Part-3

Connecting with Customers

Chapter-6
Analyzing Consumer Markets

What Influences Consumer Behavior?

Cultural
Subculture Social Classes

Social
Reference Groups Family Social Roles and Status

Personal
Age and stage in the life cycle Occupation and Economic Circumstances Personality and Self Concept Life Style and Values

Stimulus

Responses

Stimulus Responses But we have control over Response ability

Four Key Psychological Process

Motivation Perception

Learning Memory

Four Key Psychological Process

Motivation
biogenic, psychogenic

Freuds Theory: The Psychological forces shaping peoples behavior are largely unconscious and that a person cannot fully understand his or her own motivations.

Herzbergs Theory: Two factor theory satisfiers, dissatisfiers

Maslows Theory:

5. Self Actualization Needs

(self development and realization)

4. Esteem Needs
(self-esteem, recognition, status)

3. Social Needs
(sense of belonging, love)

2. Safety Needs
(security, protection)

1. Physiological Needs
(food, water, shelter)

 Perception
a motivated person is ready to act. how she acts is influenced by her view of the situation. Perceptual Process:
Selective Attention Selective Distortion Selective Retention
SUBLIMINAL PERCEPTION

Four Key Psychological Process

Learning
Learning produce through :
drive cues Responses and reinforcement

Memory
Memory process:
Memory encoding Memory Retrieval

The Buying Decision Process: The Five-Stage Model

Problem Recognition Need triggered by Internal or External stimuli

Information Search

Personal, Commercial, public, experiential

Evaluation of Alternatives

Satisfy needs, benefits from product solution

Purchase decision

Compensatory and no compensatory models

Post purchase behavior

Post purchase satisfaction, action and use

Chapter-7

Analyzing Business Markets

Business Market vs Consumer Market

Fewer, larger buyers Close supplier-customer relationship Professional purchasing Multiple buying influence Multiple sales call Derived demand-Tetrapack-PRAN/AKIJ Inelastic Demand Fluctuating demand Geographically concentrated buyers Direct purchasing

Buying Situation: Straight Rebuy Modified Rebuy New Task

Participants in the Business Buying Process

The Buying Center

Initiators Users Influencers Deciders Approvers Gatekeepers

Stages in the Buying Process Problem Recognition Product Specification Supplier Search Proposal Solicitation Supplier Selection Order-Routine Specification Performance Review

Managing B2B Customer Relationships

The Benefits of Vertical Coordination
Buyer-Supplier relationship differ
Availability of Alternatives Importance of Supply Complexity of Supply Supply Market Dynamics

Business Relationships: Risks and Opportunism

Institutional and Government Markets

Schools, Hospitals, Prison- Low Budget but Captive Government Major buyers of Goods and services

OPTIONAL MATERIALS
Introduction to Psychology
https://class.coursera.org/intropsych-001/class/index

A Beginner's Guide to Irrational Behavior

https://class.coursera.org/behavioralecon-001/class/index