Consumer Behavior in B2B Market
It is the human tendency to expose a particular behaviour in response to particular circumstances. For example, if a child if offered sweets, his happiness is projected. Upon the attainment of maturity, these expressions become more sophisticated. In the modern age, sophistication is one of the trends, which proves beneficial for the customers to receive quality products, hospitality among others (Solomon 2014). The first segment of the assignment deals with the aspect of consumer behavior in B2B and the second segment highlight the relationship between the business and the customers in great details. The components of this evaluation are psychological and rational application in certain specific situations. The theoretical application to the consumer behavior enlivens the different approaches of the customers in response to the marketing activities undertaken by the companies and organizations (East, Wright and Vanhuele 2013).
Darwin Symphony Orchestra (DSO) has targeted different corporate organizations for attaining sponsorships for the music concerts, which are organized across the globe. This has proved beneficial for the organization in terms of bringing efficiency in the business activities. Typical examples in this direction are the provision of online hotel booking facilities, discounted flight tickets and perfect venues to their corporate partners (Dso.org.au 2017). Possession of a strategic vision in their search for the investors has enhanced the stability in the relationship between the organizational personnel and the associate partners.
DSO, in order to identify the appropriate corporate partners, segmented the available organizations in terms of their capabilities. Within this, there were subdivisions, such as high, low and medium. The main motive in this type of segmentation was to ensure the market position of the gathered organizations. The characteristics of this segmentation resemble geographical segmentation (Schiffman et al. 2013). Utilization of this technique for segmentation made the organizational personnel aware of the corporate neighbors ready to sponsor DSO’s music concerts at cheaper rates.
Niche market of DSO is so diverse that it possesses the flexibility to influence the affordability of the investors. Stabilizing the market place acts as an opportunity for DSO personnel in terms of luring the investors. Emerging successful in this direction would pave the way of foreign market penetration (Foxall 2014). Exposure of conscious and rational approach in the activities would create a positive image of DSO in the minds of the investors. Maintenance of consistency in producing quality musical instruments and organizing quality musical concerts would help the personnel to generate high revenue. Apart from this, assistance from the Australian government is one of the greatest financial strengths of DSO in terms of accessing the selected corporate business organizations. Focusing on the sectored growth, at the first instance, would bring productivity in the business activities of the organization (Dso.org.au 2017).
Decision-making Process for Buyers
In the B2B business, the native company or organization, DSO is the seller and the associate partners, the selected corporate organizations are the buyers. The following paragraphs shed light on the theoretical perspectives, which enliven the business transactions in B2B market.
The decision-making process for the buyers undergoes through many stages. The primary stage is the identification of the need to purchase a product. For the corporate organizations selected by DSO, the need would be to sponsor the concerts for their financial upliftment of DSO (Dso.org.au 2017). The sequential step is to gain information about the current performance of DSO in the competitive market of Australia. This search would make the neighboring organizations capable of demarcating the reason for selecting DSO and not the other organizations. This demarcation would help the personnel of the selected corporate organizations to decide whether to invest in the sponsorship programs of DSO. Final step is to evaluate the steps undertaken in terms of fulfilling the identified and specified objectives of DSO (Dso.org.au 2017). Reflecting on the stages of the decision-making process, the stage of evaluation also finds its applicability in the stage of actual purchase.
Modular perspective to this process helps to gain a deeper insight into the behaviour of the buyers. As a matter of specification, there are three such models, such as, economic model, psychological model and consumer behaviour model. Economic model highlights the rational application by the customers in order to get branded quality products. Related model in this is the Game theory (Gunter and Furnham 2014). The market is the field and the companies and organizations are the players. The customers are the representatives for whom the players present themselves in the field. The competitive mentality of the companies and organizations bear correlation with the connotations of the word “game”. However, compromising the needs, demands and requirements of the buyers, in order to win the rat race of competition disqualifies the companies and organizations from the game of luring the customers (Lantos 2015). All these aspects seem true for DSO. Gaming with the needs, demands and requirements of the selected organizations would deprive the music lovers from A class concerts.
The action of gaming, compromising is a kind of psychological entrapment of the buyers into the tactics of the company, DSO. Herein lays the conjoined significance of psychological and economic models. On the contrary, ensuring the well-being of the shareholders qualifies the DSO personnel as efficient in terms of preserving the individuality of the shareholders (Pérez et al. 2013). Here, the personnel need to understand that benefit of the shareholders would be accounted as their benefit also. Application of rational and conscious attitude in this context acts as a motivation for the selected corporate organizations to invest in the sponsorship programs of DSO. Viewing it from other perspectives, this step would enhance the corporate social responsibility of DSO, placing them on the same alignment with the selected organizations. Herein lays the doppelganger of the word “corporate”. On one hand, it is the type of the organizations intending to indulge in partnership with DSO for sponsorships (Dso.org.au 2017). On the other hand, display of sophisticated, conscious and rationalistic approach in the business activities enhances the corporate attitude of the DSO personnel. The earlier sentence brings all the models in the same alignment. Sophisticated yet rationalistic behavior of DSO personnel influences the selected organizations, which generates an urge to invest in the music concerts.
