AEM 2400 Chapter Notes - Chapter 6: Working Poor, Discrimination Learning, Opinion Leadership
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The purpose behind much of advertising is to influence each of the five Consumer Decision Making process (Problem Recognition, Information Search, Evaluation of Alternatives, Product Choice (i.e. Purchase) and Outcomes (i.e. Postpurchase). Each stage of the Consumer Decision Making process has techniques that help consumers to manage the stage and then move onto the next one successfully. Eventually, the consumer moves to purchase (where we get excited to make the sale) but don't underestimate how important the last stage (post purchase) is to making additional sales in the future. Below are guidelines that show basic techiniques used to target and manipulate each Consumer Decision Stage through advertising.
Below are some issues that you will want to consider as you evaluate each of the five chosen advertisements. Please remember that your goal is not simply to answer these questions, but to provide insights into the consumerâs decision making process that you feel would be useful to a marketing manager (e.g., if an ad triggered the consumerâs decision to purchase the product). Other areas to comment on would be level of involvement, etc.
| Consumer Decision Making Stage: | Considerations for Stage: | Common Ad Techniques: |
| Problem Recognition | What problems does this product solve for the consumer? ⢠What triggered the decision to purchase this product? ⢠Was this the first time the consumer purchased such a product? Define and discern the Actual and Desired States | Ask a question (Whatâs for dinner tonight?) Show before (actual state) and after (desired state) Use the word ânewâ or âintroducingâ to initiate curiosity. |
| Information Search | ⢠Did the consumer seek information about the product and about various brands? How was this information collected, and how much information was collected? ⢠Was the consumer searching for any advertisements for the product? What was the consumerâs reaction to these advertisements? | Match amount of information with type of product. Direct consumers to website, free kit or other information venues. Show role models that âlookâ like the target market. Show the entire line of product offerings (all the flavors and colors, etc.) Testimonials, etc. |
| Evaluation of Alternatives | ⢠How many alternatives were considered? How were they selected?⢠What features and characteristics of the product were most important to the consumer? Salient and Determinant defined attributes. | Featuring specific variables that the product is known for (ex. Volvo=Safety). This is known as âpositioningâ a product. Competitive method (brand compares themselves to âleading brand or categoryâ) Comparative method (brand compares themselves to another brand by name (Coke vs. Pepsi) |
| Product Choice | ⢠Did any other people play a role in the decision process? Describe theroles that each person played. | Tell consumers where and how the product is sold. Offer many ways to pay for the product. Divide payments. Offer sales promotion (coupons, rebates) |
| Post-Purchase Evaluation | ⢠How is the product used and consumed? How does the consumer feel when he or she uses the product? Does it merely Does the Ad encourage repeat purchase or loyalty to the brand- how? | Show awards the brand has won. Show how a brand should be consumed. Allow consumers many ways to return the product. Allow consumers to easily provide feedback. Reward consumers loyalty |
This assignment asks you to find one ad that addresses each of the needs of the five stages (in other words five different ads). This means that there must be five different ads for the total project, one for each stage (all ads are different from one another). Create a Power Point Presentation that shows how the advertiser is addressing the needs of the consumer for the specific Consumer Decision Making stage.
*Be aware that there is a helpful power point demonstration in a conference opened this week marked as "Advertising and the Consumer Decision Process (Ad Examples)". This is informative only and does not need to be commented on.
First, show the ad in a slide and then follow-up with a slide which explains (bullet form) why the ad slide targets the Consumer Decision Making process stage. ALL ADS MUST BE STILL ADS (NO VIDEOS or LINKS). Therefore the ad MUST be able to be copied and pasted within the power point slide (NO LINKS). Here is the format of the presentation:
Slide 1: Name, date
Slide 2: Problem Recognition Ad
Slide 3: Explanation why it addresses this stage
Slide 4: Information Search Ad
Slide 5: Explanation why it addresses this stage
Slide 6: Evaluation of Alternatives Ad
Slide 7: Explanation why it addresses this stage
Slide 8: Product Choice (Purchase) Ad
Slide 9: Explanation why it addresses this stage
Slide 10: Outcomes (Postpurchase) Ad
Slide 11: Explanation why it addresses this stage
Slide 12: Conclusion
In the conclusion of the slide presentation choose which ad is most effective (overall) and why.
