solomon_cb08_12 - Chapter 12 Organizational and Household...

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Chapter 12 Organizational and Household Decision Making CONSUMER BEHAVIOR, 8e Michael Solomon
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Prentice-Hall, cr 2009 12-2 Chapter Objectives When you finish this chapter you should understand why: Marketers often need to understand consumers’ behavior rather than consumer behavior, since in many cases more than one person decides what to buy. Companies as well as individuals make purchase decisions. The decision-making process differs when people choose what to buy on behalf of a company versus a personal purchase. Many important demographic dimensions of a population relate to family and household structure.
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Prentice-Hall, cr 2009 12-3 Chapter Objectives (cont.) Our traditional notions about families are outdated. Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions. Children learn over time what and how to consume.
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Prentice-Hall, cr 2009 12-4 Organizational Decision Making Organizational buyers: purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale. Business-to-business (B2B) marketers: specialize in meeting needs of organizations such as corporations, government agencies, hospitals, and retailers.
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Prentice-Hall, cr 2009 12-5 Organizational versus Consumer Decision Making Differences: Involves many people Requires precise, technical specifications Is based on past experience and careful weighing of alternatives (impulse buying is rare) May require risky decisions are often risky Involves substantial dollar volume Places more emphasis on personal selling
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Prentice-Hall, cr 2009 12-6 Organizational versus Consumer Decision Making (cont.) Similarities Emotions do guide decisions Brand loyalty Long-term relationships Aesthetic concerns Branding and product image Intel Inside Aflac Click to view Quicktime video on AFLAC’s branding strategy to organi- zational buyers
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Prentice-Hall, cr 2009 12-7 What Influences Organizational Buyers? Internal stimuli Buyer’s psychological characteristics External stimuli Nature of buyer’s organization, economic, and technological environment of industry Cultural factors Different norms for doing business in different countries Type of purchase The more complex or risky the decision, the more evaluation is needed
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Prentice-Hall, cr 2009 12-8 Buyclass Framework Buyclass theory: organizational buying decisions divided into three types, ranging from most to least complex: Buying Situation Extent of Effort Risk Buyers Involved Straight rebuy Habitual decision making Low Automatic reorder Modified rebuy
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