...What is the buyer decision process? Illustrate with an appropriate example. The buyer decision process involves five steps undertaken by consumers in consideration of a potential marketing transaction that will rightfully take place before or after the purchase of a product. From a more conceptualised view decision making involves the cognitive process whereby customers venture through to finalise their product decision based on an array of internal and external factors. The essay will follow the general model mentioned above with a brief comparison between Microsoft and Apple the two largest competitors battling it off in the computer industry and their strategic influences on a customers buying behaviour for purchasing a new system. The buying decision process commences with problem recognition where the customer has encountered a problem with his current system a PC that resorted to insufficient hard drive space. Therefore no more files can be saved without the deletion of others and slow processing speeds making it frustrating to complete set tasks. Presently the customer is feeling an actual state of exasperation rather than an alternative emotion of satisfaction. The second stage of the buyer decision process is information search where potential customer is at their weakness absorbing all forms of information and reviewing content that keeps their mind open for interpretation. The customer is seeking a new computer for future studies at Monash University and...
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...Asymmetric Shocks, Long-term Bonds and Sovereign Default1 Junjun Zhu, Shiyu Xie School of Economics, Fudan University January 2011 Abstract: We present a sovereign default model with asymmetric shocks and long-term bonds, and solve the model using discrete state dynamic programming. As result, our model matches the Argentinean economy over period 1993Q1-2001Q4 quite well. We show that our model can match high default frequency, high debt/output ratio and other cyclical features, such as countercyclical interest rate and trade balance in emerging countries. Moreover, with asymmetric shocks we are able to match high sovereign spread level and low spread volatility simultaneously in one model, which is till now not well solved. As another contribution of our paper, we propose a simulation-based approach to approximate transition function of output shocks between finite states, which is an indispensable step in discrete state dynamic programming. Comparing to Tauchen’s method, our approach is very flexible in transforming various econometric models to finite state transition function, so that our approach can be widely used in simulating different kinds of discrete state shocks. JEL Classification: E44, F32, F34 Keywords: Sovereign Default, Asymmetric Shocks, Transition Function, Long-term Bonds 1 Corresponding authors: Junjun Zhu, Ph.D candidate at School of Economics, Fudan University, No. 200 Guoquan Road, Shanghai 200433, China. Shiyu Xie, professor at School of Economics...
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...504 IEEE TRANSACTIONS ON AUTOMATION SCIENCE AND ENGINEERING, VOL. 5, NO. 3, JULY 2008 Stochastic Modeling of an Automated Guided Vehicle System With One Vehicle and a Closed-Loop Path Aykut F. Kahraman, Abhijit Gosavi, Member, IEEE, and Karla J. Oty Abstract—The use of automated guided vehicles (AGVs) in material-handling processes of manufacturing facilities and warehouses is becoming increasingly common. A critical drawback of an AGV is its prohibitively high cost. Cost considerations dictate an economic design of AGV systems. This paper presents an analytical model that uses a Markov chain approximation approach to evaluate the performance of the system with respect to costs and the risk associated with it. This model also allows the analytic optimization of the capacity of an AGV in a closed-loop multimachine stochastic system. We present numerical results with the Markov chain model which indicate that our model produces results comparable to a simulation model, but does so in a fraction of the computational time needed by the latter. This advantage of the analytical model becomes more pronounced in the context of optimization of the AGV’s capacity which without an analytical approach would require numerous simulation runs at each point in the capacity space. Note to Practitioners—This paper presents a model for determining the optimal capacity of an automated guided vehicle (AGV) to be purchased by a manufacturer. This paper was motivated by work...
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...organizational buyer behavior are sub-categories of marketing. Research in both fields has enabled manufacturers and distributors to understand the needs, preferences and behavior of buyers, as well as the internal and external factors that influence buyer behavior. Although much has been written about the differences between consumer and organizational buyer behavior, it appears that the demarcations between the two fields are not as clear as they may seem to be. Keywords Buying Center; Buying Decision Process; Consumer Buyer Behavior; Decision-Making Unit (DMU); Organizational Buyer Behavior Marketing: Consumer Overview Buyer behavior is concerned with the selection and purchase of Products or services to satisfy a need for individuals or groups. It is focused on the needs of individuals, groups and organizations. Buyer behavior occurs either for an individual consumer on his own; an individual consumer in the context of a group (where others in the group influence how a person behaves); or an organization (where employees make decisions about which products or services the firm should use). Although economists were the first academic group to offer a theory of buyer behavior, the field of buyer behavior is a subcategory of marketing that blends elements from economics, psychology, sociology, social psychology, anthropology and other sciences, such as physiological psychology, biochemistry, and genetics. The two main areas of buyer behavior are consumer buyer behavior,...
