24415 Lecture Notes - Lecture 4: Foxconn, Business Process, Opportunity Cost
Document Summary
Investments of relationships relationship-specific investments: both buyer and supplier must invest into relationship as the building blocks resources your company has to build an effective, ongoing relationship, tangible, financial/loan/equity, customised equipment. Intangible: human resources (e. g. foxconn for apple, customised business process. Factors influencing buying decisions: organisational, bureaucracy, budget cycle, system compatibility, environmental, criticality to productivity, linkage to bottom line. It buyer concerned with compatibility with current structures/systems support. Typically: need recognition, info search, evaluation, purchase decision, post purchase evaluation. May not happen in sequence, so in each stage marketers should use different types of advertising pay attention to the post purchase evaluation. Amazon 1-click offer, prime membership: reassure customers after purchase, send them an email to congratulate a new customer for making the right choice. Habit-forming products: this is where a holistic experience is offered, e. g. Apple - consumers are likely to just purchase another apple product so they all link up.
