RETL 369 Chapter 3 Notes
RETL 369 Chapter 3 Notes RETL 369 001
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This 3 page Class Notes was uploaded by Cassie Newman on Monday September 12, 2016. The Class Notes belongs to RETL 369 001 at University of South Carolina taught by Michael Moody in Fall 2016. Since its upload, it has received 10 views. For similar materials see Retail Promotion in Retail at University of South Carolina.
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Date Created: 09/12/16
Bolded words = vocabulary introduced Figure 1.1 Retail Promotion (RETL 369) – Professor Problem Recognition Michael Moody Chapter 3: Buyer Behaviors Informtion Search I. Consumer Buying Process (seen in Evaulation of Figure 1.1) Alternatives II. Information Search A. Internal search – the consumer thinks about Purchase Decision the brands he/she is willing to consider based on prior knowledge and experiences Postpurchase B. External search – information gathered from a Evaluation variety of sources - The amount of time a consumer spends on an external search depends on ability, motivation, and costs versus benefits - Ability: consists of a person’s educational level combined with specific knowledge about products and brands in a category - Motivation to Search: based on level of involvement (how relevant a product is to a consumer), need for cognition (desire for more information), and enthusiasm for shopping - Costs versus Benefits: cost of a good or service, subjective costs such as time spent and anxiety while making an experience, and opportunity costs of foregoing other activities C. Consumer attitudes are the mental positions taken towards a topic, person, or event that influences the feelings, perceptions, and/or behaviors; the process usually follows this order - Affective: feelings or emotions a person has (emotion) - Cognitive: mental images, understanding, or ideas (response) - Conative: intentions, actions, or behavior (feedback) D. Consumer values are strongly held beliefs about topics or concepts and are affected by personality, temperament, environment, and culture E. Cognitive mapping is when consumers simulate knowledge and memories in a thought process while interpreting and responding to new information - Cognitive linkages are where thoughts in a cognitive map are connected III. Evaluation of Alternatives A. The evoked set method suggests of an individual sorts through brands in a purchasing situation based on categorizing the brands into three sets: - Inept set includes the brands that have negative memories related and are not considered - Inert set includes the brands that the consumer has no feelings or memories related to - Evoked set includes the brands most highly considered in a purchasing decision and typically have a positive association with the consumer B. The multiattribute method suggests a consumer’s attitude towards a brand is determined by brand performance and the importance of each attribute of a brand to consumers C. The affect referral method suggests consumers choose brands based only off positive emotional connections Bolded words = vocabulary introduced - Saves mental energy by providing an easy choice - The same approach may have been used by the consumer in the past, making it convenient - Consumers naturally develop bonds with brands and products IV. Trends in the Consumer Buying Environment A. Age complexity stemming from the way children seem to be growing up quickly and are introduced to technology and advertising at a much earlier age as well as some adults trying to maintain their youth and buying products often purchased by younger generations B. Gender complexity based on the blurred lines between traditional roles, lifestyles, and interests of men and women - Men beginning to take a larger part in parenting, household chores, and shopping - Women attending college, marrying later, and waiting to have families C. Active, busy lifestyles with people working longer hours and spending more quality time with friends and families; increase in the need for convenience items D. Diverse lifestyles becoming more prominent with concepts of college students choosing between returning home or living on their own, divorce and remarriage as options, and a growing LGBT community E. Communications revolution changing the way individuals communicate with each other, brands, and companies F. Consumers are more likely to spend on experience pursuits where activities and memories are associated rather than just purchasing luxury items G. Interest in health and maintaining a youthful appearance through nutrition, exercise, and staying active V. Business to Business Buyer Behavior A. The buying center is the group of individuals making a purchasing decision for a business: - Users: use the good or service - Buyers: responsible for making the purchase - Influences: shape purchasing decisions by providing information or criteria used to evaluate the alternatives - Deciders: authorize the purchasing decisions - Gatekeepers: control the flow of information to members of the buying center B. Members of the buying center are affected by influences of both organizational and individual factors - Organizational influences are primarily the company’s goals and its operating environment - Individual influences are spread across seven factors -- personality features, roles and perceived roles, motivational levels, levels of power, attitudes towards risk, levels of cognitive involvement, and personal objectives C. There are three types of Business-to-Business sales - Straight rebuy is when the firm has chosen a vendor in the past and places a reorder from it Bolded words = vocabulary introduced - Modified rebuy is when the buying team evaluates alternative vendors due to dissatisfaction, notice of a better buy, end of a contractual agreement, or limited experience with the good or service - New task is a purchasing situation when the company considers the purchase of a good or service for the first time or when it has been a considerable amount of time since the last purchase of the good or service VI. Business-to-Business Buying Process (seen in Figure 1.2) Figure Establish Identificatio Identify EvaulateSelect Purchase Specification n of Needs s Vendors Vendors VendorNegotiations VII. Dual Channel Marketing A. Dual channel marketing is when companies virtually sell the same goods or services to consumers and businesses B. Spin-off sales occur when those that buy a brand at work have positive experiences and in result purchase the same brand for personal use C. Marketing decisions are made based on how to represent products in each channel by emphasizing similarities or focusing on differences; consumers and businesses look for the same benefits and product features or value different attributes and benefits (similar marketing messages vs. customized messages) D. Dual marketing strategies include using different communication messages, creating different brands, and using multiple or different channels E. Internationally, it is important to notice how cultural differences can cause alternative purchasing decisions to be made and how the presence of a strong global brand can combat alternative brands being chosen
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