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Lecture 5

MKT 100 Lecture Notes - Lecture 5: Customer Satisfaction, Organizational Culture, Direct Selling


Department
Marketing
Course Code
MKT 100
Professor
Fathima Saleem
Lecture
5

This preview shows pages 1-2. to view the full 6 pages of the document.
!"#$%&'()*'+,-."%()
!/012345)*26708)94:717/0);!*9<)=5/:411)
Functional*vs.*Psychological
Need*recognition
-
Internal*vs.*External
Cost*vs.*Benefit*(perceived*benefits*and*perceived*costs)
Ø
Ø
Actual*or*perceived*risk*(performance,*financial,*social,*
physiological,*psychological)*
Ø
Type*of*product*or*service*(shopping*goods/services,*specialty*
goods/services,*convenience*goods/services)*
Ø
Factors*affecting*search:
Information*search*
-
Compensatory:*trades*off*one*characteristic*against*another*
Ø
Non-compensatory:*on*basis*of*a*subset*of*characteristics,*
regardless*of*other*attributes*
Ø
Decision*heuristics:*mental*shortcuts*that*help*narrow*down*
choices
Ø
How*do*consumers*begin*to*evaluate*alternatives*and*what*important*
attributes*and*criteria*do*they*use?
Evaluation*of*alternatives
-
Seek*out*and*purchase*products*that*they*believe* provide*them*the*best*
value*
After*purchase,*they*consume*it
Consumption*leads*to…*
Purchase*decisions
-
Customer*satisfaction*(+)
Firm's*attempt*to*reduce*dissonance*by*reinforcing*the*decision*
(thank*you*cards,*congratulations*letters,*quality*ratings)*
Ø
Post-purchase*dissonance**(-)
Customer*loyalty*(+)
Post-purchase*behaviour*
-
Need*recognition
Purchase*decision
Post-purchase*behaviour*
Everyday*basic*needs;*does*not*require*much*thought*
-
Habitual*Shopping
What*has*worked*in*the*past*is*likely*to*work*again
-
Habits*allow*us*to*save*time*making*decisions*and*be*thinking*of*other*things*
while*doing*them*
-
Routine*can*be*executed* more*efficiently*than*new*behaviours
-
Sense*of*discipline,*order,*and*control*
-
Why$CBD$changes$with$habitual$purchases:$
Need*recognition
-
Information*search
-
Evaluation*of*alternatives
-
Purchase*decisions
-
Post-purchase*behaviour*
-
Recreational*and*Complex*Shopping
Negative*work*of*mouth*and*rumours*can*be*very*damaging*
-
Internet*is*an*effective*way*to*spread*negativity*
-
Marketers*must*respond*quickly!!!*
-
Undesirable*Consumer*Behaviour*
Factors*Influencing*the*Decision*Process
Motives:*hierarchy*of*needs*
-
Attitudes:*cognitive,*affective,*behavioural*components*
-
Perception:*selective*exposure,*attention,*comprehension*and*retention*