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...Lecture Topic 6 Ch. 5 & 6 (p. 188 - 201) Buyer Behavior MKTG 2501 Lecturer: Yin Mei NG Model of Consumer Behavior External Stimuli • Marketing Stimuli • Environmental Forces BUYER’S BLACK BOX • Buyer’s decision process • Buyer’s characterist ics Buyer Responses • Buying attitude and preference • Purchase behavior (what, when, where, and how much) • Relationship behavior with brand and company Five Stages in the Consumer Decision Process Need recognition Information search Evaluation of alternatives Purchase decision Class Discussion: Customer Needs • What do parents-to-be need? • How can a company meet their important needs? Identify and Evaluate Alternatives Example: Brand Choice of Your Computer Purchased Recently Company: What can you do? Dear Company, We’re sorry to let you know your brand is not in our evoked set. To: The Company Yours sincerely, Your target customers Question: • What can a company do if its brand is NOT in the evoked set of the target consumers? – Inept set (avoided alternatives) – Inert set (backup alternatives) – Unawareness set Example: A customer’s evaluation of 3 computer brands • Which brand would this consumer most likely choose to purchase? • Which brand would this consumer least likely choose to purchase? Attributes (Criteria) Importance Weight (Sum = 1.0) Evaluation on the Performance of Alternative Computer Brands (Score: 1-7) Evaluation of Alternatives Brand A Price Speed Warranty Size ...
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...Consumer Markets and Consumer Buyer Behavior Case Study Harley Davidson Building Success • Understanding the customers’ emotions and motivation • Determining the factors of loyalty • Translating this information to effective advertising Measuring Success • Currently 22% of all U.S. bike sales • Demand above supply • Sales doubled in the past 5 years with earnings tripled Case Study Harley-Davidson – Devoted Consumers Building Success • Offers good bikes, upgraded showrooms, and revised sales tactics. • Consumer emotions, motivations, and lifestyle research has been translated into effective advertising. • Harley riders are fiercely loyal to the brand, older, better educated, affluent. Measuring Success • Currently has 26% of all U.S. bike sales and 50% of heavyweight segment. • Demand outstripped supply for several years; waits of up to 2 years for popular models. • Annual revenues/earnings have grown at 14% to 23% over past 10 years. 2007: 21st straight year of record sales and income. 5-3 Definitions • Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buy goods and services for personal consumption • All of these final consumers combine to make up the consumer market. Consumer Buying Behavior • Consumers make many buying decisions every day. • Most research consumer buying decisions try to answer the questions about; What consumers buy? Where, how, and how they buy, when & why they buy...
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...INSIGHTS FOR BUYER PERSONA IN MARKET SEGMENT (If applicable) ABOUT DECISION TO BUY (Solution category) Important Notice: To obtain useful information for this template, you will need to gather deep insights through interviews with your buyers or their proxy. But you should not use this template as a script or survey. Learn how to conduct the interviews that reveal these insights at www.buyerpersona.com/masterclass. INSIGHT 1. PRIORITY INITIATIVE What changes trigger this buyer persona's search for this type of solution? What about this buyer persona's business environment causes this problem to be funded for resolution? INSIGHT 2. SUCCESS FACTORS What results or outcomes does this buyer persona expect from the successful completion of the Priority Initiative? Be specific and include tangible/logical outcomes as well as aspirational/emotional goals. INSIGHT 3. PERCEIVED BARRIERS Why would this buyer persona be unlikely to purchase this solution? Barriers could relate to prior attempts to solve the problem, negative (and even inaccurate) perceptions about the suitability of your product or company, or the barriers could relate to internal factors (sales won’t let us change our CRM solution). Copyright 2016 Buyer Persona Institute All rights reserved. REV 15.04 Page 1 INSIGHT 4. DECISION CRITERIA Identify the top 3-to-5 factors that this buyer persona uses to compare alternative or competing options and make a decision. If this buyer persona is...
