Chapter 6

Non-marketing- controlled information source

A product information source that is not associated with advertising or promotion

Marketing-controlled information source

A product information source that originates with marketers promoting the product

What is Want-Got-Gap?

I know what i want, I know what i got, How do i fill in the gap from my present status to get to my preferred state

limited decision making

The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

What was affected most by the Great Recession?

Unplanned/Impulse purchases

The Components of Culture

Values Language Myths Customs Rituals Laws Material Artifacts

Routine Response Behavior

Frequently used products low cost buy 1st evaluate later

What are the three types of purchases?

Fully-planned Partially-planned Unplanned/Impluse

Extensive Decision Making Attributes

High Levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance

Evoked set (or consideration set)

A group of brands resulting from an information search from which a buyer can choose

Social Class

A group of people who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.

Subculture

A group of people who share elements of the overall culture as well as cultural elements unique to their own group.

Value

An enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

Stage 3: Evaluation of Alternatives and Purchase

Analyze the product attributes Use cutoff criteria Rank attributes by importance

Stimulus

Any unit of input affecting one or more of the five senses

Marketing-controlled Information Source

Biased toward a specific product because it originates with marketers promoting that product.

What is step three in the five step process used by consumers when buying goods or services?

Evaluation of alternatives

Extensive Decision Making

Expensive Buy infrequently Unfamiliar

High-involvement purchases require

Extensive and Informative promotion to target market

Low-Involvement purchases require

In-store promotion, Eye catching package design Good Displays Coupons Two for one or BOGO

The Impact of Social Class on Marketing

Indicates which medium to use for advertising Helps determine the best distribution for products.

What is step two in the five step process used by consumers when buying goods or services?

Information Search

Cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Stage 2: Information Search

Internal: Recall information in memory External:Seek information in outside environment

Why should marketing managers understand consumer behavior?

It can help Adapt to the 4 p's so they can influence them in order to achieve the best results by understanding what any why they buy.

Limited Decision Making

Knowledge of product Research brand

Limited Decision Making Attributes

Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide

Product Involvement

MEANS THAT A PRODUCT CATEGORY HAS HIGH PERSONAL RELEVANCE. Product enthusiasts are consumers with high involvement in a product category. The fashion industry has a large segment of product enthusiasts. These people are seeking the latest fashion trends and want to wear the latest clothes.

Situational involvement

MEANS THAT THE CIRCUMSTANCE OF PURCHASE MAY TEMPORARILY TRANSFORM A LOW_INVOLVEMENT DECISION INTO A HIGH_INVOLVEMENT ONE. High involvement comes into play when the consumer perceives risk in a specific situation. For example, an individual might routinely buy low-priced brands of liquor and wine. When the boss visits, however, the consumer might make a high-involvement decision and buy more prestigious brands.

What is step one in the five step process used by consumers when buying goods or services?

Need Recognition

Culture is

Pervasive-highly influential Functional-Laws Learned-Through family or through the years Dynamic-Always changing

What is step five in the five step process used by consumers when buying goods or services?

Post Purchase Behavior

Factors Determining the Level of Consumer Involvement

Previous experience Interest Perceived risk of negative con- sequences Social risks Psychological risks Social visibility

Factors Determining the level of Consumer Involvement

Previous experience Interest Perceived Risk of Negative Consequence Social Visibility

Different types of Involvement

Product Involvement Situational Involvement Shopping Involvement Enduring Involvement Emotional Involvement

What is step four in the five step process used by consumers when buying goods or services?

Purchase

Enduring Involvement

REPRESENTS AN ONGOING INTEREST IN SOME PRODUCT OR ACTIVITY. The consumer is always searching for opportunities to consume the product or participate in the activity. Enduring involvement typically gives personal gratification to consumers as they continue to learn about, shop for, and consume these goods and services. Therefore, there is often linkage between enduring involvement and shopping and product involvement.

Emotional involvement

REPRESENTS HOW EMOTIONAL A CONSUMER GETS DURING SOME SPECIFIC CONSUMPTION ACTIVITY. Emotional involvement is closely related to enduring involvement because the things that consumers care most about will eventually create high emotional involvement. Sports fans typify consumers with high emotional involvement. The Olympics are one example of high emotional involvement in sporting outcomes.

Shopping involvement

REPRESENTS THE PERSONAL RELEVANCE OF THE PROCESS OF SHOPPING. Modern shoppers tend to browse less and make fewer impulse buys because they shop on a mission. With armloads of research from the Internet, shop- pers go into the store, buy what they came for, and get out. To these shoppers, the physical shopping is not as important as doing the research at home. Retailers must do their best to engage these mission shoppers in order to get them involved in the store and the shopping experience.

Want

Recognition of an unfulfilled need and a product that will satisfy it.

Stage 1:Need Recognition

Result of an imbalance between actual and desired states

What are way to reduce Dissonance?

Seeking information that reinforces positive ideas about the purchase Avoiding information that contradicts the purchase decision Revoking the original decision by returning the product

Involvement

The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

Extensive decision making

The most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information

Internal information search

The process of recalling past information stored in the memory

External information search

The process of seeking information in the outside environment Less is more

Routine response behavior

The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time