Logistics Run Down:
-No more than 18 slides in length (includes cover page and bibliography)
-Include a cover page and bibliography of sources. Outside sources (esp. learning resources from weeks covered) are encouraged to be cited and used.
-Organize and utilize the headings given above.
-No more than 2 grammatical/spelling errors are allowed (please proof before submitting).
-Text is required to be in Times Roman, 12 pt font, double space the text.
- Keep voice in business third person. Do not include visuals in text analysis, if need to add create an appendix and refer your reader to such.
Choose the right answer
Question 1
With respect to consumer behavior, one's attitudes, learning, and perceptions would be
| impersonal influences | ||
| interpersonal influences | ||
| personal influences | ||
| insitutional influences |
Question 2
In Maslow's hierarchy of needs,
| a physiological need must be met directly before social needs. | ||
| esteem needs are the highest order of needs. | ||
| self-actualization needs are the highest order | ||
| safety needs and esteem are of the same importance. |
Question 3
The most likely product to be purchased in an attempt to satisfy self-esteem needs would be
| "super class" tickets for your next air flight. | ||
| a really fast computer. | ||
| a home security system. | ||
| yogurt and health food. |
Question 4
Which of the following is not a characteristic that distinguishes organizational markets from consumer markets?
| Organizational markets are more geographically concentrated. | ||
| More people exert influence on the organizational buying decision. | ||
| The organizational market tends to have a greater number of buyers. | ||
| Organizations often engage in multiple sourcing and vendor analysis. |
Question 5
Consumers may attempt to reduce postpurchase anxiety in the consumer decision process by
| avoiding favorable information about the selected brand | ||
| seeking reassurance from dissatisfied customers | ||
| seeking information that favors the rejected brands | ||
| ignoring unfavorable reports about the chosen brand |
Question 6
The buying center concept explains how groups of people participate informally in business purchase decisions and
| methods to break through group perceptions. | ||
| the role the group members play in buying decisions. | ||
| how family units operate as buying centers. | ||
| the process of performing vendor analysis. |
Question 7
In the organizational buying process, a triggering event such as announcement of the availability of a new product whose use could improve the company's market performance is referred to as
| need or opportunity recognition | ||
| identification of suppliers | ||
| information search | ||
| word-of-mouth exploration |
Question 8
An undifferentiated marketing strategy
| serves the consumer better because the products offered are designed to meet the needs of a specific group of people | ||
| benefits from the control and efficiency of short production runs | ||
| ignores differences among consumer groups and focuses on the broad market | ||
| is the most common strategy today and is used more now than in the past |
Question 9
Goods purchased by the ultimate consumer for personal use are called
| personal products | ||
| purchased products | ||
| consumer products | ||
| commercial products |
Question 11
A particular purchasing agent might allow some salespeople to see the engineers responsible for developing product specifications but not allow others the same privilege. In the buying center, this purchasing agent is filling the role of
| a "hard" nose | ||
| a gatekeeper | ||
| an influencer | ||
| a decider |
Question 12
"Our prices are the lowest, we guarantee it" is an example of a positioning strategy based on the product's
| competitors | ||
| price | ||
| class | ||
| application |
Question 13
Segmenting the market based on exactly how an industrial purchaser will use products is referred to as
| customer-based segmentation | ||
| benefits segmentation | ||
| end-use application segmentation | ||
| geographic segmentation |
Question 14
The lumber your carpenter purchases to finish out your basement is classified as
| a home improvement product | ||
| a raw material | ||
| a business product | ||
| a consumer good |
Question 15
When consumer demand for personal computers affects computer manufacturers' demand for computer chips, this situation is known as
| volatile demand | ||
| conjoined demand | ||
| derived demand | ||
| joint demand |
Question 16
Which of the following is a personal factor in consumer bahavior?
| a cultural influence | ||
| group membership | ||
| friends' opinions | ||
| a person's attitudes |
Question 17
Cognitive dissonance would be most likely to occur after the purchase of
| sneakers | ||
| groceries | ||
| an automobile | ||
| cosmetics |
Question 18
Which of the following would be most likely to break through a person's perceptual screen?