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...Analyze the buyer decision process of a traditional Porsche buyer As we know the buyer decision involves five steps: 1. Need recognition. The buyer identifies what his needs are, or simply, what he is looking for. The traditional Porsche buyer looks to the car as a luxury, a privilege, not just a means of transport which reflect against them. 2.Information search Porsche buyers would be satisfied a luxury sports car. 3. Evaluation of Alternatives In the third step the buyer evaluates all the choices of the companies that create cars fitting his or her requirements. 4. Purchase decision After the consumer has evaluated all the options and would be having the intention to purchase the product,. 5. Post purchase Behavior The traditional buyer has greater levels of satisfaction. This is proven to be true with the examples of the Porsche sports car lines, where essentiality was not taken as a factor. How does the traditional Porsche customer decision process contrast with the decision process for a Cayenne or Panamera customer? The traditional Porsche customers skip most of the decision process and jump right to the purchase decision. The traditional Porsche customers put more concentration on the appearance and focus more attention on the new model. They develop a personal relationship with their cars, one that has more to do with the way the car sounds, vibrates, and feels, rather than looking at the functional facilities. Unlike the traditional Porsche...
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...is a decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. Business Market versus Consumer Market Business Markets comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. The major industries making up the business market are agriculture, forestry, and fisheries; mining, manufacturing; construction; transportation; communication; public utilities; banking, finance, and insurance; distribution; and services. Consumer Markets is dominated by products and services designed for the general consumer. Industries in the consumer markets often have to deal with shifting brand loyalties and uncertainty about the future popularity of products and services. Differences of Business Market from Consumer Marker Market structure and demand * Business market contain Fewer but larger buyers * Business buyer demand is derived from final consumer demand * Inelastic demand is not affected as much in the short run by price changes * Demand in business markets fluctuates more and more quickly * Geographically concentrated buyers Nature of the buying unit * Buying business involves a more professional purchasing effort * Involves multiple buying influences Types of decisions and the decision-making...
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...Chapter Five Consumer Markets and Consumer Buyer Behavior Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 1 Consumer Markets and Consumer Buyer Behavior Topic Outline • • • • • Model of Consumer Behavior Characteristics Affecting Consumer Behavior Types of Buying Decision Behavior The Buyer Decision Process The Buyer Decision Process for New Products Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 2 Model of Consumer Behavior Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 3 Model of Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 4 Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 5- slide 5 Characteristics Affecting Consumer Behavior Culture is the learned values, perceptions, wants, and Family Oriented Cultural symbol Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Future Orientation behavior from family and other important In Group - Collectivism institutions ...
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...are: Fewer, larger buyers: The business marketer normally deals with for fewer much larger buyers than the consumer’s marketer does. Particularly in such theaters as aircraft engines, and defense weapons. Close supplier, customer relationship: Because of the smaller customer base and the importance and the power of the larger customer suppliers are frequently expected to customer their offering to individual business customer needs. Professional purchasing: Business goods are often purchased by trained purchasing agent, professional buyer spend their canners learning how to buy better. Multiple buying influences: Buying comities consisting of technical carpets and even senior management are common in purchase of major goods. Multiple sales calls: Buying situation: the business buyer faces many decisions in making a purchase. Three types of Business Buying Situations are- 1) Straight rebury: In a straight rebury, the purchasing department re-orders suppliers such as office supplies and bulk chemical on a routine basis and chooses from suppliers on as approved list. 2) Modified rebury: The buyer in a modified rebury wants to change product specification, prices, delivery requirement, or other terms. This usually requires additional participates on both sides. 3) New task: A new task purchase buys a product or services for the first time. The greater the cost and risk, the greater their information gathering, the longer the time to a decisions. Buying Center: All...
