MKT 325 Lecture Notes - Lecture 1: Brand Equity, Soft Sell, Financial Risk
Marketing 325 Consumer Behavior
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1. Consumer Decision Making
a. High involvement (H/I)
i. Requires time, thought
ii. Ex. buy or lease car
iii. External Influences
iv. Steps
1. Problem Recognition
2. Information Search/Gathering
3. Alternative Evaluation
a. Positive Brand Attitude (goes from here into purchase)
4. Purchase
5. Post-Purchase Processes
b. Low involvement (L/I)
i. Easy decisions
ii. Ex. where to get gas for car
iii. Internal (Individual) Influences
iv. Steps
1. (Existing) Depletion/(New) Awareness
a. Lots of money spent on advertising for this step
2. Purchase/Trial
a. Money spent on sales promotion (sampling/coupons)
3. Evaluation
4. Post-Purchase -> Repeat Purchase
c. Difference Between H/I and L/I
i. L/I has no prepurchase information search
ii. L/I purchase then evaluation
2/1
1. H/I - pre purchase information search is cognitive
2. L/I - behaviorally focused
3. External Influences
a. Culture
i. Culture trumps strategy
ii. Ex. US transportation choice
iii. Core values
1. Individual vs. collective
2. Admire nature vs. overcome nature
3. Problem-solving vs. fatalistic
b. Cross-cultural influences
i. Marketer’s decision
ii. Standardized approach
1. Same strategies applied across cultures
iii. Localized approach
1. Unique strategy for each culture
c. Subcultural influences
i. Decision of marketer to isolate and target a subculture
ii. Could be ethnic, economic, political, religious
iii. Three biggest in US - hispanic-americans (16-18%), african-americans
(14%), asian-americans (6-8%) - about ⅓ of US pop
iv. Must adjust to attract subculture
v. “Real growth”
1. Subcultures grow about 3% per year
d. Social Class influences
i. Lower class
ii. Middle class
1. Perception - large & homogenous middle class
2. False - middle class has many differences
iii. Upper class
iv. Redistribution of classes in US to more in lower and more in upper
v. Downscale vs. upscale - split in half rather than thirds
1. Marketers more successful appealing to either up or downscale
rather than middle class
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1. Consumer Decision Making
a. Culture
b. Cross-culture
c. Subculture
d. Social class
e. referent/group influences
i. Marketer’s decision to use a referent to differentiate the brand
ii. JD power award, Good Housekeeping seal
iii. Referent role - information
iv. Referent - type (person v. award)
v. Benefits
1. Knowledge and trust among consumers
2. Hard to differentiate w/o referent
vi. Costs
1. $ costs of referent
2. Potential for negative publicity
2. Individual/Internal
a. Motivations
b. Perceptions
c. Information processing
d. Memory
e. Learning
f. Attitude formation
g. Personality
h. Emotions
3. Problem Recognition
a. Two strategy options
i. “Trigger” problem recognition
1. Do something to initiate decision making
a. Ex. roll out of new products/technology
ii. Be present when problem recognition occurs
1. Efficient - get consumer who already has need rather than
creating need
2. Data-based strategies
4. Information Search
a. 2 types
i. Internal i/s
1. Past experiences
2. Passively gathered info
ii. External i/s
1. Newly gathered info
2. Sources
a. Ads
b. Word of mouth communication
5. Alternative Evaluation
a. Positive brand attitude
b. Two important topics
i. Attitude formation
1. Identify important attributes
2. Brands performance on attributes
ii. Decision rules
1. Compensatory and/or (trade-offs)
2. Noncompensatory (no trade-offs)
3. Some combination of both
2/8
1. Marketing, Manufacturing
a. Problem recognition
i. Trigger p/r
ii. Be present
b. Information search
i. Internal i/s
ii. External i/s
c. Alternative evaluation
i. Attitude formation
ii. Decision rules
Document Summary
1/30: consumer decision making, high involvement (h/i) i. ii. iii. iv. Information search/gathering: positive brand attitude (goes from here into purchase, purchase, post-purchase processes, low involvement (l/i) 1. i. ii. iii. iv. (existing) depletion/(new) awareness: lots of money spent on advertising for this step, purchase/trial, money spent on sales promotion (sampling/coupons, evaluation, post-purchase -> repeat purchase, difference between h/i and l/i i. ii. 2/1: h/i - pre purchase information search is cognitive, l/i - behaviorally focused, external influences, culture i. ii. iii. 1: admire nature vs. overcome nature, problem-solving vs. fatalistic, cross-cultural influences, marketer"s decision ii. Standardized approach: same strategies applied across cultures iii. Localized approach: unique strategy for each culture, subcultural influences i. ii. iii. Decision of marketer to isolate and target a subculture. Three biggest in us - hispanic-americans (16-18%), african-americans (14%), asian-americans (6-8%) - about of us pop: must adjust to attract subculture v. Real growth : subcultures grow about 3% per year, social class influences i.
