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COMM 131 Sessions 7-8 Textbook Notes

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Department
Commerce
Course
COMM 131
Professor
Prof.
Semester
Winter

Description
Chapter 6 Pg. 219-224 The Buyer Decision Process: process consists of 5 stages: 1. Need Recognition: start of the buying process where consumer recognizes the need/problem -can be triggered by internal stimuli (normal needs) or external stimuli (ads, discussions) that rise to a level high enough to become a drive -marketers should research consumers to find out what kind of needs/problems arise, what’s the cause and how to lead consumers to a certain product 2. Information Search: if product is not close at hand, consumer will do information search related to the need -can obtain from personal resources, commercial resources, public services and experiential resourcesinfluence of each is dependent on the buyer -usually commercial resources give the most information; controlled by the marketer -most effective resources are personallegitimize/evaluate the products for the buyer -more informed = more awareness and knowledge of the different brands, lets consumers drop certain brands -brands should identify resources of information and the importance of each source for the consumer 3. Evaluation of Alternatives: choosing between the alternatives available -consumers arrive at attitudes towards different brands, dependent on the individual consumer and buying situation -marketers should take note of the process and influence the decision if the evaluation is identified 4. Purchase Decision: consumers rank brands and form purchase intentions -generally: buy the most preferred brands2 factors that come between the intent and the purchase -attitudes of others (surrounding people) and unexpected situational factors (economic, price etc) 5. Post-purchase Behaviour: difference between the consumer’s expectations and the perceived performance -larger the gap, greater the consumer’s dissatisfactionsellers should promise what they can -Cognitive dissonance/discomfort: almost all major purchases; may be satisfied but always after compromise -aim to delight consumers for long-term relationships; consumers don’t feedback to companies they don’t like, so companies should measure satisfaction regularly, encourage people to complain The Buyer Decision Process for New Products: possible for buyers to move quickly through stages or go through them in reverse -new product: perceived by some potential customers as new; the interest, not necessarily the product is newinterest in how they learned about it the first time and how to adopt the behaviour -adoption process: ‘mental process through which an individual passes from first hearing about an innovation to the final adoption’ -adoption: decision to become a regular user of the product Stages in the Adoption Process: 5 stages of adopting a new product 1. Awareness: aware of the product but lack information 2. Interest: seek information about the product 3. Evaluation: considers trying the new product 4. Trial: tries the new product on a small scale to improve the estimation of its value 5. Adoption: decides to make full and regular use of the product -focus on how to best get consumers through these stages Individual Differences in Innovativeness: consumers differ in readiness to new products -each product area have ‘consumption pioneers’ and early adopters -after a slow start, increasing number of people adopt to a peak and then drop off as few non-adopters remain -people can be classified into the adopter categories: 1. innovators: venturesome, try new ideas at some risk 2. early adopters: guided by respect; opinion leaders in communities and adopt new ideas early but carefully 3. early majority: deliberate; rarely leaders, but adopt new ideas before the average person 4. ate majority: skeptical; adopt new ideas only after the majority of the people have 5. laggards: tradition bound; suspicious of changes and adopt it when it becomes a tradition -firms should research the characteristics of innovators and early adopters in their product categories and direct their efforts towards them Influence of Product Characteristics on Rate of Adoption: five characteristics that are important: 1. Relative advantage: degree to which the innovation appears superior to existing products 2. Compatibility: degree to which the innovation fits the values and experiences of potential consumers 3. Complexity: degree to which the innovation is difficult t understand or use 4. Divisibility: degree to which the innovation may be tried on a limited basis 5. Communicability: degree to which the results of using the innovation can be observed or described to others -others: initial and ongoing cost, risk and uncertainty, social approval Chapter 5 Pg. 157-191 Marketing Information and Customer Insights: -use customer insights to develop competitive advantage; can be difficult to obtain -don’t need more information; need better information, better use of the information -real value of marketing research and marketing information is how it’s used; the customer insights -customer insights gained from data collected by customer insight groups from traditional market research studies, mingling and observing customers, monitoring online conversations, etc. -company must be careful not to go too far as to become customer controlled; don’t give customer everything they wantunderstand and give them what they need -marketing information system: people and procedures for assessing information needs, developing the needed information and helping decision makers to use the information to generate and validate actionable insights -MIS used following these steps: 1. Assessing Marketing Information Needs: primarily for company’ marketing and other managers, but also for external partners. -balance information users would like to have against what they really need and what is feasible to offer. -interview managers to find information; info may be omitted, too much info, to little info offered, etc. -sometimes info cannot be provided due to availability or MIS imitations -the costs of obtaining analyzing, storing and delivering information can mount quicklyvalue of insight vs. costs of providing it. [info itself is valueless, it’s the use of the info that has weight 2. Developing Marketing Information: a. Internal Databases: electronic collections of consumer and market information obtained from data sources within the company network. -info can be readily accessed and used to identify marketing opportunities and problems, plan programs and evaluate performance. -can provide strong competitive advantage -can be from many sources and accessed more cheaply than other sources -may be incomplete or in the wrong form for marketing because they were collected for different reasons -ages quickly, must keep database current -must be well integrated and readily accessible because it’s usually in large quantities b. Competitive Marketing Intelligence: systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace -improve strategic decision-making by understanding environment and competitor’s
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