Marketing Fundamentals

(BMM4422)
Week3
 Important Info
• The on-line quiz this afternoon will be the first real quiz/test

• The quiz today will contribute 10% of the module assessment

marks.

• There are 7 quizzes, running weekly as specified in your

module Guide.

• DO TEST IN COMPUTER ROOM (With computer or Laptop)

 BMM4422
Marketing Fundamentals Assessment

Multiple Choice Quiz 1 :----------------------------------------10%

Multiple Choice Quiz 2 :----------------------------------------10%
Multiple Choice Quiz 3 :----------------------------------------10%
Multiple Choice Quiz 4 :----------------------------------------10%
Multiple Choice Quiz 5 :----------------------------------------10%
Multiple Choice Quiz 6 :----------------------------------------10%
Multiple Choice Quiz 7 :--------------------------------------10%
_____
70%

Semester 2: Programme Level

Assessment………………………………….. 30%
______

100%
So lets say that your scores for the 7 assessed quizzes are:-

e.g. WK1 : you get 100 out of 150 = 10/15x100 = 66.66%

As there is only 10% available then it is 66.66/10 = 6.66%

E.G. WK1 = 6.66%

WK1+ WK2+WK3+WK4+WK5+WK6+WK7 = TOTAL CONTRIBUTION FOR

SEMESTER 1.

Plus your score out of 30 for the Programme Led Assessment.

 Chapter 3

Customer Behaviour
 Chapter Outline
1 Understand the key dimensions of customer behaviour
2 Explain the different roles played in a buying decision
3 Compare and contrast different theories of the buying decision
process
4 Understand the differences between consumer and organizational
buyer behaviour
5 Analyse the main influences on consumer behaviour – personal and
social influences
6 Analyse the main influences on organizational buying behaviour –
the buy class, product type and purchase importance
7 Critique the role of marketing activities in consumption decisions
8 Develop a better understanding of one’s own consumption choices.
 B2B & B2C
Private Consumers

Purchase: For personal or household use

Organisational Customers

Purchase: For use in the operation of a

business or organisation. To manufacture other
products OR For resale to others
 Customer Types

• Business - to - Business (B2B)

• Business - to - Consumer (B2C)
• Consumer - to - Consumer (C2C)
• Consumer - to - Business (C2B)
• Business - to - Government (B2G)
• Government - to - Business (G2B)
• Government - to - Citizen (G2C)
Understanding Customers
 Who buys?
1 Initiator: the person who begins the process of considering a purchase.
Information may be gathered by this person to help the decision.

2 Influencer: the person who attempts to persuade others in the group

concerning the outcome of the decision. Influencers typically gather
information and attempt to impose their choice criteria on the decision.

3 Decider: the individual with the power and/or financial authority to make
the ultimate choice regarding which product to buy.

4 Buyer: the person who conducts the transaction. The buyer calls the
supplier, visits the store, makes the payment and effects delivery.

5 User: the actual consumer/user of the product.

 Is it ethical to market to children?
• In your view, what kinds of restrictions if any should be placed on
advertising to children?
Influencing Buyer Behaviour
 The Information processing
approach vs the Consumer culture
theory
Types of Consumer Decisions
The Decision-Making Process
Application of the Decision-Making Process
To what extent do you think marketers are able
to create needs in the minds of consumers?
The Organizational Decision-Making Process
Choice Criteria / Attributes Used When
Evaluating Alternatives
Economic-
Technical-
Price
(Performance)
Value for money
Reliability
Running costs
Durability
Residual value
Performance
Life cycle costs
Style/looks
Comfort
Delivery Personal- Social-
Convenience
Taste Self –image Status
Risk reduction Social belonging
Morals Convention
Emotions Fashion
 This advertisement is
designed to motivate the
consumer to buy this
classic fragrance and
become part of the rich
and famous.

Do you think the advert

is effective?
Influences of personal buyer behaviour
 Classical and Operant Conditioning
Classical Conditioning: is
the process of using an
established relationship
between a stimulus and a
response to cause
learning
Operant Conditioning:
individual respond to the
stimulus that offers the
most satisfactory rewards
and subsequently the
behaviour is repeated.
The more rewarding the
response, the more
likelihood of a repeat
purchase
 Classical and Operant Conditioning
Classical conditioning
uses an established
relationship between
Operant conditioning is
stimulus and response to reinforcement through
cause learning – rewards –
In advertising, humour is
known to elicit a pleasant The use of free samples is
response and is used in based on these principles
the belief that these
pleasant feeling will be a
condition of the product.
Maslow’s Hierarchy of Needs
Diffusion of Innovation
Influences of organisational buyer behaviour
Derived demand?
 Derived demand?
• Just-in-time purchasing
• Online purchasing
• Centralised purchasing
• Relationship Marketing
• Reverse marketing
• Leasing
 Chapter Summary
• There are key differences between consumer and
organizational buying.
• There are 5 roles in the buying decision making group:
initiator, influencer, decider, buyer, user.
• The level of involvement is a purchase situation will affect
the number of stages a consumer goes through before
making a purchase decision.
• In consumer purchasing choice criteria can be categorised
as: technical, social, economic and personal
 Chapter Summary cont.
 The main influence on consumer buying behaviour
are: the buying situation, personal and social
influences.
 The main influence on organizational buying
behaviour are: the buy class, the product type, and
the importance of the purchase.
 There have been key innovations in purchasing
practice.
Case Study Activity
NETFLIX AND CONSUMER BEHAVIOUR
Part of the attraction to Netflix is that consumers feel like they aren’t bombarded with advertising. While that is true,
the reality is that whatever you watch on Netflix, it’s still having a significant impact on your consumer behavior.
 
We are all guilty of binge watching more than our fair share of shows, particularly since the start of the COVID-19
pandemic:

how are popular Netflix shows impacting retail buying trends?

 We were all stunned by the mind-blowing ending of Ozark Season 3 (pun intended). And the shocks continue as we
can reveal this season led to a 340% increase in demand for vacations to the Ozarks. Other notable mentions include
The Queen’s Gambit. It has been the go-to show over the past few months, but sensationally it has increased retail
demand for ‘chess boards’ by over 232%.
Tiger King (tiger adoption), White Lines (DJ decks) and Enola Holmes (Sherlock Holmes books) make up the rest of
the top 5. Interestingly, this is the same in the UK but White Lines had more of an effect on ‘Ibiza holiday’ over ‘DJ
decks’.
2020. USA.
Source: Reuters.com
 30 mins Activity: Groups of 2-3
• In your groups, ANSWER THE
FOLLOWING:
• how are popular Netflix shows impacting retail buying trends?

• GIVE SOME EXAMPLES: