74-231 Chapter Notes - Chapter 4: Google, Ikea, Liquid Oxygen

• School: University of Windsor
• Department: Business
• Course: 74-231
• Professor: Alex Wellington

Document Summary

1)#learning#objective#1:#explain#why#marketing#managers#should#understanding#consumer# behavior: consumer!behavior:!processes!a!consumer!uses!to!make!purchase!decisions,!as!well! as!to!use!and!dispose!of!purchased!goods!or!services,!also!includes!factors!that! influence!purchase!decisions!and!the!product!use! so!the!company!started!marketing!it!as!such, people!thought!the!skin!moisturizer! skin!so!soft !was!a!natural!mosquito!repellent,, need!to!understand!these!things!as!marketers!in!order!to!create!a!proper!marketing! mix!for!a!welltdefined!market, review!learning!outcome!1:! = how consumers make purchase decisions consumers use and dispose of product. Internal!stimuli:!customers!need!to!eat!3!times!a!day! !breakfast,!lunch,! dinner: ex:!actual!state:!hungry,!desire!state:!full, humans!will!never!be!satisfied,!they!always!want!more, marketing!helps!consumers!recognize!an!imbalance!between!present!status, external!stimuli:!showing!pictures!of!food!to!customers!in!order!to!get!need, example!of!preferred!state!commercial:! could"ve!had!a!v8! , want:!the!way!a!consumer!goes!about!addressing!a!need, the!expression!of!the!need!is!when!it!becomes!a!want, need!recognition!is!triggered!when!a!consumer!is!exposed!to!either!an! recognition!going,!signs!on!401,!arrangements!with!gps!providers! internal!(things!you!feel!or!experience:!thirst,!hunger)!or!external! (thoughts! and!senses!from!an!outside!source:!feel!of!a!car"s!drive,!flavor!of!gum,!etc)! stimulus, a!marketing!manager"s!objective!is!to!get!consumers!to!recognize!an! imbalance!between!present!and!preferred!states. # lack!of!confidence: c)!evaluation!of!alternatives!and!purchase:, d)!purchase:, evoked!set:!group!of!brands!resulting!from!an!information!search,!from! which!a!buyer!can!choose! (also!called!consideration!set)! !this!is!because!we! don"t!want!to!have!too!many!choices,!which!can!be!confusing!and! deterring: after!gathering!information!and!having!an!evoked!set,!the!consumer!will!use, what"s!interesting!is!that!conceptual!cues!or!primers!influence!product! the!internal!and!external!information!to!develop!a!set!of!criteria! in!the!set!that!don"t!have!it! evaluations!and!purchase!likelihood! !ex:!study!having!people!use!orange! pens!observed!them!buy!more!orange!things!later, analyze!product!attributes!! !another!alternative!is! the! american!customer!satisfaction!index : cognitive!dissonance:!inner!tension!that!a!consumer!experiences!after!recognizing! an!inconsistency!between!behavior!and!values!or!opinions! ordinary!items, usually!leads!to!uncertainty!when!buying!bigtticket!items!or!out!of!the, an!important!element!of!any!postpurchase!is!to!reduce!any!lingering!doubts! that!the!decision!was!sound! !because!75%!of!all!consumers!say!they!had!a! bad!experience!in!the!previous!year!with!a!purchase, consumers!can!reduce!dissonance!by:!justifying!the!decision , marketers!can!minimize!dissonance!through:! product!congratulating!the!consumer), seeking!information!that!reinforces!positive!ideas!about!the!purchase, avoiding!information!that!contradicts!the!purchase!decision, revoking!the!original!decision!by!returning!the!product, effective!communication!with!purchasers! (ex:!slipping!a!note!inside!the, followtup, guarantees, warranties, service!during!and!after!the!sale, other!forms:!post!purchase!letters,!dissonancetreducing!statements!in! instruction!booklets,!advertising!displaying!the!product"s!superiority!over! competition! (namely!bragging!about!awards), review!learning!outcome!3:! !involvement!is!the!amount!of!time!and! effort!a!buyer!invests!in!the!search,!evaluation,!and!decision!processes!of! consumer!behaviour: length!of!time!to!make!decision, cost!of!good!or!service, degree!of!information!search, number!of!alternatives!considered, continuum!of!consumer!buying!decisions:!all!consumer!buying!decisions!generally! fall!along!this!continuum, see!figure!containing!routine!response!behaviour,!limited!decision!making,! !price!proportional!to!involvement),!social! risks! (buying!products!that!affect!people"s!social!opinion!of!them,!such!as! wearing!unstylish!clothes)!and!psychological!risks! (can!happen!if!they!feel! that!making!the!wrong!decision!may!cause!concern/anxiety): situation!!!can!have!a!major!impact!on!us. !directly!proportional!to!involvement!as!the!items!bought! make!a!statement!about!the!purchaser! (such!as!clothing,!jewelry,!cars!and! furniture): marketing!implications!of!involvement:, high!involvement!purchases!require:!extensive!and!informative!promotion!to! target!market! !marketers: culture:!sets!of!values,!norms,!attitudes,!and!other!meaningful!symbols!that!shape! need!to!understand!how!culture!influences!buying!behaviour! human!behavior!and!the!artifacts,!or!products,!of!that!behavior!as!they!are! transmitted!from!one!generation!to!the!next, components!of!culture:! always!evolving!and!adding!new!words, values!!!main!one, language!! !for!example,!the!arrival!of!television,!internet,! and!wireless!communication!have!led!to!automation!which!increased!the! amount!of!leisure!time!we!have!and!changed!the!traditional!work!ethic: value:!enduring!belief!that!a!specific!mode!of!conduct!is!personally!or!socially! preferable!to!another!mode!of!conduct, values!are!the!most!defining!element!of!a!culture, people"s!value!systems!have!a!strong!impact!on!consumer!behavior, those!with!similar!values!tend!to!react!alike!to!prices, values!also!correspond!to!consumption!patterns. !they!can!influence!tv: represent!what!is!most!important!in!people"s!lives, canadian!values!include:!support!for!collective!responsibility,!confidence!in! social!institutions,!tolerance!for!diversity!and!differences,!freedom!of!choice,! democracy,!fiscal!responsibility! viewing!and!magazine!reading!habits, canadians!tend!to!be!brand!disloyal,!pessimistic!and!skeptical,!health! conscious!and!frugal, smallttown!canadians!have!different!values!than!those!living!in!large! metropolitan!areas, canadian!values:, canada!encourages!large!scale!immigration!and!multiculturalism. Fairly religious but religious leaders should not have influence on government.