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MKT Chapter 5

Women driving force in the US automobile industry. Women and men think and feel differently about key elements of car buying. Women care about interior styling, speed, safety to survive an accident, evaluate all options before making a purchase.
consumer behavior actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions
purchase decision process (5 buyer stages) 1. Problem Recognition 2. informational search 3. alternative evaluation 4. purchase decision 5. post purchase behavior
Problem recognition problem seen to be fixed, or problem caused to be seen by marketer. Initial step in the purchase decision in perceiving a difference between a person's ideal and actual situations big enough to trigger a decision. REALIZATION you have empty milk carton.
Problem recognition with ads or salespeople can activate a consumer's decision process by showing the shortcomings of competing (or currently owned) products
Stage 2 - Information Search After recognizing a problem, a consumer begins to search for information about what product or service might satisfy the newly discovered need.
two searches that are in the Information Search Internal Search and External Search
Internal Search Involves scanning one’s memory for previous experiences with products or brands, common with frequent purchased products. Do this first. This could be enough for frequently purchased products.
External Search May be necessary when past experience or knowledge is insufficient. The risk of making a bad decision is high. The cost of gathering information is low.
Primary Sources of External Search Information Personal Source (relative/friend you trust), Public Source (product rating organizations), and Marketer-Dominated Source (info from sellers like ADs, company websites, salespeople)
Stage 3 - Alternative Evaluation Clarifies the problems for consumers by: Suggesting criteria to use for the purchase. Providing brand names that might meet the criteria. Developing consumer value perceptions.
Evaluation Criteria represent both the objective attributes of a brand (display) and the subjective ones (prestige) a consumer uses to compare products/brands. Often mentioned in advertisements. Companies look for the most important criteria that consumers look at.
Consideration Set The group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. If you have unsatisfactory, you can change the Consideration Set.
Stage 4 - Purchase Decision Having examined the alternatives in the consideration set, two choices remain: Whom to buy(determined by past purchase,return policy) When to buy(Determined by if the product is on sale, manufacturer offers coupon rebate,store’s atmosphere, shopping ex
Stage 5 - PostPurchase Behavior After buying a product, the consumer compares it with his/her expectations and is either satisfied/dissatisfied. Consumers are often faced with two+ alternatives
Satisfied buyers tell 3 other people. Tend to buy from the same seller each time a purchase occasion arises. the financial impact of a repeat purchase is huge.
dissatisfied buyers Marketers must see if the product was deficient (requires design change) or if the consumer had too high of an expectation (maybe the ADs/salesperson oersold)complain to 9 people.
Post Purchase efforts toll free numbers, liberized return policies, staff training for complaints! All these produce positive post purchase communications and foster relationship building between sellers and buyers
Cognitive Dissonance Feeling of postpurchase psychological tension or anxiety. After a purchase, consumers often seek information or approval from others. Firms often use ads/follow-up calls from salespeople to try to comfort buyers that they made the right decision.
Do Consumers need to do all the stages and in that order? Consumers may skip or minimize/modify one or more steps in the purchase decision process depending on the level of involvement.
involvement the personal, social, and economic significance of the purchase to the consumer.
high-involvement purchases typically has at least one of three characteristics: Is expensive. Can have serious personal consequences. Could reflect on one’s image.
The value of a satisfied customer to the company A LOT. over time it adds up. Marketer attention is on the buying experience, customer satisfaction and retention.
high-involvement purchase consumers engage in extensive info search, consider many product attributes/brands, word of mouth
low-involvement purchase consumers barely involve most of us
Three general problem-solving variations in the consumer purchase decision process: Extended, Limited, and Routine Problem Solving.
Extended Problem Solving. Includes considerable time and effort on external information search to identify and evaluate the attributes of several brands in the consideration set. High-involvement purchases (autos, houses, etc.) Each of the 5 stages are used.
Limited Problem Solving. Consumers seek some information or ask a friend to evaluate alternative brands and attributes. Is used when the buyer has little time or effort to spend.
Routine Problem Solving The purchase process is habitual and involves little effort seeking external information and evaluating alternatives. Is used for low-priced, frequently purchased products. Virtually a habit.
if low involvement and a market leader -maintain product quality -avoid stock out situations so that buyers don't use a substitute competing brand -repetitive ADs to reinforce a consumers knowledge
if low involvement and Market Challengers -break buying habits with samples, coupons or rebates to encourage a trial of that brand -Run lots of ADs -link brand attributes with high involvement issues
if high involvement and a market leader Ads and personal selling
if high involvement and a market challenger comparative ADs where they focus on existing attributes and often introduce novel criteria for judging competing brands
five situational influences impact the purchase decision process -Purchase Task -Social Surroundings -Physical Surrounds -Temporal Effect -Antecendent State
Purchase Task The reason for engaging in the decision. Information searching and evaluating alternatives differs if you are buying a gift or if it's for yourself.