Theoretical Perspectives in B2B Transactions
Motivation encourages an individual to expose better performance as compared to the performance exposed in the earlier times. The same is applicable for the customers. Conjunction of both the earlier sentences reflects one of the categorization of the individuals as customers (Erevelles, Fukawa and Swayne 2016). The model of motivational process provides a deeper understanding regarding motivation influencing the behavior of the customers, here, the organizations selected by DSO.
At the first instance, the needs, demands and requirements of DSO are at a raw stage. In order to attain a better place in the market, a tension develops in the minds of the managers. This tension push(es) the managers of DSO to search for the corporate organizations, who would be ready to invest in their sponsorship programs (Pappas 2016). Indulging in interactive sessions with the the managers of the selected organizations brings changes in the behavioral conduct of DSO managers. Attending cognitive learning courses is the agent, which brings these changes. Maintenance of consistency in this learning enables the DSO personnel to achieve the identified goals of getting sponsorship for the concerts. This success reduces the tensions and adds sophistication into the roles and responsibilities of the DSO personnel (Dso.org.au 2017).
Focusing on quality lures the investors towards the music concerts of DSO. Within this, carrying out in-depth research about the production of quality musical instruments broadens the perspectives of the investors. This diversification might generate an urge among the investors to search for efficient ways to sponsor the concerts. Advertising the products and services is one of the other ways to grab the attention of the investors. For this, adoption of proper communications channels is a vital aspect (Ashley and Tuten 2015). In this context, there cannot be any better means than social media. Putting the news of the planned concerts or newly launched musical instruments on the social networking sites would help the DSO personnel to increase the trafficking of the audience towards the brand. Effective utilization of this technique justifies the segmentation process adopted by DSO for selecting the corporate organizations for receiving sponsorships (Oliver 2014).
Providing access to the customers regarding the organizational products and services is one of the major responsibilities of companies and organizations. Conveying important information about the company on the official websites and portal would help the investors in enriching their preconceived knowledge. However, equal access needs to be provided so that the investors are able to achieve the required information (Vinerean et al. 2013). Unequal access severely affects the behaviors of the customers. DSO must ensure that all of the shareholders get the same information from the website. Discrepancies in this context lead to the instances of conflicts, discriminations, which destroys the sanctity of the cultural diversity of DSO.
DSO’s Search for Corporate Sponsors
Instances such as breach of contract, false promises and deceives would stain the personality of the investors. Viewing it from other perspectives, these instances would affect the decision-making process of the investors, compelling the DSO personnel to encounter losses in terms of producing A grade musical concerts and musical instruments (Zeugner, Žabkar and Diamantopoulos 2015). On the other hand, consciousness towards the wellbeing of the stakeholders reflects an organizational attempt to preserve the core values. This outshines the parameter of corporate social responsibility of DSO. Exposure of conscious and rationalistic approach in this direction by DSO personnel adds value to the organizational roles in terms of preserving the values. This preservation enhances the personality of the DSO personnel amidst the investors in the threshold of Australian market (Kardes, Cronley and Cline 2014).
One glance at the type B2C indicates its functionality to serve quality products to the customers. The number 2 has a double meaning here. On one hand, it is the business transaction between the business organizations and the customers. On the other hand, it reflects the presence of two entities in the market field. The headings under B2B business transactions also seems true for the B2C business market, however, the difference is only in the identity of the customers. In case of B2B, the customers are the investors, the shareholders. In B2C, the stakeholders are also included (Inoue and Kent 2014).
Australia is a diverse country, where the native indigenous people exist within the cultural ambience. In this perspective, identifying and specifying the target audience is a strenuous task for the DSO personnel. However, in order to bring efficiency within the services, targets need to be identified. For this, strategic vision is crucial for the personnel. On a wider perspective, targets need to be such, which generates high sales revenue and add maximum value to the profit margin (Bhattacharjee, Berger and Menon 2014). In response to these facts, utilizing the different types of segmentation seems justified.
Geographical segmentation makes the DSO personnel aware of the markets, where the organization would make maximum profit. For this, the creation of concert brochure on convenience of the customers in terms of buying master tickets at cheap rates is a wise step. Provision of concert tickets at cheap rates at convenient locations attracts the music lovers across the globe (Anker et al. 2015). Experimenting with the segmentation technique has enabled the personnel to focus on Melbourne, Sydney and Perth as these cities would generate high sales revenue. This aligns with the usual conventions however; focusing on the entertainment of the people of rural and remote areas of Australia would help DSO personnel to expand their business in an innovative manner.
Segmentation and Rational Marketing for Identifying Investors
The demographics of the segmentation comprise of the youth between the age group of 18-35 years. Another ground of this segmentation is the income level. This selection aligns with the passionate attitude of the youth towards music. One of the notable facts about the segmentation is the absence of racial biasness (Carrington, Neville and Whitwell 2014). Presence of all these facts in the concerts would influence the purchasing power and decisions of the customers.
