Page 307 - Introduction to Business

CHAPTER 8 Marketing Basics 281

The social hierarchy that exists in a country is often called social class structure. social class structure The social level
We have all heard of such designations as upper class, middle class, and lower class. in a society that affects what, why, and
how consumers purchase goods and
Each tends to have certain distinctions regarding purchases. Upper classes, for
services
example, are excellent markets for luxury products.
Consumers generally go through a specific process when they purchase (see
Exhibit 8.3).
• They become aware of a problem that can be solved by a purchase. EXHIBIT 8.3
• They hunt for information about alternative solutions, including both products or The Consumer’s Buying
services and the sellers of these products and services. Decision Process
• These products or services
and vendors are evaluated
Marketing mix
on criteria important
to the consumer—price,
quality, durability, taste,
delivery times, and so on.
• They make a purchase
decision to include the
Motivation
specific product or service Social class
and the vendor from which Culture and subculture Perception
the item will be purchased.
• After purchase, they Problem recognition
evaluate the product or
service and vendor. The
possible outcomes include Information search
being satisfied or
dissatisfied or experiencing
dissonance, that is, the Evaluation of alternatives Feedback
feeling that they have made
a purchasing mistake. It is
important to note that dis- Attitude Purchase decision Learning
sonance can occur after a
purchase but before the
Postpurchase evaluation
product or service is even
used. In order to reduce
dissonance, and the Other reference groups
possibility that the item in Family
question may be returned, Self-concept
smart marketers will
reassure the buyer about
the choice made.

Business-to-Business Market

Many companies in the United States sell their products and services to other busi-
nesses and organizations—the business-to-business market. In order to identify business-to-business market The
potential customers who might be interested in purchasing what companies have market where businesses purchase
goods and services from other
to sell, the North American Industry Classification System (NAICS) is often used.
businesses
Exhibit 8.4 (on p. 282) shows the two-digit codes for the 20 major industries North American Industry Classification
included in the NAICS. The NAICS divides these industries into various sub- System (NAICS) The use of two, three,
industries through the use of three-, four- and five-digit codes. For example, one of four, and five digits to classify industries
and subindustries in the United States,
the subindustries of manufacturing is 315, apparel. Classification 3151 designates
Canada, and Mexico
knitting mills, and 31511 identifies hosiery and sock mills. Companies wanting to

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