Social Surroundings Others present when making a purchase decision. You buy more things when you are accompanied by kids.
Physical Surroundings Store decor, music, and crowding.
Temporal Effect Time of day or time available. Where you have breakfast or lunch and what is ordered
Antecendent State The consumer’s mood or cash on hand.
How is psychology important in marketing? helps marketers understand why and how consumers behave as they do. Concepts such as motivation and personality; perception; learning; and values, beliefs and attitudes are useful for interpreting buying processes and directing marketing efforts.
Motivation: The energizing force that stimulates behavior to satisfy a need. Because consumer needs are the focus of the marketing concept, marketers try to arouse these needs, which are hierarchical, ranging from basic to learned needs:
Physiological Needs basic to survival and must be satisfied first
safety needs self preservation as well as physical and financial well being. smoke detectors
social needs love and friendship. Dating services and fragrance companies.
personal needs need for achievement, status, prestige and self respect.
self actualization needs personal fulfillment. Army "be all you can be"
Want to arouse multiple needs to stimulate problem recognition
Personality Refers to a person’s consistent behaviors or responses to recurring situations. Guides and directs behavior. Identify KEY TRAITS
Traits Are enduring characteristics within a person or in his or her relationship with others. Include assertiveness, extroversion, compliance, dominance, and aggression, among others. Are inherited or formed at an early age and change little over the years.
Self-Concept Which is the way people see themselves and the way they believe others see them. People have an actual self-concept (how they see themselves) and ideal self-concept (how they want to see themselves), which are reflected in the products & brands they buy.
Subliminal Messages they have sparked heated debate. They are denounced as deceptive yet everyone seems to know they are around. It isn't illegal but frowned upon.
Perception Process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
Selective Perception we are in a complex environment and the human brain attempts to organize/interpret information with this process. A filtering ot exposure, comprehension, and retention
Selective Exposure When people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent.At the postpurchase stage when consumers read ads for the brand they just bought. When a need exists, such as hungry.
Selection Comprehension Involves interpreting information so that it is consistent with a person’s attitudes and beliefs. If a marketer doesn't understand this, then there can be disastrous results. Snow Pup VS Snow Master to increase sales
Selective Retention Means that consumers do not remember all the information they see, read, or hear, even minutes after exposure to it. Affects internal and external information search stage of the purchase decision process. Brochures to take home with car/furniture.
Subliminal Perception Means that people see or hear messages without being aware of them. Is a hotly debated issue, with more popular appeal than scientific support. Subliminal messages have limited effects on behavior.
Perceived Risk the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences. Can be financial, physical harm, and performance of the product. Psychosocial—what will other people think or say.
the greater the Perceived Risk the more extensive the external stage search is likely to be
Strategies to reduce Perceived risk -obtain a seal of approval -secure endorsements from influential people -free trials -extensive usage instructions -warranties and guarantees
Most consumer behavior is ___. Learned
Learning Behaviors that result from (1) repeated experience and (2) reasoning.
Behavioral Learning Is the process of developing automatic responses to a type of situation built up through repeated exposure to it.
four variables are key to how consumers learn form repeated experience: -Drive -Cue -Response -Reinforcement
drive Need that moves an individual to action. Like hunger. Can be represented by motives.
cue stimulus or symbol perceived by consumers
response the action taken to satisfy the drive
Reinforcement is a reward
two concepts from behavioral learning theory Stimulus Generalizatin and Stimulus Discrimination
Stimulus Generalization Occurs when a response elicited by one stimulus (cue) is generalized to another, such as using the same brand name for different products.
Stimulus Discrimination Refers to one’s ability to perceive differences in stimuli among similar products. You may think all light beers are the same and that is why bud light distinguished between many types of light beers and budlight
Cognitive Learning Consumers learn through thinking, reasoning, and mental problem solving without direct experience. Involves making connections between two or more ideas or simply observing the outcomes of others’ behaviors and adjusting one’s own behavior accordingly.
Brand Loyalty Is a favorable attitude toward & consistent purchase of a single brand over time. It relates to habit formation—the basis for routine problem solving, positive reinforcement of previous actions. It reduces risk and saves time due to favorable results.
These play a central role in consumer decision making Values, Beliefs, and Attitudes (Attitude Formation)
Attitude Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.” Shaped by our values and beliefs, which are learned. American core values and personal values (marketers focus more on this)
personal values affect attitudes by influencing the importance assigned to specific product attributes.
Beliefs A consumer’s subjective perception of how a product or brand performs on different attributes. Based on personal experience, ADs, and discussions with other people.
three approaches to try to change consumer attitudes toward products and brands -Changing beliefs about the extent to which a brand has certain attributes (saying mayo has omega 3 which humans need) -Changing the perceived importance of attributes. (freshness date on Pepsi bottles) -Adding new attributes to the product.