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...Stages of consumer buying decision process Posted on September 12, 2012 by shma The marketer is responsible for selling the goods in the market so he must have the knowledge how the consumers actually make their buying decisions. For this he must study the consumer buying decision process or model. It involves five stages. 1.) Need recognition:- consumer buying decision process starts with need recognition. The marketer must recognize the needs of the consumer as well as how these needs can be satisfied. For example if a person is hungry then food is desired or if it is a matter of thirst than water is desirable. 2.) Information search:- in consumer buying decision process information search comes at second number. In this stage consumer searches the information about the product either from family, friends, neighborhood, advertisements, whole seller, retailers, dealers, or by examining or using the product. 3.) Evaluation of alternatives:- after getting the required knowledge about the product the consumer evaluate the various alternatives on the basis of it’s want satisfying power, quality and it’s features. 4.) Purchase decision:- after evaluating the alternatives the buyer buys the suitable product. But there are also the chances to postpone the purchase decision due to some reasons. In that case the marketer must try to find out the reasons and try to remove them either by providing sufficient information to the consumers or by giving them guarantee regarding...
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...Analyze the buyer decision process of a traditional Porsche customer. The buyer decision process of a traditional Porsche customer starts with the consumer’s recognition of a need for the product. In this case it is the need for a new car. The Porsche marketers look to those needs that consumers look for in a car and find out what brought previous customers to their product so they can satisfy the needs of the new customers searching for their next car. After deciding the need for a car the consumer will potentially indulge in further research towards the options available. This can include searching on the Porsche website, looking through ads of their products, or even going to the dealerships to gather more information on the car that they may want. After researching about the Porsche cars the consumer is interested in and then look at the competitors of Porsche such as the Toyota Supra, Nissan GT-R, BMW 6 series, Etc. The next step is for the Porsche consumer is to make the decision to buy their car. When the consumer decides on the Porsche then comes the post purchase behavior. The new Porsche owner will be zooming around the streets marketing Porsche without even having to say a word. This new owner can give feedback to the company where they can turn that feedback into a marketing technique for new customers to purchase their car. 2. Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or Panamera customer. For the buyer process...
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... Review questions and application exercises on p. 134 and 135 Ch. 7 Product-selling Strategies that Add Value Article: Harte Hanks; Create and Nurture B2B demand with social media, 2010 Article: Ricci, L.R., ― What changed our sales cycle and Why?‖, 2005. Review questions and application exercises on p. 154 and 155, case on p. 155 Ch. 8 The Buying process and buyer behaviour. Article belonging to CH 8: How you slice it; smarter segmentation for your sales force. Describe positioning as a product-selling strategy Explain the cluster of satisfactions concept Discuss product-positioning options Explain how to sell your product with a price strategy Explain how to sell your product with a valueadded strategy Positioning involves: • Those decisions and activities intended to create and maintain a certain concept of the firm‘s product in the customer‘s mind Differentiation refers to: • Your ability to separate yourself and your product from that of your competitors • It is the key to building and maintaining a competitive advantage The set of benefits and values the company promises to deliver to customers to satisfy their needs A well-informed customer will usually choose the product that offers the most value • • • Applies to both new and existing products May be necessary to reposition products several times Salespeople have an important and expanding role in differentiating products • ...
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...3 Consumer and organisational buyer behaviour OBJECTIVES After studying this chapter, you should be able to: 1. Understand the different motivations of consumer and organisational buyers 2. Formulate strategies for approaching consumer and organisational buyers 3. Recognise the importance of relationship management KEY CONCEPTS • • • • • • • • • • • • ACORN brand personality buy class buy phase buying centre centralised purchasing choice criteria consumer decision-making process creeping commitment decision-making unit (DMU) financial lease interaction approach • • • • • • • • • • • just-in-time (JIT) delivery/purchasing life-cycle costs lockout criteria operating lease organisational buying behaviour reference group relationship management reverse marketing strategic partners total quality management (TQM) value analysis 78 Sales environment 3.1 DIFFERENCES BETWEEN CONSUMER AND ORGANISATIONAL BUYING There are a number of important differences in emphasis between consumer and organisational buying that have important implications for the marketing of goods and services in general and the personal selling function in particular. Fewer organisational buyers Generally, a company marketing industrial products will have fewer potential buyers than one marketing in consumer markets. Often 80 per cent of output, in the former case, will be sold to perhaps 10–15 organisations, meaning that the importance of one customer to the business to business marketer is far in excess...
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