MKT 3352 CH 12
Review for CH 12 Organizational and Household Decision Making
Terms
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- Responsibility
- (for procurement, maintenance, payment and so on) ppl are more likely to have disagreements about a decision if it entails long-term consequences and commitments. (Family decides to get a dog involves conflict regarding who will be responsible for walking and feeding it)
- Internal Stimuli
- The buyer's unique psychological characteristics such as willingness to make resky decisions, job experience, and training.
- Autonomic decisions
- when one family member chooses a product for the whole family.(Wives tend to have most say buying groceries, toys, clothes and medicines)
- Extended Family
- a family unit that may include parents, children, grandparents, aunts, uncles, cousins, and other relatives, often living with or near each other. (3 generations)
- Collective Decision Making
- process in which more than one person is involved in the purchasing process for products or services that multiple consumers may use.
- Authoritarian parents
- Rigid, bossy, no negotiations, hostile, restrictive, and emotionally involved. They don't have warm relationships with their children, they censor the types of media their children are exposed to, and have negative views about advertising
- Interpersonal Need
- (a person's level of investment in the group) A teenager may care more about what his/her family buys for the house than will a college student who is temp. living in a dorm room.
- Family financial officer (FFO)
- the individual who keeps track of the family's bills and decides how any surplus funds will be spent.(younger couples jointly; older women have more say)
- Sex-role stereotypes
- Couples who believe in traditional sex-role stereotypes tend to make individual decisions for sex-typed products. (those products considered to be "masculine" or "feminine")
- Socioeconomic status
- Middle-class families make more joint decisions than do either higher-or-lower-class families.
- Cultural Factors
- Different countries do different things; we find vastly different norms for doing business in different countries. (Amercans tend to be less formal in their interactions than Europeans)
- Indulgent parents
- communicate more with their children about consumption-related matters and are less restrictive; they believe children should be allowed to learn about the marketplace without much interference.
- External Stimuli
- The nature of the organization for which the buyer works as well as the overall economic and technological enviroment in which the industry operates
- Full Nest I
- two-adult-plus children household with youngest child less than six
- Full Nest II
- two-adult-plus children household with youngest child older than six
- User
- The person who winds up using the product or service.
- New Task
- A business buying situation in which the buyer purchases a product or service for the first time (extensive problem solving, high risk, many ppl make final decision)
- Experience
- Couples who have gained experience as a decision-making unit make individual decisions more frequently.
- Sandwich Generation
- A term for the generation of middle-aged people who are supposedly "squeezed by the needs of the younger and older generation. Some adults do feel pressured by these obligations, but most are not burdened by them, either because they enjoy fulfilling them or because they choose to take on only some of them, or none.
- Consensual Purchase Decision
- members agree on the desired purchase, differing only in terms of how it will be achieved. (getting a dog)
- Modified Rebuy
- A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers. This decision might involve a limited search for info, most likely by speaking to a few vendors. (limited decision making, low to moderate risk, one or 2 ppl make final decision )
- Neglecting parents
- don't have warm relationships, more detatched from their children and don't exercise much control over what their children do, let children make decisions
- Gatekeeper
- The person who conducts the information search and controls the flow of information available to the group. In organizational contexts the gatekeeper identifies possible vendors and products for the rest of the group to consider.
- Family Size
- Depends on educational level, availablility of birth control, and religion(catholics and mormons have more kids); worldwide-women want smaller families, Contraception/abortion-some countries want ppl to have more children.
- Life-Cycle Effects on Buying
- Young bachelors and newlyweds are most likely to exercise, go to bars/concerts/movies (entertainment); Those in early 20s buy the most apparel, electronics, gas; Families with young children buy health foods; Newlyweds have the most appliances(toaster ovens, new trend to gift cards); Older couples/bachelors are most likely to receive home maintenance services(lawn mowing), travel and cruises.
- Organizational Buying (vs Consumer Buying) Similarities
- Emotions to guide decisions, Brand Loyalty, Long-term relationships
- Product Involvement and Utility
- (the degree to which the product in question will be used or will satisfy a need) A family member who is an avid coffee drinker will obviously be more interested in the purchae of a new coffeemaker than a similar expenditure for some other item.
