BA 390 Week 2 Session 2
BA 390 Week 2 Session 2 BA 390
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This 6 page Class Notes was uploaded by Samantha Tucker on Thursday January 14, 2016. The Class Notes belongs to BA 390 at Oregon State University taught by Toombs in Winter 2016. Since its upload, it has received 46 views. For similar materials see Marketing in Business at Oregon State University.
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Date Created: 01/14/16
BA 390 Week 2 Session 2 14. January 2016 Marketing and Bias Bias Definition: Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair. “There was evidence of bias against foreign applicants” The Human brain has 100 billion cells Why should marketing people care about bias? o Big Data o Unlock new markets o Speed & content o The Digital Universe: 50-fold growth from 2010 to end of 2020 o Entering the Zettabyte Era What Does Amazon Do? o Sells stuff o Free shipping o Learns About you o Doesn’t Judge o Wants you forever o Makes money o You like it Consider the Color Red Example: We associate certain things with the color red: fire, stop, sex, etc. These connections stay with us for life and influence the way we perceive red colored things. o The world is flat Example: Even incredibly educated people had this concept as a base for biases, and so theories developed around the idea that the world was flat. Then that base knowledge was forced to change when the world was found to be round. Conclusions: o All people develop Bias o Bias Increases as we age o We seek things that reinforce our bias o We ignore or dismiss what doesn’t support our bias What Do We Do? o We can manage bias o It is in our interest to do it o Make better marketing people o Managing Bias can lead to fulfillment Back to Amazon It’s in their interest to learn Prime members’ biases Reinforce their bias Sell more product They will keep recommending products even if those products are not ethically sound (ex: Mein Kampf, bomb building books, etc.) Marketing: Tremendous power Involved with society What’s off limits Entering new territory Chapter Five Consumer Markets and Consumer Buyer Behavior Largest Consumer Markets (in $billions) United States $11 26% China $3 9% Japan $3 8% Germany $2 7% Model of Consumer Behavior Consumer buyer behavior: the buying behavior of final consumers, individuals and households, who buy goods and services for personal consumption Consumer market: all of the personal consumption of final consumers Model o The environment Marketing Stimuli: Product, Price, Place, Promotion Other: Economic, Technological, Social, Cultural o Buyer’s black box Buyer’s characteristics Buyer’s decision process o Buyer response Buying attitudes and preferences Purchase behavior: what the buyer buys, when, where, and how much Brand and company relationship behavior. o The paradox? People tend to copy other people/ People want to be individuals. Characteristics Affecting Consumer Behavior Factors influencing consumer behavior o Cultural Culture: The learned values, perceptions, wants, and behavior from family and other important institutions and is the most basic cause of a person’s wants and behaviors. Subcultures: groups of people within a culture with shared value systems based on common life experiences and situations Hispanic American African American Asian American Cross-Cultural Social classes: society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Measured by a combination of occupation, income, education, wealth, and other variables. Major American social classes: Upper class (wealth), middle class (Education), working class (occupation), lower class (income) o Social Factors Groups and Social Networks o Membership Groups: Groups with direct influence and to which a person belongs Fraternities, sororities, etc. o Aspirational groups: groups an individual wishes to belong to o Reference groups: groups that form a comparison or reference in forming attitudes or behavior. o Word-of-mouth influence and buzz marketing Opinion leaders: People within a reference group who exert social influence on others Also called influentials or leading adopters Marketers identify them to use as brand ambassadors. o Online social networks are online communities when people socialize or exchange information and opinions Include blogs, social networking sites (Facebook), virtual worlds (second life) Family o Most important consumer-buying organization in society Most Biases are learned o Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status Biases are reinforced Occupation: affects the goods and services bought by consumers Economic situation includes trends in: Personal income, Savings, Interest rates. o Personal Factors Lifestyle: a person’s pattern of living as expressed in his or her psychographics Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment. Personality: the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment Or you are a collection of biases o Psychological Factors Motivation A motive: a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research: refers to qualitative research designed to probe consumers’ hidden, subconscious motivations. Maslow’s Hierarchy of Needs (listed from bottom to top) o Physiological needs (hunger, thirst) o Safety needs (Security, protection) o Social needs (sense of belonging, love) o Esteem needs (self-esteem, recognition, status) o Self-actualization needs (self-development and realization) Perception Perception: The process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes o Selective attention: the tendency for people to screen out most of the information to which they are exposed o Selective distortion: the tendency for people to interpret information in a way that will support what they already believe i.e. biases o Selective retention: the tendency to remember good points made about a brand they favor and forget good points about competing brands. Beliefs and Attitudes Belief: a descriptive thought that a person has about something based on: o Knowledge o Opinion o Faith Attitudes: describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Types of Buying Decision Behavior o Complex buying behavior Significant differences between brands & high involvement Example: Buying a house o Dissonance-reducing buying behavior Few differences between brands & High involvement Example: $10k refrigerator v. $1k refrigerator o Variety-seeking buying behavior Significant differences between brands & Low involvement Example: Buying cookies o Habitual buying behavior Few differences between brands & low involvement Example: Fine Oregon Salt $7/lb; normal salt $0.50/lb The buyer decision process o Need Recognition Occurs when the buyer recognizes a problem or need triggered by Internal stimuli External stimuli o Information Search Sources of Information Personal sources—family and friends Commercial sources—advertising, Internet Public sources – mass media, consumer organizations Experiential sources—handling, examining, using the product o Evaluation of Alternatives How the consumer processes information to arrive at brand choices o Purchase Decision The act by the consumer to buy the most preferred brand The purchase decision can be affected by Attitudes of others Unexpected situational factors o Post-purchase decision The satisfaction or dissatisfaction that the consumer feels about the purchase Relationship between Consumer’s expectations Product’s perceived performance The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction. Cognitive dissonance is the discomfort caused by a post-purchase conflict. Value consumer surplus!! Customer satisfaction: a key to building profitable relationships with consumers—to keeping and growing consumers and reaping their customer lifetime value. The buyer decision process for new products o Adoption process: the mental process an individual goes through from first learning about an innovation to final regular use. o Stages in the process: Awareness Interest Evaluation Trial Adoption o Differences in Innovativeness Adopter categories Innovators Early Adopters Early mainstream Late mainstream Lagging adopters
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