Week 4

Question 1

What are the group of factors that influence consumer behaviour?

Answer 1

• Situational Factors
  
  • Physical
  • Social
  • Time
  • Motivational
  • Mood
• Group Factors
  
  • Cultural
  • Social
• Individual Factors
  
  • Personal
  • Psychological

Question 2

What are the types of involvement (buyer-decision behaviour)?

Answer 2

• Habitual decision-making → everyday decisions (low-involvement)
• Limited decision-making → some thought is put in but not substantial
  
  • eg. clothing, entertainment
• Extended decision-making → Price or risk is high (high-involvement)

Question 3

What is involvement?

Answer 3

• The amount of time put into the buying process (in consideration of the importance of the purchase)

Question 4

What are the steps of the consumer decision-making process?

Answer 4

1. Need/want recognition
2. Information search
3. Evaluaton of options
4. Purchase
5. Post-purchase

Question 5

What are the types of business markets?

Answer 5

• Reseller markets → Intermediaries
• Producer markets → Organisations that purchase products for use in the production of other products
• Government markets → Provide services for citizens
• Institutional markets → Not-for-profit organisations

Question 6

What are the characteristics of marketing to business customers?

Answer 6

• High-value/high-volume purchases
• Price competition and negotiation
• Numbers of buyers and sellers
• Formal assessment of purchase alternatives
• Ongoing relationships
• Demand characteristics

Question 7

What factors make up the environmental influences in the business-buying process?

Answer 7

• Internal Factors
  
  • Nature of the organisation
  • Structure of the organisatioon
  • The individuals within and the buying centre
• External Factors
  
  • PESTEL Factors