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Activity 1 Consumer Behavior - Coggle Diagram
Activity 1
Consumer Behavior
Legal
Legal principles guide business transactions.
Ethical and legal issues are complex for selling in international markets.
Terms and Conditions
Defined the responsibilities of both parties in a contract.
Cover most of the behaviors between buyer and seller.
A warranty is an assurance by the seller that the products will perform as represented.
Half of the issues can be reduced to contractual terms.
Terms in “good faith,” meaning that they have to try to fulfill the contract.
Company's policies
Have a clear sense of right and wrong.
Codes of ethics provide guidelines when decision making.
Confidential Information
Establish and clarify confidential information and rights to privacy.
Sign a nondisclosure agreement (NDA) for saying nothing about the business or your client.
Legal Issues
Statutory Law
Based on legislation passed either by state legislatures or by Congress.
Administrative Laws
Established by local, state, or federal regulatory agencies.
Agents of a company have the authority to legally obligate their firm in a business transaction.
Two commissions; Securities and Exchange Commission and the Food and Drug Administration.
Common Law
Grows out of court decisions.
Discusses current laws affecting salespeople
Privacy Laws
Limit the amount of information that a firm can obtain about a consumer and specify how that information can be used or shared.
Commercial
Organizational Purchase
Much larger and more complex
Over time, organizational buying decisions often involve extensive evaluation and negotiation.
The buying center, an informal, cross-department group of people involved in a purchase decision.
Organizations use well-trained and knowledgeable purchasing agents to make these decisions.
Initiators
The person who starts the buying process.
Users
They regularly have an extensive impact in the early and late strides of the purchasing system, need acknowledgment, item definition, and postpurchase assessment.
Influencers
People inside or outside the organization who directly or indirectly provide information during the buying process.
Deciders
Make the final choice.
Gatekeepers
Control the flow of information and may limit the alternatives considered.
Economic Criteria
Organizations are exceptionally worried about purchasing items and administrations at the least expense.
Many firms perceive that the quality and dependability of their items are as essential to their clients as cost.
Consumer Purchase
Shorter and not so complex
Consumers typically focus on individual consumer or family needs.
They are looking for the solution to a problem.
They want to obtain something of value in exchange.
Cultural
Why People Buy?
In general, individuals purchase to fulfill a need or want, to tackle an issue, or to fulfill a drive.
Replacement
Convenience
Lower prices
Scarcity
Since they have individual objectives and goals.
Emotional vacuum
Prestige or aspirational purchase
Clients trust and are confident in company’s.
Convenience
Buyer Behavior
Understanding buyer’s behavior is
the first step to a successful sale.
Building a strong relationship
with your buyer is critical.
Then keep doing business.
Organizational Buying Decisions
Modified Rebuy
the client has bought the item or a comparative item before, however is keen on getting new data.
Straight Rebuy
The customer buys the same product from the same source it used when the need arose previously.
New Task
It's when a customer purchases a product or service for the first time.
Understand and be aware of the needs we are solving and the needs that the product or service solves directly.
Salespeople that sell to Consumers
Selling to consumers is more about relationships and how you sell your product or service.
Salespeople that sell to Organizations
Selling to organizations often requires more skills and its more challenging.
Types of Buyers
Late Adopters
Those who buy products and services earlier on the product's life cycle, however not so prompt as early adopters.
Trend Followers
Those who see someone else starts using a product, then they too will become buyers.
Early Adopters
Those who want to try new products and step out of the box.
Never Buy
Those who are not interested in acquiring your product.
Types of Buyers
Business is full of a wide
variety of customers, including:
Original Equipment Manufacturers (OEMs)
Purchase goods to be used in the manufacture of their products.
End Users
When producers buy goods and services to support their own production and operations.
Producers
Purchase products and services to manufacture and sell their products and services to customers.
Resellers
The purpose of buying finished products or services is to resell them to businesses and consumers.
Consumers
Consumers buy products and services for use by themselves or their families.
Institutions
Institutions can be like producers, caring about how customers perceive their services.
Government Agencies
The largest customer for goods and services. They develop detailed specifications for the product and then invite qualified suppliers to bid.