-
Learning:*change*in*thought*from*experience*
-
Lifestyle:*way*time*and*money*are*spent*
-
Psychological$Factors$
Family:*decision*makers*vs.*influencers*
-
Reference*groups:*person*used*for*comparison*for*beliefs,*feelings,*and*
behaviours.*Offer*info,*reward*behaviour,*enhance*self-image*
-
Culture:*shared*meanings,*beliefs,*morals,*values*and*customs*of*a*group*of*
people
-
Most*pervasive
-
Social$Factors$
Purchase*situation:*change*in*behaviour*based*on*who*or*why*you*are*buying
-
Atmosphere,*sales,*crowing,*demo,*promo,*pack
Shopping*situation:*change*in*behaviour*based*on*something*in*store
-
Temporal*state:*change*in*behaviour*based*on*current*state*of*mind*
-
Situational$Factors$
*%$.#'$$)>")*%$.#'$$)&,(?'>.#@)
!AB5B:C4571C7:1)/D)*2170411)&B5E4C1)
Demand*for*business*products*is*derived*
Fewer*customers,*more*geographically*concentrated,*and*orders*are*
larger
Demand*is*more*inelastic,*fluctuates*more,*and*more*frequently*
Market*characteristics*
-
Technical*in*nature,*purchased*based*on*specifications*
Mainly*raw*and*semi-finished*goods*
Heavy*emphasis*on*delivery*time,*technical*assistance,*after*sale*service,*
financing*
Buying*decisions*more*complex*
Competitive*bidding,*negotiated*pricing,*complex*financial*arrangements*
Qualified,*professional*buyers*-more*formalized*buying*process
Buying*criteria*and*objective*specified*
Product*characteristics*
-
Multiple*participants*in*purchase*decisions*
Reciprocal*arrangements*common*
Close,*long-term*relationships*
Direct*selling*and*physical*distribution*often*essential*
Advertising*more*technical,*promotions*emphasize*personal*selling
Price*often*negotiated,*inelastic,*affected*by*trade/quantity*discounts*
Buying*process*characteristics*
-
Marketing*mix*characteristics*
-
>A4)*2170411)*26708)=5/:411)
Need*or*problem*recognition
-
Product*specification
-
RFP*or*supplier*search*process*
-
Proposal*analysis*and*supplier*selection*
-
Order*specification*
-
Performance*assessment*
-
The*buying*centre
-
Organizational*culture*
-
Likely*to*be*involved*
Ø
Buying*centre*will*probably*use*all*six*steps*in*buying*process
Ø
Purchasing*for*the*first*time*
Current*vendors*have*an*advantage*
Ø
Purchasing*a*similar*product*but*changing*specifications*
Most*B2B*purchases*fall*under*this*category
Ø
Buying*additional*units*or*products*that*have*been*previously*purchased*
Buying*situations*
-
Factors*Affecting*the*Buying*Process*
WK#5#
Chapters#4#and#5
Thursday,* February*25,*2016
5:41*PM