| a newspaper ad featuring white type on a black background | ||
| a black- and -white classified ad | ||
| reducing the size of the ad | ||
| using fewer colors in the ad |
Question 19
The Fortune 500 list of America's largest firms based on sales revenues and number of employees provides a basis for
| market segmentation based upon customer type | ||
| demographic segmentation based upon geographic location | ||
| end-user segmentation of this market | ||
| demographic segmentation based upon customer size |
Question 20
Straight rebuy behavior by industrial purchasers will probably continue if the supplier provides
| poor service | ||
| poor quality | ||
| shipping delays | ||
| satisfactory performance |
Question 21
A controversial technique of subconscious communication, aimed at circumventing the perceptual screens, is called
| shadowed perception | ||
| leger-de-main | ||
| subliminal perception | ||
| perception incognito |
Question 22
Those products that are actually considered when making a consumer purchase decision are
| customer options | ||
| customer selections | ||
| the evoked set | ||
| the product set |
Question 23
The component of the business market that consists of individuals and firms that acquire goods and services to be used directly, or indirectly, in producing other goods and services is called:
| wholesaling and retailing | ||
| the commercial market | ||
| government | ||
| an institution |
Question 24
The institutional market does not include which of the following?
| hospitals | ||
| museums | ||
| motion pictures theatres | ||
| universities |
Question 25
Advertising for smoke alarms, air bags and life insurance typically uses which of Maslow's levels of needs to appeal to consumers?
| self-esteem needs | ||
| safety and security needs | ||
| physiological needs | ||
| protection needs |
Question 26
One type of buying center role is that of the
| influencer who supplies information for evaluation. | ||
| authority figure who decides who, what, where, when, and how. | ||
| disseminator who function is to get advertisements to prospects. | ||
| specifier who needs on the specifications of products |
Question 27
Manufacturing firms that convert to automated factory systems must purchase equipment that they have never bought before, such as robots and computers. This buying situation is called
| a straight rebuy | ||
| a modified rebuy | ||
| a contract purchase | ||
| new-task buying |
Question 29
A commonly used basis for segmenting consumer markets is
| product-related characteristics | ||
| health-related matters | ||
| information-related concepts | ||
| performance-related criteria |
1 points
Question 30
The business market is also known as the
| wholesale market | ||
| corporate market | ||
| organizational market | ||
| distribution market |
Question 31
Which of the following consumer problem-solving behaviors requires the least effort?
| extended problem solving | ||
| limited problem solving | ||
| impulsive buying | ||
| routine response behavior |
Question 32
The relationship between the demand for silk cloth and consumer demand for silk blouses and neckties is known as
| joint demand | ||
| demand volatility | ||
| derived demand | ||
| consumer demand |
Question 33
Examples of business market items that would usually be purchased as a straight rebuy are
| high quality raw materials | ||
| heavy-duty machinery | ||
| paper clips and pencils | ||
| high-tech components |
Question 34
The person who joins a local bowling league for the social interaction, even if he or she is a novice bowler, is probably trying to satisfy his or her
| esteem needs | ||
| self-actualization needs | ||
| physiological needs | ||
| belongingness/social needs |
Question 35
Campbell's "Soup for One" is an example of a product that is targeted to
| large families with high product usage of certain things but different preferences | ||
| dual-income couples with no kids | ||
| well-off older families | ||
| non-traditional households such as nonfamily, single-person or single-parent situations |
Question 36
Red Ryder Industries markets rodeo and horse riding supplies specifically to women. This is an example of
| market stratification | ||
| market segmentation | ||
| non-traditional marketing | ||
| multi-gender marketing |
Question 37
Purchases made by choosing a preferred brand or one of a limited group of acceptable brands are called
| extended problem solving | ||
| routinized response behavior | ||
| limited problem solving | ||
| selective problem solving |
Question 38
The slogan "the graying of America" describes the trend
| toward people retiring later in life | ||
| of the word force to contain a disproportionate number of older Americans | ||
| for gray hair to develop from years of high-stress urban work | ||
| upward in the elderly population as Americans tend to live longer |
Question 39
People or institutions must have sufficient purchasing power and the authority and willingness to buy to be considered a
| market | ||
| buyer | ||
| player | ||
| segment |
Question 40
Reference group influences would be most likely to be significant in the decision to buy
| a loaf of bread | ||
| a Mercedes Benz | ||
| a clock radio | ||
| cellophane tape |
Question 41
Internal search in the consumer decision process may include
| subscribing to consumer magazines to evaluate alternatives | ||
| talking to family members | ||
| reviewing past purchases | ||
| surveying coworkers for buying options |
Question 42
The process of dividing the total market into several smaller, homogeneous groups is called
| market penetration | ||
| market segmentation | ||
| market mixing | ||
| market division |