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Principles of Marketing - BUS 312, Chapter 5
Kerin, Hartley, Rudelius
23
Marketing
Undergraduate 1
01/25/2012

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Term
Consumer Behavior
Definition

Is the purchase decision process of 5 stages for consumers that they go through while making a purchase.

Need or problem recognition

information search

alternative evaluation

purchase

post-purchase behavior

Term
#1:5 stages: Need/Problem Recognition
Definition
Process start when consumer realizes an unmet need/want (basic physiological hungry, social (entertained), to be in style, etc
Term
Need Recognition - Marketing Implications
Definition

Help consumers realize they have an unmet need/want. ie. cell phone w/camera for pic of baby, caller id, chocolate chip cookie at mall, smell through exhaust, kids misbehaving in car (DVD), mottos, sayings, slogans, etc.

 

Find that people need to save more for retirement (buy mutual funds).

Term
#2:5 stages - Information search
Definition

After consumers realize they have an unmet need/want, they search for information. Consumers maximize utility for minimum effort. Marketers who make it easy to find = business.

 

 

Term
Information Search - Internal
Definition

Easiest, quickest, what is already in your memory from prior experience/commercials

Marketing Implications - memorable repetitive ads and make experience memorable so information is in memory and easy to retrieve.

 

ie. Wendy's "where's the beef", Energizer "Keeps on going and going and going"

Term
Information Search - External
Definition

Personal source - word of mouth from friends/relatives, opinion leaders because we trust them and relationships with them so they won't do us wrong.

 

Publicly available sources - product rating agencies.

 

Marketers - promotions such as ads, pop displays, web sites, trained salespeople.

Term
#3:5 stages - Alternative Evaluation
Definition

First consumers determine criteria of importance for evaluation. Marketing implications: marketers try to make your criteria the important ones. ie. freshness dating on soda, Angus Beef for Hardees, Safety for Hyundai.

 

Then consumers find brands that meet the criteria in general - Name Brands stand out.

 

Then they evaluate the best 4 or 5 to narrow the choice down to a manageable number.

Term
Alternative Evaluation of different products - Compensatory Model
Definition

1. Determine attributes of importance

2. Rate each product by each attribute

3. Sum up the ratings (highest numbered product chosen)

Lowest scores on one attribute may be overcome by high scores on the others.

Implications: can have a product that is very good in one area and very bad in another.

ie. 10/10/10/1 highest total chosen, Big Lots

Term
Alternative Evaluation of different models - Non-Compensatory/Conjunctive Model
Definition

1. Determine attributes of importance

2. Rate each product on each attribute

3. Determine a minimum cutoff level for each attribute

4. Choose the product which meets all min cutoff levels.

 More than one that meets all levels, choose the highest overall score that meet all cutoffs.

Implications: need to have a minimum level for every attribute. ie. 5/6/6/5 has minimums if cutoff = 5.

ie. Yugo high on price, no minimum on quality

 

 

Term
Purchase, Make it Easy By:
Definition

Better terms of sale

Good past experience

Good warranty to reduce purchasers risk (esp no past exp)

Convenience - internet buying/home delivery

 

Reduce price, offer rebates, credit (90 days same as cash).

Term
#5 Consumer Behavior - 2 Post Purchase stages - Satisfied/dissatisfied
Definition

satisfied tells friends (returns), dissatisfied tells everyone (never returns) and is worse for business.

 

Toll free numbers for information, good return and exchange policies, well trained staff w/authority to handle complaints and fix them.

Term
#5 Consumer Behavior - 2 Post Purchase stages - Cognitive Dissonance
Definition

Feeling/anxiety if the decision was the right one or not (cognitive dissonance) and will be higher if the decision is very important and the product chosen was barely better than the other options. Good, but. ie. Bachelor show

 

Can be reduced by reaffirming correctness of the decision. ie. Toyota vs Honda

Term
Involvement and 5 stage process
Definition

Consumer affects the use of the 5 stage process.

High involvement all 5 stages used when a purchase is risky (financial-expensive, social-norms of wearing right jeans, physical-safety airplane ride).

 

Low involvement some stages skipped ie. buying chewing gum (don't need recognition).

Term
Problem Solving types and 5 stage process
Definition

Routine-if solved before skip steps. Bought a car, satisifed, buy another.

 Limited-if solved before but something changes, go through some of the process.

Extended-entire process used

 

Marketers want routine so continue to buy the same products w/o information search or 5 stage processes.

Term
Influences on Consumer Behavior - Maslow's Hierarchy
Definition

Pyramid lowest to highest that gives marketers ideas of what needs to target.

Physiological (food/drink) - most important if there is a recession may never make it up to the other parts.

Safety (On-star/smoke alarms)

Social (Twitter/Facebook)

Personal (better person)

Self Actualization (better person)

Term
Attitude
Definition

Learned predisposition to respond in a positive or negative manner to stimulus.

Behavioral learning (hungry, eat, satisfied, what ate satisfied hunger.

Cognitive learning (reasoning, taste great less filling, beer that taste great less filling, we learned which beer to try.

Brand Loyalty-result of positive learning experience over time.

Term
Fishbein Model - Consumers determine their potential buying behavior.
Definition

Behavioral intent (BI) = Attitude (A) + social norm belief (SNB) what my social group believes x motiviation to comply (MC) with these beliefs.

BI = (b x e) + (SNB)(MC) or

BI = A + (SNB)(MC)

Where: Attitude equals belief (b) that a product has an attribute times the evaluation (e) of the goodness/badness of that attribute A = b x e

Term
Attitude Model
Definition

Breakfast cereal contains sugar (belief) and sugar is bad (evaluation) thus, negative attitude towards breakfast cereal.

 

BI-however, Joe knows that Sugar Pops are the "in" thing and she wants to be "in" so she buys them. We behave differently than our attitude for social norms.

Term
Attitude Change - Change consumer beliefs
Definition

1. Changing consumer perceptions about extent to which a brand has certain attributes (cereal not high in sugar, cars high gas mileage). 2. Add an attribute or minor alteration of the product to fit needs (add calcium to OJ), 3. Change evaluation (e) of an attribute increase perceived goodness of attributes (calcium in Tums=good), 4. Change social norm, 5. Change motivation to comply.

Attribute becomes more positive

Term
Behavioral Intent Change - Social Norms
Definition

Opinion leaders (be like Mike)

Word of Mouth (friends/relatives)

Reference Groups (your posse)

Family (big influence keeping up with the Joneses)

Social Class

Culture

Term
Behavioral Intent Change - Social Norms
Definition
Marketing Implications convince consumers that product use is in line w/social norms (cool kids shop at WalMart) and consumers should want to imitate this group (shun the non cool kids in commercials to motive to comply.
Term
Using Fishbein Model
Definition

Change attitude by changing core beliefs 1) change belief about extent to which brand has attribute 2) add an attribute or 3) change evaluation of an attribute

 

Change social norm

 

Change motivation to comply

Term
How to Change a social norm
Definition

Women with diamon rings and men paying 2 months salary for one.

Getting married in a white wedding dress

Casual Fridays

Gift cards instead of money

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