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

!"#$%&'()*'+,-."%()
!/012345)*26708)94:717/0);!*9<)=5/:411)
Functional*vs.*Psychological
Need*recognition
-
Internal*vs.*External
Cost*vs.*Benefit*(perceived*benefits*and*perceived*costs)
Ø
Locus*of*control*(internal*and*external)*
Ø
Actual*or*perceived*risk*(performance,*financial,*social,*
physiological,*psychological)*
Ø
Type*of*product*or*service*(shopping*goods/services,*specialty*
goods/services,*convenience*goods/services)*
Ø
Factors*affecting*search:
Information*search*
-
Compensatory:*trades*off*one*characteristic*against*another*
Ø
Non-compensatory:*on*basis*of*a*subset*of*characteristics,*
regardless*of*other*attributes*
Ø
Decision*heuristics:*mental*shortcuts*that*help*narrow*down*
choices
Ø
How*do*consumers*begin*to*evaluate*alternatives*and*what*important*
attributes*and*criteria*do*they*use?
Evaluation*of*alternatives
-
Seek*out*and*purchase*products*that*they*believe* provide*them*the*best*
value*
After*purchase,*they*consume*it
Consumption*leads*to…*
Purchase*decisions
-
Customer*satisfaction*(+)
Firm's*attempt*to*reduce*dissonance*by*reinforcing*the*decision*
(thank*you*cards,*congratulations*letters,*quality*ratings)*
Ø
Post-purchase*dissonance**(-)
Customer*loyalty*(+)
Post-purchase*behaviour*
-
Need*recognition
Purchase*decision
Post-purchase*behaviour*
Everyday*basic*needs;*does*not*require*much*thought*
-
Habitual*Shopping
What*has*worked*in*the*past*is*likely*to*work*again
-
Habits*allow*us*to*save*time*making*decisions*and*be*thinking*of*other*things*
while*doing*them*
-
Routine*can*be*executed* more*efficiently*than*new*behaviours
-
Sense*of*discipline,*order,*and*control*
-
Why$CBD$changes$with$habitual$purchases:$
Need*recognition
-
Information*search
-
Evaluation*of*alternatives
-
Purchase*decisions
-
Post-purchase*behaviour*
-
Recreational*and*Complex*Shopping
Negative*work*of*mouth*and*rumours*can*be*very*damaging*
-
Internet*is*an*effective*way*to*spread*negativity*
-
Marketers*must*respond*quickly!!!*
-
Undesirable*Consumer*Behaviour*
Factors*Influencing*the*Decision*Process
Motives:*hierarchy*of*needs*
-
Attitudes:*cognitive,*affective,*behavioural*components*
-
Perception:*selective*exposure,*attention,*comprehension*and*retention*
-
Learning:*change*in*thought*from*experience*
-
Lifestyle:*way*time*and*money*are*spent*
-
Psychological$Factors$
Family:*decision*makers*vs.*influencers*
-
Reference*groups:*person*used*for*comparison*for*beliefs,*feelings,*and*
behaviours.*Offer*info,*reward*behaviour,*enhance*self-image*
-
Culture:*shared*meanings,*beliefs,*morals,*values*and*customs*of*a*group*of*
people
-
Most*pervasive
-
Social$Factors$
Purchase*situation:*change*in*behaviour*based*on*who*or*why*you*are*buying
-
Atmosphere,*sales,*crowing,*demo,*promo,*pack
Shopping*situation:*change*in*behaviour*based*on*something*in*store
-
Temporal*state:*change*in*behaviour*based*on*current*state*of*mind*
-
Situational$Factors$
*%$.#'$$)>")*%$.#'$$)&,(?'>.#@)
!AB5B:C4571C7:1)/D)*2170411)&B5E4C1)
Demand*for*business*products*is*derived*
Fewer*customers,*more*geographically*concentrated,*and*orders*are*
larger
Demand*is*more*inelastic,*fluctuates*more,*and*more*frequently*
Market*characteristics*
-
Technical*in*nature,*purchased*based*on*specifications*
Mainly*raw*and*semi-finished*goods*
Heavy*emphasis*on*delivery*time,*technical*assistance,*after*sale*service,*
financing*
Buying*decisions*more*complex*
Competitive*bidding,*negotiated*pricing,*complex*financial*arrangements*
Qualified,*professional*buyers*-more*formalized*buying*process
Buying*criteria*and*objective*specified*
Product*characteristics*
-
Multiple*participants*in*purchase*decisions*
Reciprocal*arrangements*common*
Close,*long-term*relationships*
Direct*selling*and*physical*distribution*often*essential*
Advertising*more*technical,*promotions*emphasize*personal*selling
Price*often*negotiated,*inelastic,*affected*by*trade/quantity*discounts*
Buying*process*characteristics*
-
Marketing*mix*characteristics*
-
>A4)*2170411)*26708)=5/:411)
Need*or*problem*recognition
-
Product*specification
-
RFP*or*supplier*search*process*
-
Proposal*analysis*and*supplier*selection*
-
Order*specification*
-
Performance*assessment*
-
The*buying*centre
-
Organizational*culture*
-
Likely*to*be*involved*
Ø
Buying*centre*will*probably*use*all*six*steps*in*buying*process
Ø
Purchasing*for*the*first*time*
Current*vendors*have*an*advantage*
Ø
Purchasing*a*similar*product*but*changing*specifications*
Most*B2B*purchases*fall*under*this*category
Ø
Buying*additional*units*or*products*that*have*been*previously*purchased*
Buying*situations*
-
Factors*Affecting*the*Buying*Process*
WK#5#
Chapters#4#and#5
Thursday,* February*25,*2016 5:41*PM
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