi-culturalismreference groups

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Model of Buyer Behavior

• Marketing Stimuli like 4Ps combines with other
  stimuli like economic, tech, political, cultural
  variables then there is the buyers
  characteristics, social, personal, psych,
  cultural then buyer decision process all before
  the actual decision is made
• Aspirational groups, dissociative groups
• Opinion leaders
• Victoria Secret vs Abercrombie Fitch
• Roles Status

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Psychographics

• VALS System
• Actualizers (high resources/high innovation)
• Principle Oriented (fulfilled, believers)
• Status Oriented (achievers, strivers)
• Action Oriented (experiencers, makers)
• Strugglers (low resources/low innovation)
• www.future.sri.com
• Motivational state mouse potato or techno striver
  - pessimist or optimist?

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Complex Process

• Problem Identification
• Information Search
• Evaluation of Alternatives
• Purchase
• Post-Purchase
• Traveling to Alaska
• or New Zealand
• far more complex
• than lunch.

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Influence Factors

• Product, Situational, Personal Factors
• Evaluation of Alternatives - Choices
• Evoked Set Product Attributes
• Jazz Pub during Coup de Monde-Go France
• Forming Attitudes - Alternative Brands/Cost
• Post Purchase Dissonance

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Low Involvement Decision

• Impulse, routine, inertia
• Variety seeking behavior
• Differences btw Hi/Lo
• Perception/Memory
• Selective Perception
• Categorization
• Integration
• Stimulus-Response
• Student Finals-Munich-Biergarten

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Attitudes Needs

• NYC vs DTW
• Attitude /\
• Social Influence
• Lifestyle
• Subculture
• Reference Group
• Social Class
• Family
• Household

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Nature Scope of Org Mkts

• Demand Character
• Mkt Demographics
• Buyer-Seller Rel
• Goods/Products
• Resellers
• Goods Producers
• Service Producers
• Governments
• Military

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Organizational Buying Center

• Purchasing Agent
• Purchasing Mgr
• Buying Center
• Paris-Pavarotti Ex
• Mkt Implications
• Product Trademark Franchising
• Business Format Franchising
• Vertical Marketing System

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Types of Buying Situations

• St. Pauli Beer
• Reeperbalm Area
• Newness of problem
• buying experience
• Information needs
• of new alternative
• products/suppliers
• to consider

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Organizational Purchase Process

• Recognition of Problem or Need
• derived demand - reqs planning- prod specs
• Search for Information Products/Suppliers
• value analysis-make or buy dec-supplier info
• Evaluation Selection of Suppliers
• vendor analysis -key vendor criteria
• Purchase Decision
• purchasing contract - JIT etc.
• Postpurchase Evaluation Feedback

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Vendor/Suppliers

• Vendor Analysis
• Reciprocity
• Relationship Strategic Alliance
• Kmart Handleman, Meridian, etc.
• Performance Evaluation/Feedback
• Repeat Purchase Behavior
• Logistics/EDI
• Long Term Trust/Commitment

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Examples Discussion Qs

• McDonalds Simplot French Fries?
• Mkt Research Rel...SpudMan on Campus
• What are some of the ethical considerations of
  organizational decision making?
• What are the marketing implications/comp?
• How are Orgs Consumers Different?
• How are they the same?