MBA Boot Camp: Consumer Behavior (4.4)
Concepts & Vocabulary
B2C vs. B2B: Business-to-Consumer (selling to individuals, like Netflix) vs. Business-to-Business (selling to other companies, like Microsoft selling servers).
Cognitive Dissonance: In marketing, this is "buyer's remorse"—the psychological discomfort a buyer feels after a major purchase, wondering if they made the right choice.
Heuristics: Mental shortcuts consumers use to make quick decisions (e.g., "Higher price means higher quality," or "I'll just buy the brand I bought last time").
Core Lesson: The 5-Stage Buyer Decision Process
Consumers don't just wake up and buy things. They go through a psychological journey. Marketers must build tactics for all five stages:
Need Recognition: The consumer realizes they have a problem. (My car broke down).
Information Search: They look for solutions. (Googling "best reliable used cars").
Evaluation of Alternatives: They compare options. (Honda vs. Toyota).
Purchase Decision: They actually buy. (Signing the paperwork).
Post-Purchase Behavior: How they feel afterward. (Marketers send "welcome" emails and warranties here to reduce Cognitive Dissonance).
The MBA Insight: B2B buying behaves very differently than B2C. If you buy a candy bar (B2C), the process takes 5 seconds. If a corporation buys a $2 million software system (B2B), the process takes 9 months, involves a committee of 10 people, and is highly rational rather than emotional.
Application & Reflection
Trace a Purchase: Think of a significant purchase you made recently (a laptop, a car, a vacation, a piece of furniture). Briefly trace your own psychology through the 5 stages. How long did you spend in the "Information Search" phase? Did you experience any "Cognitive Dissonance" at the end?