Carrying out planning prior to the purchases relates to the rational application of the buying power by the customers. In this perspective, the phrases “planned action” and “reasoned behavior” can be placed on the equal alignment. The stimulus is the agent, which sends the message to the brain of the customers to expose certain behaviors in response to the activities undertaken by the companies and organizations (Zabkar and Hosta 2013). Herein lays the conjoined significance of the psychological model and the theory of planned action/ reasoned behavior. For example, giving discounts on the concert tickets lures the customers, who belong to the middle class. Along with this, the discounts can be considered as a means to get into the mindset of these customers for knowing their needs, demands and requirements. Viewing it from other perspective, poor management in the concerts compels the customers to switch over the brands, which is a reasonable action in order to rectify the wrongful application of the buying power and behavior (Burchell, Rettie and Patel 2013).
Individuals are a part of the society. It is the human tendency to copy the actions of the others, which groups the individuals on the basis of certain similarities. In order to survive, the individuals need to communicate with the neighbors, which broaden his preconceived perspectives. This is also applicable in terms of the purchases. Advice and suggestions from the relatives, peers and friends helps the individuals to undertake decisions, which proves appropriate for his buying purposes (Karababa and Kjeldgaard 2014). Youths rely on their family members, peers and relatives for making correct and appropriate purchases. Herein lays a collaborative exposure in terms of buying behavior. Introducing lucrative offers on Master tickets and passes for the concerts would influence the buying power of the selected targets as well as their family members. Large scale response to these offers would itself result in high revenue for the organization (Dso.org.au 2017).
Motivation acts as an external force, which encourages the individuals to maintain continuity in their actions. Motivation generates an urge within the customers to get accomplish the goals set for achieving quality and branded products. In case of DSO, engaging the customer in cognitive learning enhances their preconceived knowledge about music. Identification of the need for purchase justifies the made purchase (Hanssens et al. 2014). The rationale behind the purchase of the master tickets is to enjoy A grade musical concerts. Maintenance of consistency in organizing such concerts is an act of motivating the music lovers to satisfy live their passions.
Importance of Sophisticated and Rational Behavior from DSO Personnel
Being able to demarcate the needs is the rationalistic advancement of the psyche of the customers. Attending the concerts only for entertainment purpose is an ordinary need. Attending the concerts and carrying out research projects on these concerts or writing a report on the concerts is an example of the rationalistic and psychic development of the music lovers. This generates self-organizational skills within the customers, the music lovers. The earlier sentence brings Maslow’s Hierarchy of Needs into the discussion.
Delving deep into the box of cognitive learning in the consumer motivation process, it enhances the knowledge of the customers about the dynamics of the market (Martin and Bateman 2014). Logging into the website of DSO would help the music lovers gain knowledge about its origin, concerts in the different areas of the world. Enrichment of knowledge would motivate the music lovers to visit the concerts and assess the reality of the facts put in the websites.
Adoption of social media marketing would promote the organization on an international perspective. Putting the news of the planned concert on social networking sites and keeping space for the comments would help the personnel to judge their performance in terms of the identified and the specified objectives (Smidts et al. 2014). Hiring expert musicians for playing in the streets, premises of the supermarkets, parks would attract the customers. Sponsorships for these concerts would help the DSO personnel to perform charitable acts for the upliftment of the community people. This motive would alter the image of the organization in the minds of the customers.
Adherence to the propositions of this model helps the customers to expose appropriate rationalistic behavior in times of exigencies such as incomplete information about the intended purchase. The model also bestows effective methods for solving these problems. These methods possess three levels: extensive, limited and routinized response towards the problem. Enriching the preconceived knowledge about the products and services transforms the characteristics of the customers. One of the essential components of this transformation is confidence for solving the problems (Hanssens et al. 2014). This confidence helps the customers to achieve solutions by leaping directly into the penultimate method of problem solving. Herein lays the conjoined significance of Howard Sheth Model of Buying Behavior and Learning Theory. Countering this conjunction, learning enhances and upgrades the behavioural conduct of the individuals, that is, the customers.
The model has four components: input variables, output variables, hypothetic constructs and exogenous variables. The stimulus is the variables, which inputs the instructions of perceiving the others and perform the same actions to avert errors of judgment (Zabkar and Hosta 2013). The response to the stimulus is the output variable. Obtaining adequate information about the concerts that is going to be organized would be an intellectual step undertaken by the music lovers. Upon seeing the information, it is obvious that the audience would get hypothetical questions regarding the reality of the concerts taking place.
Conclusion
Conclusion
Concluding through countering the propositions of the model, most of the times, it is the circumstances, which compels the customers to display certain behavior. Herein, a contradiction can be developed with the stimulus of the model. It is this response that the companies and organizations search for identifying the targets. The earlier sentence negates the variables, which influence the behavior of the customers. Rather, it is the consistent performance of the brand; DSO would transform the perspectives of the customers, music lovers of all age groups and brings noticeable changes in their buying behavior.
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