Consumer Behavior Test 4

internal reference price

price or price range that a consumer retrieves from memory to compare with a price in the market

Ritual Situations

1. Are of major importance to marketers because they often involve prescribes consumption behaviors 2. Every major American holiday (ritual situation) has consumption rituals associated with it. For example, more than 60 percent of the toy industry's sales occur at Christmas 3. Candy marketers produce and promote a wide array of candies for Valentine's Day and Halloween. 4. Mother's Day is a $10 billion occasion in which card giving is largely a ritual behavior created by marketers.

Four Broad Categories/Types of Situations

1. Communication Situation 2. Purchase Situation 3. Disposition Situation 4. Usage Situation

Product Involvement

Motivation or interest in a specific product category

Brand Loyal Purchase

Nominal decision made because of an emotional commitment to the brand

Repeat Purchase

Nominal decision made from habit, because no other options are available, or never thought about the other options

According to Forrester research, what is the most common reason consumers give for not making online purchases?

Lack of "touch"

Time Pressure usually results in...

Less available information being used

Convenience

Location and parking

Momentary Conditions

Temporary states of being, such a s being tired, being ill, having extra money, or being broke

Purchase Involvement

The level of concern for, or interest in, a particular purchase

Atmospherics

The process managers use to manipulate the physical retail environment to create specific mood responses in shoppers

Task Definition

The reason the consumption activity is occurring- self-use versus gift giving

Store Atmosphere

The sum of all the physical features of a retail environment

Moods

Transient feeling states that are generally not tied to a specific event or object

retail outlet

any source of products or services for consumers

servicescapes

atmosphere of a service business such as a bank

high purchase involvement

extended decision making

Represent habitual decision making

frequent, repetitive purchase

Gift Giving

1. Gift giving is culture specific 2. The nature of a gift can signify the type of relationship the giver has or desires with the receiver. 3. Give giving often produces anxieties on the part of both givers and receivers 4. Gifts communicate symbolic meaning on several levels

Moods: Truths

1. Moods influence decision processes, the purchase and consumption of various products, and perceptions of service.

Evaluative Criteria (attribute) affecting retail outlet selection

1. outlet image 2. retailer brands 3. retail advertising 4. location 5. size

Steps in the Consumer Decision Process

1. problem recognition 2. information search 3. purchase 4. evaluation

Examples of retail outlets

1.Cabela's in Buda 2.L.L. Bean catalog 3.Walmart.com 4.An interactive ad for clothing seen on a TV show 5. Target's mobile shopping app

What occurs as purchase involvement increases?

1.decision making becomes more complex 2.Consumer searches for more information 3. alternatives are evaluated on more criteria 4. consumer uses more complex decision rules 5. Consumer goes through a more thorough post purchase evaluation

Examples of the purchase stage of the decision making

1.ordering a watch from amazon 2.buying furniture from a craig's list post 3. getting a ride from an uber driver 4.buying groceries at HEB

Embarrassment

A negative emotion influenced by both the product and the situation

Ritual Situation

A socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning

Problem recognition is the result of a discrepancy between ___________ AND ___________ that is sufficient to arouse and activate the decision process

Actual state AND desired state

Promotion

Advertising

Situational Influence

All those factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior

Components of Physical Surroundings

Colors, Aromas, Music, and Crowding

Crowding

As more people enter a store or as more of the space of the store is filled with merchandise, an increasing percentage of the shoppers will experience a feeling of being crowded, confined, or claustrophobic

Servicescape

Atmosphere of a service business such as a hospital, bank, or restaurant

Store atmosphere

Congeniality, fun, excitement, comfort

Physical facilities

Cleanliness, store layout, shopping ease, and attractiveness

Store Image

Consumer's or target Market's perception of all the attributes associated with a retail outlet

Clientele

Customers

Antecedent States

Features of the individual person that are not lasting characteristics, such as momentary moods or conditions

actual state

I'm hungry

Physical Surroundings

Include decor, sounds, aromas, lighting, weather, and configurations, of merchandise or other materials surrounding the stimulus object

Limited Decision Making

Involves internal and limited external search, few alternatives, simple decision rules on a few attributes, and little post purchase evaluation

Problem Recognition

Occurs when the consumer perceives a discrepancy between a desired state and the actual state that is sufficient to arouse and activate the decision process

Socai Surroundings

Other individuals present in the particular situation

external reference price

Price presented by a marketer for the consumer to use to compare with the current price

reference price

Price with which other prices are compared

Active problem

Problem of which the consumer is aware or will become aware in the due course of time

Merchandise

Quality, selection, style, and price

Nominal Decision Making

Referred to as habitual decision making, in effect involves no decision per se

Shopping orientation

Shopping style that puts particular emphasis on certain activities or shopping motivations

Temporal Perspectives

Situational characteristics that deal with the effect of time on consumer behavior

Store brands

Store brands become an important attribute of the outlet, giving the consumer another reason to shop at the store

Retail Attraction (gravitation) Model

Used to calculate the level of store attraction based on store size and distance from the consumer

reminder Purchase

When a consumer notices a product in a store and remembers that she is almost out at home

Impulse Purchase

When a consumer sees a product in the store and purchases it with little or no deliberation as the result of a sudden, powerful urge to have it

Example of Active Problem

Your toothache is painful, your roommate drank the rest of the milk

effort cost

a flash drive that is loaded with several hours of work before it fails

social cost

a hairstyle that is not appreciated by one's peers

physical cost

a new medicine that produces a harmful side effect

time cost

a television repair that requires the set to be taken to the shop, left, and then picked up later

limited decision

alarm clock

Financial cost

an expensive pair of shoes that become too uncomfortable to wear

store atmosphere

attributes such as lighting, layout, presentation of merchandise, fixtures, floor coverings, colors, sounds, odors, and the dress and behavior of sales and service personnel

store brands

brands carried exclusively in a given store

omni-channel shoppers

consumers who browse and/or purchase in more than one channel simultaneously (due to mobile apps)

Low purchase involvement

habitual decision making

Extended Decision Making

involves extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant post purchase evaluation

Service

layaway plan, sales personnel, easy return, credit, and delivery

Moderate Purchase involvement

limited decision making

In-home Shopping

nonstop retailing such as catalogs and the internet

Inactive problem

problem the consumer is not aware of

atmospherics

process managers use to manipulate the physical environment to create specific mood responses in shoppers

unplanned purchases

purchase made in a retail store that are different from those the consumer planned to make prior to entering that outlet

Example of Information Search

reading product reviews

social risk

risk of embarrassment

economic risk

risk of financial loss

perceived risk

risk of product's failure to perform as expected

spillover sales

sales of additional items to customers who came to purchase an advertised item

What influences the consumer's motivation to resolve a recognized problem?

size of discrepancy between actual and desired states and relative importance of the problem

institutional

store reputation

outlet image

target market's perception of all the attributes associated with a retail outlet; analogous to brand image for a store

Purchase Involvement

the level of concern for, or interest in, the purchase process triggered by the need to consider a particular purchase

habitual decision

toothpaste

multi-channel marketing

utilizing multiple retail channels to reach customers

Example of a brand loyal nominal purchase decision

watermelon flavored Extra gum

extended decision

wedding ring

Low on both sisal risk and economic risk

wine for personal use