Lifestyle is a mode of living that is identified by How people spend their time and resources. What they consider important in their environment. What they think of themselves and the world around them.
Psychographics Analysis of consumer lifestyles. Combines consumer psychology, lifestyle, and demographics to uncover motivations for buying &using offerings. Insights into consumer needs & wants & useful in segmenting &targeting consumers for new &existing products
Psycographic Technique VALS is a psychographic system developed by SRI Consulting Business Intelligence (SRIC-BI) that identifies eight consumer segments based on (1) their primary motivation for buying and having certain products and services and (2) their resources.
Consumers are inspired by one of three primary motivations -ideals -achievement -self expression
Ideals-Motivated Groups Consumers motivated by ideals are guided by knowledge and principle. Are divided into two segments: Thinkers and Believers
Thinkers Mature, reflective, and educated who value order, knowledge, and responsibility. They are practical, deliberate information seekers. They value durability and functionality in products over style and newness.
Believers With fewer resources, are conservative regarding family, religion, community, and the nation. They choose American-made brands and are brand loyal.
Achievement-Motivated Groups Consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to. These include: Achievers and Strivers
Achievers are busy, goal-directed, and have a deep commitment to career and family. Image is important to them. They prefer established, prestige products and services and are interested in timesaving devices.
Strivers Trendy, fun-loving, and less self-confident than achievers. They also have lower levels of education and household income. Money defines success for them. They favor stylish products and are as impulsive as their financial circumstances permit.
Self-Expression-Motivated Groups Consumers motivated by self-expression desire social or physical activity, variety, and risk. These include: Experiencers and Makers
Experiencers young, enthusiastic, and impulsive consumers who become excited about new possibilities. They engage in exercise, sports, outdoor recreation, and social activities. They buy fashion items, entertainment, socializing, and having the latest things.
Makers fewer resources, express themselves by working—building a house, raising children, or fixing a car. They are practical, value self-sufficiency, and are unimpressed by material possessions
High-and-Low Resource Groups Innovators and Survivors
Innovators Successful, sophisticated, take-charge people with high self-esteem and abundant resources. Image is important as an expression of cultivated tastes, independence, and character. They are receptive to new ideas and technologies and like variety.
Survivors The least resources of any segment, focus on meeting basic needs rather than fulfilling desires. They are a small market for most products and are loyal to favorite brands, especially those purchased at a discount.
sociocultural influences evolve from formal and informal relationships with other people have an impact on consumer behavior. -personal influence -reference groups -family influence -social class -culture -subculture
personal influence -opinion leadership -word of mouth activity
opinion leaders individuals who exert direct or indirect social influence over others, knowledgable about or users of particular products or services so their opinions influence other's choices. Identifying, reaching and influencing them is a challenge for companies.
opinion leaders EXAMPLES -celebrity endorsers -promote in media that companies think will reach opinion leaders -let opinion leaders try a product and say what they think
word of mouth influencing of people during conversations, the most powerful and authentic information source for consumers because it involves friends viewed as trustworthy. Friends, family and colleagues. Promote positive and retard negative comments.
buzz popularity created by consumer word of mouth
negative word of mouth can sometimes be lies. is difficult and costly. Marketers found that supplying factual information, toll free numbers and guides to use the product is helpful.
reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. influence what sets a customer's standards. Influence the purchase of luxury products but not necessities.
three types of reference groups -membership group -aspirational group -dissociative group
membership group which a personal actually belongs like frats and a family. These groups are easily identifiable and are targeted by firms
aspirational group a person wishes to be a member of or wishes to be identified with. Firms rely on spokes people in their ADs
dissociative group person wishes to maintain distance from because of differences in values or behavior
family influence three sources -consumer socialization -passage through the family life cycle -decision making within the family or household
consumer socialization the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. Children learn by interacting with adults when buying something and through their own experiences.
family life cycle concept describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing decisions.
traditional family married with kids younger than 18. only 22%
Decision making styles -spouse dominant -joint decision making
joint decision making most are made by both the husband and wife. This increases with the education of the spouses
spouse dominant either the husband or wife are mostly responsible
roles of individual family members in the purchase process -information gatherer - influencer -decision maker -purchaser -user The decision maker isn't necessarily the purchaser as men are known do do the groceries that the women write for them
social class may be defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped - occupation, source of income, and eduction determine this (upper, middle, lower)
subcultures subgroups within the larger, or national, culture with unique values, ideas, and attitudes. Racial/ethnic subcultures with different buying patterns.
Hispanic subculture VERY diverse and the differences within the nationalities affect product preferences. There is also the language barrier when translating from english to spanish.
African American subculture the differences between them and whites comes because of socioecnomic status.
Asian American subculture diversity is so great that generalizations are hard to make.
Assimilated Asian American speak english have good jobs, educated and purchase like typical american consumer
Nonassimilated Asian American recent immigrants who cling to their language and customs
Created by: natiibabii
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