1U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

/user/TheProfessorBrey

/in/professorbrey

/Professorbrey

@professorbrey

CONSUMER & ORGANIZATIONAL BUYING BEHAVIOR

2U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

EXTRACREDIT

3U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Key Chapter Concepts6

• Cultural Factors– Culture, subculture, social class

• Social Factors– Reference, family, role/status,

SoMe

• Personal Factors– Age-cycle, occupation,

economic, lifestyle, personality

4U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Key Chapter Concepts6

• Psychological–Motivation, perception,

learning, beliefs

• Buying decision process– Problem recognition,

information search, evaluation, purchase, post-purchase behavior

5U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Key Chapter Concepts7

• Organizational buying– Users, influencers, deciders,

approvers, buyers and gatekeepers

• Organization internal influencers– Environment, organization,

interpersonal, individual

6U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Key Chapter Concepts7

• Buying process– Problem recognition, general need

description, product specification, supplier search, proposal solicitation, supplier selection, order specs, and performance review

• Group Business Markets– Convention, meetings (association,

corporate), small group, incentive, and SMERF

7U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

8U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• There are more than 1.5 billion users– This is not a trend that is

going away, no matter what senior executives say and we are on the front line in hospitality

– You don’t need an app in hospitality, just a mobile sight and interesting content

9U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• Smartphones are boosting social media use– There is only one term that

will matter in the future – SoLoMo

– Engage consumers when they are close to your restaurant and when your message makes sense

10U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• Most internauts use more than two social networks– Social media is a multi-

faceted approach to engagement but people will get burned out

– Restaurants will need to change with the times, I mean, seriously, who has a Myspace page anymore

11U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• Klout is a niche– There are only so many

people who actually care about how influential they are, and they might not matter

– If you run a popular restaurant you better have popular people stumping for you

12U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• Half of consumers connect with at least one brand– That means there is a fragile

opportunity to engage– Hospitality is the brand of

opportunity because we sell fun, relaxation, beauty, sexy and excitement

13U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• ~50% occasionally post brand content– But the other half have no

interest in what you are doing or who you are

– Success is not in how many people are fans of your golf course, its how engaged they are with you

14U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• People don’t really trust brand fans– Just because you like

something makes you ‘shifty’ when it comes to your judgment

– But they can be conduits for information and trending information on how to adopt your business

15U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Direct Applications

• 80% are open to co-creation– People want to be listened to

and heard, so engage them and get them working

– Ask people what they want to drink, what they want to eat, and what they want to do and then surprise them

16U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Consumer Behavior

• What can we can learn from spaghetti?

• Men really are from Mars and women really are from Venus – so what does that mean?

17U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Strategic Business Insights

• Search for VALS using the power of Google®

• Each student take the exam, identify the group(s) you belong in

• Read through you and your teams’ descriptions

• How would you label the following resort caption?

18U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Make Me Interested

19U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

Next week trends presentations begin. Come to class prepared to present as we start rocking the trends at beginning of class!

• Read Chapter 8 in preparation for class

• Upload your presentations to slideshare by Wednesday, October 3rd

• Send your presentation to Professor Brey by Noon on October 3rd

NEXT WEEK

20U n i v e r s i t y o f W i s c o n s i n - S t o u t

C o n s u m e r & O r g a n i z a t i o n a l B u y i n g B e h a v i o rH T - 3 4 4 H o s p i t a l i t y a n d To u r i s m

M a r k e t i n g a n d S a l e s

/user/TheProfessorBrey/in/professorbrey/Professorbrey@professorbrey