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Lecture 5

MKT 100 Lecture 5: Feb 11


Department
Marketing
Course Code
MKT 100
Professor
Laila Rohani
Lecture
5

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MARKETING TO OTHERS
Consumer behavior (B2C) Marketing
CONSUMER DECISION PROCESS
1. Need recognition function (winter boots) and psychological needs (wants; heels)
2. Information search research on product pros and cons
Internal Search for information = information about the consumer themselves
more search activity; past experience with similar products
feel responsible to do extensive research to find the best
self-blame for bad purchase
External Search for Information = information extracted from others; reviews
fate, external factors = why bother
getting product you want = luck
blame sales person for bad purchase
Actual vs. Perceived Risk
Performance risk something does or doesn’t work (overtime)
Financial risk spend money to fix (product maintenance)
Social risk how other people will judge your purchase (desire to fit in)
Physiological risk physical harm/damage from the product (safety)
Psychological risk stress from the product
Reduce Perceived Risk
Obtain Seal of Approval indicator of safety/quality to consumer
can be abused by marketers, can be obtained through bribery
Secure endorsements
Provide free trial/sample
Give extensive instructions
Provide Warranties/Guarantees
Type of products or service
Specialty rare item, lot of research performed to ensure you are getting exactly
what you want, eg. engagement ring
Shopping products that are not bought every day; clothing, shoes
Convenience not much research done before purchasing
3. Alternative evaluations Consumer Decision Rules
Compensatory Decision Rule high quality attributes
(based on what the consumer thinks is important) can compensate for poor
quality attributes, leading to a decision to purchase
(Importance Weight) x (Category Score) → Total = Overall Score; buy best
Non-compensatory Decision Rule can afford only with the resources you have
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