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BUS 343 (120)
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Chapter 5

Marketing: Real People, Real Decision (3rd Edition): Chapter 5

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Simon Fraser University
Business Administration
BUS 343
Jason Ho

Chapter 5: Consumer Buying Behaviour Understanding Customers Consumer behaviour is the process individuals or groups go through to select, purchase, and use goods, services, ideas, or experiences Purchasing process problem recognition, information search, evaluation of alternatives, product choice, and post-purchase evaluation Researchers have found it convenient to think in terms of an effort continuum o Anchored on one end is habitual decision making and the other end by extended problem solving o Fall in the middle means limited problem solving Involvement determines the extent of effort a person puts into deciding what to buy o Importance of the perceived consequences of the purchase to the person We are more involved in the decision-making process for products that we perceive as being important, pleasurable, or risky in some way o Perceived risk may be present if the product is expensive, complex, and hard to understand, or if the purchase of the wrong product could result in embarrassment or social rejection If perceived risk is low, consumer feels low involvement in the decision making o Then the manager has to concentrate on how products are displayed at the time or purchase to influence the decision maker Products are not inherently high or low involvement, but the level of involvement engaged by a consumer is often associated with price, importance, and perceived risk of the purchase decision Problem Recognition Occurs whenever the consumer sees a significant different between their current state of affairs and some desired or ideal state Consumer needs to solve a problem, which may be small or large, simple or complex Although most problem recognition occurs spontaneously, marketers can develop creative advertising messages that stimulate consumers to recognize their current state Information Search Information search the process whereby a consumer searches for appropriate information needed to make a reasonable decision Marketing communication helps consumers in this task, and many advertisements are focused on generating awareness about brands www.notesolution.com Role of marketers during the information search phase of the decision process is to make sure that information about their brand is available when and where consumers look Consideration set the set of alternative brands the consumer is considering for the decision process Evaluation of Alternatives Evaluative criteria the dimensions that consumers use to compare competing product alternatives Marketers often play a role in educating consumers about which product characteristics should be used as evaluative criteria o Usually emphasize the dimensions in which their product excels Product Choice Heuristics a mental rule of thumb that leads to a speedy decision by simplifying the process Consumers are brand loyal when they make repeat brand purchases Brand loyalty a pattern of repeat product purchases, accompanied by an underlying positive attitude toward the brand, which is based on the belief that the brand makes products superior to its competition Loyal customers are very valuable Many companies are now employing customer relationship management strategies to help them organize and manage their relationship with their customers o Helps companies target their best customers and form ongoing relationships with them in the hope of increasing loyalty and improving customer satisfaction Post-Purchase Evaluation Cognitive dissonance the regret or remorse buyers may feel after making a purchase Cognitive dissonance is greatest when decisions are important and there are other viable brands in the consideration set Marketers try to reduce or minimize cognitive dissonance through marketing communication strategies that reaffirm consumers in what a good decision they made Customer satisfaction/dissatisfaction the overall feelings or attitude a person has about a product after purchasing it When consumers buy a product, they have some expectations of product quality Consumers assess product quality by comparing what they have bought to a performance standard created by a mixture of information from marketing communications, informal information sources, and their own experience with the product category Stage in the Decision Marketing Strategy Process www.notesolution.comProblem Recognition Encourage consumers to see that existing state doesnt equal desired state Information Search Provide information and where consumers are likely to search Evaluation of Alternatives Understand the criteria consumers use in comparing brands and communicate own brand superiority Product Choice Understand choice heuristics used by consumers and provide communication that encourages brand decisions Post-Purchase Evaluation Encourage accurate consumer expectations Decision Rule Marketing Implications Compensatory Simple Additive: Sum the scores of Develop brands with strong overall each brand rating on each attribute, value choose the brand with the highest Help consumers compare brands to overall score make the overall value choice Weighted Additive: Give weights to Understand the criteria weights and each criteria, for each brand design products that excel on those multiply the rating and the weight, criteria. Position your product on sum the scores and choose the key criteria. brand with the highest overall score Try to change the weights of criteria to make them more or less important in the minds of customers such as Intel did with the Intel Inside campaign Non- Lexicographic: Rank the decision Understand the top three or four Compensatory criteria; evaluate the brands on the most important cr
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