Class Notes (838,800)
Canada (511,100)
Business (3,287)
BU352 (159)
Lecture

Marketing- Ch 6.docx

9 Pages
61 Views
Unlock Document

Department
Business
Course
BU352
Professor
Shelley Mc Gill
Semester
Fall

Description
Chapter 6: Consumer Behaviour - People buy products/services because they feel it has a better value (ratio of benefits to costs is higher for that product/service than for another) The Consumer Decision Process - Steps consumers go through before, during, and after making purchases 1. Need Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase and Consumption 5. Postpurchase 1. Need Recognition - The beginning of the consumer decision process - Occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state - the greater the discrepancy between these 2 states, the greater the need recognition will be - the different kinds of consumer needs are: Functional Needs: - pertain to the performance of a product or service - superior, consumer seeking products Psychological Needs: - pertain to the personal gratification consumers associate with a product or service - ex. $2000 shoes, functional in nature, but $2000 shoes satisfy psychological needs - many products and services satisfy both functional and psychological needs - people have different view of value, depending on what needs they want to be satisfied (value getting a good deal, value getting a lot of perks/attention) - key of marketing: o determining the correct balance of functional and psychological needs that appeal to the firms target market 2. Search for Information - After consumers recognize that they have a need..... - consumers must search for information about the options that exist to satisfy that need - Length and intensity of information search depend on: o Degree of perceived risk, how important it is to you o Costs of purchasing product/service - 2 key types of information: o Internal Search For Information: occurs when the buyer examines his/her own memory and knowledge about the product or service, gathered through past experiences o External Search For Information: occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision. Talking to friends, family, sales people, Internet, magazines etc. Factors Affecting Consumers Search Process - Factors that affect the depth and type of search a consumer undertakes: - The perceived benefits versus perceived costs of search o Is it worth the time and effort to search for information about the product/service o Based on how expensive the purchase, how important the purchase is - The Locus of Control o Internal Locus of Control Refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities o External Locus of Control Refers to when consumers believe that fate or other external factors control all outcomes Dont think it matters how much information they collect If they make a good/bad decision, believe they had nothing to do with it - Actual or Perceived Risk o 3 risks influence purchases and searches o The higher the risk, the more likely the consumer will do a more extensive search Performance Risk: involves the perceived danger inherent in a poorly performing product or service. Danger of product not working properly Financial Risk: risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service. How expensive the product is Psychological Risk: associated with the way people will feel if the product or service does not convey the right image. What other people will think - Type of Product or Service o 3 types of products Specialty Goods/Services: Products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers Ex. Engagement rings Shopping Goods/Services: those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances Convenience Goods/Services: those for which the consumer is not willing to spend any effort to evaluate prior to purchase Frequently purchased with very little thought Ex. Milk, bread o Consumers spend a lot of time looking for specialty/shopping goods o Consumers specific perceptions and needs help to define the kind of search and the type of product3. Evaluation of Alternatives - Go through available choices and evaluate the alternatives, pros and cons - usually occurs while the consumer is searching for information - When buying habitual products, dont evaluate alternatives usually - When evaluation of alternatives occurs, evaluations are based off set of important attributes or evaluation criteria Evaluation Criteria: consist of a set of salient, or important, attributes about a particular product - To simplify the decision process of evaluating so many different alternatives, consumers use shortcuts: o Determinant Attributes o Consumer Decision Rules Determinant Attributes o Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ o Something special about the product, to differentiate the brand Consumer Decision Rules o The set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives o 3 kinds: compensatory, noncompensatory, decision heuristics Compensatory Decision Rule: assumes that the consumer, when evaluating alternatives, trades off one characteristic against another. Such that good characteristics compensate for the bad characteristics. ex. A good mileage compensates for a higher price give each characteristic a weight,
More Less

Related notes for BU352

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit