bus343 ch5

5 Pages
Unlock Document

Business Administration
BUS 343

Chapter 5 Consumer Buying BehaviorPART 1 Understanding customersConsumer Behavior the process individuals or groups go through to select purchase and use goods services ideas or experiences to satisfy their needs and desires On going process Some purchases made spontaneously most buying decisions made after undergoing a series of stepsResearchers have found it easier to think in terms of an Effort continuum 2 ends 1 in the middleHabitual or routine Decision Making Eg deciding to purchase a can of popExtended Problem Solving Eg deciding to purchase a computerLimited Problem Solving decisions that fall in the middleconsumers do work to make a decision but most likely rely on simplerules of thumb instead of learning about and considering all the ins andouts of every product alternativeInvolvement the relative importance of perceived consequences of the purchase to a consumerWe are more involved in the decisionmaking process for products that we perceive as beingimportant pleasurable or risky in some way Perceived Risk the belief that use of a product has potentially negative consequences either financial physical or social present if the product is expensive complex and hard to understand or if the purchase of the wrongproduct could result in embarrassment or social rejectionConsumer feels aLowinvolvement purchase when perceived risk is lowEg buying a pack of gum Consumer is not too concerned when picking product bc not too important or risky decision is a response to environmental cues Eg picks pink package of gum bc it stands outHighinvolvement purchasewhen perceived risk is highEg buying a house car Consumer is likely to carefully process all available info to have thought about the decision before buying the item Consequences are important and riskyManagers must reduce perceived risk by educating the consumer about y their product is the bestProducts are not high or low involvement decisions are What is a high involvement for one consumer maybe a low involvement for anotherStages in the decision Process Figure 52 page 152Problem Recognitionthe process that occurs whenever the consumer sees a significant difference between his orher current state of affairs and some desired or ideal state this recognition initiates thedecisionmaking processMost problem recognition occurs spontaneously HoweverMarket Stratetgy encourage consumers to see that existing state does not equal desired stateInformation Searchprocess whereby a consumer searches for appropriate information memoryenvironmentneeded to make a reasonable decisionMarket Strategyprovide information when and where consumers are likely to search google expediaPortalssuch as spanish language YupiMSNcom focus on specific customer segmentsShopbotsIntelligent Agentssoftware programs used by some websites that find Internet retailers selling a particularproduct and the programs troll the Web for info and then report it back to the host site
More Less

Related notes for BUS 343

Log In


Join OneClass

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

Sign up

Join to view


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.