MKT 2210 Lecture Notes - Environmental Factor
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Influence of product characteristics on rate of adoption
- Five characteristics are especially important in influencing an innovation’s rate of adoption
1. Relative advantage à the degree to which innovation appears superior to existing products.
2. Compatibility à The degree to which the innovation fits the value and experience of potential consumers.
3. Complexity à The degree to which the innovation is difficult to understand or use.
4. Divisibility à The degree to which the innovation may be tried on a limited basis.
5. Communicabilityà The degree to which the results of using the innovation can be observed or described to others.
Chapter 6 – Business Markets and Business Buyer Behaviour
- Business Markets: All the organizations that buy goods and services to use in the production of other products and
services that are sold, rented, or supplied to others. It also includes retailing and wholesaling firms that acquire
goods for the purpose of reselling or renting them to others at a profit.
- Business Buying Behaviour: The decision-making process by which business buyers establish the need for
purchase products and services and identify, evaluate, and choose among alternative brands and suppliers.
Characteristics of Business Markets
- Table 6-1 Characteristics of Business Market (200)
Market Structure and Demand
- The business market typically deals with far fewer but larger buyers than he consumer marketer does.
- Business markets are also more geographically concentrated.
- Derived demand: Business demand that ultimately comes from (derives from) the demand for consumer goods.
- Many business markets have inelastic demand; that is, total demand for many business products is not affected
much by price changes, especially in the short run.
- Business markets have more fluctuating demand. The demand for many business goods and services tend to
change more-and more quickly then the demand for consumer goods and services does.
Nature of buying Unit
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