- Full Nest III
- two-adult-plus children household with the youngest child older than six and the parents are middle-aged
- The Family Life Cycle
- Factors that determine how a couple spends time and money. (2 important factors that determine how a couple spends time and money are: 1)whether they have children and 2)whether the woman works (double income)-#1 exp=kids #2 exp=kids education #2=house
- Nuclear Family
- a household made up of a mother, a father, and their children, and pets (2 generations)
- Single Parent III
- one-adult-plus children household with the youngest child older than six and the parents are middle-aged
- DINKS
- Double income, no kids
- Organizational Buyers (influenced by:)
- Internal Stimuli, External Stimuli, and Cultural Factors
- Delayed Full Nest
- two-adult-plus children household with the youngest child less than six and the parents are middle aged
- Organizational Buying (vs Consumer Buying) Difference
- purchase decisions involve many ppl including ppl that don't necesarily buy, Precise, technical specifications, Decisions are often risky (to one's career), more emphasis on personal selling, impulse buying is rare, dollar volume is much higher
- Family Household
- contains at least 2 ppl who are related by blood or marriage(traditional). It is changing due to divorces and separations being accepted in our culture. People think the traditional family is dead but it is making a comeback with young couples, adult females are also staying home with family/children.
- Parental Styles that affect socialization
- Authoritarian, neglecting, and indulgent
- Boomerang Kids
- grown children who return to their parents' home to live, spending less on housing/staples and more on entertainment.
- Consumer Socialization
- process by which young people acquire skills, knowledge, and attitudes relevant to their functioning in the marketplace.
- Nontraditional Family Structures
- any occupied housing unit is a household, Voluntarily childless women/couples, same sex couples, singles, DINKS
- Buyclass theory of purchasing
- a framework that characterizes organizational buying decsions in terms of how much cognitive effort is involved in making a decision.
- "Muddling through"
- A couple "reaching" a decision rather than "making" a decision (amount of methods that are likely to reduce conflict)
- Organizational Buyers
- _________ are people who purchase goods and services on behalf of companies for use in the process of manufactuerers, distribution or resale.
- FLC (family Life Cycle) Models
- Useful models take into account the following variables in describing longitudinal changes in priorities and demand for product categories: Age, maritial status, the presence/absence of children in the home, and the ages of the children,
- Buyer
- The person who actually makes the purchase. The buyer may or may not actually use the product. This person may pay for the item, actually procure it, or both.
- Organizational Memory
- Sue shares information with colleagues to help ____
- Spousal resources
- The spouse who contributes more resources to the family has the greater influence.
- Power
- (or the degree to which one family member exerts influence over the others in making decisions) traditional families husband has more power than the wife but she has more power than the oldest child and so on. In family decions conflict can arise when one person continually uses the power he has within the group to satisfy his priorities. (child will die if he doesn't get an XBOX for bday he will resort to tantrums and extreme tactics to influence parents)
- Influencer
- The person who tries to sway the outcome of the decision.
- Heuristics
- mental rules of thumb that lead to a speedy decision (salient objective dimenstions-based on spouses preferences(4 bedrooms but want different layouts), Task specialization (each spouse is responsible for certain duties and does not interfere on the others "turf"), Concessions based on intensity of each spouse's preferences(wife-kitchen design husband-garage workshop)
- Initiator
- The person who brings up the idea or identifies a need.
- Single Parent I
- one-adult-plus children household with youngest child less than six
- Synoptic ideal
- a model of spousal decision making in which the husband and wife take a common view and act as joint decision makers, assigning each other well-defined roles and making mutually beneficial decisions to maximize the couple's joint utility.
- Sex-Role Socialization
- the act of determining what products are for girls and boys.
- Single Parent II
- one-adult-plus children household with youngest child older than six
- Straight Rebuy
- is a routine repurchase that may have been made many times before. Buyers probably don't bother looking for new information or new sources of supply (habitual decision, low risk, automatic reorder)
- Organizational Memory
- Organization's members share information with one another and develop an _____ which consists of shared beliefs and assumptions about the proper course of action.
- Nonhuman Family Members
- Treating companion animals as family members (buying them gifts at holidays, pet weddings, cremating or freeze drying them when they die)
- Accommodative Purchase Decision
- group members have different preferences or priorities and cannot agree on a purchase that will satisfy the minimum expectations of all involved. (ppl will use bargaining, coercion, and compromise to achieve agreement; money is big conflict TV viewing choices#2)
- Syncretic decisions
- Those purchases decisions that are made jointly by both spouses.(Both spouses make decisions for cars, vacations, homes,appliances, furniture, home electronics, interior design, and long distance phone service)
- Boomerang Kid
- The older child who moves out of the house and back in is called ___
- 3 Generations
- A Good definition of an extended family is a ____