CH12-R pungky.ppt

8/11/2019 CH12-R pungky.ppt

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12-1

Chapter 12

Organizational andHousehold Decision Making


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12-2Organ izat ional Decis ion -Mak ing

Organizational Buyers are people whopurchase goods and services on behalf ofcompanies for use in the process ofmanufacturing, distribution, or resale.

These individuals buy from Business-to-Business Marketers, who specialize inmeeting the needs of organizations such ascorporations, government agencies,hospitals and retailers.

Approximately, $2 trillion dollars worth ofproducts and services change hands amongorganizations.


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12-3Organ izat ional Purchase

Situat ion

Expectationsof the

Supplier

OrganizationalClimate of theBuyers Firm

Buyers

Assessment ofHis/ Her Own

Performance

Influences on theOrganizational

Purchase Situation


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12-4Organ izat ional Dec ision -Making

Vs. Consumer Decis ion -Making

Purchase Decisions Frequently Involve Many People

Products Are Often Bought According to Specifications

Impulse Buying is Rare

Decisions Are Often High-Risk

Dollar Volume of Purchase is Often Substantial

More Emphasis on Personal Selling

Decisions Are Guided by Long-Term Relationships


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12-6Types of Organizat ional Buying

Situat ions

New Task

Modified Rebuy

Straight Rebuy

ExtentofR

iskandEffo

rtInvolved


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12-8

Trends in Organizat ional Buying

Behavior

Building Strong, Lasting Bonds With Suppliers

Consolidating Vendors

Shift From Technology to Marketing Orientation

Emphasis on the User, Not on the Buyer


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12-9Defining the Modern Fam ily

The Extended Family was once the mostcommon family unit and consisted of threegenerations living together.

The Nuclear Family - a mother, father, andone or more children - became the modernfamily. However, this is no longer a realisticview of the family.

Today, a Family Household is defined ascontaining at least two people who arerelated by blood or marriage.


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12-10Age and Size o f the Fam ily

How do the following overall demographics ofthe modern family affect marketers?

The under-25 married couple age group declinedby one-third since 1980.

The 65+ group increased by 15% since 1980.

The 35 - 44 year age group grew 40% since 1980,and will be 50% of the total by the year 2000.

The average marrying age for women is 24 and 26

for men.

The average family size is 2.6 people, and birthrates are expected to continue to decline.


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12-11

Fam i ly Households

Another factor affecting marketers is thatfamily households headed by a single personhave grown by over 25% in the last decade.

Over a million couples divorce each year.

The number of unmarried adults is steadily rising. Single men and women are different markets.

Middle-aged adults have been termed TheSandwich Generation because they must attendto those above them and below them in age.

Children that have left home and return to the nestare called Boomerang Kids.

Nontraditional family structures continue torapidly increase.


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12-12Effects of Fam i ly Struc ture on

Consumpt ion

The Family Life Cycle (FLC) Combines Trends inIncome and Family Composition With the Changes in

Demands Placed Upon This Income.

Four Variables are Necessary to Describe These

Changes:Age

Childrens Ages (if any)

Marital Status

Presence or Absence of Childrenin the Home


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12-13Fam ily L i fe Cyc le: An Updated

View


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12-14

AccommodativeGroup Members Have DifferentPreferences and Cant Agree

on a Purchase ThatWill Satisfy Everyone.

Types of Purchase Decisions

Made by Families

ConsensualGroup Agrees on the DesiredPurchase, Differing Only in

Terms of How It WillBe Achieved.

Fam ily Decis ion Making


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12-15Fam ily Decis ion Conf l ic t

ConflictOccurs When There is Not Complete

Correspondence in Family Members Needs andPreferences.

Some Specific Factors Determining the Degree ofFamily Decision Conflict Include the Following:

Interpersonal Needs

Product Involvementand Utility

Responsibility

Persons Level of Investment in the Group

Degree to Which the Product in Question WillBe Used or Will Satisfy a Need

For Procurement, Maintenance, Payment, etc.

PowerOne Family Members Influence Over the

Others in Making Decisions


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12-16Sex Roles and Decis ion -Making

Responsib i l i ty

Factors Influencing Joint or IndividualFamily Decisions

Spousal Resources Experience

Sex-Role Stereotypes Socioeconomic Status

AutocraticDecisions

Made by OneSpouse or the

Other

SyncraticDecisions

DecisionsMade

Jointly


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12-17Chi ldren as Decis ion Makers:

Consumers in Train ing

Children are recognized as consumers thatdeserve attention.

Kids ages 4 - 12 spend or influence their parents tospend about $140 billion a year.

Children are particularly influential in purchasing thefollowing products:

Fruit snacks

Frozen novelties

Kids beauty aids and fragrances

Toys

Parental Yielding occurs when a parental decisionmaker is influenced by a childs request and

surrenders.


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12-18Consumer Soc ial izat ion

Consumer Socialization is defined as the

process by which young people acquireskills, knowledge, and attitudes relevant totheir functioning in the marketplace.

Influence of Parents: Authoritarian parents - restrictive with a negative viewabout advertising.

Neglecting parents - detached from kids and exerciselittle control over what their children do.

Indulgent parents - less restrictive and want children tolearn about buying.

Influence of Television: The Electronic Babysitter that teaches children about

a cultures values, myths, and idealized images.


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12-20Market Research and Child ren

Despite childrens buying power, relativelylittle data on their preferences or influenceson spending patterns is available.

Children are difficult subjects to research.

A particularly helpful types of research withchildren is Product Testing.

Many serious ethical issues are raised whenadvertisers try to appeal directly to children.

Kids cognitive defenses are not yet developedenough to filter out commercial appeals.

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